Bosnian leaders called on war crimes suspects to voluntarily surrender to The Hague tribunal. Failed attempt to capture indicted war criminals Milan and Sredoje Lukic 18 April killed 1; 2 members of Special Police Force suspended. High Rep. Ashdown had previously suspended funding to ruling Serb Democratic Party (SDS) for failing to cooperate with tribunal.

First state-level defence minister finally selected 15 March. Nikola Radovanovic’s appointment paves way for Bosnia’s membership in NATO’s Partnership for Peace program. Month-long political crisis due to HDZ/SDA rift overcome. Massive opposition demonstrations in Republika Srpska 23 March protesting against government and recent events in Kosovo. Bosnia plans to send 36-strong demining team to Iraq by 1 September - first military mission comprising all 3 ethnic groups. High Rep. Lord Ashdown visited Mostar 15 March marking first day of city’s reunification amid criticism from local politicians. NATO’s Stabilisation Force (SFOR) raid to capture former Bosnian Serb president Radovan Karadzic 31 March failed. Two civilians seriously injured.

Membership in NATO’s Partnership for Peace program at risk after failure to appoint national defense minister. NATO-led troops continued search for former Bosnian Serb president Karadzic. His political ally Momcilo Krajisnik on trial 3 February as highest ranking Bosnian Serb before Hague War Crimes Tribunal. International sanctions imposed by High Rep. Lord Ashdown 9 February on 10 Bosnian Serbs, including former Bosnian Serb president Mirko Sarovic, all accused of being part of criminal network protecting Karadzic. Ashdown’s proposal to unite Mostar criticised by Croat and Bosnian politicians.

Failed attempts by NATO's Stabilisation Force (SFOR) to locate former Bosnian Serb president Radovan Karadzic and military leader Ratko Mladic caused Hague War Crimes Tribunal to question Bosnian and Western political will. Posters in support of Karadzic appeared in his wartime base, Pale, after 4-day NATO-led operation failed. Police arrested former president Jelavic on organised crime charges. High Rep. Paddy Ashdown launched attempt to unite city of Mostar institutions presently divided between Bosnian Muslims and Croats.

Integration of armies and customs services continued. Bosnian Serb commander Momir Nicolic imprisoned for 27 years by Hague tribunal for role in Srebrenica massacre and Serb General Stanislav Galic to 20 for crimes against humanity and war crimes. European Commission feasibility study gave Bosnia good chance of beginning negotiations for EU Stabilisation and Association Agreement in 2004. One noted shortcoming was lack of cooperation with Hague tribunal. International funding secured for new domestic war crimes court to begin work early 2004.

NATO-assisted defence restructuring continues: integration of Serb and Bosniak- Croat armies under single national command finally underway, 7,500 soldiers to be disarmed and 1,000 metric tons of weaponry destroyed by year-end. European Commission feasibility study gives Bosnia good chance of beginning negotiations for EU Stabilisation and Association Agreement in 2004. One notable shortcoming is cooperation with ICTY. Officials stated that NATO Partnership for Peace membership and European integration hinged on Karadzic arrest. Funding secured for new domestic war crimes court to begin work early 2004.

High Rep. Paddy Ashdown reported Bosnia’s major ethnic groups beginning to cooperate: draft laws on intelligence and indirect tax reform formerly held up by political bickering now await parliamentary endorsement; integration of Serb and Bosniak armies under single national command finally underway. NATO Secretary General Lord Robertson announced 9 October NATO would likely leave Bosnia within 12-18 months. One notable shortcoming is Bosnia’s cooperation with ICTY. U.S. State Department’s Pierre Richard Prosper said 7 October that NATO Partnership for Peace membership and European integration hinged on Karadzic arrest.

Concerted international pressure led on 25 September to adoption by local authorities of draft law on defence reform that, if endorsed by parliament, will provide for state command over entity armies and pave way for BiH to join NATO’s Partnership for Peace early next year. Draft laws on intelligence and indirect tax reform also await parliamentary endorsement. New commission to unite Mostar began work on 25 September. SFOR continues to uncover arms caches leftover from war. Remains of some 500 people have been discovered in single mass grave in NE Bosnia – assumed to be Muslim wartime victims of Serbs.

SFOR made unsuccessful efforts to capture indicted war criminals, mounting raid on home of Gen. Ratko Mladic's late mother on 13 August and surrounding sites associated with Radovan Karadzic in Pale on 26 August. Mitar Rasevic, chief warder at Serb prison in Foca, surrendered to Hague Tribunal. The 3 ruling nationalist parties continue to bicker - both with coalition partners and within their ranks over jobs, education and tax reform, and proposed unification of Mostar.