1. Security Situation at the Administrative Boundary and in the Ground Safety Zone RESARCH TEAM LEADER GEN. NINOSLAV KRSTIĆ, FSD PRESIDENT AUG.2006.

2. The security situation along the administrative boundary in the municipalities of Preševo, Bujanovac and Medvedja is characterized by the following: -the security situation has become more complex after the political platform regarding requests for political, territorial and constitutional autonomy has been adopted; -the representatives of the Albanian community are requesting that the number of Gendermerie and SMAF representatives be decreased and withdrawn and they are asking for ''demilitarization of Preševo and Bujanovac''; -flying the flag of the Republic of Albania, rejecting the flag of the Republic of Serbia in Preševo and Bujanovac and graffiti writing; -illegal trade and smuggling of narcotics and goods subject to excise duties; -trafficking in humans (in 2006, 16 attempts of illegal crossing of the administrative boundary with Kosovo and Metohija and illegal entries to Central Serbia have been recorded; 63 persons were arrested, out of which 62 were from the Republic of Albania and 1 was from Turkey). Security Situation at the Administrative Boundary and in the Ground Safety Zone

3. Serious cases of armed attacks and provocation committed in the municipalities of Preševo, Bujanovac and Medveđa in the period from April to June 2006 During the period from 1 April 2006 to 30 June 2006 1 (one) terrorist attack was committed by Albanian extremists on the territory of Preševo, Bujanovac and Medveđa municipalities. The relevant events: -An unknown person committed a criminal offence of terrorism under Article 312 of the Criminal Code of the Republic of Serbia against police officers and other staff members of the KBP ''Končulj'' and against customs officers and tax police officers in Končulj, on 29 May 2006 around 23:50. -The unknown persons committed this terrorist attack by firing a burst from an automatic weapon (around 60 shots were fired) at police officers who were on that control checkpoint. -The police officers did not respond to the attack and there were no wounded. 76 7.62 mm calibre shells from the automatic weapon manufactured in China, were found and they were later taken away from the scene as forensic evidence. -''Commemorative gatherings'' were held in Preševo and Bujanovac municipalities In the period from 1 April to 30 June 2006 nine public gatherings (9 commemorative gatherings) were held in Preševo, Bujanovac and Medveđa municipalities with 4,960 Albanians attending. Undertaken measures and activities prevented Albanian extremists' provocation, ensured stability and public safety, normal functioning of traffic and transportation and full functioning of public enterprises and institutions which are important for the public. With the assistance from the international forces stationed in Kosovo and Metohija, particular and adequate measures were taken aimed at efficiently guarding the administrative boundary, preventing arms smuggling and illegal entries of extremists and preventing them from making armed attacks and provocation from the AP of Kosovo and Metohija in the Ground Safety Zone Security Situation at the Administrative Boundary and in the Ground Safety Zone

4. Activities and measures targeting criminal activities in the Ground Safety Zone In the period from 1 April 2006 to 30 June 2006, a total of 169 criminal offences were committed in the territory of the Ground Safety Zone. The breakdown of these offences is as follows: 1.Cases of business crime - 26 cases of criminal acts The breakdown of cases of business crimes is as follows: -Abuse of authority, Article 359 of the Criminal Code of the Republic of Serbia6 -Forgery of service identification card, Article 357 of the Criminal Code of the Republic of Serbia8 -Embezzlement, Article 364 of the Criminal Code of the Republic of Serbia5 -Illegal trade, Article 243 of the Criminal Code of the Republic of Serbia2 -Forgery and abuse of credit and debit cards, Article 225 of the Criminal Code of the Republic of Serbia1 -Other criminal offences4 Security Situation at the Administrative Boundary and in the Ground Safety Zone

5. Activities and measures targeting criminal activities in the Ground Safety Zone (2) 2.Criminal acts of general nature - 143 cases of criminal acts The breakdown of criminal acts of general nature is as follows: Attempted murder, Article 113./30. of the Criminal Code of the Republic of Serbia3 Rape, Article 178 of the Criminal Code of the Republic of Serbia 1 Armed robbery, Article 206 of the Criminal Code of the Republic of Serbia 1 Terrorism, Article 312 of the Criminal Code of the Republic of Serbia2 Grand larceny, Article 204 of the Criminal Code of the Republic of Serbia21 Theft, Article 203 of the Criminal Code of the Republic of Serbia20 Family violence, Article 194 of the Criminal Code of the Republic of Serbia3 Use of other person's vehicle without permission, Article 213 of the Criminal Code of the Republic of Serbia 4 Illegal possession of weapons and explosives, Article 348 of the Criminal Code of the Republic of Serbia4 Trafficking in humans, Article 388 of the Criminal Code of the Republic of Serbia2 Forgery of documents, Article 355 of the Criminal Code of the Republic of Serbia22 Illegal manufacturing, possession and trading in narcotics, Article 246 of the Criminal Code of the Republic of Serbia9 Fraud, Article 208 of the Criminal Code of the Republic of Serbia2 Violent behaviour, Article 344 of the Criminal Code of the Republic of Serbia 2 Security Situation at the Administrative Boundary and in the Ground Safety Zone

6. 2.Criminal acts of general nature - 143 cases of criminal acts The breakdown of criminal acts of general nature is as follows (2) : Inflicting minor bodily injuries, Article 122 of the Criminal Code of the Republic of Serbia 4 Destruction and damaging property belonging to another person, Article 212 of the Criminal Code of the Republic of Serbia1 Common law marriage with a minor, Article 190 of the Criminal Code of the Republic of Serbia 1 Destruction and damaging instruments and equipment intended for public use, Article 279 of the Criminal Code of the Republic of Serbia3 False informing, Article 344 of the Criminal Code of the Republic of Serbia 1 Putting public in danger, Article 278 of the Criminal Code of the Republic of Serbia 1 Causing danger in public transportation, Article 289 of the Criminal Code of the Republic of Serbia 15 Serious violations of safety in public transport, Article 297 of the Criminal Code of the Republic of Serbia9 Other criminal offences 13 Security Situation at the Administrative Boundary and in the Ground Safety Zone

7. Conclusion In long term, the security situation in the municipalities of Preševo, Bujanovac and Medveđa is assessed as being stable. -For almost two years we have not had any inter-ethnic conflicts, not even individual conflicts -The number of organized groups crossing from Kosovo and Metohija into central Serbia through the Ground Safety Zone has decreased by 10% -The number of criminal offences committed by citizens living in these three municipalities has dropped by 10% -The cooperation and partnership between the KFOR Command and the security forces in the Ground Safety Zone are excellent. -New preconditions for an accelerated economic development of the region have been achieved. Security risks and challenges -The future status of Kosovo and Metohija -.Organized crime that has a spill-over effect from Kosovo and Metohija into central Serbia: -trafficking in humans -drug trafficiking -Extremism that too can spill over from the territory of Kosovo and Metohija and find good breeding-ground with the former members of the LAPMB who are now politically organized. - The unemployment rate is still high particularly among the young population and the social and welfare situation is still quite difficult. -Measures aimed at eliminating negative elements -Continue with the implementation of the plan of the Government of Serbia and assist in achieving a more accelerated economic development of the region with the assistance of the international community. -The problem in the South of Serbia should be addressed separately from the problem of Kosovo and Metohija. -Work on enhancing cooperation between the KFOR Command and Units and the Army of Serbia for the purpose of combating organized crime. -Improve the regional cooperation at the level of the Balkan and South East European states in combating organized crime, trafficking in humans, narcotics and arms. Security Situation at the Administrative Boundary and in the Ground Safety Zone