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I warmly welcome the Statement of the Bosnian Serb leadership, announcing the immediate and permanent withdrawal of Radovan Karadzic from all political activities.

The step-down of Radovan Karadzic has been the result of continuous pressure by the combined efforts of the international community and organizations involved in the peace implementation process.

I commend Dick Holbrooke and the US government, whose mission had my full support as well as that of the Allies, for this diplomatic breakthrough. Once again, Ambassador Holbrooke's negotiating skills have proved to be of great value for continuing the peace process.

Now that Karadzic has relinquished the office of the President of the Republika Srpska and the office of the Presidency of the SDS Party, an important obstacle has been removed for holding free and fair elections on 14 September.

We will remain cautious and vigilant that the Bosnian Serb leadership implements the Statement and that Radovan Karadic does not resume any political activity.

Justice remains to be done. The proper place for Radovan Karadzic is in the International Criminal Tribunal in The Hague to stand trial for the war crimes for which he has been indicted.