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I was very pleased to hear that the political leadership within Bosnia and Herzegovina has agreed on wide-ranging and radical defence reforms for their country. I understand the process of defence reform was difficult and involved painful compromises on all sides. However, today's agreement marks a major step forward unconceivable only a few years ago, and proves the progress Bosnia and Herzegovina is making towards full stabilisation.

I pay tribute not just to the Defence Reform Commission under the skillful chairmanship of James Locher, but also to High Representative Lord Ashdown and all those who have worked untiringly to build this agreement. I know the people of Bosnia and Herzegovina are seeking membership of the Partnership for Peace, and today's agreement is only one step in that process. But it was a fundamental step if that ambition is to be fulfilled, and I congratulate the political leaders of Bosnia and Herzegovina on their wisdom and vision.