The December 1995 General Framework Agreement for Peace in Bosnia and Herzegovina and its supporting annexes (also known as the Dayton Agreement) provided the structure and mandates for an international operation intended to promote an enduring peace in Bosnia and stability in the region. in May 1997, GAO reported that the Bosnia peace operation had created and sustained an environment that allowed the peace process to move forward, but reconciliation had not yet occurred due to the intransigence of Bosnia's political leaders. Thus, according to many observers, given the pace of political and social change in Bosnia at that time, the presence of an international military force would be required after the current military mission ends in June 1998 if a resumed conflict were to be prevented. At the request of the Chairman of the Senate Committee on Foreign Relations, this report provides an update on the progress made in achieving the four key Dayton objectives. The key objectives are to create conditions that allow Bosnia's political leaders to (1) provide security for the people of Bosnia; (2) create a unified, democratic Bosnia that respects the rule of law and internationally recognized human rights, including cooperating with the international Criminal Tribunal for the former Yugoslavia (hereafter referred to as the war crimes tribunal) in arresting and bringing those charged with war crimes to trial; (3) ensure the rights of people to return to their prewar homes; and (4) rebuild the economy.