Annex 3 To Protocol #8 of the JCC Session dated September 26, 1997

DECISION OF THE JOINT CONTROL COMMISSION (JCC) FOR THE GEORGIAN-OSSETIAN CONFLICT SETTLEMENT on results of implementing the agreement concluded between the governments of russia and georgia on economic rehabilitation of the regions in the zone of conflict (1993, moscow) and the proposals on new principles and forms of further liquidation of social and economic consequences of the conflict.

The JCC notes the striving of the parties to positive mutual cooperation in resolving the economic problems within the framework of the georgian-ossetian conflict settlement and supports the further stabilization of this process.

The jcc notes that the obligations taken by the governments of georgia and russia considered under the agreement concluded between the government of russia and georgia on economic rehabilitation of the regions in the zone of the georgian-ossetian conflict dated september 14, 1993, were not fully executed. They did not present to the jcc their proposals defined under point 3 of the provision 4 of the decision of the jcc dated february 13, 1997.

Positively evaluating the work carried out by the parties, the jcc deem it necessary to do the following:

1. Ask the governments of georgia and russia to continue funding the works with regard to economic rehabilitation of the regions suffered in the process of the georgian-ossetian conflict, in the volume as to considered under the agreement concluded between the government of russia and georgia on economic rehabilitation of the regions in the zone of the georgian-ossetian conflict dated september 14, 1993.

2. Ask the governments of georgia and russia to reconsider the [possibility of concluding the bilateral agreement on mechanisms of economic cooperation in rehabilitating the regions suffered in the process of the georgian-ossetian conflict prior to july 1, 1998, which will respond to the modern conditions, with the participation of the south ossetian and north ossetian parties.

3. Take into consideration the statement of the co-chairman of the georgian part of the jcc, mr. I. Machavaiani about allocating by georgia gel 1 million (5 billion russian rubles) in 1998 for carrying out construction and rehabilitation works in the zone of the conflict.

4. The georgian side shall consider the proposals of the south ossetian party about using by it the targeted (purpose) loans granted by russia and present its decision within the period of one month.

On behalf of the russian side

On behalf of the Georgian Side

On behalf of the South Ossetian Side

On behalf of the North ossetian Side

in the presence of: the OSCE Mission

(Archive of the Staff of the State Minister of Georgia for Conflict Resolution Issues/in Russian)