(b) In order to establish a baseline, the Parties agree to report within thirty (30) days after this Annex enters into force their holdings as defined in sub-paragraph (a) above, according to the format prescribed in the 1992 Vienna Document of the OSCE.

(c) This notification format shall be supplemented to take into account the special considerations of the region.

3.  The Parties agree to complete within 180 days after this Annex enters into force the negotiations above on agreed numerical limits on the categories referred to in paragraph 2(a) of this Article. If the Parties fail to agree to such limits within 180 days after this Annex enters into force, the following limits shall apply, according to a ratio of 5:2:2 based on the approximate ratio of populations of the Parties:

(a) the baseline shall be the determined holdings of the Federal Republic of Yugoslavia (hereinafter the "baseline");

(b) the limits for the Federal Republic of Yugoslavia shall be seventy-five (75) percent of the baseline;

(c) the limits for the Republic of Croatia shall be thirty (30) percent of the baseline;

(d) the limits for Bosnia and Herzegovina shall be thirty (30) percent of the baseline; and

(e) the allocations for Bosnia and Herzegovina will be divided between the Entities on the basis of a ratio of two (2) for the Federation of Bosnia and Herzegovina and one (1) for the Republika Srpska.

4.  The OSCE will assist the Parties in their negotiations under Articles II and IV of this Annex and in the implementation and verification (including verification of holdings declarations) of resulting agreements.

Article V

Regional Arms Control Agreement

The OSCE will assist the Parties by designating a special representative to help organize and conduct negotiations under the auspices of the OSCE Forum on Security Cooperation ("FSC") with the goal of establishing a regional balance in and around the former Yugoslavia. The Parties undertake to cooperate fully with the OSCE to that end and to facilitate regular inspections by other parties. Further, the Parties agree to establish a commission together withrepresentatives of the OSCE for the purpose of facilitating the resolution of any disputes that might arise.

Article VI

Entry into Force

This Annex shall enter into force upon signature.

For the Republic of Bosnia and Herzegovina

For the Republic of Croatia

For the Federal Republic of Yugoslavia

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