"The Security Council expresses its grave concern that a large number of Serb residents and displaced persons have emigrated from the Republic of Croatia since late 1996, mainly because of continued security incidents, ethnically-related intimidation, a dire economic situation, bureaucratic hurdles, discriminatory legislation and a stalled return programme. A continuation of this trend could have a seriously negative effect on the restoration of a multi-ethnic society in the Republic of Croatia. The Council, therefore, welcomes the adoption by the Government of Croatia, on 20 June 1998, of a nationwide programme for the return and accommodation of displaced persons, refugees and resettled persons (S/1998/589) and calls for its prompt and full implementation at all levels, including the abolition of discriminatory property laws and the establishment of effective mechanisms allowing owners to recover their property. It stresses the importance of the prompt and full implementation of the Programme on Reconciliation at all levels throughout Croatia and of preventing and responding to incidents of harassment and unlawful evictions.