At the same time Cambodia will have to tackle the problems of police reform, crime prevention and judicial accountability of perpetrators. Suffice is here to mention the vital importance of the land management problem. We also are pleased to notice good headway in the economic and financial sectors. The macro-economic situation has considerably improved. A vital necessity, however, is budgetary stringency, reduction of military expenditure and eliminating corruption in the public sector, as well as the creation of climate of security and legality in order to attract investment.
W e recognize that in the forestry sector there has been progress, too.
Large scale illegal logging obviously has come to a halt. But competent organizations maintain that there is still a lot of damage done to the forest environment and to state economy by ongoing illegal activities. So the Government's efforts in this respect must be strengthened and must continue, especially now that we are facing another dry season. One of the core regions of the Cambodian reform policy is demobilization of the military and police- sectors. Demobilization is going to have a major impact on practically all other reform areas including the budgetary sector and enhancing civil society.