Speaking to reporters after meeting members of the Bosnian Council of Ministers, led by Chairman Nikola Spiric, Sanader said that both sides agreed that it was necessary to strengthen their cooperation and settle the outstanding issues without delay.
He said that a new proposal had been put forward to Bosnia-Herzegovina to permanently resolve the dispute over the use of the southern Croatian seaport of Ploce.
Spiric said that the proposal offered his country the status of most privileged nation in Ploce, and that it would be considered. He noted that Croatia and Prime Minister Sanader were actively pursuing a solution to the problem.
Sanader added that a solution to the Ploce issue should be sought in the context of plans for the construction of transport corridor Vc and that therefore Croatia proposed a modern approach that included giving Bosnia-Herzegovina most privileged nation status.
Speaking of the border issue, the two prime ministers said that most of it had been resolved and that it should be left to experts to try once again to find a solution to the dispute over the border near the Bosnian coastal town of Neum and the border on the Una river near Kostajnica.
If those efforts fail, a final solution should be sought through international arbitration, both prime ministers said.
Sanader said he was convinced that the construction of a bridge between the Peljesac peninsula and the mainland would begin soon since an agreement had been reached on all important technical details.
On the subject of ownership of oil pipeline operator Jadranski Naftovod (JANAF), Sanader said that Croatia considered the issue closed in the late 1980s and early 1990s and that it was Croatian property. He, however, added that Croatia was willing to consider any new arguments and evidence offered by Bosnia-Herzegovina.
Sanader said that Croatia strongly supported Sarajevo's application for the seat of the Permanent Secretariat of the Southeast Europe Cooperation Process (SEECP).
Responding to reporters' questions, Sanader said his government believed that Bosnia-Herzegovina needed a more modern solution to its internal organisation than the one offered by the Dayton peace agreement, but that it should be reached with the consent of all three constituent peoples in Bosnia-Herzegovina.
Sanader said he would be glad if Bosnian Croat parties HDZ BiH and HDZ 1990 drew closer to each other or even merged to form a single party. He, however, stressed that it was a matter for the Croats in Bosnia-Herzegovina to decide and that Zagreb would not want to interfere.
Asked if his visit was part of the election campaign in Croatia, Sanader said that was not the case, predicting an outright victory for his HDZ party in November.