This improvement, unfortunately has not spread to local authorities and among local residents to a sufficient extent, Uzelac said in the interview published on Sunday.
He went on to say that evident progress in the bilateral relations had not yet been felt sufficiently in communities, notably in those areas populated by Serb returnees.
Some time ago the Croatian government decided to speed up this improvement, but it faced difficulties caused by insufficient understanding in some communities, the Croatian Serb representative said.
Uzelac is satisfied with the way the governments of the two countries are following the development of communication between the presidents, Ivo Josipovic of Croatia and Boris Tadic of Serbia.
However, the two governments cannot be fully satisfied until this cooperation assumes more concrete forms to the benefit of citizens of the two countries and until economic connections are successful to the benefit of the entire region, he said.
According to Uzelac, President Tadic's two-day visit to Croatia and talks with the top Croatian officials this past week confirmed the trend of improving bilateral relations.
Uzelac said that the cabinet of the Croatian Prime Minister Jadranka Kosor had not yet considered a possibility of withdrawing genocide lawsuits. After Croatia lodged a genocide lawsuit against Serbia with the International Court of Justice, the latter filed a countersuit.
He expressed hope that the bilateral cooperation would settle a majority of issues that had led to Croatia's lawsuit against Serbia and the subsequent countersuit, all of which would finally make the legal actions dispensable.
Commenting on the issue of people who went missing in the 1991-1995 war and who are still unaccounted-for, which is why the two presidents deem this topic to be a priority, Uzelac said that "we in Croatia need a single list of the missing people rather than keeping separate records about the missing Croats and Serbs."
"I am sure that after the meeting of the two presidents we will finally have results in this area, too."
Commenting on plans to hold an international fund-raising conference for the housing of Serb refugees, Uzelac said that this would be one of measures to close this story.
Those who decided to flee (Croatia) must not be punished through property and "the fact that somebody has decided to live in Serbia should not result in them losing their private property in Croatia," the Croatian Deputy PM said.