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PRESIDENT DENIES EXISTENCE OF SECRET AGREEMENT WITH PM

ZAGREB, Aug 28 (Hina) - President Stjepan Mesic has dismissedspeculation about the existence of a secret agreement between him andPrime Minister Ivo Sanader according to which Sanader's CroatianDemocratic Union (HDZ) party will not nominate a candidate forpresidential elections provided that Mesic does not lead an anti-HDZcampaign.
ZAGREB, Aug 28 (Hina) - President Stjepan Mesic has dismissed speculation about the existence of a secret agreement between him and Prime Minister Ivo Sanader according to which Sanader's Croatian Democratic Union (HDZ) party will not nominate a candidate for presidential elections provided that Mesic does not lead an anti-HDZ campaign.

"This is speculation and guesswork. There is no agreement," Mesic categorically said in response to a question from the press during his visit to Okrug municipality near the central coastal town of Trogir.

He added presidential elections would most likely be held in December, and said he would certainly win regardless of who the other candidates were.

Mesic went on to say nobody could deny that Croatia had achieved outstanding results in its foreign policy and had turned from an "off-putting, arrogant and morose state into a respectable and attractive country".

The president said the government had to start dealing with economic problems, notably the foreign trade deficit. "Nevertheless, I must say that things are getting better, although not at the pace they should be."

Mesic also held talks with local leaders.

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