PICULA, RUPEL POSITIVELY ASSES TWO COUNTRIES' RELATIONS

LJUBLJANA, March 6 (Hina) - Relations between Croatia and Slovenia are based on general understanding and are marked by frequent meetings at the highest level, Croatian Foreign Minister Tonino Picula said. Multilateral cooperation is excellent and the list of open issues is shrinking, he added. Picula said this after his day-long visit to Slovenia and talks with his Slovene counterpart, Dimitrij Rupel. The Croatian foreign minister also held talks with Slovene Prime Minister Janez Drnovsek and President Milan Kucan. During a press conference, Rupel agreed with the majority of Picula's assessments. The two ministers showed some differences in their standpoints on a border agreement and the transport of oil, oil products and hazardous substances by road through Croatia. At the joint news conference, Rupel said the two countries' relations are improving. He said trade was extremely high last year and amounted to over US$1.2 billion. According to Rupel, the two ministers focused on multilateral cooperation and international organisations. He said Slovenia has supported Croatia in the Vilnius Group. Rupel said the two countries cooperate within the United Nations and the Central European Initiative. Slovenia believes that a cross-border and cooperation agreement, as well as other agreements, must be implemented in their entirety, Rupel said. According to him, it has been agreed that cross-border passes be issued. Slovenia also expects accelerated ratification of an agreement on the protection of investments and an agreement on avoiding double taxation. Croatia expects the closure of a tourism agreement. Commenting on a state border agreement, which has been signed but not yet ratified, Rupel reiterated that all negotiations have been completed. He says he hopes the agreement will be signed in the near future. Picula spoke about the agreement in a different tone of voice. The disputed agreement caused different reactions in Croatia. The Croatian foreign minister said the draft border agreement will have to "wait for some better times." Asked to comment on the issue of Croatian savings account clients of the Ljubljanska Banka Zagreb, who made deposits before the break-up of the former Yugoslavia, the Slovene foreign minister said the talks did not focus on the issue. He said they would tackle the issue during a new round of talks scheduled to be held in the Bank for International Settlements (BIS) in Basel. He also said Slovenia believes that all successor countries to the former Yugoslavia will ratify the Vienna framework agreement on the succession. Picula said the framework agreement on the succession is "a major and important document." He said, however, he was not satisfied with the fact that at the time the agreement was signed people did not know that US$600 million had disappeared from the former Yugoslav National Bank. "The Croatian government demands an explanation how did that happen and who is responsible," he said. Rupel and Picula also discussed the oil transport regime, against which Slovenia has officially protested and threatened to start a procedure before international organisations. Slovenia believes the regime is not in keeping with the principles of free trade. Picula said the Croatian government acknowledges that the introduction of a rule book had certain economic consequences in neighbouring countries. He said he believes they will reach a solution at the next meeting of Croatian and Slovene experts, to be held in Ljubljana. Croatia has already reached an agreement with Bosnia and expects to do the same with Slovenia, the Croatian official said. The process before the World Trade Organisation (WTO) would be long and expensive and issues should be settled through a bilateral agreement, Picula said. Rupel said Slovenia hopes the two countries will reach a bilateral agreement. If it is not satisfied with a proposal of experts, Slovenia will continue with the procedure before at the WTO, the minister said. (hina) it sb