HDZ DEMANDS RESIGNATION OF PM RACAN, HIS CABINET

KNIN, Aug 29 (Hina) - The President of the Croatian Democratic Union (HDZ), Ivo Sanader, on Thursday stated in Knin that his party was calling for the resignation of Prime Minister Ivica Racan and the entire government because of the situation they brought Croatia in with the initialled agreement with Slovenia on the border in Piran Bay. #L# "We will not be satisfied with Racan's remark that the agreement is void, as though it had been signed by someone else and not him," Sanader said at a press conference. Sanader said that Slovenia and Croatia were two neighbouring and friendly countries, and that all open issues must be resolved in the spirit of co-operation and good neighbourly relations. Referring to the conflict that has arisen over Piran Bay, Sanader said that the incumbent government, by initialling the deal with Slovenia, had done away with the State Border Commission which had consisted of experts, instead forming a subcommission within the Foreign Ministry. He also added that Racan, without consulting anyone in the ruling coalition, had entered into a bilateral agreement with Slovenia's Prime Minister Janez Drnovsek. As Sanader said, the HDZ now supports the idea of international arbitration and believes that this is the only solution because the Slovenes are not satisfied with the Racan-Drnovsek agreement either. Commenting on headlines in the press about the possibility of a coalition between the HDZ and Racan's Social Democratic Party (SDP), Sanader said that this was mere speculation and was not true. "Coalitions with either the SDP or the HNS (Croatian People's Party) are out of the question. The HDZ will approach the elections independently and may enter coalitions following the elections, depending on the actual results," he said. (hina) sp/ha sb