PRESIDENT MESIC SAYS CROATIA ENJOYS GOOD INTERNATIONAL REPUTATION

ZAGREB, Feb 6 (Hina) - After a year in office Croatian President Stjepan Mesic is satisfied with Croatia's new international "image", but warns a large number of economic and social issues have not yet been solved, and shares dissatisfaction with Croatian citizens regarding those problems. #L# Asked which events marked his first year in office, Mesic said some of his actions would remain current for a long period. In this light, he recalled the decision on the retirement of senior Croatian Armed Forces officers who sent an open letter to the public (requesting the protection of the dignity of the Croatian Homeland Defence War), and an agreement with French President Jacques Chirac on a EU summit in Zagreb. "This summit has shown that Croatia is a country of opportunity which will be individually admitted into European integration processes, and that no political association in this region is necessary nor possible," Mesic stressed. Asserting he was satisfied with some achieved results, but added there were still unresolved issues. He recalled Croatia was not a law-based state, debts were higher than was imagined, and the economy devastated more than could be envisaged. Mesic voiced dissatisfaction with "too many current scandals". Reporters wished to know his stance on the appointment of state prosecutor Radovan Ortynski, for whom the media claims had snuffed out students' demonstrations in 1971. In reply Mesic said he was not officially involved in the appointment, and does not know if Ortynski had made any misdeed. What is important is that he has affirmed himself as competent in doing his job, and any man cannot be accused without evidence. Commenting on announcements about the possibility of rescinding the Parliament's House of Counties (upper house), Mesic said this decision should be left up to members of the parliament, and warned that changing the Constitution too often could present Croatia "as a frivolous country". Speaking about alleged disagreements among state bodies regarding diminishing the President's authorities, which is being moved in discussions on new bills on defence and national security, the President stressed constitutional provisions cannot be changed avoiding regular proceedings. Mesic advocated the creation of conditions for foreign investments aimed at spurring production, as well as the drafting of a development strategy in every profession and at the state level. Speaking about threats by the right-wing, Mesic said he did not fear an assassination and would continue to perform his duties. According to him, the right-wing is ambiguous and formed by those nostalgic for the NDH (Independent State of Croatia, 1941-1945) and those who wish to return to power. The next elections will completely oust the extremist right-wing, he asserted. Regarding the situation in the region, Mesic said Croatia's state interest was in bids to defuse tensions and settle open issues in a democratic and bilateral manner. Montenegro and Kosovo in relations with Yugoslavia should establish formal ties themselves, with no outside interference, Stipe Mesic said. Commenting on relations with Slovenia, he said outstanding issues should also be solved with bilateral efforts, and expressed conviction there would be no need for arbitration. Asked on what he founded his claim that negative economic indicators would cease this spring, Mesic said the increase of unemployment was being curbed and the number of employed workers was increasing. However, he added, this is not happening fast enough. If Croatia is soon to become a security zone and foreign capital should find interest for investments, new jobs will be created. The head of state said he did not object to the issuing of transcripts of his talks with the late President Franjo Tudjman. (hina) sb lml