CROATIA WANTS STRATEGIC ECONOMIC PARTNERSHIP WITH AUSTRIA - MESIC

VIENNA, Feb 21 (Hina) - Croatia wants strategic economic partnership with Austria in order to attract Austria's capital and realise a joint presentation of the two countries' economies, Croatian President Stipe Mesic told a news conference in Vienna on Wednesday. Mesic arrived in Austria on Tuesday for a three-day working visit. Recently, Austria presented an idea on the gathering of interest groups of candidates and future candidates for the admission into the European Union, with whom it aspires to establish a strategic partnership, for now only in economy. We want cooperation at a higher level, not only in buying and selling, but also in development strategies of both countries, the President said. He stressed that the two countries' markets must be open to each other, adding that business partners from Croatia and Austria must be oriented toward a joint presentation at third markets. A strategic partnership will activate our economic possibilities, but also enable the two countries' joint activities at newly discovered markets, President Mesic said. The President said he was referring to the markets of the former Russian Federation, central European and Islamic countries. On Tuesday, the Croatian President held talks with Austrian President Thomas Klestil, Chancellor Wolfgang Schuesslel and president of the Austrian parliament's National Council Heinz Fisher, discussing ways of intensifying cooperation between the two countries and the situation in the region. Mesic said the talks were successful. We agreed that cooperation at the political level was good, but there was still room for cooperation in economy, Mesic told reporters. Austria is extremely important economic factor to Croatia. The overall exchange in 2000 amounted to US$817 million. Austria's direct investments in Croatia amounted to US$640 million. "Croatia needs Austria's capital as an economic partner", Mesic said. On Tuesday evening, the Croatian President hold talks with about 30 Austrian business people, representatives of well-respected Austrian companies, on investments in Croatia. Present at the talks were representatives of Siemens, Reiffeisen bank, Bauholding strabag and others. During today's press conference, Mesic addressed the current political situation in Croatia, as well as Croatia's relations with the neighbours. When asked whether recent "nationalist" protests would obstruct reform processes in Croatia, the President said: "I don't expect Croatia to benefit from the protest, however, there will be no greater damage". The President also said that ideas on the forming of a third Croat entity in Bosnia-Herzegovina was not suitable for the Croat people in the country, because it could lead the people into poverty and would not solve the issues of Croats in Bosnia, but possibly only the issue of Croats in Herzegovina. Commenting on the question on the reconciliation between Croatia and Serbia, the President said that the individual guilt and processing of responsible persons should take place before the reconciliation, in order to avoid the collective guilt. President Mesic also held talks with Vienna mayor Michael Haeupl. During the talks, the two officials pointed to the importance of the strengthening of traditionally good relations between Zagreb and Vienna. Last year the two cities signed an agreement on cooperation in transportation, culture, power and water supply and waste management. (hina) it