CROATIA PLANS TO SET UP DIPLOMATIC TIES WITH IRAQ - FOREIGN MINISTRY

ZAGREB, Feb 26 (Hina) - Preparations are under way for the establishment of diplomatic ties between Croatia and Iraq, Croatia's Foreign Ministry said on Monday adding that the establishment should not soon be expected. "Preparations are underway for the exchange of diplomatic notes between the Republic of Croatia and Iraq, but the establishment of the diplomatic relations will not be so soon," a deputy spokeswoman for the Foreign Ministry said on Monday. One of the reasons for plans for the set-up of the relations is Croatian big companies' economic interest, the spokeswoman, Miona Sevcik, explained. She added the economic cooperation might in particular be developed in the oil production and future ties could it make possible for Croatian firms to be paid for jobs they did in the past. Last Friday Economy Minister Goranko Fizulic announced the establishment of those ties, adding that it was the Foreign Ministry's proposal which should be signed by President Stjepan Mesic. Minister Fizulic said Croatian business people were interested in the diplomatic relations with Iraq, viewing them as a pre-condition for the development of economic relations and the settlement of clearance balance in which Iraq should pay off its debt. He also announced his visit to that country in the near future. The U.S. Embassy in Zagreb refused to comment on this information. "The Embassy has no comment," its spokeswoman, Anja Picelj, told Hina. (hina) sb ms