PRESIDENT, PRIME MINISTER DISCUSS CURRENT AFFAIRS

ZAGREB, March 19 (Hina) - Croatian Prime Minister Ivica Racan confirmed for Croatian Radio Monday he spoke with President Stipe Mesic at a working lunch about several current issues, including the situation in Bosnia, Macedonia and Kosovo. Macedonia and Kosovo are far from us, but it is important to see that events in this region can reflect on Croatia, its tourism, Racan said, stressing Croatia wants to cooperate with countries to its southeast and contribute to the stability in the region. Racan told the radio Croatia has opted to contribute to the stability in Bosnia-Herzegovina, and reiterated the government's stance that decisions made in Mostar (on Croat self-rule) are not good. He expressed hope problems would still be solved through dialogue. Racan did not wish to comment on a letter written by a group of economists, headed by President Mesic's economy advisor, in which they are warning the government of detrimental effects of Croatia's arrangements with the International Monetary Fund. President Mesic also holds that Croatia needs an agreement with the IMF, Racan asserted, adding that the government and himself do not accept any opposition to this without arguments. The government's arguments are that the IMF's good assessment and good perspectives of Croatia's economy have positive financial effects, Racan stressed, expressing hope the IMF Board of Directors would today make a positive decision on a stand-by arrangement with Croatia. (hina) lml sb