CROATIAN GOVERNMENT HOLDS SESSION IN KNIN

KNIN, March 29 (Hina) - The Government is aware of the gravity of the situation in the areas of the special state concern and I know that changes are necessary to solve problems, said Croatian Prime Minister Ivica Racan during Thursday's session which the Government was holding in the southern town of Knin (the Split hinterland). PM Racan expressed hope that the departure from the serious situation would be palpable after this session in the fields of refugee returns, the normalisation of the social situation and in the creation of new jobs. The Ivica Racan Cabinet decided to hold this session in Knin to present economic and social measures which should help this town and other areas of the special state concern to recover. The government has drawn up eight different economic programmes as well as a separate social welfare programme. The latter should cover not only Knin but also other areas of the special state concern where relief aid is necessary such as food and financial means to help pay costs for the used power supplies and other utilities. As regards the economic plans, some 700 million kuna (approximately 175 million German marks) should be invested in public companies by the end of this year. Present at the government's session were authorities of Sibenik- Knin county, town authorities, officials of the Croatian Privatisation Fund (HFP), the Croatian Bank for Reconstruction and Development (HBOR) and public companies, and representatives of associations of returnees and new settlers and of the Serb Democratic forum. (hina) ms