CROATIA, YUGOSLAVIA AGREE TO START FREE TRADE NEGOTIATIONS

BELGRADE, June 13 (Hina) - Yugoslavia and Croatia agreed on Wednesday they would start negotiations on a free trade agreement and strongly boost financial and trade relations. A statement to that effect was made in Belgrade by Croatian Economy Minister Goranko Fizulic and Yugoslavia's Deputy Prime Minister in charge of international economic relations Miroljub Labus. They held "very substantial talks" on the two economies, they told reporters. "We are turning an entirely new page in the economic relations between our two countries. The agreements we are preparing to sign will make Yugoslavia one of Croatia's most significant economic factors," said Croatia's Fizulic. Labus said the Yugoslav parliament was presently debating several cooperation agreements with Croatia, in connection with the economy, investment protection, transport, and ways to boost trade. The Croatia-Yugoslavia trade in this year's first four months increased by 300 percent as against the same period last year, with an imbalance in Croatia's favour. Over the next two years trade could exceed $1 billion, said Fizulic. Trade liberalisation should be followed by passenger transport liberalisation, said the two officials. Labus said Yugoslavia was mulling issuing visas at border crossings. Asked about Croatia exports to Yugoslavia, Fizulic said tobacco and tobacco products led the way, followed by oil and oil products. (hina) ha sb