RACAN: NEW GOVT WILL WORK TOWARD MAINTAINING ECONOMIC STABILITY

ZAGREB, Jan 29 (Hina) - Croatia's new government will work toward maintaining Croatia's economic stability and "with this as a precondition, it try to open a new development cycle", Croatian Premier Ivica Racan said in an interview to Croatian Television's (HTV) late news broadcast 'Motrista' on Friday. The Government will continue the rate policy and try to keep the kuna a stable currency, he added. Speaking about the announced decrease of Value Added Tax, Racan said an assessment of "the actual situation in Croatia's finances is underway, and this will determine the dynamics of decreasing the VAT rate to the proclaimed 17 per cent." The new tax policy should protect the most destitute parts of population and shift the tax burden to other categories. Speaking about the payment of the state debt to pensioners within the proclaimed period of two years, Racan said this was "a realistic projection", and the debt would be returned through money, bonds and other forms. One still has to see the pace of payment and the amount to be returned to pensioners, he said. The new government will not salvage bankrupt companies by taking care of their debts, however, it will care for their workers and help them through compensations or the possibility of re-training, he added. Commenting on the Government's first decision, adopted at its first session yesterday, to cut the salaries of ministers and state officials by 40 per cent, Racan said the salaries of civil servants would not be decreased. Asked about the moves the Government would make regarding the HTV, Racan said the Government was currently establishing the real state of finances in Croatia, including the HTV. "I want to show that the new Government welcomes a public television, a television which will not favour the authority and the ruling policy the way it had been doing so far, but rather be public and available to different political views." One of the consequences of such a view is the adequate selection of leading people and those who will create the programme of such a television. This means public bidding and abandoning the criteria of political correctness," Racan said, adding this also meant the new HRT director would be a non-party person. Commenting on the Government's relationship with the Hague Tribunal, Racan said the Government "will respect the international obligations that were taken over in this as well as in other regards." Individual as well as war crimes cannot be concealed and allowed to tarnish what the Croat people had achieved in their struggle for independence. "We will respect the Tribunal's requests regarding documents related to war crimes but we will certainly protect what the authorities are protecting in this country - the right to freedom and actions which secured it," the Premier said. Speaking about the Government's relationship to Bosnia- Herzegovina, Racan said it would be "unambiguous, transparent and not compromise Croatia, its national interests and the interests of the Croat people in Bosnia-Herzegovina. We respect the fact that Bosnia-Herzegovina is an integral and independent state. That is why we believe that the interests of the Bosnian Croat people must be better protected through more adequate forms of democratic organisation." According to Racan, this means that the Government "will stimulate those political forces among the Croats of Bosnia-Herzegovina which see their future within a whole Bosnia-Herzegovina and not in its partition." (hina) rml.