BRIEF NEWS BULLETIN IN ENGLISH NO. 3548

HINA Zagreb, February 28, 2000 CROATIA, SLOVENIA WILL SOLVE OPEN ISSUES WITHOUT MEDIATION - TOMAC LJUBLJANA, Feb 28 (Hina) - A delegation of the Croatian Sabor's Committee on Foreign Affairs, which is on a visit to Slovenia, met Slovene President Milan Kucan on Monday. The two sides discussed cooperation, the Stability Pact for Southeast Europe, and integration processes. Following the one-hour meeting, the head of the Croatian delegation, Zdravko Tomac, said the talks showed that both sides fully agreed for Croatia and Slovenia to resolve open issues on their own, in a democratic manner, and respecting European standards, which was in the interest of both peoples. Tomac said the next two months should be used to make a survey of border disputes, which could include solutions in the form of land compensation. He stressed the importance of an agreement on local border traffic and cooperation, whose ratification the Slovene parliament was delaying. Tomac stressed satisfaction with his meeting with Slovene European Affairs Minister Igor Bavcar. "It is particularly important that we agreed that democratic forces in both countries must be willing to intervene against the current public opinion which treats any attempt to solve a problem as possible treason. We have to go against the tide, against such public opinion which is somewhere more and somewhere less present and which was caused by a failure to solve at least problems which could have been solved in the past eight years," Tomac said. Supporting this claim, Tomac said Croatia and Slovenia still did not have an agreement on avoiding dual taxation although they had signed such agreements with some third countries with which they even did not have any trade relations. Tomac expressed strong belief that solving some problems would create a new atmosphere in relations between the two countries, and the two sides should start by solving easier, non-controversial issues. CROATIA'S TOMAC, SLOVENIA'S KACIN ON PARLIAMENT DELEGATIONS' TALKS LJUBLJANA, Feb 28 (Hina) - A Croatian parliamentary delegation, headed by Sabor Vice President Zdravko Tomac, on Monday visited Ljubljana where he met with colleagues from the Slovene parliament's committee on foreign affairs to discuss open issues between the two countries and ways of solving them. The meeting was very open and friendly, and represents a big step forward towards resolving open issues, Tomac told reporters following the two and a half hour long talks. Croatia's authorities and Opposition have reached a consensus regarding foreign policy and relations with neighbouring countries, Tomac said, adding relations with Slovenia were of strategic importance for Croatia. A Europe-oriented Croatian-Slovene cooperation is very important for the work of the Stability Pact for Southeast Europe, it was pointed out during today's talks with Slovenia's parliamentarians and meetings with Slovenia's President Milan Kucan, European Affairs Minister Igor Bavcar, parliament president Janez Podobnik, and Lojze Peterle, the president of a parliamentary commission for relations with the European Union. Tomac also mentioned the obligation to act on the part of public opinion which accentuated mistrust. This, he said, would facilitate the solving of open issues. He announced today's talks would be the basis for an impending meeting of the Croatian Sabor's committee on foreign affairs, which should urge the finding of solutions and concrete initiatives and suggestions. Asked if it was possible to change some segments of a Croatian- Slovene agreement on local border traffic and cooperation, which the Slovene parliament has still not ratified, Tomac said Croatia's uniform stand was that what was being suggested in Slovenia was unacceptable. The chairman of the Slovene parliament's foreign affairs committee, Jelko Kacin, said Slovenia's Constitutional Court would soon take a position on the said agreement. In the meantime, we can work on agreements which could be signed, and even ratified, such as agreements on the avoidance of double taxation, tourist cooperation, and even borders, he said. Speaking about border issues, Kacin said Slovenia's position was that a border was not established until it was established in its entirety and an agreement was signed. Slovenia's position was that in the former Yugoslav federation, it had an exit to international waters and that after gaining independence, it should not be entitled to less. SENIOR EU, NATO OFFICIALS TO VISIT CROATIA NEXT WEEK ZAGREB, Feb 28 (Hina) - Next week Croatia expects a number of important visits by European Union and NATO officials in continuation of a process of the country's drawing closer to Euro- Atlantic integration, which started with a recent visit to Brussels by Premier Ivica Racan, a Foreign Ministry spokesman told Hina on Monday. EU's High Commissioner for Foreign Affairs and Security Javier Solana, European Commission foreign affairs representative Chris Patten, NATO Mission officials and an EC evaluation mission will visit Croatia next week. "This is the continuation of dialogue which started with Premier Racan's visit to Brussels on Croatia's admission to NATO's Partnership for Peace programme and its drawing closer to the EU," spokesman Zeljko Trkanjec said. Trkanjec recalled that Racan's visit to Brussels on February 14 and 15 marked a turning point in the country's relations with the EU and NATO. Racan's EU hosts said the EU would step up the procedure of Croatia- EU rapprochement and Racan assessed that Croatia's admission to NATO's Partnership for Peace is "close at hand." The first sign of this radically new and positive attitude of the EU toward Croatia will be the visit of EC foreign affairs commissioner Chris Patten on March 10, during which the EC official will meet Premier Racan and Foreign Minister Tonino Picula. On that occasion, the current EC Office in Croatia will be officially upgraded to the level of a permanent representation, which will have the status of an embassy. The EC has this level of relations with countries with which it has contractual relations. It is expected that EU High Commissioner for Foreign Affairs and Security Javier Solana will attend the ceremony as well. It is still not known who the EU Ambassador to Croatia will be. A NATO mission will visit Zagreb next week as well. The mission will negotiate Croatia's admission to the Partnership for Peace programme at the Defence Ministry. An EC evaluation mission, which is aimed at establishing needs and priorities in EU's assistance to Croatia, will be visiting Zagreb between 6 and 10 March. "The Croatian government is fully determined to preserve the current highly intensive dynamics of contacts with its partners on the path toward Euro-Atlantic integration," Trkanjec said. A Croatia-EU working group (task-force) in charge of preparing an agreement on stabilisation and association held its first meeting during Racan's visit to Brussels, and it should hold its next meeting in mid-April in Zagreb. After the evaluation mission and task force submits their reports, a study on Croatia's ability to start negotiations on the stabilisation and association agreement will be drawn up. ECONOMY MINISTRY ANNOUNCES DISMISSAL OF STERN AND BEGOVIC ZAGREB, Feb 28 (Hina) - The Croatian Economy Ministry on Monday announced that supervisory committees of the Croatian oil company INA and HEP, electric power production company, would hold sessions soon focusing on the dismissal and appointment of administrations. Considering the subject matter to be discussed at the sessions of the supervisory boards, the Ministry's statement could be interpreted as confirmation of information about the dismissal of INA's general director Davor Stern and chairman of the HEP administrative board, Damir Begovic. The Ministry did not specify when the two boards would hold their sessions, but unofficial sources claim they could take place as early as this week. According to most recent media announcements, Tomislav Dragicevic has been mentioned as INA's general director. He is currently heading INA's development and research department. Enzo Tirelli of the Social Democratic Party, who once used to be an energy minister could be appointed in place of HEP administrative board chairman, Begovic. KUNA CURRENCY NOT TO BE TIED TO EURO IN SHORT TERM -- SKREB ZAGREB, Feb 28 (Hina) - The Croatian National Bank (HNB) holds a comprehensive expert analysis is necessary for any changes to the currency regime in Croatia, including an examination of experiences of a number of countries, HNB governor, Marko Skreb, said on Monday. He said changes to the currency policy should not be expected, and tying the kuna currency to the Euro in the short term would not have any significant effects on the economy. A certain modernisation of the law in the HNB is necessary, which should be prepared this year, Skreb said at Monday's book presentations from three international conferences on economies in transition taking place in Dubrovnik. Books presented on Monday were published in 1996, 1997 and 1998 -- on the transformation of the financial sector, balance of payments, currency and competition in economies in transition, and central banking and monetary policy in transition. The books were published in English. Cambridge University Press published the first and the other two were published by Kluwer Academic Publishers. Skreb underlined an issue from the third book, about the independence of national banks. Skreb replied to a reporter's question that the Croatian National Bank "still has a relatively high degree of independence". However, he stressed, modernisation of laws at the HNB was necessary. He announced a conference in Dubrovnik on June 29 and 30 which would discuss important issues for Croatia, such as currency issues and aimed inflation. In reply to reporters' questions, Skreb said tying the kuna currency to the Euro would not achieve any significant effects on the economy. "Our problems are primarily of a structural nature ... in the short- term, I do not see any reason for the currency to be tied to the Euro," Skreb said. EUROPEAN SOCIALISTS DELEGATION VISITS CROATIAN GOVERNMENT ZAGREB, Feb 28 (Hina) - Croatian Premier Ivica Racan on Monday received a delegation of the Party of European Socialists (PES) visiting Zagreb, the Croatian Government's Public and Media Relations Office said in a statement. The delegation includes Jan Marinus Wiersma, PES vice president and deputy chairman of the European Union Integration Expansion Committee, PES secretary-general Ton Beumer, and Friedrich J. Rol, coordinator for East and Southeast Europe. Present at the talks alongside Racan was Croatian Foreign Minister Tonino Picula. European socialists support Croatia's government, said Wiersma, adding Croatia's role in the region was of key importance. It is important that Croatia is ruled by a stable government oriented towards Euro-Atlantic integration, he said. Today's talks tackled Croatia's rapprochement with European structures, the political situation in the region, refugee and displaced person return projects, minorities, and human rights. Croatia's government accepts its share of the responsibility for peace, security and stability in the region, and is aware its future contribution could be significant than was possible before, Premier Racan said. OFFICIAL OF US AGENCY OPIC TO VISIT CROATIA ZAGREB, Feb 28 (Hina) - Kirk Robertson, executive vice president of the Overseas Private Investment Corporation (OPIC), will visit Zagreb on Tuesday and Wednesday, to announce new OPIC initiatives in Croatia and new regional initiatives within the Stability Pact for Southeast Europe, the US Embassy in Zagreb said in a statement on Monday. OPIC is a U.S. Government agency which provides financing and insurance for US investments outside the country. It has been at the vanguard of leading US companies to invest in Central Europe, the statement said. The expansion of OPIC's activities in Croatia is aimed at encouraging US companies to invest into Croatia, the statement added. THIS BULLETIN INCLUDES ITEMS RELEASED BY 22.00 HRS MONDAY