PICULA: VISIT TO BANJA LUKA WATERSHED IN CRO RELATIONS WITH BOSNIA

BANJA LUKA, Mar 9 (Hina) - Croatian Foreign Minister Tonino Picula on Thursday assessed his visit to Bosnian Serb capital Banja Luka as very positive, describing it as a watershed in Croatia's relations with Bosnia-Herzegovina. During his first visit to Republika Srpska (RS), Bosnia's Serb entity, Picula held talks with RS Premier Milorad Dodik, United States Secretary of State Madeleine Albright, Bosnian Foreign Minister Jadranko Prlic, and Banja Luka bishop Franjo Komarica. Picula and RS Premier Dodik signed a joint statement binding Croatia and RS to ensure an undisturbed return of Croatian Serb refugees to Croatia and Bosnian Croat refugees to RS. Minister Picula ended his visit to Banja Luka with a meeting with Albright. He said Albright was interested in how the Croatian government would deal with budget-related issues. Talks also tackled the situation in the region, co-operation with the war crimes tribunal in The Hague, and the return of refugees to pre-war homes. Albright welcomed the Croatia-RS joint statement, announcing the U.S. government would urge Congress to grant US$15 million as a form of support to Croatia's return programme, which covers 16,500 persons. Albright also announced the U.S., in co-operation with the United Nations High Commissioner for Refugees, would finance the building of 100 houses in RS for Bosnian Croats currently accommodated in Croatia, and the building of 100 houses in Croatia for Croatian Serbs who are currently in RS, but intend to return to Croatia. The US$2 million-worth project should be completed by autumn, the U.S. state secretary told reporters. Bosnian Foreign Minister Prlic also voiced satisfaction with the joint statement on refugee returns, while Banja Luka bishop Komarica voiced hope the words from the statement would become acts and the return process begin. (hina) ha jn