MINISTER JAKOVCIC VISITS BARANJA REGION

BELI MANASTIR, May 6 (Hina) - European Integration Minister Ivan Jakovcic on Saturday held talks in the eastern Croatian town of Beli Manastir with municipal officials, heads of municipalities in the Baranja region, and Osijek County officials on the economic recovery of the region and projects which the European Commission is willing to finance. Local officials sought financial assistance and help in resolving the situation in the largest Baranja company - the food industry 'Belje', as well as urgent application of the Law on Areas of Special State Concern and the presentation of economic, municipal and environmental projects in the Croatian Danube region at a donors' conference, which, according to Jakovcic, should be held in late June. Jakovcic believes the economic growth of the region should be based on the development of small and medium-sized entrepreneurship, as well as on crafts in agriculture, tourism and other branches which the EC has demonstrated interest in. Large concerns such as 'Belje' should, with the initial help of the state, be privatised or find a strategic partner, he said. Jakovcic also presented the idea on forming county councils for European integration, adding he believed the units of local self- government could play an important role in that process. The European Integration Ministry is willing to provide financial assistance for trans-border and international cooperation, which, he said, already exists with Hungary, the Netherlands and Belgium, and for drawing up a study on projects which should be financed by the EC. Jakovcic added the government was considering a regional concept of state organisation, which included granting more powers to the future regions, municipalities and towns, and possibly granting state property to the units of local self-government to own or manage it. Asked to comment on statements by the president of the Croatian Homeland War (HVIDR) association, Marinko Liovic, that Croatian war invalids would block border crossings because of the slow resolution of their problems, Jakovcic said those were "threats by irresponsible people and they should be dealt with by the judiciary, police and the law-based state." "To jeopardise Croatia by threatening its economic chances in tourism means to go against state interests. This means not only undermining the tourist season but undermining Croatia, and for that one should be called to account," Jakovcic said. (hina) rml