HIS HAS BEEN DISSOLVED AS CENTRE OF POWER -- RACAN

ZAGREB, May 25 (Hina) - The Croatian Intelligence Service (HIS) has not been dissolved as such, rather it's present form of organisation and HIS as a centre of political power has been dismissed, Government spokeswoman said Thursday, explaining a statement uttered by Prime Minister Racan Wednesday. Racan told reporters Wednesday in a break during talks with The Hague war crimes tribunal's chief prosecutor Carla del Ponte, "HIS has today in fact been dissolved." The Prime Minister said the current employees in HIS (about 200 of them) "have been made available, of which only some will continue working," spokeswoman Aleksandra Kolaric said. She further explained Racan's words saying the concentration of political power in the HIS had been misused numerous times. "The new service will be organised with new personnel, a new organisation scheme and with a significant rationalisation in the number of employed. The aim of the rationalisation will be a more effective performance of the service," she added. Croatian President Stipe Mesic on Wednesday decided to reorganise the HIS and accepted the resignation of its director, Ozren Zunec. He appointed Damir Loncaric to the post. Mesic corrected Racan's statement yesterday saying the word "dissolved" was too strong a word because it was a case of reorganisation. (hina) lml jn