ZAGREB, July 10 (Hina) - Croatia's Government abides by its intention to fully implement the Houston Protocol and sign contracts on the continuation of cooperation with a US company, Enron, said the Croatian First Deputy Prime
Minister, Goran Granic, on Monday. Assessing that in the past month no conditions were created for signing the treaty, what is envisaged by the Protocol, we believe that both parties should continue conducting talks in order that they can seek the most favourable solutions for both parties, Granic said conveying the Government's stand on Sunday's statements of US Ambassador to Croatia, William Montgomery, and a lobbyist, Zdenka Gast, in relation to the contract. During Sunday evening's flagship news programme ("Dnevnik") of Croatian Television, Montgomery and Gast commented on the expiry of the deadline for signing the amended contract on the construction of the
ZAGREB, July 10 (Hina) - Croatia's Government abides by its
intention to fully implement the Houston Protocol and sign
contracts on the continuation of cooperation with a US company,
Enron, said the Croatian First Deputy Prime Minister, Goran Granic,
on Monday.
Assessing that in the past month no conditions were created for
signing the treaty, what is envisaged by the Protocol, we believe
that both parties should continue conducting talks in order that
they can seek the most favourable solutions for both parties,
Granic said conveying the Government's stand on Sunday's
statements of US Ambassador to Croatia, William Montgomery, and a
lobbyist, Zdenka Gast, in relation to the contract.
During Sunday evening's flagship news programme ("Dnevnik") of
Croatian Television, Montgomery and Gast commented on the expiry of
the deadline for signing the amended contract on the construction
of the gas power plant 'Jertovec' between the Croatian Power
Industry (HEP) and Enron.
The 30-day-long deadline was agreed upon by the 9 June Protocol on
amendments to the contract. The protocol was signed in Houston.
The American diplomat told the Croatian Television that he was
expecting from the Government in Zagreb to fulfil provisions of the
Houston Protocol and that this would reflect the real nature of the
deal.
Speaking of the Government's stance, Goran Granic described the
U.S. Ambassador's conduct as inappropriate, explaining that
political assessments of negotiations should not be given while the
negotiations are under.
"We have believed that from the cooperation with former authorities
on this matter, the adequate lesson has been drawn, namely, that it
is not good to mix political and economic negotiations," Granic
said.
Croatian official recalled that during the Houston negotiations,
Enron had proposed the signing of five contracts which should
complete the basic issues initiated by the Protocol. In addition,
it was envisaged that Enron and HEP representatives should finish
this job within the 30-day-long time term.
It turns out that issues which should be considered need take more
time, Granic explained.
He claimed that there were no legal consequences of failing to sign
papers within the 30-day time term. The parties should continue
with negotiations until they reach the final solution, he added.
Croatian First Deputy Premier expressed hope that the both parties
would resume the negotiations and that negotiators would notify the
public of results very soon.
Asked about possible new deadlines for signing the deal, Granic
said Enron representatives had forwarded a fax message on Sunday
expressing their readiness to agree on details in the course of the
day.
But I regard that such pressure is unnecessary as nothing is going
on in the business sense and the two parties can take additional ten
days to complete all negotiations, Granic added.
He assessed that the HEP Management did professionally its job in
negotiations and enjoyed the Government's support, and added that
the HEP Management had proposed that a treaty on long-term business
co-operation between the HEP and Enron be signed, besides the
aforesaid five contracts.
Granic recalled the practice that no details should be revealed and
no campaign led while the negotiations were under way. However,
after reporters insisted on being informed of contentious issues,
he said the contentious issues were those questions that were not
treated by the Protocol. In this context, Granic cited the example
of an ordinary provision of the Protocol regulating the Enron's
right to construct the power plant in Jertovec, which might further
open some issues.
Granic added that it would suit nobody to seek the settlement
through arbitration and expressed his confidence that there was
enough will and readiness to solve open issues.
"It would be bad if rules that were in force before are still applied
and if Croatia be exposed to any political pressure. We stick to the
Protocol and want to finish this job," he said.
(hina) jn ms