:I'M READY TO MAKE COMPROMISE BUT I'M NOT SUSCEPTIBLE TO PRESSURE - RACAN

ZAGREB, July 12 (Hina) - Croatia's Premier and Social Democratic Party (SDP) leader, Ivica Racan, on Wednesday said the Croatian Social Liberal Party (HSLS) - the SDP's chief coalition partner - was exerting pressure on him to reshuffle the Government. Harmful for all of us were a part of behind-the-scenes manoeuvring, rumours - which have been spread either by HSLS individuals of groups, some of whom are Government officials - about the replacement of First Deputy Premier Goran Granic (a member of the HSLS), Foreign Minister Tonino Picula (SDP) and bids to seek the office in the Government for HSLS President Drazen Budisa, Racan told a news conference today. "I am ready to hold talks and make compromise but I shall not yield to pressure," Racan told reporters, adding that he was optimistic and believes that the coalition will manage to clarify contentious issues and survive. The coalition of the SDP and HSLS and another coalition of four parties - HSS, HNS, LS and IDS - won the January parliamentary elections. The strongest party of them was the SDP. Following the election, these six party formed the Government (the six-party ruling coalition) in compliance to their pre-election agreement. PM Racan claimed today the pressure had come to a head and that's why he decided not to be silent about it any longer. Asked whether he supported Budisa's admission into the incumbent Government, Racan said he would give an answer to the question after a meeting which should show whether latest events were "a storm in the glass of water or something more." "We shall try to solve all misunderstandings and differences, but not to the detriment of the Government's stability," the PM said adding he would not allow partisan polices in the Government as long as he was at its helm. He added that his role of the Premier imposed on him a duty to maintain the stability of the Government and asked others to assist him in such bids. He stressed that he would be the last one wishing conflict with coalition partners and Budisa. Racan confirmed that the latest issue of the weekly "National" cited mostly correctly his statement. He, however, denied that he had spoken of a coalition between the HSLS and the HDZ (the currently strongest opposition party) and that he threatened to organise an early election. I did not threaten nor did I advocate a new election, with which Croatia is fed up. I, however, warn that it is irresponsible conduct which might lead the country towards such ballot, detrimental to Croatia's progress and reputation in the world, Premier said. He also confirmed that he had had been notified of the proposal of the HSLS for a joint meeting of leaderships of the two parties (HSLS and SDP) which should revolve around recent misunderstandings. Racan added that he had not responded to the suggestion as he was waiting for Budisa to return from a summer holiday. A Croatian daily on Wednesday quoted Budisa as saying he had forwarded a letter to Racan a week before, and that Racan had not responded to it. Budisa found fault with Racan's statement to 'Nacional' which the HSLS leader described as 'an unexpected statement." Stressing that he was speaking in capacity of the SDP President, Racan said his party was aware of its rating in the public and that it was ready to making compromise, but in the future it would be harsher towards those that treated this characteristic of the SDP as its weakness. Today Racan admitted that there were some "conception differences" about the privatisation process but this was not at all a party conflict and the Government is unanimous that the Croatian Privatisation Fund (HFP) must work as better as possible. (hina) jn ms