CROATIAN PREMIER SATISFIED WITH ENRON-HEP AGREEMENT

WASHINGTON, Aug 9 (Hina) - Croatian Prime Minister Ivica Racan said in Washington on Tuesday he was satisfied that the US power company Enron and Croatian Power Industry (HEP) had reached an agreement which was in the interest of both sides and to the mutual satisfaction. "The Enron case has been solved," he said. "Without this agreement the damage for Croatia would have been greater, this way we have demonstrated the credibility of Croatian politicians and business people," Racan said. After several months of negotiations, the HEP and Enron on Tuesday agreed on five new contracts regulating relations between the two companies in a new way. Cooperation with Enron continues "but in much better conditions than those which had been agreed on and which we would have respected had the two sides not reached an agreement," the Prime Minister said. Tuesday agreement between Enron and the HEP means that this question will not be discussed at the talks Croatian officials are to hold with US officials in the continuation of their visit to the United States. The less pleasant issues to be discussed at the Washington talks include Croatia's debts toward some US law firms which represented the country in trials before the Hague war crimes tribunal. There is also a somewhat bizarre dispute, which, however, has its advocates in Congress, and refers to a US$three-million debt of Croatia's TV station TV Mreza to some US companies. (hina) rml