RACAN: ABUSE OF AUTHORITY COMPROMISES SDP'S REPUTATION

ZAGREB, Dec 2 (Hina) - Addressing the eighth electoral convention of the Social Democratic Party (SDP) on Saturday, Croatia's Prime Minister and SDP president Ivica Racan condemned all attempts to abuse authority and warned that they compromised the party's credibility and reputation. Today's convention will elect a new party president, two vice- presidents and a secretary as well as 120 members of the party's Head Committee. #L# The SDP must distance itself and point to such attempts among its own ranks more resolutely than citizens themselves, Racan said, calling on SDP members participating in the bodies of authority on all levels to act responsibly and conscientiously and not yield to pressures by party members and citizens seeking abuse of authority. "Power can be lost, but one must not lose one's face," he said. Speaking about the work of the coalition government in the past nine months, Racan said numerous positive changes had been made in the area of economic and foreign policies, but the government was not completely satisfied with the dynamics and scope of changes. A radical turnabout was made by abandoning the arbitrary economic policy conducted by the former government, which, Racan said, allowed the authorities to decide which companies would be given assistance and which would be restructured. Speaking about the government's achievements, Racan mentioned the growth of Gross Domestic Product and increased exports, assessing one had to continue efforts aimed at increasing exports. The Government must step up its efforts in promoting Croatia's economy abroad and the diplomacy should assist it in those efforts, he said. The most important problem the Government is faced with is a high unemployment rate, Racan said. Most economic problems were inherited from the former government and in "clearing up the economic rubble" the Government had to reduce the number of those who were employed in companies which were making no profit but depended on the charity of the state budget. The Government must change the current trend of the unemployment rate next year. "We take it as our responsibility, by which the success of our policy will be judged," Racan said. Speaking about the government's policy of managing the state portfolio, Racan recalled that bankruptcy proceedings had been initiated in 320 state-owned companies. "Bankruptcy with restructuring is less bad than the agony of a company facing bankruptcy," he said, adding the government would continue such a policy. He also spoke about the need to cut the public spending, and about reforms to be carried out in the schooling system, science, army, and pension and health insurance. Despite opposition to those reforms, one must not give them up, he said, adding Croatia needed an economical and efficacious state administration. To cut the public spending, one must reduce the difference between state revenues and expenses. "The crisis cannot be solved by printing money, nor by seeking loans, but only by reducing the general spending, which must be adjusted to our potential." In order to do this, one must start dialogue in which real possibilities will be considered. The Government will not yield to blackmailing and threats of those who claim that they will go on strike if their requests are not met, Racan said. Speaking about the successes of Croatia's foreign policy, Racan mentioned Croatia's admission to Partnership for Peace and the World Trade Organisation, the cancellation of the Council of Europe monitoring, and the beginning of talks on admission to the European Union. The SDP supports cooperation in south-east Europe and regional cooperation, but it firmly believes in the principle of individual admission of countries in European associations, Racan said. Reminding that Croatia wants to have good relations with neighbouring countries and to see them undergo democratisation, Racan said personnel changes in the Yugoslav state leadership were not sufficient for good neighbourly relations with Yugoslavia. He expects Yugoslavia to abandon Milosevic's policy and condemn the aggressive policy toward neighbouring countries. "If an apology comes after that, we will accept it gladly, but apology for the sake of apology alone means nothing," Racan said. Today's SDP convention was greeted by all parliamentary parties and union representatives, who urged more social sensitivity. The president of Germany's Social Democrats, Rudolf Scharping, and Britain's Prime Minister and leader of the Labour Party, Tony Blair, send letters of support. The convention was also hailed by Igor Dekanic on behalf of the Office of the Croatian President. (hina) rml