CROATIAN PRIME MINISTER HOLDS NEWS CONFERENCE, POWER GOES OUT

ZAGREB, Dec 11 (Hina) - The Government shall not accept any accusations from the Hague-based international war crimes tribunal (ICTY) for Croatia's liberation operations Storm and Flash or the Homeland Defence War. We wish to cooperate with the tribunal, but also protect our own legal order and dignity, Croatian Prime Minister Ivica Racan told a news conference in Zagreb Monday. #L# It is no secret we are having trouble in cooperation with the ICTY, but I have always stressed these problems had to be solved through cooperation, Racan said, adding Croatian Armed Forces Chief-of- Staff General Petar Stipetic had recently received a summons from The Hague, but the issue would be defined through the Government's Council for Cooperation with the ICTY, and in line with conclusions the Croatian Government has reached during its session. Responding to the summons is not an issue of any one individual, including General Stipetic, Racan asserted, handing out written conclusions the Government reached at a session on Thursday. At Thursday's session the Government adopted the "Stances of the Croatian Government on Cooperation with the International Criminal Tribunal for the ex-Yugoslavia", in which the Government is requesting that the ICTY prosecution "investigate concrete crimes, not generally within the frameworks of the legitimate Croatian Armed Forces operations which had been carried out with the aim of liberating the internationally recognised territory of the Republic of Croatia." The Government also requested the Prosecution to "do more to process crimes the former Yugoslav People's Army and Serb paramilitary had done in Croatia in 1991 through to 1995". The Government also requested the respect of summoning potential witnesses and their duty to maintain secrecy, as well as that the ICTY do their job with respect to the chronology of events, gravity of crimes and the principles of truth and justice. Speaking about next year's budget, Racan said he categorically refused to play ping-pong with the questions whether the budget was developmental or social. We must respond to huge problems with both a developmental and a social budgetary concept, he said, adding the Government would be consistent in this concept. The Government will maintain its firm stance that the budget not be increased, he added. The Government will move a decrease in officials' salaries by ten per cent, Racan said, explaining this did not mean a decrease in salaries in state administration and the public sector. He assessed as unrealistic requests of unions in the public sector which are demanding an increase in income bases by 8.5 per cent. We understand such requests, but they are unrealistic. This would mean the setting aside of an additional 1.2 billion kuna. Commenting on a general strike announced for December 14, the Prime Minister said it was a democratic right. It is a different matter that the Government does not agree with the aims and unrealistic requests of the organisers, Racan said, announcing the Government would make public its stance towards the union requests. Commenting on the recent "Grupo" affair, Racan recalled he had during several occasions expressed his concern with the occurrence of a media war. Last Monday the Republika daily published an alleged secret partnership agreement among media and political magnates whose aim was to take over Croatia's media space. It is important to make sure competent organs probe facts and establish the truth about any illegal acts. I expect the state prosecutor's office would have more information on the issue, Racan stressed. We still have not solved the problem of deformation in the work of intelligence services, which is evident through collusion of some people from the services with reporters, Racan said. This is harmful to the legal work of the services and damaging if the media or individuals in the services are playing a certain role in this, he asserted. I do not wish to comment on media reports about the alleged Croatian Social Liberal Party's (HSLS) displeasure with the work of the coalition Government or whether the HSLS was thinking about leaving the coalition in a month, Racan was adamant. There have been no indications of this from either colleagues from the HSLS or its president Drazen Budisa, he told reporters. He added he saw HSLS's statements as a normal wish of the party to analyse the work of the coalition and the Government. Other parties ought to do the same, including the Government itself, he said, adding the Government could do better and admitted he himself was partly dissatisfied with what they had wanted to do, but had not had the time to do. In order to shed light on the "problem of wheat", the Government has founded a commission of enquiry comprising five ministers. The problem is serious, and there are clues that the misuse of wheat reserves is continuing, Racan said. He added he had ordered the state inspector's office to do its part of the job and a report on the case is expected at next Thursday's Government session. Reporters wished to know about the consequences of the HEP's (Croatia's Electrical Power Industry) shutting down the power supply for the food and agriculture cooperate PIK Vrbovec, since this was a state-owned company. It is difficult to resolve this situation with the state as the arbiter. The Government, thus, does not wish to be either mediator or arbiter, Racan stressed. He admitted he had on Saturday personally tried to intervene in the case, but had been met with one-sided stances. On the one hand, he said, there are PIK Vrbovec's legitimate requests for its meat not to go to waste, on the other, HEP's unrelenting stance that it would stop supplying the company with electricity due to huge outstanding debts. During Prime Minister Racan's news conference, the electricity went out for a short period of time in the Government building, which he jokingly commented as saying "perhaps the HEP pulled the plug", and apologised for the inconvenience. He expressed hope the power cut was not connected with announcements by HEP unions they would turn off electricity for the Government if their salaries were not increased. I hope this is not the case, Racan said. (hina) lml