PREMIER PRESENTS NEW GOVT MEMBERS CANDIDATES (EXT. VERSION)

ZAGREB, Feb 22 (Hina) - Croatian Premier Zlatko Matesa on Monday told reporters in Zagreb the new candidates for the government are Milena Zic-Fuchs as science and technology minister and Ivan Djurkic as agriculture and forestry minister. Matesa said those were the only changes to date related to the announced government reshuffle which, he added, would be completed by the beginning of summer. Zic-Fuchs comes from the university milieu, is familiar with its structure and functioning, and has collaborated on a series of scientific projects, the Premier said, adding the new science and technology minister candidate is a good combination of practical work and science. Speaking about Djurkic, Matesa said the new agriculture and forestry minister candidate was a man with a vast expert knowledge, familiar with the ministry's structure. By assuming the new office, the new programme of incentives for agriculture adopted by the government could bring results, the Premier said. The vacant administration minister office will not be filled for the time being, he added. Commenting on speculations about the government reshuffle, Matesa said the idea of merging the immigration ministry with the reconstruction and development ministry was not a secret. Also being considered is the possibility of expanding the economy ministry into the ministry of industry, power supply, and possibly tourism, the Premier said, adding these are only ideas. When the government reshuffle programme is completed, the public will be notified, he said. In reply to a reporter's question about the position of Foreign Minister Granic, Matesa stressed he was one of key figures in Croatia's political and party life, as well as in the Government, and enjoyed great support. Asked to comment on a statement by Agriculture Minister Zlatko Dominikovic that he had been hindered in his work by several lobbies, Matesa said Dominikovic had failed to set up certain communication, but had tried to do his job very correctly and devotedly. Matesa also spoke about the Government's programme for solving illiquidity, announcing rigorous measures against all those not paying pension and health insurance contributions. "The Government will not tolerate that and will undertake rigorous measures," Matesa said. He backed most of the problems with information that some groups owed almost US$68 million to pension funds. Reporters were also interested in Matesa's comment on the rate of the kuna. Since the beginning of the year, Croatia has been receiving the repayments of international debts, which was paid, Matesa said. He added there was no information that the foreign exchange outflow would influence illiquidity. The rate of the kuna will not change significantly, Matesa said. He added the current rate was favourable to tourism and exporters. Should there be an excess, the Croatian National Bank will know how to react, he said. Matesa confirmed he intended to travel to Bosnia-Herzegovina, following a session of the Council for Cooperation between Bosnia- Herzegovina and Croatia. After the signing of the Agreement on Special Relations between Croatia and the Bosnian Federation, 17 annexes had been drawn up to date, which is all in all a good basis for future cooperation. I met President Tudjman this morning, he is excellent, Matesa replied to a reporter who wondered about the President's health. (hina) ha/lml jn