CROATIAN AND HUNGARIAN OFFICIALS CONSIDER ECONOMIC COOPERATION

BUDAPEST, March 30 (Hina) - Croatia and Hungary discussed possibilities offered by Croatia in privatisation, in Budapest on Monday. The talks are to resume on Tuesday. A Croatian delegation, led by Privatisation Minister Milan Kovac, held talks with Hungarian Premier's office head and a minister in charge of privatisation, Istvan Stumpf. At a news conference held after the first day of talks, Stumpf recalled that during the Hungarian delegations' visit to Zagreb last January, Premiers of Croatia and Hungary, Matesa and Orban respectively, had announced that agreement on cooperation should assume concrete forms and it was the goal of Monday's talks. Stumpf added that the Hungarian party advocated the abolishment of customs duties for the import of Hungarian agricultural produce in Croatia. He said his country would do its best to sigh a treaty on free trade with Croatia. In the regard to road connections, Hungary is to give priority to the M7 highway which is linked to the Croatian Rijeka-Zagreb- Gorican road. Hungarian businessmen showed great interest in the programme for privatisation of hotels on the Croatian Adriatic coast, whereas the Hungarian Oil Industry, MOL, is willing to buy shares of the Adriatic oil pipe-line. Hungarians are also interested in financing works on the expansion and modernisation of the Croatian seaport of Rijeka. According to some estimates, about 40 million dollars are necessary for this purpose, and Hungarian financiers are ready to ensure up to 7 million. Minister Kovac told reporters that the Croatian party had brought about 20 elaborated projects, most of which covering investment into tourism, for the Budapest talks. (hina) ms