FIRST ANNEXES TO SPECIAL RELATIONS AGREEMENT TO BE SIGNED IN JUNE - AMBASSADOR

SARAJEVO, May 20 (Hina) - The first ten annexes to the Agreement on Special Relations Between Croatia and the Federation of Bosnia- Herzegovina could be signed as early as June, Croatian Ambassador to Bosnia-Herzegovina, Damir Zoric, told a press conference in Sarajevo on Thursday. This refers to those annexes which do not contain any special political connotations and are completely acceptable to both sides, he added. The Croatian Government has already sent its draft annexes to Sarajevo and expects the Federation authorities to discuss their contents. The signing will be preceded by a session of the Council for Cooperation between Croatia and the BH Federation, which is to meet in Zagreb next month. The Zagreb meeting would be followed by a meeting of the Council for Cooperation between Croatia and Bosnia-Herzegovina. Croatian Premier Zlatko Matesa is also expected to visit Bosnia- Herzegovina. Zoric said Bosniak officials had expressed support for the strengthening of special relations. "The Bosniak stand is that the concept is realistic and that it has a future", he added. Trade between the two countries has to be improved, primarily through the adoption of an agreement to regulate that issue, Zoric said, adding Croatia had drawn up the concept of the agreement, based on the principles of the World Trade Organisation. The current fall in trade is having negative consequences, primarily as regards the exchange of products for mass consumption, which affects most the living standards of ordinary people. "It was unrealistic to expect that the introduction of customs duties (by Bosnia-Herzegovina) would not cause a response by Croatia", Zoric said. Commenting on his visit to Banja Luka this week, Zoric said he attended the hand-over of construction material to the Banja Luka Caritas, intended for the reconstruction of returnee houses. Zoric recalled that more than 60,000 Serbs had returned to Croatia so far, whereas not even several dozen Croats had managed to return to their homes in Banja Luka. (hina) rml