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LOWER HOUSE CONCLUDES DIRECT WAR DAMAGE TOTALS DM65.3 BILLION

ZAGREB, Nov 3 (Hina) - The direct war damage Croatia suffered under Serb aggression earlier this decade totals DM65.3 billion, says a report by the State Commission for Listing and Assessing War Damage which parliament's House of Representatives discussed on Wednesday.
ZAGREB, Nov 3 (Hina) - The direct war damage Croatia suffered under Serb aggression earlier this decade totals DM65.3 billion, says a report by the State Commission for Listing and Assessing War Damage which parliament's House of Representatives discussed on Wednesday.#L# The report covers the period between 15 August 1990 and 31 August 1995, and until 15 January 1998 for the Danube River Region in eastern Croatia. Presenting the report, the president of the State Commission, Ivan Novacic, said the war had taken Croatia several years backwards, and been responsible for the loss of two and a half Gross National Products. The condition for reconstruction is economic revival, he asserted. The report states the indirect war damage was three to four times higher than the direct damage, of which 40 percent refers to material damage, 20 percent to war costs, and 34 percent to the costs of living and health. According to demographic estimates, up to 20,000 people were killed or have gone missing during the aggression. Discussing war damage, representatives insisted on the possibility of compensation. Opposition MPs asked why the government had failed to demand war damages from the Federal Republic of Yugoslavia, and why war damages do not include succession to former Yugoslav federation property. Vladimir Seks on behalf of the parliamentary bench of the ruling Croatian Democratic Union refuted claims that Croatia could have taken more effective measures to secure compensation for war damage. Parliament on 6 October 1991 concluded that Serbia, Montenegro, and the Yugoslav People's Army had carried out an armed agression against Croatia. This, Seks said, is the legal foundation for procedures which should lead to compensation for war damage. At the time, parliament could not pass a decision on the proclamation of a state of war, since no country, nor the international community were willing to give military and effective support to the proclamation of Croatia's independence, Seks explained. He added the actions Croatia had filed against Yugoslavia would succeed, but pointed out other mechanisms were necessary to adequately compensate for war damage. Seks reminded no state pays any war damage unless it has suffered total military defeat, been pacified, or obligated to do so by peace agreements. Representatives pointed out the war made Croatia lose its medium- term development cycle. The war took Croatia 15 years backwards, said Damir Kajin of the Istrian Democratic Assembly, adding a minimum of 25 years will be necessary to complete reconstruction according to the current tempo of earmarking. The MPs pointed to the high damage suffered in the economy. Opposition representatives reminded of 600,000-700,000 jobs lost in the past nine years. Snjezana Biga-Friganovic of the Social Democratic Party wondered how many jobs were lost due to war, and how many due to poor privatisation. Opposition MPs also asked if Croatian politics were responsible for the lack of international assistance to economic development, which they said was crucial to reconstruction. Seks refuted these remarks, pointing out the international community had denied Croatia access to the PHARE programme due to the "Storm" military operation and the liberation of Croatian territory occupied by Serbs. Seks asserted Croatia's economic and social make-up would have been entirely different if one third of the state budget had not have to be earmarked for reconstruction. Representatives commended the war damage report as a valuable source of data which may be used before the international community or international institutions. (hina) ha jn

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