GOVERNMENT PROPOSES NEW AGRICULTURAL INCENTIVES

( Editorial: --> 4763 ) ZAGREB, Feb 26 (Hina) - The Croatian government has put forward a proposal to the Croatian National Parliament to amend the law on monetary incentives and compensations for the agriculture and fishing industries. With the proposed amendments, the government wishes to encourage animal stock breeding, give new incentive for planting of lavender, production of fish powder and varieties of honey and the breeding of stock on the territory under special government care. The state budget has this year allowed DM 207 million for these incentives. Agriculture has to be a modern branch of the Croatian economy and must abide by European standards, said Premier Zlatko Matesa at Thursday's government session, talking about the proposed amendments. According to Matesa, agricultural policy will follow agreed agricultural strategies, and will especially concentrate on strengthening the incentives system, increasing arable agricultural land, because promoting village farming is in the government's interest. The government has abolished duties on barley for beer production, which up until now was 15 per cent, because domestic production of such barley only met one-third of domestic needs. The Government also put forward to the Parliament a bill confirming the agreement between the Republic of Croatia and the Federal Republic of Yugoslavia on legal assistance in civil and criminal matters. This agreement was signed on 15 September 1997 in Belgrade. It provides for legal assistance to citizens through the justice ministries and hastens the resolution of pending civil suits, thereby fulfilling obligations under Article 7 of the Agreement of Normalisation of Relations between Croatia and Yugoslavia. (hina) jn mrb 261641 MET feb 98