KRONENBURG - EU SENDS CLEAR MESSAGE TO CROATIA

( Editorial: --> 9870 ) LUXEMBOURG, April 27 (Hina) - The European Union expects Croatia to consistently work on the implementation of the Dayton peace agreement for Bosnia-Herzegovina, more decisively conduct democratic reforms and enable the unobstructed return of refugees, because if it fails to do so, the European Commission could in six months seriously consider excluding Croatia from autonomous trade preferences, the high official with the Office of the European Commissioner for International Relations Ed Kronenburg said in Luxembourg on Monday. The message to Zagreb is clear: we expect full cooperation in the implementation of the Dayton agreement, the realisation of the rule of law in entirety and the exercising of human and minority rights, added Kronenburg. The mentioned half-year deadline to the next report on Croatia does not mean that sanctions against Croatia cannot be applied earlier because the system of trade preferences can be established or suspended at any moment, Kronenburg said. He recalled that the report by the European Commission and the conclusions adopted by the Council of Ministers on Monday is the second EU document of that type, following the adoption of a regional approach towards South-East European countries by the EU in April 1997. The European Commission's report details Croatia's achievements in fulfilling EU conditions. Croatia is departing from EU standards, with EU member countries especially worried about the issue of refugee return, the report reads. The latest Croatian Government document on the procedure for return of refugees does not satisfy EU expectations and the international community because a comprehensive return programme is necessary, the report states. Following the successful peaceful reintegration of the Croatian Danube River region, the behaviour of local authorities has evoked the insecurity of local Serbs and led to their departure, reported the European Commission. It is also stated that not enough has been done to encourage inter- ethnic reconciliation as a precondition for return of refugees. Croatia has achieved considerable progress in regional cooperation and signed several trade agreements but its policy toward Bosnia- Herzegovina remains inconsistent, the EU believes. Recent events, including President Franjo Tudjman's speech at the Croatian Democratic Union (HDZ) general convention of 21 February, have questioned Croatia's loyalty to the Dayton-Paris peace agreements and the territorial integrity of Bosnia-Herzegovina, the report states. Croatia's proposals for special relations with the Federation of Bosnia-Herzegovina remain inconsistent with Dayton and Croatia should stop discriminating against citizens of Republika Srpska in the visa system for Bosnia-Herzegovina citizens, the report says. Croatia has been given the task to more strongly influence Bosnian Croats, especially in dissolving the institutions of Herceg- Bosna. The EU further believes that Croatia's cooperation with the International Criminal Tribunal for Former Yugoslavia (ICTY) in The Hague should be better, but notes the handing over of 10 Bosnian Croats as a positive step. The report recalls that Croatia has taken on numerous international commitments in regard to human rights and the development of democracy. However, the Commission judges that requirements concerning editorial independence of public and state media have not been met and that in practice there exist many obstacles to freedom of association and work of non-government organisations. As a separate issue, the report addresses the Croatian Government's economic policy and judges that, as a whole, Croatia's policy on macro-economic reform is good. According to the Commission it is necessary to pay more attention to the supervision of the banking system. (hina) jn mrb/rm 271950 MET apr 98