ANNAN RECOGNISES ROLE OF ECONOMY IN DANUBIAN REGION - SIMONOVIC

( Editorial: --> 1408 ) WASHINGTON, June 15 (Hina) - Croatian Ambassador to the UN, Ivan Simonovic, on Monday expressed satisfaction that the Secretary- General's Report on the UN Civil Police Support Group recognised the fact that the economic situation in the region was interfering with the return of refugees. "We are pleased that the Secretary-General's report supports the argument, on which the Croatian Government has been insisting for some time, that the reconstruction and economic development are key factors for the Serbs to stay on and for Croatian refugees to return to the Danubian region," Simonovic said in a statement, released in New York. "Such a stance on the part of the Secretary-General might expedite the donor conference for the reconstruction of Croatia which has been repeatedly postponed over Croatia's wishes," the statement said. According to Simonovic, the report, which does contain certain observations and warnings, does not bring anything new or disturbing. He is accordingly expecting the Security Council to adopt a Presidential Statement. Simonovic also described the Secretary-General's plan for winding up the Support Group in the Danubian region as favourable for Croatia. Intensive negotiations were being conducted with the OSCE which would assume some of its powers, Simonovic said. He recalled that the issue of legal protection of the equality of all citizens and their property and the adoption of a return programme had already been demanded of Croatia earlier as a condition for joining Euro-Atlantic integration and western defence alliances, and to strengthen cooperation with the U.S. Simonovic assessed a successful response to these issues will considerably strengthen Croatia's international position. Even without this appeal, the Croatian government has announced prompt solutions, Simonovic said. (hina) as ha 152123 MET jun 98