TALKS FAIL TO MAKE PROGRESS ON CROATIAN-YUGOSLAV BORDER ISSUES

( Editorial: --> 4401 ) ZAGREB, Aug 18 (Hina) - Croatia and the Federal Republic of Yugoslavia (FRY) did not make significant progress in talks on Tuesday concerning the problem of the Prevlaka peninsula and the border between the two countries. However, Croatian Foreign Minister Mate Granic and his Yugoslav counterpart Zivadin Jovanovic did reach an agreement that the two countries' border commissions should begin negotiations on these contentious issues. Granic and Jovanovic held talks in Zagreb about a number of open bilateral issues, especially the border between the two countries and the issue of Prevlaka (Croatia's southernmost slither of land). In discussing the major issues the two ministers made no progress, but they did agree that state commissions should begin talks by September 15 at the latest and find ways to resolve these issues. "Today we agreed on certain mechanisms for the resolving of these issues," Granic said, but did not specify the mechanisms. The fact that the two sides agreed "for the first time" to start talking about Prevlaka is a significant result, Granic said. Jovanovic, who arrived in Zagreb on Tuesday, told reporters after the closed meeting that a "method for defining the border in the north and the south" between the two countries had been agreed on. "We give special meaning to the issue of Prevlaka because it is an important contentious issue, and to that effect the Croatian and Yugoslav sides have exchanged draft agreements in the past period," Jovanovic said. Croatia's stance is that Prevlaka is indisputably a part of its territory and that the peninsula poses only a security problem, while the FRY maintains that it is the focus of a territorial dispute between the two countries. A UN Security Council resolution and the findings of the Badinter Commission, on which Croatia heavily relies, support the Croatian views. Due to the delicacy of the issue, the United Nations has deployed monitors on Prevlaka. The peninsula closes off Yugoslavia's strategically important approach to the Boka Kotorska bay. Croatia is urgently attempting to solve this issue in direct negotiations with Yugoslavia so that it can create conditions for withdrawal of UN monitors from its entire territory after October 15, when they will start withdrawing from the eastern Danube River region. Granic and Jovanovic also agreed that they should set free all prisoners arrested during the war, regardless of the charges. This refers to those sentenced in Croatia for armed rebellion, and those in Yugoslavia for spying. It is believed there are 17 such people in Croatian prisons and 24 in Yugoslav ones. Granic said that both sides had assessed the refugee return process as successful, while Jovanovic said his country regarded the implementation of the Erdut agreement overall as positive. Both sides agreed to Croatia opening a general consulate in Subotica (northern FRY), and the FRY opening one in Vukovar (eastern Croatia). Croatia is also awaiting a permit to open a consulate in Kotor (Montenegro), while the FRY wants to open another consulate somewhere on the coast, Granic said. "We will open consulates in Subotica and Kotor at the same time," Granic said, adding that in several days Croatia would begin holding consular days in both towns. Following the talks Granic and Jovanovic signed agreements on trade and the protection and stimulation of investment. Both foreign ministers said they agreed to fast-track negotiations on succession to the former Yugoslavia and talks on a minorities protection agreement, river transport and establishment of air traffic and opening air corridors between the two countries. Croatia and the FRY signed the Agreement on Normalisation of Relations on August 23, 1996, after which the two countries established diplomatic relations. Since then they have signed about a dozen cooperation agreements which both ministers said have been implemented without any major problems. According to Croatian data, trade between Croatia and the FRY in 1997 amounted to US$27.5 million, including $20.5 million in Croatian exports and $7 million in imports. It is believed the volume of trade could be much higher given that Croatia did not have full control over its Danube region during this period, so local Serbs traded with the FRY without any supervision. Jovanovic estimated that bilateral trade amounted to $80 million during 1997. The foreign ministers said that Croatia and the FRY supported the implementation of the Dayton accords in Bosnia-Herzegovina and emphasised their opposition to any amendments to it. "We oppose every attempt at direct or roundabout revisions to the Dayton-Paris agreements," Jovanovic said. Speaking about Kosovo, Jovanovic repeated that it was an internal issue for the FRY and emphasised that his country sought a resolution which would be in accordance with European and international standards on human and ethnic minority rights. This resolution had to confirm the territorial integrity and sovereignty of the FRY and Serbia, he said. Granic said that Croatia supported efforts by the international community to stop the conflict in Kosovo and resolution of the crisis through negotiations. (Hina) lml/mbr /mro 181957 MET aug 98