STATE MUST HELP WITH ECONOMIC DEVELOPMENT OF VUKOVAR COUNTY

( Editorial: --> 6660 ) VINKOVCI, Aug 28 (Hina) - The Vukovar-Srijem County must rely on natural reserves in its economic development, meaning the earth and forests. For this, it must have the understanding and help of the state, participants of a meeting in Vinkovci (eastern Croatia) said on Friday. The meeting, focusing on the promotion of agriculture and wood industry gathered county and city officials, assistant agriculture and forestry minister Ivan Djurkic, director of the Croatian Forests company, Ivan Tarnaj and representatives of the Croatian Mine Centre. The prefect of the Vukovar-Srijem County, Rudolf Koenig, warned about the difficult position of wood processors. He called on the government to continue the process of restructuring of the county's largest wood processor, the Vinkovci-based "Spacva". Spacva's director, Ivan Krstanovic described the rehabilitation of the company so far as very successful. Total company's current debts to banks and various state funds amount to DM23 million. We have come to "a very serious phase of talks with the German company 'Haas Hoco' which is willing to purchase the majority of stocks, but under the condition that the company resolves its debts to state funds," Krstanovic said. The Germans are prepared to invest into the recapitalisation of Spacva, he said. The procedure for eliminating Spacva's debts is under way, and is supported by the Agriculture and Forestry Ministry, Krstanovic added. Tarnaj announced that Croatian Forests management would moot a new model of relations between Croatian Forests and wood processors to the Administrative Board, and will request its official confirmation by the government. Speaking about the autumn sowing, Ivan Djurkic said a sowing plan had not been defined yet, but that the Ministry was working on a new model and structure of the autumn sowing. This included a decrease of the total surfaces of wheat, except in the Vukovar-Srijem and Osijek-Baranja County. Djurkic also advocated an increase in surfaces for oil crops. (hina) lml 281912 MET aug 98