MEDIATOR SAYS STEPS FORWARD MADE IN PLOCE-NEUM NEGOTIATIONS

( Editorial: --> 8211 ) DUBROVNIK, Sept 4 (Hina) - Talks continued in Dubrovnik on Friday between a Federation of Bosnia-Herzegovina delegation and American mediators over negotiations on the Ploce-Neum issue. Negotiations are focusing on Bosnia's use of the Croatian port of Ploce on the southern Adriatic and free road access for Croatia through the Bosnian resort town of Neum, which separates Croatia's southernmost Dubrovnik region from the rest of the country. A Croatian delegation headed by Economy Minister Nenad Porges participated in the talks on Thursday. Following Friday's session, special American envoy Richard Sklar emphasised that significant steps forward had been made in reaching a final agreement. Sklar said he was encouraged by the fact that both sides had agreed that economic growth and cooperation would be useful for their futures. The striking of an agreement is beneficial to both sides, which pleases us, because the future is more important than the past, he said. Companies in Bosnia will be able to make use of all the benefits offered not only in the port of Ploce but in relation to international centres. The rights of the Croatian Government will be totally respected. When Zagreb and Sarajevo reach decisions, we will join the legal process, Sklar said, adding they had formulated the text which would be sent for a reading in both capitals. The international community's Deputy High Representative to BH Jacques Klein said that the agreement would be fully recognised and protect Croatian sovereignty and encourage trade development. Currently the Ploce port is only 30 per cent in use, but 1,800 workers would be able to return to work. Yet even more important is that this agreement resolves the issue of passage through Neum and allows total and free access between the two parts of Croatia, Klein said. It is clear to all of us that it is in the Republic of Croatia's long- term interest for there to be a stable and economically developed Bosnia-Herzegovina because its stability directly influences the stability of Croatia, he added. The American mediators announced that on Saturday they would hold talks with Porges in Zagreb and BH representatives in Sarajevo. (Hina) mbr jn 042234 MET sep 98