PORGES HAILS HIGH LEVEL OF AGREEMENT REACHED OVER PLOCE ISSUE

( Editorial: --> 8299 ) ZAGREB, Sept 5 (Hina) - A Croatian delegation headed by Economy Minister Nenad Porges on Saturday continued consultative talks with American mediators on the Ploce-Neum issue, which has been discussed in Dubrovnik during the past two days by the Bosnian and Croatian sides. 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 coastal town of Neum, which separates Croatia's southernmost Dubrovnik region from the rest of the country. At the end of today's talks in Zagreb with American special envoy Richard Sklar and the international Deputy High Representative to Bosnia-Herzegovina, Jacques Klein, Porges assessed that up to now a high level of agreement had been reached over the issues. Klein and Sklar will be in Sarajevo on Friday night to hold talks with a Bosnian delegation, and the Croatian side will expect a response on the issue next week. We reached harmony over the basic issues, Porges told reporters. The sovereignty issue was not discussed, because there was no mention of the concept, (especially on the issue of a free-trade zone in the Ploce port) under which Croatia would give a piece of land to someone else, in either a legislative or administrative sense. This concept is no longer current and we did not discuss it, Porges said. We discussed how to enable free passage through Neum, taking into consideration Croatian tourism interests, and on free access to and from the port and free trade zone in Ploce. Porges said those issues had been brought to the phase of legal maturity, in both semantic and internationally acceptable senses. He added that as a result Croatian legislation had not been excluded and that in some details international arbitration was foreseen if needed. Klein and Sklar assessed that the level of agreement reached up to now over Ploce and Neum had been useful for both sides. Klein emphasised that sovereignty had never been an issue as it was a business agreement. Bosnia-Herzegovina will be able to economically breathe through a free trade zone in Ploce, while Croatia needs investment, Klein said. Assessing the meetings up to now, he expressed a belief that a final agreement would be reached soon. Expressing satisfaction with the meetings, Sklar praised the Croatian negotiating team. We have a good, win situation for both sides, a commercial situation which does not infringe on sovereignty, he said. Asked by reporters if an international agreement on Ploce and Neum was possible before the signing of an agreement on special relations between Croatia and the Federation of Bosnia- Herzegovina, Porges the special relations agreement was the first formal step. Until then the negotiating teams on free passage through Neum and use of the Ploce port will continue to prepare and coordinate all elements of that agreement. Despite the current high level of agreement, this agreement will not be able to be delivered before the reaching of an agreement on special relations between Croatia and the Federation of Bosnia-Herzegovina, Porges said. Klein and Sklar assessed that such an agreement on special relations was important for future cooperation between Croatia and the Federation. He emphasised that the agreement was vital to stabilising the situation in Bosnia, especially for Bosnian Croats. At the end of his statement Porges thanked Sklar and Klein for offering their services during meetings with the Bosnian representatives. The role of Klein and Sklar is not negotiating. They offered both sides their good services, Porges said. (Hina) mbr /lml 051756 MET sep 98