ARBITRATION ONE OF POSSIBLE SOLUTIONS IN SUCCESSION - CRO OFFICIAL

ZAGREB, Nov 20 (Hina) - Arbitration is one of the possibilities of coming out from the dead end street in negotiations on the division of property owned by the former Yugoslav federation, Croatian Succession Office head Bozo Marendic told Hina on Friday. A negotiating round on the division held last week failed due to the Federal Republic of Yugoslavia's (FRY) rejection of a division proposal made by international mediator Arthur Watts. "Arbitration is one of the possible solutions," said Marendic. "The successor states must consent to arbitration by consensus and agree on who would be arbiter and how arbitration would be carried out," he said. The most important undivided property which the five successor states are disputing over is former Yugoslav monetary gold in the value of some US$600 million, foreign reserves which in 1991 amounted to between US$5.5 billion and US$6 billion, real estate, and foreign demand. Marendic said one of the possibilities of reaching a solution was by exerting pressure on FRY to agree to succession. Watts' framework agreement envisages the division of property according to shares proposed by the International Monetary Fund. FRY would thus get 36.52 percent, Croatia 28.49 percent, Slovenia 16.39 percent, Bosnia-Herzegovina 13.2 percent, and Macedonia 5.4 percent. (hina) ha mm