PRESIDENT TUDJMAN GIVES INTERVIEW TO CROATIAN TELEVISION

ZAGREB, Dec 30 (Hina) - Croatian President Franjo Tudjman on Wednesday gave an interview to Croatian Television (HTV), assessing the events from Croatia's recent history, as well as the current situation and its prospects. The President answered questions by HTV journalists and citizens throughout Croatia. Asked to comment on problems in the development of democracy in Croatia, Tudjman said that after it had gained its independence Croatia was faced with problems more serious than expected, because a new system had to be built on the ruins of the former Yugoslav community and its socialist system. The transformation of a socialist, totalitarian system into a democratic system, based on free market economy, is a great challenge and long process. The expectations of Croatian citizens and others that we would be able to solve all problems in less than eight years have proven unrealistic, he said. Asked to comment on a claim that political positions in Croatia were being used for personal gain, Tudjman said: "All politicians in Croatia did not become rich, including me". "Claims that I or my family have property worth billions are blatant lies, fabrications and attempts to compromise Croatian freedom, democracy and me personally". Asked about his bank account, Tudjman confirmed he had 230,000 German marks on his bank accounts. "It is, I can say, the result of 50 years of work. More than 30 books published here and in other countries", he added. Asked whether he had an account abroad, he answered: "Not a single kuna". The President also dismissed claims that the ruling Croatian Democratic Union (HDZ) abused the privatisation process and its powers. It would be difficult, anywhere in the world, to find a state or state authorities so socially-oriented as are those in Croatia, he assessed. Despite everything Croatia had gone through during the Serbian aggression and in spite of the occupation and destruction of one third of its territory, the state managed to build more than 80,000 houses in the once occupied areas. The state has made it possible for more than 300,000 citizens to buy socially-owned flats on favourable terms. The state had to care for almost 500,000 displaced Croatian citizens and another 200,000 displaced and refugees from Bosnia- Herzegovina. "Understandably, all problems regarding displaced people could not be solved, but there are cases where flats in Vukovar that have been reconstructed are still empty because some people do not want to return", he said. In reply to a comment by a citizen that return itself is not enough without the creation of job opportunities, Tudjman said that about 55 per cent of production facilities have been privatised so far. "However, the mentality of (the former system of) self-governing, persists", he added, calling for more personal initiative in solving problems. The year 1998 saw an increase in salaries and pensions, even above the production capacity, he said. Asked by a peasant about the difficulties he was facing due to the Value Added Tax, Tudjman said it would be discussed whether some corrections should be made within the VAT system. Speaking about the agreement signed by Croatia and Bosnia- Herzegovina on the free use of the Croatian port of Ploce by Bosnia- Herzegovina and the free passage by Croatia through Bosnia's southern town of Neum, Tudjman said he had not wanted to sign the agreement until the signing of the Agreement on Special Relations between Croatia and the Croat-Moslem Federation of Bosnia- Herzegovina, which, based on the Washington and Dayton agreements, would guarantee the survival of Croats in the Bosnian Federation and the strategic interests of southern Croatia. Asked what decides about Croatia's international position, Tudjman said Croatia primarily depended upon itself. "It will be so in the future", he added. Despite the fact that Croatia is a Mediterranean and central European country, some wish to return it to the Balkans with their regional approach. This is the policy of Great Britain, France and America, as opposed to the policy of central Europe, in which Germany has or can have the lead role, Tudjman stressed. He described as unfounded claims that he was carrying out some kind of an exclusive nationalist policy. Asked about Croatia's basic orientation in foreign policy, Tudjman said his recent visit to Moscow and Russia did not mean a change in Croatia's policy. We are all for Croatia to be integrated into central European associations as a Mediterranean and central European country. However, European integration processes are not exclusive and final. They have their perspective, but they also have their traps and their own reality, which is that there is no unified European policy, but at least four policies of the main European countries or powers, Tudjman said. He also stressed the role of Russia in solving issues, particularly in the Balkan region. Russia had a fairly objective stance towards resolving the crisis in the former Yugoslavia and Bosnia-Herzegovina, contrary to the popular belief that it supports Serbia, he stressed. Asked to comment on accusations about human rights violations in Croatia, Tudjman said that since the beginning of time, ideal justice and reason seldom reigned, but rather power reigned. Today we are also faced with the fact that the main world powers are imposing upon us their will and wish to create a different Croatia. They do not want a Croatia that thinks for itself and wishes to be a participant in the establishment of international order, Tudjman said. Asked to comment on the double standards of international justice, Tudjman said ideal justice had never been met in internal or international order. "Frankly speaking, the Hague Tribunal was a means to call to account those responsible for the fall of Yugoslavia, as the public explanation was that nationalist leaders, who are guilty of Yugoslavia's fall, must be removed, so that it could be reunited.... That is an illusion, an irrational approach", Tudjman stressed. Commenting on the human rights situation in Croatia, especially regarding claims on the possible misuse of authority, Tudjman stressed that the claims were stories placed by the Opposition and those foreign factors which had not accepted the independent and democratic Croatia. Since its very establishment, defence and victory in the Homeland War, Croatia has shown a political maturity and wisdom, Tudjman said. Asked what Croatian citizens could expect in the coming year, Tudjman expressed his conviction that the state policy would continue to be successfully implemented in all areas. Speaking about the forthcoming privatisation of public companies, Tudjman said that national interests would be protected in the process, allowing foreign investors to buy up to 25 per cent of those companies. The current state leadership has become sufficiently mature and experienced not to allow strategic mistakes to be made, in the interest of maintaining and protecting Croatia's freedom and national and state security, Tudjman said. He concluded the interview by wishing Croatian citizens all the best for Christmas and New Year. (hina) rml/lml