CRO PARLIAMENT BEGINS DISCUSSION ON GOVERNMENT LETTER TO U.N.

ZAGREB, Jan 23 (Hina) - The Croatian Parliament's House of Representatives on Thursday began a discussion on the Government's letter of intent on the completion of the peaceful reintegration of UN-administered eastern Croatia. Presenting the contents of the document, Deputy Prime Minister Ivica Kostovic said that its basic aim was the termination of the UNTAES mandate by July 15 as a precondition for the restoration of Croatia's legal and economic system in the Danube river region and the return of Croatian displaced people. The achievement of these goals was conditional on the holding of local elections in mid-March and compliance with the Erdut peace agreement, he added. It can be said with great certainty that Croatia has fulfilled its obligations and that local elections will take place on March 16 simultaneously in the Danube area and elsewhere in Croatia. Croatia's offer to the local Serb community is regarded as forthcoming, Kostovic said. Noting that it was very important that parliamentary deputies should know how the document had been initiated, Kostovic recalled that President Franjo Tudjman had held two meetings with local Serb representatives in the presence of UN Transitional Administrator Jacques Klein and that two meetings had also been held with members of the Croatian government. He said that the negotiations on the peaceful reintegration had reached a deadlock last December because the Serbs would not renounce their demand for a single county in the region and that the Croatian implementation commission for elections could not accommodate such a demand. After that, the Government took the initiative and proposed the letter of intent, which was harmonized by the two sides and which became official only after I signed it, Kostovic said. Croatia has the full initiative with the letter and sets the pace of events until July 15 this year, he stressed. Foreign Ministry Ambassador Ivan Simonovic said that the UN Secretary General would release a statement on the Croatian initiative later in the day and that a positive response was expected from the UN Security Council regarding the document. (hina) vm mm 231355 MET jan 97