CROATIA AND MALAYSIA SATISFIED WITH BILATERAL RELATIONS

ZAGREB, July 7 (Hina) - Croatia and Malaysia are satisfied with their bilateral relations and both countries are interested in the implementation of the Dayton peace agreement in Bosnia-Herzegovina and the strengthening of the Croat-Moslem federation, Croatian and Malaysian foreign ministers Mate Granic and Abdullah Ahmad Badawi said in Zagreb on Monday. Granic informed his guest about Croatia's efforts in strengthening the Bosnian Federation and about preparations for a meeting of Croatian President Franjo Tudjman with the Moslem chairman of Bosnia- Herzegovina's collective presidency, Alija Izetbegovic, and the Croat member of the presidency, Kresimir Zubak. Badawi, who had arrived in Croatia on Saturday for a three-day official visit, stressed that Malaysia was particularly interested in Bosnia-Herzegovina. Noting that the full and swift implementation of the Dayton agreement was crucial for the future peace and stability in Bosnia- Herzegovina and the region, Badawi told reporters that the success of the Bosnian Federation was very important for the survival of Bosnia- Herzegovina as an independent and sovereign state. Expressing satisfaction with the positive role Croatia had played in Bosnia-Herzegovina, Badawi said he hoped Croatia would continue to contribute to the consolidation of Bosnia-Herzegovina's sovereignty by providing assistance to the Federation. Badawi said that his country would help in the post-war reconstruction of Bosnia-Herzegovina and that it could cooperate with Croatia in that effort. Speaking of the relations between the two countries, Granic said that talks were under way on agreements on the avoidance of double taxation, on economic, technical, scientific, cultural and educational cooperation, and traffic. Badawi said that the above agreements should enable the private sector and investors to develop good economic relations. Granic also informed his guest about the process of peaceful reintegration of the UN-administered Croatian Danube region. Croatia was expecting a UN Security Council resolution this week under which the mandate of the UNTAES military component would terminate in mid-October this year while its overall mandate should end on January 15, 1998. Granic said that it was expected that President Tudjman would visit Malaysia. (hina) vm 071327 MET jul 97