FATE OF CROATS SETTLED IN DRVAR BEING DECIDED IN CENTRAL BH - SCHW ARTZ-SCHILLING

ARTZ-SCHILLING SARAJEVO, July 4 (Hina) - After a two-day visit to the central Bosnian municipalities of Kakanj and Vares where he ascertained the possibility of return of Croats who had fled from the area, international mediator for Bosnia-Herzegovina Christian Schwartz-Schilling said on Friday that both towns confirmed a fundamental readiness to comply with the Dayton Accord's Annex VII, which warrants the return of refugees. Results to date gave reason for a mild optimism, Schwartz-Schilling told reporters in Sarajevo. He recalled that in Kakanj and Vares the fate of a large number of Croats currently settled in Drvar, western BH, was being solved. (hina) ha mm 041446 MET jul 97