CRO FOREIGN MINISTER HOLDS TALKS WITH GERMAN COUNTERPART KINKEL

NEW YORK, Sept 26 (Hina) - On the last day of his visit to New York, Croatian Foreign Minister Mate Granic on Friday held talks with his German counterpart Klaus Kinkel. The talks focused on the reintegration of eastern Slavonia, Baranja and western Srijem, and the situation in the Federation in Bosnia- Herzegovina. Germany welcomed the measures the Croatian government has undertaken to date in the process of reintegration of the Danube river region of eastern Slavonia, and expected Croatia to comply with all obligations, Minister Granic said after the talks. Granic is heading a Croatian delegation attending the 52 session of the UN General Assembly in New York this week. As regards cooperation with the war crimes tribunal in The Hague, Granic said Germany shared the standpoint of the United States, i.e expects Croatia to fulfil its commitments fully. "The German side believes this is in Croatia's full interest, not only because of the International Monetary Fund (IMF) issue, but more importantly because of Croatia's overall position in the world and in Euro-Atlantic integrations, and because of the perception of Croatia in the world", the foreign minister said. On a U.S. initiative, the IMF this summer stopped a loan to Croatia on account of dissatisfaction with Croatia's cooperation with The Hague war crimes tribunal. The U.S. administration in the meantime heightened its pressure on Croatia through the UN Security Council with the possibility of extending the UNTAES mandate in eastern Croatia, and through the Council of Europe with an appeal to suspend Croatia's membership. Talks on the situation in the Bosnian Federation were especially important, Foreign Minister Granic said. He focused on issues faced by Bosnian Croat returnees, in central Bosnia in particular. Germany, Granic said, had "complaints regarding Mostar and certain politicians in the Neretva-Herzegovina Canton." Granic also held talks with Hungarian Foreign Minister Laszlo Kovacs. They agreed to step up negotiations on a trade zone, in order to start implementing a project once Croatia entered the World Trade Organisation. With his Greek counterpart Theodore Pangalos, Croatia's foreign minister discussed bilateral relations and the strengthening of cooperation in tourism. (hina) ha 262121 MET sep 97