RADIC SIGNS HOUSING RECONSTRUCTION CONTRACTS IN VUKOVAR

VUKOVAR, Oct 8 (Hina) - The Croatian government, the Croatian Bank for Reconstruction and Development (HBOR), the Croatian Privatisation Fund and the Croatian Guarantee Agency have agreed measures to encourage economic recovery in the Danube river region, Reconstruction and Development Minister Jure Radic said in Vukovar on Wednesday. During today's visit to the UN-administered region, Radic signed housing reconstruction contracts worth a total of 200 million kuna with companies from all over Croatia which would rebuild about 4,000 less damaged houses before the end of this year to enable the return of displaced persons. Radic told reporters after the meeting that special co- operatives would be set up in the villages where the displaced persons would be returning to, which the government would provide with tractors and other necessary equipment for sowing. Large agricultural enterprises in the region would also get similar aid in order to cultivate as much land as possible this year. It was agreed that the HBOR would draw up special programmes under which returnees would be offered loans to revive family farms in the Danube region, and that the government would work out measures to encourage the opening of small businesses. It was also agreed that free trade zones and industrial estates would be established to make better use of the existing resources in the region. Radic said that the administrative staff of recently reintegrated large companies would have to go to work in the region and those who refused would be dismissed. The leaders of those companies would be provided accommodation by the regional Centre for Reconstruction and Development. Speaking of the future of large companies, such as the footwear factory Borovo, Radic said that they would be considerably downsized and that the Ministry of Labour and Social Welfare would draw up a programme of care for workers in those companies. Asked to comment on the slow return of displaced Croats to the region, Radic said that that was partly caused by administrative problems created by the UN Transitional Administration (UNTAES) in the region, but that the main reason was that displaced persons did not want to return individually. The government delegation and other officials attended a ceremony of opening an office of the Croatian Privatisation Fund in Vukovar. They also visited Ceric where they attended the presentation of a mine-clearing machine designed by the OLT company of Osijek. Earlier in the day, they held talks with UNTAES officials. (hina) vm 081847 MET oct 97