WALDNER: AUSTRIA WILL CONTINUE TO ASSIST CROATIA ( Editorial: --> 0843 )

( Editorial: --> 0843 ) ZAGREB, Nov 14 (Hina) - Austria will continue to assist Croatia on its way into Euro-Atlantic institutions, as it had supported its independence, deputy Austrian foreign minister and state secretary Benita Ferrero Waldner told reporters in Zagreb Friday. Ferrero Waldner today held talks with her Croatian counterpart Ivo Sanader. Stressing that Austria had supported Croatia's independence and "has positively followed" Croatia ever since, Waldner said that Austria would continue to "assist Croatia in getting means of the PHARE programme" and then in signing a cooperation agreement with the European Union. "Certain additional steps are definitely needed for that", Waldner said, adding that the handing over of ten Bosniak Croat suspects to the Hague war crimes tribunal had been a significant gesture and a big step towards Europe. However, there existed "certain problems" which she discussed with Sanader in a "friendly and open" manner, Waldner said. According to Croatia's Sanader, his talks with the Austrian deputy foreign minister touched on the peaceful reintegration of the Danube river region of eastern Croatia, bilateral relations, Croatia's efforts to enter Euro-Atlantic institutions, and Croatia's proposals concerning cooperation with the Croat-Muslim Federation of Bosnia-Herzegovina and Bosnia-Herzegovina as a whole. Sanader expected Austria to support Croatia in accessing Euro- Atlantic institutions. It is important that Austria will chair the European Union next year, he said. "Croatia will at the same time chair the Central European Initiative, of which Austria is member, (and this is where) we see another field for cooperation", the Croatian deputy foreign minister said. "As regards our bilateral relations, we have concluded they are absolutely good, but there are many possibilities for them to improve, primarily in economy", said Sanader. Yesterday, Austria's Waldner visited the Croatian Danube region where she held talks with representatives of the UNTAES, the UN civil police and Serb and Croat local authorities. "I think big progress has been made in the reintegration of eastern Slavonia", Waldner said. There still remained for displaced persons to return to demolished houses and occupied houses, she added. Special projects aimed at ensuring jobs and stimulating small and medium entrepreneurship should be initiated in the Croatian Danube region, she said. "It would be nice if some means of the PHARE programme could be used to step up the return of the displaced, to provide new jobs, the creation of small and medium enterprise, as has been done in Bosnia- Herzegovina", Waldner said. She thought the UN should stay in the Croatian Danube region even after the end of its mandate on 15 January 1998, perhaps, Waldner said, until 15 September 1998, in the form of monitoring by the UN civil police. Waldner believed the UN had helped in restoring trust among national communities in the area. It would be good for the UNTAES to continue that job and to pass their experience on to new people and international organizations to come to eastern Croatia after the UNTAES mandate, she said. Sanader told reporters he assured his Austrian counterpart that the "Croatian government will do everything for the peaceful reintegration process to end in the agreed time." Speaking about bilateral cooperation, Waldner said she expected a more prominent presence of Austrian companies in Croatia in the future. She would support their inclusion in big Croatian projects. (hina) ha 141454 MET nov 97