CROATIAN DELEGATION VISITS HUNGARY ( Editorial: --> 2174 )

( Editorial: --> 2174 ) BUDAPEST, Nov 19 (Hina) - A Croatian government delegation headed by Prime Minister Zlatko Matesa visited Budapest on Wednesday. After talks with Hungarian Prime Minister Gyula Horn and government officials, the Croatian delegation met Hungarian Parliament Speaker Zoltan Gal. Croatian Economy Minister Nenad Porges, Tourism Minister Sergej Morsan and director of the Croatian agency for the stimulation of investments, Vanja Kalogjera, held talks with the Hungarian Industry, Trade and Tourism Minister Szabolc Fakas. "We spoke about starting negotiations about a free trade zone," Porges said. "We have not even begun talks with Hungary about the establishment of the zone, and that presents an obstacle for the two-way exchange of goods," he added. Negotiating teams will meet in the beginning of December to discuss details for the opening of the free trade zone and to establish which goods could be exempt from customs duty. Also, a mixed business committee is to convene to discuss other possibilities of cooperation between the two countries, Porges said. Croatian and Hungarian ministers spoke about cooperation in energy supply, conditions of using the free zone in the Croatian port of Rijeka, cooperation between the two countries' customs services and projects of reconstruction in Croatia. Hungary had expressed interest in getting involved in the construction of the Danube canal, Porges said. Considering the excellent political understanding between the two countries, the volume of trade seriously lagged behind the possibilities, he added. (hina) lm 192041 MET nov 97