GRANIC ANNOUNCES BETTER FUNCTIONING OF BH FEDERATION

SARAJEVO, 23 April (Hina) - Croat-Bosniak relations hinge on the BH Federation and co-operation between BH and Croatia, said Croatian Foreign Minister Mate Granic in Sarajevo today. Speaking at a press briefing after talks with top officials of the BH Republic and BH Federation, he described his talks with President BH Presidency Alija Izetbegovic as frank, friendly and constructive. Granic announced final agreement on Federation laws on defence and finance might be reached within the next seven days. "We have reiterated today our full support to Washington, Dayton and Rome agreements and confirmed our commitment to the constitution of municipal authorities in Bugojno and Vares municipalities, pursuant to arbitration," said minister Granic. In a comment on the situation in Mostar, he said local elections could be held in May, adding that presently new European administrator should be given all support he needs. Minister Granic stressed that early May Croatia and BH might sign a provisional agreement on the use of the Croatian harbour of Ploce. The agreement would be in force for a year, until a long term solution for the problem is found. Minister Granic said he had been told by President Izetbegovic that authorities in Sarajevo had nothing to do with an attempt on the life of Fikret Abdic. In a statement issued after the talks Izetbegovic-Granic by BH Presidency, both parties were said to have expressed desire for continuos co-operation based on equality and mutual respect, and determination to resolve outstanding issues and misunderstandings that have been sporadically besetting bilateral relations. With that in mind, reads the statement, the two parties announced the second session of the Council for Co-operation between Croatia and BH would be held in early May. The statement also underscores difficulties in the constitution of authorities in Bugojno, Stolac, Capljina and Vares should be overcome on 25 May at a meeting in Bonn. The problems in Bugojno and Vares will be solved in accordance with arbitration rulings. The statement also says President Izetbegovic had "objections to the wording of an official Croatian statement on the arrest of a group of Bosniaks suspected of preparing assassination of Fikret Abdic." In a comment minister Granic said the statement "did not hint at the political and military leadership of BH", adding that "the investigation has still not been completed." In the closing of the statement on the meeting Izetbegovic-Granic Croatia and BH were said to have denounced all kinds of terrorism. (Hina) 232112 MET apr 96