SIMONOVIC SATISFIED WITH BELGRADE TALKS

ZAGREB, May 13 (Hina) - Croatian Deputy Foreign Minister Ivan Simonovic, Yugoslav Foreign Minister Milan Milutinovic and their associates met in Belgrade on Monday. Both parties favourably assessed the progress achieved in the implementation of the March Memorandum on the normalisation of relations between Croatia and Yugoslavia. "The talks were conducted in a spirit of mutual understanding and willingness to continue this process," Deputy Foreign Minister Ivan Simonovic told reporters after the talks. One of the chief topics addressed by the talks was the issue of missing persons, Simonovic said, voicing satisfaction with Milutinovic's understanding of the importance of that issue for the peaceful reintegration of eastern Slavonia, Baranja and Western Srijem. Both sides expressed their conviction that a Protocol signed earlier by the two Missing Persons Commissions would ensure the release of the complete body of data on missing persons. The Croatian delegation acquainted their hosts wiht the Croatian Government program for the peaceful reintegration and demilitarisation of eastern Slavonia, Baranja and Western Srijem. They also presented a draft agreement on minorities which is to form part of a full normalisation package to be discussed at a later date. Also discussed was the issue of Croatia's southernmost peninsula of Prevlaka to which Yugoslavia had had certain aspirations in the past, and had proposed an exchange of territory, Simonovic said. Simonovic said he felt encouraged by the fact that the Yugoslav side was pursuing "other forms of resolving the status of Prevlaka which do not involve an exchange of territory but place the problem within the framework of normalisation." In the meantime, both sides agreed to continue implementing the March Memorandum, which specifically included the opening of air corridors to international traffic and the entrusting of certain consular functions - such as issuing border passes - to the respective Offices in Zagreb and Belgrade. Other consular matters would await the full normalisation of relations. According to the Croatian delegation, today's talks have shown that full normalisation and mutual recognition are prerequisites for achieving greater progress in resolving other pending issues. It was agreed that preparations for Minister Granic's visit to Belgrade would continue, even though a date had not been set yet. (hina) jn as 132057 MET may 96