DEFENCE AND NATIONAL SECURITY COUNCIL IN SESSION - STATEMENT

ZAGREB, Jul 31 (Hina) - The Croatian Defence and National Security Council convened on Wednesday under the chairmanship of President Franjo Tudjman, the President's office said in a statement. Following is the full text of the statement: "The Council carefully considered the European Union's demands on Croatia following the Mostar municipal elections, reaching the conclusion that there had undoubtedly been legal errors and manipulations with the election results. "The Council also discussed the international aspects and bacground of the current demands and pressures on the Republic of Croatia relative to Mostar, particularly in the context of preparations for the September elections in Bosnia-Herzegovina and the implementation of the Dayton Accord. "The Council noted the presence of numerous inconsistencies, deviations and overt attempts at compromising the peace process in Bosnia-Herzegovina, with the aim of establishing such an order between nations and states in the region as would not be acceptable for the Republic Croatia, nor would it lead to a balanced regional order and a lasting peace. One of the means whereby this end was to be achieved is by putting pressure on the Republic of Croatia. "In this respect, the Council agreed to strengthen diplomatic efforts to inform the international public of the legal and political aspects of the Mostar elections, the relations within the Federation and attempts to create new integrations in the region. "The Council stressed the need to evaluate, in the course of the further implementation of the Dayton Accords, the overall interests of the Croatian people and the international position of the Republic of Croatia. In this respect, the Council recommended that a temporary compromise in the Mostar issue be reached within the framework of Bosnian Federation institutions. The Council also discussed the overall development of Croat- Moslem relations within the Federation, emphasising the need to establish all the remaining Federal executive bodies as soon as possible and to resolve all the open issues that affect the Croats' position in the Federation and the consistent implementation of the Washington Accords. Regarding the situation in Mostar, the Council recommended that a resolution be worked out at the impending meeting of the Federation Forum in Sarajevo, to be held under the chairmanship of US envoy John Kornbloon. The Council also recommended that a possible compromise in the Mostar issue, as well as the overall relationship between the Croat and Moslem nations, be discussed at an emergency meeting between HDZ and SDA leaderships (Croatian Democratic Union and Party of Democratic Action, respectively). In order to expedite the resolution of other issues, the Council further recommended that a session of the Joint Council for the cooperation of Croatia, the Bosnian Federation and Bosnia- Herzegovina be convened as soon as possible under the chairmanship of President Franjo Tudjman, to discuss the overall political and other relations in the implementation of the Agreement on Strengthening the Bosnian Federation. With regard to demands relative to the functioning of Herzeg- Bosnia and its executive bodies, the Council approved the partial transfer of authority from the Government of Herzeg-Bosnia to the Government of the Federation that has been achieved so far. The Council stressed that this process should continue. It was agreed that Croatia would request the Moslem side, at the next session of the Joint Council, to make an additional effort to strengthen the remaining Federal Government ministries so that a transformation of Herzeg-Bosnian institutions could be effected coincidentally with the full establishment of the Federal Government, in accordance with the Dayton Accord. The Council warned that the Bosnian Croat political leadership bore particular responsibility for protecting the interests of the Croatian people in Bosnia-Herzegovina. This included the responsibility for dealing with all illegal and politically harmful actions which provided an additional motive for and means of exerting pressure on the Croatian side. The Council approved the initiative of Herzeg-Bosnian representatives present at the session to table a motion for transforming the Croatian Republic of Herzeg-Bosnia into a political community of the Croatian peple at the next session of the Herzeg-Bosnian House of Representatives. With regard to the peaceful reintegration of the Croatian Danubian area, the Council agreed that it was progressing in keeping with the time frame proposed by the Croatian Government and Temporary Administrator Jacques Klein. The Council approved the work of the Temporary Administrator and his suggestions for the further course of the reintegration process. The Council stressed that there were no obstacles for calling elections in December, in accordance with the relevant UN Security Council Resolution and the Basic Agreement. With regard to the return of Croats to the Croatian Danubian area, the Council called on the Croatian public and media to follow state policy, in order to ensure the successful completion of the peaceful reintegration process." (hina) as 311634 MET jul 96