PRESIDENTS TUDJMAN, MILOSEVIC ISSUE JOINT STATEMENT AFTER TALKS

ATHENS, Aug 7 (Hina) - Croatian President Franjo Tudjman and Serbian President Slobodan Milosevic on Wednesday held talks in Athens about promoting the peace process in the region and the normalization of relations between Croatia and Yugoslavia, a joint statement issued after the talks said. #L# The statement was initialed by Croatian and Yugoslav foreign ministers Mate Granic and Milan Milutinovic who also took part in the talks. The two presidents described the development of relations between the two countries as good and expressed satisfaction about the results achieved in the realization of concrete agreements in the fields of economic relations, infrastructure connection and resolutions to humanitarian issues, the statement said. Presidents Tudjman and Milosevic also expressed readiness for complete normalization of relations between the two countries with the aim of strengthening the peace process. Yugoslavia and Croatia stressed their readiness to establish and develop good relations, to recognize each other as independent and sovereign countries and that in line with the UN Charter to put effort in the strengthening mutual trust, as well as to cooperate in promoting peace, stability and development in the region. Both sides had confirmed their readiness to resolve the issue of the Prevlaka peninsula through negotiations, in the spirit of the United Nations Charter and good neighbourly relations, the statement said, adding that until an agreement on Prevlaka is reached, the two sides were to respect the security regime established through UN monitoring. The two sides also expressed readiness for creating necessary conditions for the return of refugees and displaced persons to their homes or other place of their own free choice, and to enable their property to be returned to them or give them just compensation. In connection to this issue, they stressed that a safe return included general amnesty. As regards the private property of physical and legal persons who had the other country's citizenship, it was agreed that the property be given equal legal protection as the property of the country's own citizens. The two sides expressed full readiness to sign an agreement on regulating pensions and other rights acquired on the basis of work. It was also agreed that the process of resolving the missing persons issue would be speeded up, as well as that both sides would immediately exchange all information about such persons. The two sides agreed that relevant departments would continue bilateral contacts in order to ensure full normalization of traffic and telecommunication connections between Croatia and Yugoslavia, which is important for the whole region. Special attention was given to the promotion of economic and trade relations, as well as cooperation in environment protection. Both sides supported the principle of free movement of citizens, goods and capital and would put efforts into creating conditions which would make this possible, the statement said. They reacted positively to the implementation of the Erdut Agreement on eastern Slavonia, Baranja and western Srijem, stressing the need to continue to implement the Agreement consistently and to prevent, or abstain from all actions which might bring into question the Agreement's consistent implementation. Both sides expressed full support for the UN Transitional Administration in ensuring all conditions for a successful implementation of the Agreement. The two presidents expressed full support to the implementation of the Dayton peace accords. They especially thanked Greek Premier Costas Simitis for his hospitality. During the talks the two sides agreed that Croatian Foreign Minister Mate Granic and Yugoslav Foreign Minister Milan Milutinovic would meet in Belgrade by the end of this month in order to define and sign the Agreement on the normalization of relations between the two countries, the statement said in conclusion. (hina) lm 071856 MET aug 96