CROATIA NORMALISES RELATIONS WITH FRY, NO INSTITUTIONAL LINKS

ZAGREB, Aug 8 (Hina) - Yesterday's meeting between Presidents Tudjman and Milosevic was an important step toward the establishment of durable peace and stability in the whole region, Croatian Foreign Minister Mate Granic said on Thursday. "Yesterday's talks have a great importance for the normalisation of relations between Croatia and Yugoslavia, the Croatian and Serbian people and all citizens of Croatia and the Federal Republic of Yugoslavia," Granic said in a statement for Hina. It was agreed that the Croatian and Yugoslav foreign ministers would meet in Belgrade on August 23, Granic said. Until then, the two countries would harmonise an agreement on the normalisation of relations and the establishment of diplomatic relations. This would be done through diplomatic channels and at a meeting in Geneva on August 14, Granic said. "What's important about this meeting is that the Prevlaka issue is no longer an obstacle for the establishment of diplomatic relations. The two sides still hold the same views, but agreed that the Prevlaka issue was an important security issue for both the Boka Kotorska Bay and the Dubrovnik area. The process of seeking a solution in accordance with international law and the UN Charter should be continued," Granic said. Other pending issues included the sea border and the unimpeded access to the Boka Kotorska Bay, he said. "The meeting gave full support to the Erdut-Zagreb Agreement and the peaceful reintegration of eastern Slavonia, Baranja and western Srijem. The meeting also welcomed the successful demilitarisation process, giving full support to Gen. Jacques Klein and his mission," Granic said. It was further agreed that both sides would deliver all the data on missing persons without delay, Granic said. The meeting of the missing persons commission would also take place on Aug 23 or around that date. "The meeting also firmly supported the Dayton Agreement and the holding of Bosnian elections in September as scheduled," he said. "Yesterday's meeting is the most important step toward the establishment of full diplomatic relations to date," Granic said. "This fact has a great importance for Croatia, particularly in connection with the so-called global regional approach. It shows that Croatia is normalising relations with Belgrade and developing relations with all neighbours but without any institutional links," Granic said. "Since the territorial integrity and sovereignty of all states are respected and good relations developed on the basis of interest, there is no need for setting any conditions on Croatia's accession to European associations," Granic concluded. (hina) as 081349 MET aug 96