STATEMENT BY CROATIAN FOREIGN MINISTRY

ZAGREB, Aug 23 (Hina) - Following is a statement issued by the Croatian Foreign Ministry on Friday after Croatia and Yugoslavia signed an agreement on the normalization of relations. "The Ministers of Foreign Affairs of the Republic of Croatia and the Federal Republic of Yugoslavia, Mate Granic and Milan Milutinovic, signed the Agreement on the Normalization of Relations Between the Republic of Croatia and the Federal Republic of Yugoslavia in Belgrade today. By the provisions of this Agreement the two States undertake to respect each others' independence, sovereignty and territorial integrity within their respective international borders. The mutual commitment to peaceful resolution of disputes has been confirmed, as well as the commitment to refrain from threats and the use of force, thus eliminating the risk of territorial pretensions and providing for cooperation in the promotion of peace, stability, security and development in the region. In the spirit of the Athens Joint Statement by the Presidents of Croatia and Serbia, Franjo Tudjman and Slobodan Milosevic, the important security issue of Prevlaka is to be resolved through negotiations. Both States have also undertaken to promote the consistent and full implementation of the Erdut Agreement on the Croatian Danubian Region (Eastern Slavonia, Baranya and Western Sirmium). The mutual recognition of the continuity of statehood affirms the equality of both States, while the provision on the resolution of the issue of succession to the former SFRY on the basis of international law and by agreement, allows for the overall resolution of this problem within the framework of the Peace Implementation Conference. The Agreement also allows for the possibility of a faster resolution of major humanitarian issues. The two States have undertaken to resolve the problem of missing persons immediately; to guarantee the Serbs in Croatia and the Croats in FRY all the rights pertaining to them on the basis of international law; to provide conditions for the free and safe return of refugees and displaced persons and to declare amnesty for all acts committed in connection with armed conflicts, except for the gravest violations of international humanitarian law qualified as war crimes. The Agreement affirms the special responsibility of the two States for peace and security in this part of Europe, introduces the principle of coexistence and promotes the policy of detante, thus contributing to the establishment of a new balanced regional order. Announcing the conclusion of a series of further agreements, this Agreement opens the door to the general regulation of relations between the Republic of Croatia and the Federal Republic of Yugoslavia. This will undoubtedly contribute to the strengthening of a system of equal and stable bilateral relations which will make unnecessary any notion of new state associations in the region." (hina) vm 231852 MET aug 96