BABIC ON TALKS WITH CROATIAN AUTHORITIES

BELGRADE, Nov 1 (Hina) - Krajina should work on two sides - resume talks on economic issues with Croatia and talk with the 'Serb republic' (Karadzic's 'state' in Bosnia) and the Federal Republic of Yugoslavia on a political integration of Serbian people into one state, Milan Babic said in Knin yesterday. Milan Babic is the foreign minister of the self-proclaimed Serb state in the occupied Croatian area. Borislav Mikelic, premier of Croatian Serb rebels, said that Babic had not participated in Pleso talks between the Croatian authorities and representatives of Serb rebels from Knin held on Thursday because "it seems that Babic wants to integrate Krajina into Croatia", the Belgrade NTV Studio B said. (hina) jas ks 011548 MET nov 94