Z-4 GROUP ACHIEVES TENTATIVE AGREEMENT ON ECONOMIC MEASURES

ZAGREB, Nov 16 (Hina) - The Zagreb Four group of negotiators achieved tentative agreement on several issues after yesterday's lenghty negotiations with Croatian authorities and Serb representatives from the UN-protected areas, the US Embassy in Zagreb said in a press release today. This agreement is Phase Two of the three-phase Z-4 process which the US has been involved in since the March 29 ceasefire agreeement was signed in Zagreb. Phase Two deals with economic and confidence-building measures. "The ultimate goal of the Z-4 process is the peaceful reintegration of the UNPA's into Croatia," the release said. "Both sides have tentatively agreed to undertake the following projects: to restore water supplies in six different locations; begin work to restore the electricity grid which includes repairing high tension power lines in several locations; opening the highway in sectors West and East; and opening the Adria Oil pipeline through sector North. "And under the terms of this agreement the Krajina Serbian authorities would receive the generator poles for the Obrovac Hydroelectric facility, currently stored in Rijeka. "The new agreement also establishes a joint commission to assist in and monitor implementation of the agreement, and lays out specific topics for future negotiations on confidence building measures including the return of displaced persons, distribution of pensions, and other road and rail links," the release concluded. US Ambassador Peter Galbraith is to hold a press conference at at the US Embassy at 3.30 pm today to announce results of yesterday's meetings on economic cooperation and confidence- building measures between Zagreb and Knin. (hina) mm sd vm 161439 MET nov 94