GALBRAITH ON TENTATIVE AGREEMENT BETWEEN CRO GOVT AND LOCAL SERBS

ZAGREB, Nov 16 (Hina) - After the end of yesterday's session (of Pleso talks) there have been further developments which resulted in a tentative agreement on a package of economic and confidence- building measures, American Ambassador to Croatia, Peter Galbraith, told a press conference today. He was speaking of talks between a Croatian government delegation and local Serb representatives from the UN Protected Areas, conducted yesterday at Zagreb airport. Galbraith detailed a statement on the outcome of the talks: "During the five-week talks, held in Zagreb and Knin, the parties agreed on a package of measures aimed at improving the quality of life on both sides of the cease-fire line. Specifically, they agreed to restore water supplies to six towns and communities, to reconnect five high-tension power lines, to reopen portions of the Zagreb-Belgrade highway that are in Croatia, to reopen the pipeline through the UNPA Sector North and to conduct further negotiations aimed at the return of the displaced persons, the payment of pensions to residents of the UN Protection Areas, and the reopening of railways as well as the road through Knin." "These negotiations constitute Phase Two of the Z-4 process. At the request of the Government of Croatia the US has been actively involved in the Z-4 process since it began with the cease- fire negotiations in the Russian Embassy on March 22. "The ultimate goal of these negotiations is the peaceful reintegration of UN Protectiion Areas into Croatia. "By accepting the agreement the two sides will have shown flexibility, statemanship, and a willingness to go the extra mile for peace. "Now we are expecting the beginning of the talks on the political issues, and I believe that this agreement has created a favourable climate for commencing such talks." Answering reporters' questions, Galbraith said the agreement was considered as "tentative" as it was yet to be reviewed by both parties. Asked whether the Knin Serbs accepted reintegration as the ultimate goal, Ambassador Galbraith said they did not. "They have always taken a position that they are a separate state. But that position is not accepted by a single member of the international community. In this the international community is completely united. The UN Protected Areas are part of Croatia and any peace settlement will have to be on that basis," Galbraith said. He said international mediator Kei Eide had gone to Belgrade to give a text of the agreement to local Serb leaders. "We must expect that each side sees a strong interest in advancing the peace process and therefore are doing whatever possible to avoid renewed hostilities in which both sides would be losers," Galbraith concluded. (hina) jn mms as 161842 MET nov 94