MINISTER GRANIC TALKS WITH US SECRETARY OF STATE BY TELEPHONE

BUENOS AIRES, Dec 2 (Hina) - Croatian Foreign Minister Mate Granic this morning telephoned US Secretary of State, Warren Christopher, and his assistant Richard Holbrooke, at President Tudjman's request, spokesman for the President, Joyo Curic, said today. The talks focused on the impending Contact Group ministerial meeting, NATO consultations on how to end the war in Bosnia- Herzegovina, particularly the Bihac conflict, and today's signing of an economic agreement with local Serbs, Curic said. Minister Granic, who is accompanying President Tudjman on a South-American tour, told Christopher that a peace plan should provide for the protection of the Croatian borders and territorial integrity, and the Bihac safe zone. He stressed that local autonomy schemes offered to Croatian Serbs should by no means make Krajina "a State within a State" in any aspect. Granic also called for speeding up peace talks and increasing pressure on Milosevic, because the Croatian Parliament deadline for canceling UNPROFOR's mandate was only a month away. Christopher and Holbrook assured Granic Croatia's basic interests regarding territorial integrity and peaceful reintegration of occupied areas would be respected. They said the US shared Croatia's concern over Bihac's fall and a subsequent refugee exodus which would destabilise Croatia. Christopher reaffirmed the US stand against the suspension of Belgrade trade sanctions. President Tudjman and the Croatian delegation were in permanent contact with Prime Minister Nikica Valentic and Croatian UN and CSCE ambassadors, Curic said. Commenting on today's signing of the economic agreement with Knin Serbs, Minister Granic said that if it was not implemented and a political agreement was not signed in a month, there would be no point in extending the UNPROFOR mandate. Minister Granic announced a busy diplomatic schedule for the next fortnight. A Croatian delegation was to take part at the Organisation of Islamic Conference summit in Casablanca; visits from the Italian Premier and Foreign Minister, Silvio Berlusconi and Antonio Martin, and New Zealand Foreign Minister Don McKinnon were expected; and a tripartite ministerial meeting between Turkey, Croatia and Bosnia- Herzegovina would take place in Zagreb. (hina) as sd 022020 MET dec 94