KNUT VOLLEABAEK ON LILLEHAMER TALKS (II)

ZAGREB, Nov 4 (Hina) - Asked whether he thought that President Tudjman should have offered more concessions to Serbs in his Peace Initiative, Mr Vollebaek replied: "I hope it is not the final offer. ... I expect that both sides will be willing to find a compromise." He said that before the negotiations in Norway both sides agreed to put political issues aside for the time being. According to Mr Vollebaek, issues such as the supply of energy and water, and the opening of communications were agreed upon. He said that the two sides had agreed to refrain from armed provocations in the next 20 days. "What we really need is a formal agreement and not verbal ones," stressed Vollebaek. He noted that the negotiating parties had for some time been very close to an agreement. "It is hard to say why they failed. There is no apparent reason," he told reporters. He said that a certain step forward had also been made in regard to the storing of arms after signing a cease-fire agreement. (END) m-vm 042135 MET nov 93