PRESIDENT MESIC HOLDS TALKS WITH PRESIDENT OF BAVARIAN GOVERNMENT

ZAGREB, July 31 (Hina) - Croatian President Stipe Mesic and the President of the Government of Germany's federal state of Bavaria, Edmund Stoiber, expressed interest in the improvement of the Croatian-German economic cooperation in Zagreb on Monday. The two officials also discussed Croatia's foreign policy, Croatia's relations with neighbouring countries and the return of Croatian refugees from Yugoslavia and Bosnia-Herzegovina. In a statement given to reporters after the talks, President Mesic recalled Germany's support for Croatia in its most difficult days. The two officials agreed that Croatia today was a zone of safety. According to Mesic, this fact, along with the acceptance of European Union regulations, will bring foreign capital in Croatia. "We have for this the support of Germany and particularly of Bavaria. President (Stoiber) has voiced Germany's interest in investments in our region. I have promised that both I personally and the Government will do all we can so that competitions regarding major projects, which are expected in Croatia, are conducted in a fair manner," Mesic said. Speaking about the long-standing relations between Croatia and Bavaria, Stoiber said those relations were the driving force of improvement of the overall Croatian-German relations. He also emphasised the importance of return of Croatian citizens from Yugoslavia and Bosnia-Herzegovina. Germany, like Europe, believes that the development of democracy in Croatia, Bosnia- Herzegovina, Macedonia and the entire region, is the key to the solution, Stoiber said, adding this was why Germany supported Croatia on its Euro-Atlantic path. Speaking about the foreign capital in Croatia, Stoiber said Bavarian business people were ready to invest in Croatia, but he also emphasised the importance of legal safety. (hina) rml