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THREE MAJOR UNRESOLVED ISSUES BURDEN CROATIAN-SLOVENE RELATIONS

Autor: ;RMLI;
LJUBLJANA, Nov 22 (Hina) - Three crucial issues have remained unresolved in relations between Croatia and Slovenia since the two countries gained independence, despite the fact that the two countries have signed more than 30 agreements. The three issues refer to the border, particularly the sea border (Piran Bay), rights and obligations in the Krsko nuclear power plant, and the obligations of the Ljubljanska Banka Zagreb office toward Croatian clients. Since the beginning of negotiations on the sea border, Slovenia has made it clear that this is a priority of strategic interest, on which the resolution of the other two issues depends. Since the establishment of a mixed diplomatic commission for borders Ljubljana has insisted on the principle of the "integrity of Piran Bay." That principle - which Croatia has contested - boils down to the claim that on the day of the declaration of its independence, Sl
LJUBLJANA, Nov 22 (Hina) - Three crucial issues have remained unresolved in relations between Croatia and Slovenia since the two countries gained independence, despite the fact that the two countries have signed more than 30 agreements. The three issues refer to the border, particularly the sea border (Piran Bay), rights and obligations in the Krsko nuclear power plant, and the obligations of the Ljubljanska Banka Zagreb office toward Croatian clients. Since the beginning of negotiations on the sea border, Slovenia has made it clear that this is a priority of strategic interest, on which the resolution of the other two issues depends. Since the establishment of a mixed diplomatic commission for borders Ljubljana has insisted on the principle of the "integrity of Piran Bay." That principle - which Croatia has contested - boils down to the claim that on the day of the declaration of its independence, Slovenia had complete administrative control over the bay and that the entire Piran Bay belonged to Slovenia. The stand of Slovene diplomats is that in talks with Croatia one should definitely secure Slovenia's territorial access to international waters. In that sense, compromise solutions, such as a sea corridor to the open sea or joint administration of the bay, were refused. The first visit of Croatian President Stipe Mesic to Slovenia early this year resulted in statements saying that the strategic interest of both countries (Slovenia's access to the open sea, i.e. Croatia's keeping the sea border with Italy) could be included in a future solution, but after the fall of Prime Minister Janez Drnovsek's government mid this year talks on that issue were not renewed because the government of the new premier Bajuk had to focus on other issues. The programme of Drnovsek's new government places relations with Croatia and the resolution of open questions high on the priority list, without changes to Slovenia's priorities in the open issues. Progress could be hampered by the fact that the new Slovene government also includes the Slovene Popular Party, whose leader Franc Zagozen is not inclined toward the ratification of a local border agreement because he believes it would prejudge the issue of the sea border to Slovenia's detriment. In his first statement after his re-election as Slovenia's premier in the last elections, Drnovsek said the controversial issues were, "in terms of politics and expertise," complex, but space for their solution would be created next year. There are two "schools of thought" in the Slovene politics as regards these problems - one believes that the open issues (including the border) should be resolved as soon as possible as relations with Croatia continue to come up in European Commission reports on progress Slovenia makes in drawing closer to the European Union (as a hampering factor), whereas the other believes one has to go from smaller to more important problems and count on the strategic importance Slovenia has for Croatia's admission to the EU. The problem of the old Ljubljanska Banka savings and the power from the Krsko plant have been put in the context of "succession" issues. Slovenia sticks by the stand that the old foreign currency savings from the Ljubljanska Banka Zagreb office were deposited on the account of the former National Bank of Yugoslavia in line with the then regulations and that the possibility of resolving this problem was decreased after the cancellation of Ljubljanska Banka's operating licence in Croatia. It is also claimed that the newly- established Nova Ljubljanska Banka - which took over the assets of the old Ljubljanska Banka - has no obligations toward the clients of Ljubljanska Banka Zagreb. Last year's intensive attempts to sign an international agreement on a property share in and obligations toward the Krsko nuclear power plant ended in stalemate following this year's political changes, first in Croatia and then in Slovenia. Slovene authorities believe that this problem, as well as restarting the power supply from Krsko to the Croatian Power Industry (HEP), will be the easiest to solve, but they insist that the price of power include the costs of the future dismantling of the plant. (hina) rml

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