GOVERNMENT EARMARKS FUNDS FOR DANUBIAN AREA REINTEGRATION

( Editorial: --> 0838 ) ZAGREB, March 19 (Hina) - The Croatian Government on Thursday adopted a package of measures regulating the activities of the Croatian Privatisation Fund in the process of reintegration of the Croatian Danubian Area into Croatia's economic system. Under this programme, US$2.7 million will be set aside from curent budget reserves and given to the Fund to finance the rehabilitation of 21 companies based in the Danubian area. "The registration of companies in the Danubian area is completed and supervisory boards have been appointed with the task of elaborating projects for starting or increasing production in these companies," Privatisation Minister Ivan Kovac said. The 21 companies included in the programme employ 1,500 workers. At this stage, the programme will not be applied to large companies such as tzhe textile factory VUPIK, footwear manufacturer Borovo and the industrial farm Belje. "The very existence of returnees depends on how we pursue the reintegration process," Economy Minister Nenad Porges said. "This is Croatia's abiding interest and these measures are a modest contribution toward this end," he said. Development and Reconstruction Minister Ivan Penic said that new jobs were being created in the Danubian area every month, noting that over 2,500 people were employed in public companies and state administration. "The situation in the Danubian area is not as catastrophic as some would present it," he said, stressing that 21 construction companies based in the Danubian area were successful. Foreign Minister Mate Granic said that the reintegration of the Danubian area had been one of the topics discussed at Wednesday's meeting with Foreign Ministers Kinkel and Vedrine. "The latest Government measures in this respect have been assessed in a very positive vein," said Granic, adding that Croatia should do whatever would enhance its credibility. "I think we are on a good path and that the international community will eventually show an interest in offering greater financial assistance to the Danubian area," Granic said. (hina) mm as/mrb 191512 MET mar 98