CROATIAN GOVT HOLDS SESSION ON SECOND ANNIVERSARY ( Editorial: --> 9075 )

( Editorial: --> 9075 ) ZAGREB, Nov 7 (Hina) - The Croatian government on Friday held a session under the chairmanship of Croatian President Franjo Tudjman on occasion of the government's second anniversary under Prime Minister Zlatko Matesa. According to President Tudjman, the Croatian government was successful in its work over the past two years because it was the government of the ruling party, the Croatian Democratic Union (HDZ), which has the support of all strata of the population, because it enjoyed the full support of the party leadership and parliament majority, because it was capable in expertise and politically responsible. He expressed conviction that this government headed by Prime Minister Matesa had all preconditions to successfully resolve all tasks in the forthcoming period as well, in the interest of strengthening the international position and overall economic and cultural development of sovereign and democratic Croatia. At the beginning of the session which focused on the situation and problems in the past period and the government's tasks in the upcoming period, Matesa spoke about what had been accomplished in tasks and instructions Tudjman gave the government a year ago. Matesa thanked for the support provided to the government by Tudjman, the chief of executive authority, which had been important for the general functioning of the government in the past two years. "Croatia has, under your leadership, through the actions of this government, led a relatively simple, but not always easily implementable strategy, according to which political and economic stability are the permanent terms of reference of Croatia's foreign and domestic policies in the function of a maintained growth. This strategy started being fulfilled last year in almost every segment of the government's work," Matesa stressed. He expressed satisfaction with achieved results, and stressed that Croatia had confirmed itself "a settled European country, a country with Europe's cultural tradition, a country that became a factor of European and world politics in this region". Speaking about foreign affairs, Matesa pointed out consistence in implementing basic principles - the development of relations with everyone, but without interference in interior relations and situation in Croatia. Stressing that the peaceful reintegration of the Croatian Danube river region was of the highest priority, Matesa assessed that the process was coming to a close and that the government had done everything for the process to end successfully on 15 January next year. The government's trust establishment programmes would render overall relations in the area such as to guarantee a lasting stability and respect for the rights of all, Matesa said. The government had also fulfilled the task of strengthening cooperation between Croatia and the Bosnian Federation, Matesa said, stressing that the Draft Agreement on Special Relations between Croatia and the Bosnian Federation moved further in the development of these relations, with the aim to ensure and protect the rights of Croats. Speaking about the third priority, the development of relations between Croatia and European states and associations, Matesa said that as much as was possible had been done, adding that agreements between Croatia and central European countries could be expected soon. "In the whole system of foreign policy relations, Croatia's position as an unavoidable factor of peace and security in this region, a factor of peace and stability in the Bosnian Federation and of the protection of basic interests of Croatia is evident," Matesa said. The government had fully implemented the demanding task of maintaining and consolidating economic stability, Matesa said, adding that institutional and legal frameworks had been created for Croatia to be deemed an orderly financial state. He stressed that Croatia had fulfilled the Maastricht criteria, adding that it had done so for its own interests and political will. The state budgetary deficit would be less than planned, the continuous growth of industrial production had been observed for two years already, and the introduction of the Value Added Tax would present additional stimulation to Croatia's export orientation. All these efforts, Matesa stressed, had been objectively attested by the credit rating Croatia had received. The process of bank rehabilitation could be completed next February, Matesa said, announcing a privatisation programme of banks and the public sector. The interest in direct foreign investments is increased. This year, 30 million tourist days had been registered, Matesa said, adding that Croatia could earn six to eight billion dollars annually off tourism. Croatia has invested 11 billion kuna (US$ 1.83 billion) into reconstruction to date. About 63,000 houses and apartments had been reconstructed, or in other terms, a town the size of Zadar had been built, Matesa said. (hina) lm jn 071855 MET nov 97