GOVERNMENT WILL RESPOND TO RISE IN PRICES OF MILK, MEAT, AND BRICK

BRICK $ - MATESA ZAGREB, 25 July (Hina) - The Croatian government on Thursday strongly opposed a rise in prices of meat, milk and brick and threatened to expose domestic producers of these products to market competition with foreign producers. The rise in prices of milk, meat and brick was exceeding every reasonable boundary and the Croatian government found it unacceptable, Croatian Premier Zlatko Matesa said during today's meeting with Croatian producers of milk, meat and brick. In the conditions of stable economy, an annual inflation rate of some 3% and a decrease of interest rates by 10%, such a rise in prices of meat, milk and brick was unjustifiable. The government's message, Matesa said, was very clear. If the producers failed to lower the prices to an acceptable level, the Government would expose them to the free international market competition, Matesa said. The Government favored reasonable protection measures for domestic production, but it did not want to see this privileged status be misused at the expense of pensioners and people living off their salaries, Matesa said. The meeting, which was held behind closed doors, was also attended by Vice Premier Borislav Skegro, Economy Minister Davor Stern, Agriculture and Forestry Minister, Matej Jankovic, aide to Economy Minister, Branko Jordanic and Premier Matesa's advisor Ivan Majdak. The prices of brick products have registered a rise from 15 to 68,9%; the prices of meat and meat products have registered a rise from 2 to 15% (some products have registered a rise in prices from 35% to 54%); the prices of milk have gone up from 3% to 16,2%. (hina) rm jn 251306 MET jul 96