NEW EU MANDATE IN MOSTAR NOT TO START - GASIC

MOSTAR, August 4 (Hina) - The new European Union mandate in Mostar called "Joint Action" would not take effect on Sunday due to last night's unsuccessful negotiations between the Croat and Bosniac- Muslim side in Mostar as regarded the adoption of an agreement on the continuation of the European Union activity in Mostar and the establishment of city administration, former EU spokesman in Mostar Dragan Gasic told a special press conference in Mostar. The agreement proposed by the EU was accepted in full by the Muslim-Bosniac, but not the Croat side. It contains eight clauses and, according to special EU envoy in Mostar Martin Garrod, disputable was the fourth clause, which is about the election of a mayor and his deputy until a final verdict of the Bosnian Federation Constitutional Court, because the Croatian side demanded that the election be temporary. The aim of "Joint Action" was to fill the time until the establishment of local Mostar administration, Garrod said, so that on 31 December, when EU's mandate in Mostar should end, the EU Administration duties could be transferred to local administration. Garrod expressed disappointment and worry in relation to the situation in Mostar, pointing out that it was very serious and that the city and police could be divided, thus diminishing freedom of movement. Garrod said the EU Administration in Mostar was encouraged by the talks between Croatian and U.S. Presidents Franjo Tudjman and Bill Clinton in Washington. The possibility of failure of the "Joint Action" in Mostar could have serious consequences for the Bosnian September elections, Garrod said, adding that some leaders of the Organization for Security and Cooperation in Europe had already expressed their worry. Answering a question if Zagreb could be subjected to EU sanctions, Garrod said that he would not speculate, but was sure of the existence of some proposals. Asked if an agreement might be reached today or by tomorrow morning, Garrod answered that the EU was ready to talk. (hina) ha 041444 MET aug 96