GREEK PREMIER ON TUDJMAN-MILOSEVIC TALKS

ATHENS, Aug 7 (Hina) - The Tudjman-Milosevic meeting was a big step toward improving relations between Croatia and Yugoslavia, Greek Premier Costas Simitis, who hosted the meeting, told reporters on Wednesday evening. "This is the first such meeting held at a bilateral level since 1991 - the first meeting that was not organised by the international community or mediated by a third party," he said. "The meeting resulted in a long-expected agreement on mutual recognition, which had so far been hindered by many obstacles, including a disagreement regarding part of the territory on the Adriatic coast," he said. "The Republic of Croatia and the Federal Republic of Yugoslavia will establish diplomatic relations after a meeting of foreign ministers in Belgrade in August. In fact, the Croatian- Yugoslav diplomatic relations exist as of today," Simikis concluded. (hina) as 072114 MET aug 96