NO OBSTACLES FOR RETURN OF DISPLACED PERSONS TO E. SLAVONIA TO STA

STA $ RT IN SEPT - KOSTOVIC ZAGREB, August 21 (Hina) - Croatian vice-premier Ivica Kostovic on Wednesday returned from a visit to the Croatian Danubian area with positive impressions, expressing hope that the return of displaced persons would begin next month. Returning to Zagreb, Kostovic was satisfied with the situation in the villages to which the displaced would, according to plan, return first. "Visiting Nijemci, Apsevci, Podgradje and Lipovac I saw a big change compared to the situation of a month ago, especially in the process of mine-clearing and the process of reconstruction. We hope this will make a return in September really possible", Kostovic said. The security situation in the Srijem area, where houses were being rebuilt, was good, Kostovic said, adding that a mass return was only prevented by physical conditions, that is the speed at which mines could be cleared and houses rebuilt. Pointing out that he wanted to speed up the return of the displaced to all areas, Kostovic said that more returnees could be expected in Baranja villages. "I think we've also finally found a solution for Bilje. It's too early to speak, but I think we'll solve the problem", he said, adding that this had been the topic of his Wednesday special talks with representatives of the Serb authorities. The Croatian government thought there were no obstacles for elections in the Croatian Danubian area to take place in December, in cooperation with local Serbs and in accordance with Croatian laws, Kostovic said and added that, for that reason, experts from the United States would come to Croatia in September to work out the necessary preparations with the Ministry of Administration. Kostovic said that a delegation of the Croatian Parliament would visit Vukovar in early September and that the U.N. Transitional Administrator in eastern Slavonia General Jacques Klein had already started preparations for it. Kostovic's visit to eastern Slavonia was organized by UNTAES with the aim to acquaint representatives of local Serb authorities directly, and not via Klein, with Croatia's firm stances regarding the duration of the mandate and the holding of elections in the area. "It's important that they acknowledge reality and follow the whole process accordingly", Kostovic said, adding that his interlocutors in Vukovar asked several questions to be later directed to Croatian institutions in charge of participation in the integration process. With them Kostovic discussed the process of the entrance of Croatian public enterprises in the area, demanding that local public enterprises stop operating. They also discussed the solution to the problems of missing persons and exhumation, which must be solved before the return of the displaced. Kostovic pointed out that exhumation in Ovcara was ready to begin on 1 September. (hina) ha 212237 MET aug 96