CROATIA AND YUGOSLAVIA SIGN NORMALIZATION AGREEMENT

BELGRADE, Aug 23 (Hina) - The Croatian and Yugoslav foreign ministers, Mate Granic and Milan Milutinovic, on Friday signed an agreement on normalizing relations between their countries, which includes mutual recognition and the establishment of diplomatic relations. #L# After the signing ceremony, Granic said that the agreement was reached after "exhaustive and persistent negotiations from Dayton to Athens, when crucial progress was achieved in the talks between presidents Tudjman and Milosevic." Granic stressed that the signing of the agreement was an important event for both countries, for the Croatian, Serbian and Montenegrin people and all citizens. "The agreement is the basis of peace and stability in the region and is important for peace and stability in Europe," he said, adding that it provided a framework for resolving humanitarian and social issues, the issues of refugees, displaced persons and missing persons, economic, science and cultural cooperation and other issues such as succession. "I believe that the agreement would contribute considerably to the overall peace process in Bosnia-Herzegovina," Granic said, adding that "a significant step towards peace has been made." Milutinovic said that the agreement was "in a way historic for both countries," describing it as a turning point in the relations between the two countries. He stressed that good Serbo-Croatian relations were crucial for overall relations in the region. Milutinovic said that the agreement was a good framework for further arrangements and agreements, adding that it did not resolve all issues, but that it was founded on good principles. Milutinovic stressed that a consistent implementation of the text and spirit of the agreement would open prospects for good relations between Yugoslavia and Croatia. (hina) lm 231804 MET aug 96