FOREIGN MINISTER REPORTS ON CROATIA'S INTERNATIONAL POSITION

ZAGREB, Sept 18 (Hina) - Croatian Foreign Minister Mate Granic said on Wednesday that Croatia's international position was very stable at the moment and that the country had proved itself to be an unavoidable factor in the establishment of a lasting peace and a new international order in South-Eastern Europe. In his report to the lower house of parliament, Granic stressed that Croatia could also expect pressure from some parts of the international community. "The situation and the environment have changed, but we are still faced with a number of challenges." Granic said that some countries still had reserves about the time of Croatia's formal admission to the Council of Europe and that the country was under strong pressure regarding its cooperation with the Hague-based International War Crimes Tribunal. By way of illustration, he said that some documents supporting an indictment against Bosnian Croat officer Ivica Rajic went so far as to claim that Croatia had been involved in the Bosnian war. Speaking of the importance of the agreement on the normalization of relations with Yugoslavia, Granic said that the agreement finally confirmed the failure of Serbian territorial expansionism. The agreement reaffirmed the soundness of basic strategic guidelines of Croatian government policies in the last six years, he stressed. Granic analyzed provisions of the agreement, focusing on the problem of the strategic Prevlaka peninsula claimed by Montenegro. "Taking into account the present situation, as well as historical facts and international law, there's no doubt that Prevlaka is part of sovereign Croatian territory," Granic said. "This remains a security issue or a dispute to be resolved between the two countries in line with the UN Charter and principles of good neighbourliness." Granic noted that Prevlaka had so far been part of the Yugoslav strategy of "open issues", but added that with the signinig of the agreement the issue was closed. Granic stressed that the normalization agreement had not been accompanied by any secret arrangements or annexes and that no agreements had been concluded at the expense of a third party. Emphasizing Croatian efforts to develop good relations with the neighbouring countries, he said that Croatia was particularly interested in developments in Bosnia-Herzegovina. The Bosnian Croat-Moslem Federation organized in keeping with the Washington agreement and the Croatian-Bosnian Cooperation Council should provide a basis for future relations between Croatia and Bosnia-Herzegovina. Speaking of the post-election period, Granic stressed the importance of the general political consolidation of Bosnia- Herzegovina and the establishment of institutions of authority as envisaged by the Dayton and Washington accords. Any alteration of the Dayton provisions would lead to destabilization of that country, he added. As regards relations with Slovenia, Granic said that both Croatia and Slovenia were interested in good neighbourly relations. He cited two serious outstanding issues between the two countries - the sea border and Ljubljanska Banka's debt to Croatian depositors. Granic stressed that the Croatian proposal for delimitation in the Bay of Piran had been drawn up in line with international law and that it enabled Slovenia unobstructed access to the open sea. "Croatia would like to close this issue through dialogue. But we also remain open to arbitration," Granic said. Speaking of accession to the Council of Europe and other European integration processes, Granic said that Croatia advocated individual admission rather than group arrangements. He expressed confidence that the process of Croatia's admission to the Council would be completed in October. Croatia's initial goal was to join the Council of Europe and NATO's Partnership for Peace programme, while its final goal was to enter the European Union and NATO, Granic said. Special importance was also attached to relations and a strategic partnership with the United States, established in the crucial stages of the peace process, Granic concluded. (hina) vm jn 181906 MET sep 96