CROATIAN GOVERNMENT MARKS ONE YEAR IN OFFICE

ZAGREB, Nov 4 (Hina) - Croatian Prime Minister Zlatko Matesa and his deputies held a press conference in Zagreb on Monday to mark one year in office of the present government. The implementation of the policy of macroeconomic stability, which was launched three years ago, was a condition for Croatia to become a financially consolidated state, Matesa said. After completing the rehabilitation of Slavonska, Splitska and Rijecka banks Croatia will have a solid bank system suitable to averagely developed countries, Matesa said, announcing the rehabilitation of Privredna Banka Zagreb for next year. The Prime Minister described as successful the construction of the road infrastructure and this year's tourist season. He stressed that the government wanted to build Croatia as a welfare state. The Deputy Prime Minister and Foreign Minister, Mate Granic, said that the European Union's view on a regional association was unacceptable to Croatia because it was a Central European and Mediterranean country. "We want to be a bridge, but we won't accept any integration within Southeastern Europe," he stressed. Granic went on to say that Croatia would gradually assume authority in the UN-administered Danube river area after elections there. The UN mandate will finish by July 15 nect year, he added. Granic noted that Croatia supported the strengthening of the Croat-Moslem Federation of Bosnia-Herzegovina, that it had good relations with its neighbours and good cooperation with the United States. Deputy Prime Minister Borislav Skegro said that average annual inflation had been below one per cent in the last three years. Industrial output in October was up by 6.4 per cent compared to the same month last year, he added. Deputy Prime Minister Ivica Kostovic said that the first displaced persons were expected to return to the Danube river area these days. Regardless of a report by UN Secretary General Boutros Boutros-Ghali, Croatia maintained very good cooperation with the UN Transitional Administration in the area (UNTAES), Kostovic said. Kostovic said he believed that UNTAES would fulfil its tasks and obligations in the next six months. In the last year, the government had drafted more than 120 laws and thus contributed to the strengthening of the country's legal system, Deputy Prime Minister Ljerka Mintas-Hodak said. Deputy Prime Minister Jure Radic said that the government had managed to return nearly 100,000 displaced persons to repaired homes and accommodate about 50,000 Croats expelled from Serbia and Bosnia-Herzegovina. The reconstruction of five villages in the Danube river area was under way and 500 families were expected to return there before Christmas, Radic said. (hina) vm mm 041700 MET nov 96