SARINIC DESCRIBES TALKS WITH REBEL SERBS AS POSITIVE

ZAGREB, Jan 11 (Hina) - The Croatian government and rebel Serb authorities from occupied areas today agreed that only international traffic signs be present on the Zagreb-Lipovac highway in UN Sector West as of January 17 and that the northern branch of the Adriatic oil pipeline be opened by January 23. The Croatian government chief negotiator, Hrvoje Sarinic, described the talks as positive and added that he was relatively satisfied with their results. "If the agreement on international signs along the highway is fulfilled by January 17, generator poles for the Obrovac power plant will be delivered to Serbs in occupied territory," Sarinic said. "The eastern branch of the oil pipeline can be opened only after sanctions against Yugoslavia (Serbia and Montenegro) are lifted and after Croatia and Yugoslavia recognize each other," he stressed. However, no agreement was reached on stakes the Croatian government and UNPA Serbs would have in a joint oil company which would distribute oil in occupied areas. The Croatian delegation insisted the Croatian oil company INA operated 38 petrol stations in occupied areas as its stake. "I think we're closer in our views," Sarinic said, adding that "the economic agreement of 2 December 1994 won't be just a dead letter." Sarinic said they agreed that talks should be organized in Zagreb and Knin to discuss the problems of displaced people and pensions. He said a group of experts would soon inspect the Zagreb- Okucani-Slavonski Brod-Mirkovci-Tovarnik railway to assess the damage. Sarinic concluded by saying that another meeting would be held next week to discuss the opening of the Zagreb-Split railway. The Croatian government was also represented by Assistant Interior Minister Josko Moric. The Serb delegation was led by Borislav Mikelic and the meeting was mediated by the co-chairmen of the International Conferernce on the Former Yugoslavia, David Owen and Thorvald Stoltenberg. (hina) jn vm 111909 MET jan 95