CROATIAN PREMIER VALENTIC TALKS WITH AMERICAN PROF. THUROW

ZAGREB, May 23 (Hina) - Croatian Premier Nikica Valentic today talked with an American eminent professor of management and economics at Massachusetts Institute of Technology, Lester C. Thurow, who is paying a three-day visit to Croatia at an invitation of the Croatian Government. Informing the guest of the current situation in the country, Premier Valentic said the economic reforms would go on speedily, and that the crucial steps were to be made in the restructuring and rehabilitation of banks as well as in accelerated privatisation. Valentic said that goals of the annual 4 percent inflation were the rise in the industrial production by seven percent, the restructuring of about 20 biggest loss-running companies, the rehabilitation of four banks and regulation of Croatia's obligations to the London Club in order to create conditions for stronger investment into Croatia. Valentic added that there were 40 percent privatized firms in Croatia at the moment. He said that recently the Croatian Labour Act had been passed after being created for three years, and added that the act should protect both the right of employers and employees. Professor Thorow commented that labour acts protect not only workers of today but also working classes of tomorrow. Valentic said that Croatia was aware that work force was relatively expensive, because gross income should come to 1,200 German marks in order that a worker could earn 500 marks as his net income. The problem lies in the fact that taxes and contributions rise even to 130 per cent, and this must be changed, according to Valentic. (hina) mms 231814 MET may 95