TALKS BETWEEN CROAT AUTHORITIES AND SERB REBELS IN KNIN

ZAGREB, Aug 5 (Hina) - The head of the Croatian delegation for negotiations with Serb insurgents, Hrvoje Sarinic, and the President Tudjman's advisor on domestic affairs, Ivic Pasalic, held talks today with leaders of Serb rebels from Croatia's occupied areas, Borislav Mikelic and Milan Babic, in the town of Knin, U.N. Sector South (the chief stronghold of the Serb rebels), broadcast Croatian television on Friday night. At the five-hour meeting, organized through the mediation of the International Conference on former Yugoslavia, they discussed issues on the normalization of relations and considered possibilities for the reopening of the Zagreb-Belgrade highway, and concentrated especially on the humanitarian issues, such as the search for missing persons and problems of refugees. Today's talks also centred on the problems of the water supplies, the transition lines, the Adriatic pipeline, and possibilities for road, railway and air traffic as well as the issue of trade and pensions, according to the same source. The negotiations were direct, and none of the problems was skipped, Hrvoje Sarinic said upon the talks. According to him, the negotiators of the other side had not realized so far how the reintegration of U.N. Protected Areas could be carried out in a peaceful manner and by following the U.N. Security Council relevant resolutions. Hrvoje Sarinic pointed out as the positive aspect of the talks the fact that the negotiations had resumed and that they decided to form expert groups charged with preparing the ground for following working meetings of the two delegations, according to the same source. (hina) mar mm 052038 MET aug 94