MINISTER GRANIC RECEIVES BOSNIAN DEFENCE MINISTER PRLIC

ZAGREB, Sept 2 (Hina) - Croatian Foreign Minister, Mate Granic, today received Bosnian Defence Minister, Jadranko Prlic. They discussed the situation in Bosnia-Herzegovina after the Serbs' rejection of the Contact Group Peace Plan and the possible lifting of the arms embargo against Bosnia, the foreign ministry said in a statement. Minister Granic told his guest about talks with Germany's and Russia's foreign ministers, Klaus Kinkel and Andrei Kozyrev respectively. Ministers Granic and Prlic also talked about the functioning of the budding Bosnian Federation. Minister Granic said the Croatian Government was willing to extend every assistance to the Federation. The two ministers looked at several draft bilateral agareements proposed by Bosnia. The agreements cover a variety of issues, including money transfers, custom duties, economic cooperation, railway and air traffic and refugees. The agreements are expected to be signed this month. Both ministers unanimously supported the European Union Mostar Project. (hina) jn as sd 021417 MET sep 94