U.S. AMBASSADOR GALBRAITH ON KNIN TALKS

SPLIT, Nov 3 (Hina) - The United States ambassador to Croatia, Peter Galbraith, said this evening that today's talks between the Croatian government and local Serb authorities in Knin would show results on November 15, when they were to reconvene at Zagreb airport. Speaking at a press conference in the southern port town of Split, Galbraith said it was in the interest of neither side to further exacerbate the situation. He stressed Krajina Serbs had no future outside Croatia's administrative system. In order to normalize the grave situation in that part of Croatia, it would be necessary to make huge investments to ensure jobs and better living conditions for people in the Knin area, and that would be possible if Krajina Serbs recognized Croatia as their homeland, Galbraith said. Galbraith said today's talks concentrated on economic issues. He added that all political problems could be solved spontaneously after ways of overcoming economic difficulties were agreed upon. (hina) jas vm 032147 MET nov 94