SIGNIFICANT STEPS FORWARD IN ESTABLISHING MOSLEM-CROAT FEDERATION

SARAJEVO, Nov 7 (Hina) - Bosnian Prime Minister Haris Silajdzic today told a joint session of the assemblies of the Republic and Federation of Bosnia-Herzegovina that substantial results had been achieved in implementing the Washington accords in the last six months. Silajdzic said the most important achievement was the end of hostilites between the Croat Defence Council (HVO) and the Bosnian Moslem-led army. He also mentioned the gradual normalization of life on free territories, the freedom of movement, the functioning of the EU administration in Mostar and the clear improvement of relations between Bosnia-Herzegovina and Croatia. Silajdzic said most Bosniacs (Moslems) and Croats embraced the Federation, but warned that there were many issues which should be resolved by cantons which was why they had to be established promptly. "The Belgrade regime persistently refuses to declare support for peace," Silajdzic said. A firm sign of Belgrade's willingness for peace would be to recognize Bosnia-Herzegovina. Until this happened, we should prepare to defend the country, and a necessary precondition would be establishing federal armed forces, he said. Silajdzic noted that the latest miltary operations in the Kupres region were the first step in that direction. He also spoke about Bosnia-Herzegovina's difficult economic situation. There were 1.25 million Bosnian refugees in about 100 countries while Bosnia-Herzegovina itself cared for about 900,000 displaced people, Silajdzic said. Silajdzic described relations with UNPROFOR as correct. But he described as unacceptable statements by Gen. Bertrand de Lapresle, UNPROFOR commander for the former Yugoslavia, who asked for more understanding for Serbs, and by Yasushi Akashi, UN secretary- general's special envoy, who directed inaccurate claims against the Bosnian government. The Prime Minister emphasized that Bosnia-Herzegovina had a future only as a democratic and European-orientated state, and that his government would work towards this goal. (hina) mm sd vm 071953 MET nov 94