KNIN LEADER MIKELIC SMUG ABOUT PLESO TALKS

BELGRADE, Nov 16 (Hina) - The Belgrade daily "Vecernje Novosti" today carried an exclusive statement by rebel Serb leader Borislav Mikelic on yesterday's Pleso talks between Croatian government and Knin Serb representatives. "The talks were tiring and exhausting, but on the whole, there has been some progress," he said. He said agreements on water and power grids were ready for signing, but the oil pipeline was still a controversial issue. "But here too, we can look forward to a favourable solution," he said. He announced that the next week's round of talks would focus on railways, payment of pensions to UNPA residents and refugees. "All that we have achieved, the agreements we have signed, the arrangements regarding water, power, oil and the (Zagreb-Belgrade) highway - all this spells economic profit and our impending opening to the world," Mikelic said. Explaining the controversy about the oil pipeline, Mikelic said Croatia wanted to form a firm that would have the right to sell oil in the occupied areas, while Knin representatives insisted on Knin Oil Industry having the exclusive right to transport and distribute oil in the region. (hina) jn as 161903 MET nov 94