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Croatia: Croatian, Serbian Leaders Agree to Diplomatic Relations

Athens, August 7 (RFE/RL) -- Serb-dominated rump Yugoslavia and Croatia will establish diplomatic relations at the end of the month, Greek Prime Minister Costas Simitis said in a statement today.

The announcement came at the conclusion of talks in Vouliagmeni, Greece, between Presidents Slobodan Milosevic of Serbia and Franjo Tudjman of Croatia. They were the leaders' first official talks on normalizing relations since the break-up of the former Yugoslav federation in 1991.

The two countries will establish ties after a meeting in Belgrade at the foreign minister level, Simitis said. Diplomats say mutual diplomatic recognition is crucial for permanent peace in Bosnia-Herzegovina.