Croatia and Serbia agree on eastern Slavonia

Issue 

A preliminary agreement between Croatian and Serb negotiators and UN and US mediators in Erdut in eastern Slavonia on October 3, provides for a two year transition before the region returns to Croatian control. The land is rich agricultural land and oil and gas reserves, and there had been speculation that Serbia, which occupied the land in 1991, would not give it up. The US ambassador to Croatia said that the Serbian negotiators had conceded Croatian sovereignty over eastern Slavonia. Croatian negotiator Hrvoje Sarinic said that Croatia would still consider a military option if a final settlement was not reached by November 30.

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