Croatian Prime Minister Ivica Racan and his Bosnian counterpart Adnan Terzic have met in Sarajevo for talks on economic ties between their two countries.

News reports from the Bosnian capital said discussions focused on plans for construction of a highway from the Croatian port of Ploce through Sarajevo to the town of Bosanski Samac on Bosnia-Herzegovina's northern border with Croatia.

The two men also discussed adjustments to the agreement governing Bosnia's free trade area in the port of Ploce. They said documents on the issue will be completed in the next two months.

The Croatian News Agency said Mr. Racan is meeting with members of Bosnia's collective presidency and with Sarajevo's Roman Catholic Archbishop, Cardinal Vinko Puljic, before concluding his visit to the Bosnian capital.