Moderate Croat leaders in Bosnia-Hercegovina have given up plans to set up a new party after an appeal for unity from the Croatian president, Franjo Tudjman.

The Bosnian Croat on the Bosnian collective presidency, Kresimir Zubak, dropped plans to split from the local branch of Croatia's ruling party, the HZD, in protest partly at what he said was corruption, after talks with President Tudjman in Zagreb.

Correspondents say there are still deep splits in the party which is facing Bosnian elections in September,