The Croatian Interior Minister, Ivan Penic, says that a shipment of arms intercepted by the national security forces came from Bosnia-Herzegovina and was destined for the Serbian province ofKosovo.

Speaking in a television interview, Mr Penic said that five people had been arrested in connection with the smuggling operation which was discovered at Sibenik, on the Adriatic coast, on Saturday.

Mr Penic described the case as a classic example of organised crime which could be linked to international terrorism.