Croatia says it will accept the return of more than 300.000 ethnic-Serb refugees who were driven out of their homes five years ago.

The newly-elected President, Stipe Mesic, said all refugees were victims of war which they had not caused and they should be allowed to return home.

Croatia has in the past insisted that those wishing to return should first apply for Croatian citizenship.

But Mr Mesic said nationality was no longer an issue.

Mr Mesic's statements come after a series of recent political changes which have brought to power a government in Zagreb promising to end the nationalist policies of the late former president Franjo Tudjman.

From the newsroom of the BBC World Service