"Lawsuits make sense if disputes cannot be settled in another way, and I believe that disputes can be settled through negotiation and dialogue," Josipovic said at a press conference during a visit to the Croatian minority in Backi Monostor, near Sombor, in the northern Serbian province of Vojvodina.

Tadic said he also believed that the lawsuit issue could be resolved through an out-of-court settlement, but stressed that "none of the crimes should remain unclarified and none of the criminals unpunished."

"Civil rights must not be compromised. That principle, along with international law, we must respect," Tadic said, adding that final decision on withdrawing the lawsuits rested with the governments of the two countries and that Josipovic and he were only initiating such a settlement.

The two presidents cited the border issue among outstanding issues between Serbia and Croatia.

"That's one of the most complex issues. (...) We will use regional procedures in such circumstances, but we need to resolve that issue," Tadic said.

"Border issues are never easy, even when only a couple of metres of land are at stake. But neighbours and friends may launch a procedure that will bring about a solution. We have commissions working on it, but if they fail, there exist legal mechanisms to deal with it. Whether it will be done by arbitration or in court, we'll see," Josipovic said.

Tadic and Josipovic expressed their disappointment at the failure of the Croatian minority in Serbia to form a separate voter register so that it could choose its representative body, the Croatian National Council, in June. They appealed to the Croats in Serbia to register so that their umbrella organisation could be formed.

After the press conference, the two presidents began talks with representatives of the Croatian minority behind closed doors.