The President of Montenegro, Milan Djukanovic, has apologised to Croatia for the bombing of the coastal city of Dubrovnik in 1991.

He met the Croatian President, Stipe Mesic, at the coastal resort of Cavtat to discuss ways of improving ties between the two countries.

While Croatia's decision to declare independence helped spark the war in the summer of 1991, Montenegro still remains inside Yugoslavia.

The bombing of the beautiful walled city of Dubrovnik and the ravaging of the Adriatic Coast by Yugoslav troops at the start of the war in 1991 caused international outrage.

The current Croatian President, Stipe Mesic, who was elected only four months ago, played an heroic role at that time, sailing at the head of a relief convoy into besieged Dubrovnik.

"On my own behalf and on behalf of all the citizens of Montenegro I want to apologise to all citizens of Croatia, particularly in Konavli and Dubrovnik for all the pain and material damage inflicted by any member of the Montenegrin people," President Djukanovic told his Croatian counterpart.

The two men also discussed ways to boost trade and cooperate in transport and tourist projects along the Adriatic Coast.

Before the war, one of the most popular beers on the coast was brewed at the Inixic brewery in Montenegro.