She said it was frustrating that the decision seemed acceptable to Croatia but the government would not accept it due to a supposedly compromised procedure.
"If the core of the decision is acceptable then mistakes in the procedure could not have affected the end result."
She said Slovenia had learnt unofficially "from certain circles" that the arbitration decision was satisfactory for Croatia but the country wanted to re-package it as a bilateral agreement for political reasons.
"It must be said that the arbitration solution in itself is a compromise, therefore it is not realistic to expect a very different border agreement," she said.
Knez avoided giving a direct answer when asked whether she believed that the border dispute could become more complicated if Janez Jaša became Slovenia's new prime minister, given that the head of the opposition Democrats (SDS) has often expressed dissatisfaction with the arbitration.
The ambassador said that all Slovenian politicians, including Janša, had made genuine efforts over the course of the past 26 years to settle open issues.
These include not just the border but also the Croatian deposits in the Zagreb branch of the former LB bank, Knez said, adding that Slovenia had managed to overcome all the open issues with other neighbouring countries.
Asked whether Slovenia intended to remove wire fence running along segments of the Slovenian-Croatian border, Knez said that the number of illegal entry attempts into Slovenia increased by 300% in the first four months of the year.
"They cross the border where there are no technical obstacles. Therefore an analysis is necessary to determine where and how we should step up control of our Schengen border." Croatia, on the other hand, plays a huge role in the control of the EU's outer border, she underlined.
With the summer season approaching, the ambassador also expressed hope that the border dispute will not discourage Slovenian tourists from spending their holidays in Croatia.
She underlined that any government should make it its priority to build and preserve good neighbourly relations and economic ties.