C O N F I D E N T I A L        USOSCE 00453

SIPDIS
P 061221Z DEC 07

FM USMISSION USOSCE
TO RUEHC/SECSTATE WASHDC PRIORITY 5412
INFO RUCNOSC/ORG FOR SECURITY CO OP IN EUR COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 USOSCE 000453 
 
SIPDIS 
 
DEPARTMENT FOR EUR/RPM, EUR/SCE 
 
E.O. 12958: DECL: 12/05/2017 
TAGS: ASEC HR CROATIA OSCE PREL
SUBJECT: OSCE: MADRID MINISTERIAL CROATIA BILAT 
 
Classified By: Ambassador Julie Finley for reasons 1.4 (b) and (d). 
 
¶1.  (C) Summary: The November 29 bilateral meeting between 
U/S Burns and Croatian FM Grabar-Kitarovic (and with the 
participation of State Secretary Biscevic) focused on 
possible negative security implications for Croatia and the 
region due to developments in Kosovo and in Bosnia and 
Herzegovina. The meeting was extremely cordial, and both 
sides shared similar concerns.  FM Grabar-Kitarovic stressed 
the importance of a U.S. role in ensuring Belgrade does not 
impose sanctions if Kosovo declares independence and in 
making sure Bosnia does not become a failed state.  U/S Burns 
promised FM Grabar-Kitarovic a readout from A/S Fried's 
upcoming visit to Republika Srpska and meeting with RS PM 
Dodik. U/S Burns stressed the importance of Croatian 
membership in NATO and of ensuring Croatian public support 
for it. FM Grabar-Kitarovic thanked U/S Burns for U.S. 
support for the closure of the OSCE Mission in Croatia. End 
Summary. 
 
¶2.  Kicking off a discussion during a bilateral meeting on 
the margins of the OSCE Madrid Ministerial, U/S Burns told FM 
Grabar-Kitarovic that he had given Serbian FM Jeremic a 
strong message not to export Kosovo-related problems to 
Bosnia.  FM Grabar-Kitarovic responded that Croatia is very 
concerned about developments in Bosnia; Serbia appears to be 
reenacting the past by claiming that a unilateral declaration 
of independence in Kosovo (UDI) would spill over into Bosnia. 
 The real problem, however, is the policy coming from 
Belgrade - just as it was in 1991-2.  There should be no link 
between what happens with Kosovo's status and Bosnia - or 
even Macedonia.  U/S Burns laid out what the U.S. believes is 
the most likely scenario for Kosovo.  There is no hope for 
the current talks, and the U.S. will not support continued 
negotiations.  Kosovo will declare independence, which will 
be recognized by the U.S. and most of the EU, probably 
sometime in January.  Serbia and Russia will be isolated, but 
the U.S. will not let Russia veto Kosovar independence. 
Russian arguments that a declaration of independence would 
violate UNSCR 1244 are wrong; UNSCR 1244 clearly indicates a 
status process with an eventual outcome.  FM Grabar-Kitarovic 
responded that it is important to Croatia that as many EU 
countries as possible recognize Kosovo's independence. 
Moreover, Russia is using Kosovo and Bosnia as part of a 
larger power play. 
 
¶3.  (C)  FM Grabar-Kitarovic said that Croatia must maintain 
good relations with Serbia, particularly because of 
developments in Bosnia. It would help if the U.S. would make 
clear to Serbia that economic sanctions following a Kosovo 
declaration of independence would be detrimental.  Belgrade 
has threatened both economic and diplomatic sanctions, both 
of which would damage and destabilize the region.  U/S Burns 
agreed with FM Grabar-Kitarovic's concerns about Bosnia.  He 
told her that A/S Fried will go to Bosnia next week and will 
meet with RS PM Dodik to emphasize that it would be a mistake 
to link Kosovo to Bosnia.  U/S Burns said that A/S Fried 
would either stop in Zagreb on the way back from Bosnia or 
call FM Grabar-Kitarovic with a readout of the meeting.  FM 
Grabar-Kitarovic said she believes Dodik is slowly carrying 
out a process of integration with Serbia, which - if not 
stopped - will eventually become a fait accompli.  Croatia's 
biggest security concern is a scenario in which Bosnia 
becomes a failed state and Croatia is in the EU and NATO.  In 
this case, Croats from Bosnia likely will move into Croatia, 
and without Croats, both Bosnia and Serbia will be unstable. 
For this reason, it is crucial to secure the rights of Croats 
in Bosnia.  She said that rhetoric and policies seem to be 
returning back to the war period, and this 1990s mindset only 
helps Serbs achieve their goals.  Bosnia and Herzegovina must 
become a functioning state and Croats must be actively 
engaged in it.  Pressure to work together must come from the 
outside; those inside Bosnia cannot do it by themselves. 
 
¶4.  (C)  U/S Burns agreed that the U.S. and Croatia need to 
work together closely on Kosovo and Bosnia.  It is crucial 
that Croatia get into NATO.  FM Grabar-Kitarovic said Croatia 
and its new government will continue to work with Macedonia 
and Albania.  Croatia will not/not hold a referendum on NATO 
membership. Over 50 percent of the country supports NATO 
membership and that number is rising due to the uncertainty 
in the region.  U/S Burns stressed the importance of making 
sure there is strong public support for membership; that 
support will be crucial when the time comes for Croatia to 
deploy troops as part of a NATO operation. 
 
¶5.  (C)  U/S Burns then turned to domestic issues that 
Croatia should address.  There are still some issues 
remaining related to refugee return.  Judicial reform and 
combating corruption should be priorities.  Croatia needs to 
amend its law on property restitution; there are many 
Americans who want to reclaim property seized as far back as 
WWII.  FM Grabar-Kitarovic responded that Croatia is aware of 
these problems and is working to resolve them. The Government 
has allocated sufficient funds in the 2008 budget to finish 
the remaining return cases, and all such cases will be 
completed by the end of 2009.  Judicial reform is ongoing, 
and the Government will continue its zero-tolerance policy 
for corruption.  The law on property restitution is in the 
process of being amended to give foreigners the same rights 
in this regard as Croatian citizens. 
 
¶6.  (C)  The meeting ended with a brief exchange on the 
future of the OSCE Mission in Croatia.  FM Grabar-Kitarovic 
thanked U/S Burns for U.S. support on closing the Mission. 
It is important to Croatia that any remnant of the Mission in 
2008 work only on war crimes trial monitoring, and not on 
issues related to the Sarajevo Process.  If the Sarajevo 
Process were to be included in a new mandate, it would send a 
wrong message to others that their actions to slow down the 
process are being rewarded.  U/S Burns agreed, and added that 
the U/S looks forward to working with Croatia in its upcoming 
capacity of member of the UN Security Council. 
 
¶7.  (U) U/S Burns' office has cleared this cable. 
 
Participants: 
 
Croatia: 
 
Foreign Mininster Kolinda Grabar-Kitarovic 
State Secretary Hijadet Biscevic 
Assistant Minister, Head of the Directorate for International 
Organizations and Security Pjer Simunovic 
Croatian Ambassador to the OSCE Vladimir Matek 
Head of the Office of the Foreign Minister, Ambassador Josko 
Klisovic 
 
United States: 
 
U/S Burns 
Ambassador Julie Finley 
Notetaker Janice Helwig 
FINLEY