VZCZCXRO6579
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHBW #0266/01 0491112
ZNR UUUUU ZZH
R 181110Z FEB 10
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 0811
INFO EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 BELGRADE 000266 
 
SENSITIVE 
SIPDIS 
DEPT FOR EUR/OHI - JOHN BECKER AND EUR/SCE 
AID FOR E&E/ECA 
 
E.O. 12958: N/A 
TAGS: ECON EINV KIDE SENV PGOV SR
SUBJECT: Serbia: Ambassador's Introductory Call on Minister Dulic 
(Environment and Zoning) 
 
Summary 
 
--------------- 
 
¶1.   (SBU) In her February 9 introductory call on Minister of 
Environment and Zoning Dulic, the Ambassador thanked him for his 
assistance leading to the NEC groundbreaking.  Dulic pledged his 
ongoing support as construction proceeds and requested technical 
assistance on a variety of environmental issues including hazardous 
waste, green construction, and climate change.  He spoke at length 
on land use and land reform issues, and stated the long-promised 
restitution law would provide for monetary compensation, and not 
in-kind return of property.  On political issues, Dulic discussed 
improving Serbian-Croatian relations and developments in Vojvodina. 
End Summary. 
 
 
 
 "Green" NEC and Environmental Matters 
 
--------------------------------------------- ------------ 
 
 
 
2 .  (SBU)  The Ambassador opened the meeting by thanking Dulic for 
his assistance securing permits needed for the February 10 NEC 
groundbreaking.  Dulic confirmed he would speak at the ground 
breaking event and pledged ongoing support as the project 
proceeded.  Dulic, a Copenhagen conference attendee and UNGA 
speaker on climate change, was enthusiastic that the NEC would be 
the first LEED (Leadership in Energy and Environmental Design) 
compliant, "green" building in the region.  (Note:  Dulic's remarks 
at the February 10 groundbreaking underscored the environmental 
aspects of the project, the importance of U.S. investment in 
Serbia, and his hope that the new building would be a symbol of the 
continuing strengthening of relations between the two countries. 
End Note.) 
 
 
 
¶3.  (SBU) Turning to environmental issues, Dulic asked for 
technical assistance, exchanges, university programs and other 
assistance concerning climate change, hazardous waste, recycling, 
and other environmental initiatives.  He requested a designated 
point of contact, noting Serbia's need for EU compliant 
regulations, and stressing his strong personal interest in 
environmental programs.  The Ambassador noted our excitement about 
the green aspects of the NEC and post's commitment to continued 
leadership in this area.  Post is following up with a working level 
meeting to discuss further environmental cooperation, including the 
many U.S. based experts who will come to work on the NEC. 
 
 
 
Land Use Reform and a Restitution Law ......Still Waiting 
 
--------------------------------------------- ---------------------- 
---------- 
 
 
 
¶4.   (SBU) The Ambassador asked about the Planning and Construction 
Law passed in 2009, which brought a rueful smile and Dulic's 
acknowledgment that "implementation is always difficult in Serbia." 
The Planning and Construction Law provided that 50 percent of money 
collected to convert land usage rights into ownership rights would 
be allocated to a Restitution Fund.  However, neither a restitution 
law nor the necessary implementing regulations have been enacted. 
Dulic acknowledged that the concept of additional rights payments 
and restitution generally were "very painful" issues politicians 
had been unwilling to tackle.  He said it was "very important to 
finish this issue in the first half of 2010," and promised a model 
would be announced within the next couple of months.  Dulic stated 
restitution would take the form of financial compensation, not 
restitution-in-kind, and would likely be payable over 20 or 30 
years.  When asked why restitution in kind would not be included, 
he stressed the complexity of the situation, noting compensation 
was the only model that could attract political consensus. 
 
 
 
¶5.   (SBU) The Ambassador and DCM noted concerns that restitution 
proceeds might simply disappear (as had privatization funds) and 
reiterated offers to provide USAID or other assistance implementing 
a trust.   Dulic acknowledged that citizens had expressed concerns 
 
BELGRADE 00000266  002 OF 002 
 
 
about Serbian politicians controlling these funds and requested 
additional information regarding trusts. 
 
 
 
Church Property Law to be Overturned? 
 
--------------------------------------------- ----------- 
 
 
 
¶6.   (SBU) Dulic noted he expected the Constitutional Court to 
overturn a law that had returned church properties.  He added that 
he did not expect the church would be required to return those 
properties, observing "the situation is a mess." 
 
 
 
Croatia and Vojvodina 
 
-------------------------------- 
 
 
 
¶7.  (SBU) Dulic spoke favorably regarding the prospects for 
improved Serbian-Croatian relations, pointing to a growing popular 
trend in both countries in favor of improved relationships, growing 
cultural ties and increasing economic cooperation.  With respect to 
Vojvodina, he noted Vojvodina was a "special historical case", but 
believed the recent statute was a good example of how other parts 
of Serbia could be decentralized. 
 
 
 
Comment 
 
-------------- 
 
¶8. (SBU) Dulic, a young and energetic DS member, plays a key role 
within the DS coalition as a liaison with Croatia and with 
minorities in Vojvodina, and is an important U.S. interlocutor.  He 
has been a strong supporter of the New Embassy project and 
personally appointed his senior assistant to ensure the Embassy's 
requests for various permits would not be mired in lower level 
bureaucracy.  His enthusiasm for environmental matters is genuine 
and his openness to discussing the internal debate regarding 
resolution of restitution and other land use issues is welcome. 
Embassy will follow up with his requests for assistance and 
engagement on environmental issues.  End Comment. 
WARLICK