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Reference ID	Created	Released	Classification	Origin
92ZAGREB467	1992-03-30 14:40	2011-08-30 01:44	UNCLASSIFIED	Embassy Zagreb

This record is a partial extract of the original cable. The full text of the original cable is not available.

301440Z Mar 92

                       UNCLASSIFIED


                       UNCLASSIFIED

PAGE 02        ZAGREB  00467  01 OF 03  301444Z
AMEMBASSY ROME
AMEMBASSY THE HAGUE
AMEMBASSY VIENNA
USMISSION USNATO 1587
USMISSION USUN NEW YORK 0806
WHITE HOUSE WASHDC 0274

UNCLAS SECTION 01 OF 03 ZAGREB 00467 
 
SIPDIS 
 
 
BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM 
 
E.O. 12356:  N/A 
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT:  ZAGREB UPDATE:  MARCH 30, 1992 
 
 
- 
SUMMARY 
 
 
 
 
 
 
 
 
 
 
 
¶1.  AS OF THIS WRITING, THERE HAS BEEN NO OFFICIAL 
REACTION FROM THE CROATIAN GOVERNMENT TO THE 
ALLEGED MASSACRE IN SIJEKOVAC.  CROATIAN 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 03        ZAGREB  00467  01 OF 03  301444Z 
AUTHORITIES IN SLAVONSKI BROD CLAIM THAT THEY WILL 
HAVE MORE INFORMATION MARCH 31.  THE ASSEMBLY 
SESSION WHICH CONTINUED OVER THE WEEKEND HEARD 
PRIME MINISTER GREGURIC AND VICE MINISTER PAVELIC 
ASSESS WAR DAMAGE AND THE ECONOMIC SITUATION. 
GREGURIC ESTIMATED USD 21 BILLION IN LOSSES DUE TO 
THE WAR WHILE PAVELIC TRIED TO PUT THE BEST FACE 
ON A BRUTALIZED ECONOMY.  MEANWHILE, THE ASSEMBLY 
WENT ON RECORD SUPPORTING BOSNIAN SOVEREIGNTY AND 
ASKED THE GOVERNMENT TO RECOGNIZE BOSNIAN 
INDEPENDENCE AS THE BEST WAY TO IMPROVE THE 
SITUATION THERE.  END SUMMARY. 
 
"MASSACRE" NEAR BOSANSKI BROD 
 
 
 
 
---- 
 
 
 
 
 
 
 
 
 
 
-- 
 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 04        ZAGREB  00467  01 OF 03  301444Z 
 
 
 
 
 
 
¶2.  THE ALLEGED MARCH 27 MASSACRE IN THE VILLAGE 
OF SIJEKOVAC (NEAR BOSANSKI BROD) HAS SO FAR 
BROUGHT ONLY CONFUSED MEDIA REPORTS IN CROATIA 
FROM BOSNIAN MEDIA OUTLETS.  AS OF THIS WRITING 
THERE HAS BEEN NO OFFICIAL CROATIAN GOVERNMENT 
REACTION TO THE INCIDENT.  THE CROATIAN CRISIS 
HEADQUARTERS IN SLAVONSKI BROD TOLD US TODAY 
(MARCH 30) THAT IT IS INVOLVED IN AN INVESTIGATION 
OF THE FIGHTING IN SIJEKOVAC AND WOULD HAVE MORE 
INFORMATION MARCH 31.  WE WILL TRY TO FOLLOW UP 
WITH THEM. 
 
PRIME MINSTER'S REPORT TO THE CROATIAN ASSEMBLY 
 
 
 
 
 
 
 
 
----- 
 
 
 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 05        ZAGREB  00467  01 OF 03  301444Z 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
¶3.  ON MARCH 27, CROATIAN PRIME MINISTER FRANJO 
GREGURIC ADDRESSED REPRESENTATIVES OF THE CROATIAN 
ASSEMBLY.  SURVEYING THE DAMAGE TO CROATIA BY THE 
WAR, GREGURIC SAID APPROXIMATELY 5,000 PERSONS HAD 
BEEN KILLED, 6,000 WERE MISSING, 3,100 WERE 
IMPRISONED IN SERBIA AND B-H, AND 20,000 HAD BEEN 
INJURED.  ACCORDING TO THE PRIME MINISTER, 37 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 06        ZAGREB  00467  01 OF 03  301444Z 
PERCENT OF THE REPUBLIC'S ECONOMIC POTENTIAL HAS 
BEEN DAMAGED.  TWO TOURIST SEASONS HAD BEEN LOST 
AND THIS YEAR, THE TOURIST SEASON REMAINS 
UNCERTAIN AT BEST.  NEARLY ONE FOURTH OF CROATIA'S 
AGRICULTURAL LAND IS OUTSIDE THE CONTROL OF THE 
CROATIAN GOVERNMENT.  LIVESTOCK AND AGRICULTURAL 
ENTERPRISES SUFFERED CONSIDERABLE DAMAGE; 37,500 
ACRES OF FOREST WERE BURNED DOWN IN DALMATIA AND 
 
 
                       UNCLASSIFIED 
 
 
 
 
 
 
 
 
 
NNNN 
 
                       UNCLASSIFIED 
 
PAGE 01        ZAGREB  00467  02 OF 03  301445Z 
ACTION EUR-01 
 
INFO  LOG-00   AID-01   AMAD-01  CIAE-00  CTME-00  C-01     DODE-00 
      ITCE-00  CISA-02  DS-00    EB-01    EXME-00  EXIM-06  E-01 
      FRB-01   HA-09    H-01     INRE-00  INR-01   IO-19    ITC-01 
      JUSE-00  LAB-04   L-03     ADS-00   NSAE-00  OIC-02   OMB-01 
      OPIC-08  PA-02    PM-01    PRS-01   P-01     RP-10    SCT-03 
      SIL-01   SNP-01   SP-01    SR-01    SSO-00   SS-01    STR-20 
      TRSE-00  T-01       /108W 
                  ------------------20D584  301446Z /38 
O 301440Z MAR 92 
FM AMCONSUL ZAGREB 
TO SECSTATE WASHDC IMMEDIATE 0656 
INFO AMEMBASSY BELGRADE IMMEDIATE 
USIA WASHDC 1350 
USDOC WASHDC 
AMEMBASSY ANKARA 
AMEMBASSY ATHENS 
AMEMBASSY BONN 
AMEMBASSY BRUSSELS 
AMEMBASSY BUDAPEST 
AMEMBASSY LISBON 
AMEMBASSY LONDON 
AMEMBASSY LUXEMBOURG 
AMEMBASSY MADRID 
AMCONSUL MILAN 
AMEMBASSY MOSCOW 
AMCONSUL MUNICH 
AMEMBASSY PARIS 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 02        ZAGREB  00467  02 OF 03  301445Z 
AMEMBASSY ROME 
AMEMBASSY THE HAGUE 
AMEMBASSY VIENNA 
USMISSION USNATO 1588 
USMISSION USUN NEW YORK 0807 
WHITE HOUSE WASHDC 0275 
 
UNCLAS SECTION 02 OF 03 ZAGREB 00467 
 
SIPDIS 
 
 
BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM 
 
E.O. 12356:  N/A 
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT:  ZAGREB UPDATE:  MARCH 30, 1992 
 
38 PERCENT OF THE FOREST AREA IN THE REGION IS 
CONTROLLED BY THE JNA.  GREGURIC ESTIMATED THAT 
TOTAL DAMAGE TO THE CROATIAN ECONOMY FROM THE WAR 
AMOUNTS TO 21 BILLION DOLLARS OR 5,000 DOLLARS PER 
CAPITA. 
 
VICE-PRESIDENT'S REPORT TO THE ASSEMBLY ON 
ECONOMIC ISSUES 
 
 
 
 
 
 
 
 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 03        ZAGREB  00467  02 OF 03  301445Z 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
¶4.  VICE-PRESIDENT OF THE GOVERNMENT, JURICA 
PAVELIC, ASSERTED THAT THE BASIC MARKET 
ORIENTATION OF GOVERNMENT ECONOMIC POLICY HAS 
RECEIVED SUPPORT FROM INTERNATIONAL ECONOMIC 
ORGANIZATIONS.  PAVELIC PRESENTED A RATHER ROSY 
PICTURE OF THE CROATIAN ECONOMY USING THE 
FOLLOWING INFORMATION.  INDUSTRIAL PRODUCTION IN 
JANUARY AND FEBRUARY WAS 7.B PERCENT HIGHER THAN 
THE AVERAGE THE LAST QUARTER OF 1991 (COMMENT: 
THIS IS HARDLY A GREAT ACHIEVEMENT CONSIDERING 
THAT THE WAR IN CROATIA WAS AT ITS HEIGHT DURING 
THE LAST THREE MONTHS OF 1991.  END COMMENT.). 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 04        ZAGREB  00467  02 OF 03  301445Z 
THROUGH FEBRUARY THIS YEAR, THE EXPORT OF GOODS 
FROM CROATIA AMOUNTED TO USD 487.7 MILLION WHILE 
IMPORTED MERCHANDISE TOTALLED USD 377.8 MILLION. 
 
¶5.  PAVELIC POINTED OUT THAT SO FAR IN 1992 THE 
GOVERNMENT HAD STRICTLY CONFORMED TO ITS MONETARY 
PROJECTIONS.  HOWEVER, HE WARNED THAT DURING THE 
FIRST 10 DAYS IN MARCH, THE CROATIAN NATIONAL BANK 
HAD INCREASED THE MONETARY SUPPLY BY 4.7 BILLION 
CROATIAN DINARS.  RETAIL PRICES WHICH HAD 
INCREASED BY 25.3 PERCENT IN NOVEMBER ROSE 15 
PERCENT IN FEBRUARY.  ON THE OTHER HAND, SALARIES 
CONTINUED TO DECREASE.  ACCORDING TO PAVELIC, IT 
IS OF GREATEST IMPORTANCE FOR CROATIA TO CHANGE 
ITS ECONOMIC STRUCTURE, AND TO PRIVATIZE SMALL 
ENTERPRISES IN THE FIELD OF TRADE, CATERING AND 
TOURISM. 
 
CROATIAN ASSEMBLY ADOPTS 1992 BUDGET 
 
 
 
 
 
 
 
 
 
 
 
 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 05        ZAGREB  00467  02 OF 03  301445Z 
 
------- 
 
 
 
- 
 
 
 
 
 
 
 
¶6.  THE CROATIAN ASSEMBLY ADOPTED MARCH 29 A 
BUDGET FOR 1992 OF 270 BILLION DINARS (USD 2.5 
BILLION).  MINISTER OF FINANCE, JOZO MARTINOVIC, 
SAID THAT IN 1992 TAXES WILL BE REDUCED.  THE 
BALANCE OF PAYMENTS AND THE MONETARY POLICY WILL 
BE COORDINATED WITH THE ECONOMIC POLICY OF THE 
GOVERNMENT. 
 
DECISIONS OF THE CROATIAN ASSEMBLY 
 
 
 
 
 
 
 
 
 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 06        ZAGREB  00467  02 OF 03  301445Z 
- 
------- 
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
                       UNCLASSIFIED 
 
 
 
 
 
 
 
 
 
NNNN 
 
                       UNCLASSIFIED 
 
PAGE 01        ZAGREB  00467  03 OF 03  301446Z 
ACTION EUR-01 
 
INFO  LOG-00   AID-01   AMAD-01  CIAE-00  CTME-00  C-01     DODE-00 
      ITCE-00  CISA-02  DS-00    EB-01    EXME-00  EXIM-06  E-01 
      FRB-01   HA-09    H-01     INRE-00  INR-01   IO-19    ITC-01 
      JUSE-00  LAB-04   L-03     ADS-00   NSAE-00  OIC-02   OMB-01 
      OPIC-08  PA-02    PM-01    PRS-01   P-01     RP-10    SCT-03 
      SIL-01   SNP-01   SP-01    SR-01    SSO-00   SS-01    STR-20 
      TRSE-00  T-01       /108W 
                  ------------------20D5A3  301447Z /38 
O 301440Z MAR 92 
FM AMCONSUL ZAGREB 
TO SECSTATE WASHDC IMMEDIATE 0657 
INFO AMEMBASSY BELGRADE IMMEDIATE 
USIA WASHDC 1351 
USDOC WASHDC 
AMEMBASSY ANKARA 
AMEMBASSY ATHENS 
AMEMBASSY BONN 
AMEMBASSY BRUSSELS 
AMEMBASSY BUDAPEST 
AMEMBASSY LISBON 
AMEMBASSY LONDON 
AMEMBASSY LUXEMBOURG 
AMEMBASSY MADRID 
AMCONSUL MILAN 
AMEMBASSY MOSCOW 
AMCONSUL MUNICH 
AMEMBASSY PARIS 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 02        ZAGREB  00467  03 OF 03  301446Z 
AMEMBASSY ROME 
AMEMBASSY THE HAGUE 
AMEMBASSY VIENNA 
USMISSION USNATO 1589 
USMISSION USUN NEW YORK 0808 
WHITE HOUSE WASHDC 0276 
 
UNCLAS SECTION 03 OF 03 ZAGREB 00467 
 
SIPDIS 
 
 
BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM 
 
E.O. 12356:  N/A 
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT:  ZAGREB UPDATE:  MARCH 30, 1992 
 
 
¶7.  DURING THE MARCH 29 SESSION OF THE CROATIAN 
ASSEMBLY THE FOLLOWING RESOLUTIONS WERE ADOPTED 
REGARDING THE SITUATION IN BOSNIA AND HERCEGOVINA: 
 
--  THE ASSEMBLY SUPPORTS THE TERRITORIAL 
INTEGRITY OF B-H AS WELL AS THE REFERENDUM OF 
FEBRUARY 29 AND MARCH 1, 1992 ACCORDING TO WHICH 
B-H MUST BE INTERNATIONALLY RECOGNIZED AS AN 
INDEPENDENT AND SOVEREIGN STATE; 
 
--  THE ASSEMBLY SUPPORTS THE EFFORTS TO 
PEACEFULLY SETTLE INTERNAL RELATIONS WITHIN B-H BY 
MEANS OF NEGOTIATIONS BETWEEN THE THREE SOVEREIGN 
NATIONALITIES IN THE FRAMEWORK OF THE BRUSSELS 
PEACE CONFERENCE; 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 03        ZAGREB  00467  03 OF 03  301446Z 
 
--  THE ASSEMBLY SUPPORTS THE RESOLUTION OF THE 
CROATIAN FOREIGN AFFAIRS COMMITTEE OF MARCH 25, 
ASKING THE PRESIDENT OF THE CROATIAN REPUBLIC TO 
RECOGNIZE B-H AS AN INDEPENDENT AND SOVEREIGN 
STATE IN ORDER TO BRING A MORE PROMPT SETTLEMENT 
OF THE PRESENT CRISIS IN THAT REPUBLIC. 
- 
CROATIAN LIAISON TO UNPROFOR INFORMS UN OF 
CONTINUING EXILE OF CROATS FROM UNPAS 
 
 
 
 
 
 
 
 
 
 
 
 
 
¶8.  ON MARCH 29, MILAN RAMLJAK, PRESIDENT OF THE 
STATE COMMISSION FOR UNPROFOR, ADDRESSED HIS 5TH 
LETTER TO UNPROFOR, AND THE EC.  HE CALLED THEIR 
ATTENTION TO THE FACT THAT, IN SPITE OF HIS 
PREVIOUS LETTERS DATED MARCH 15, 20, 21 AND 24, 
AND HIS VISIT WITH THE COMMANDER OF THE CIVILIAN 
SECTOR OF UNPROFOR, CEDRIC THORNBERRY, ON MARCH 
27, THE CONSTANT EXILE OF THE NON-SERBIAN 
                       UNCLASSIFIED 
 
 
                       UNCLASSIFIED 
 
PAGE 04        ZAGREB  00467  03 OF 03  301446Z 
POPULATION FROM THE JNA-CONTROLLED TERRITORY 
CONTINUES UNABATED.  RAMLJAK REPORTED THAT ON 
MARCH 26, 115 PERSONS FROM VILLAGES IN THE 
BENKOVAC AREA WERE FORCED TO LEAVE.  RAMLJAK ASKED 
THE EC MISSION AND THE UNPROFOR COMMAND TO HELP 
PREVENT FURTHER DEPORTATIONS AND CRIMES.  EINIK 
 
 
 
                       UNCLASSIFIED 
 
 
 
 
 
 
 
 
 
NNNN

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Viewing cable 92ZAGREB467, ZAGREB UPDATE: MARCH 30, 1992