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

C O N F I D E N T I A L SECTION 01 OF 04 ZAGREB 000803 
 
SIPDIS 
 
DEPARTMENT FOR EUR/SCE (NARDI) 
STATE PLEASE PASS TO USAID - EE/ECA (CONVERY) 
 
E.O. 12958: DECL: 04/16/2013 
TAGS: PGOV EAID EAID EAID EAID HR HRPGOV
SUBJECT: CROATIA ELECTIONS: RACAN'S SDP NEEDS TO TURN IT 
AROUND 
                       CONFIDENTIAL 
 
 
PAGE 02        ZAGREB  00803  01 OF 04  111156Z 
 
CLASSIFIED BY: POLOFF A.F.GODFREY FOR REASONS 1.5 (B,D) 
 
SUMMARY 
------- 
 
¶1.  (C) THE UNOFFICIAL STARTING GUN FOR THE NEXT 
PARLIAMENTARY ELECTION HAS GONE OFF, BUT PM RACAN'S 
COALITION-LEADING SDP IS STALLED AT THE START.  A NEW 
USAID-SPONSORED IRI POLL SHOWS THAT ONLY 13 PERCENT OF VOTERS 
NOW PLAN TO CAST THEIR BALLOTS FOR THE SDP.  VOTER 
DISSATISFACTION WITH THE GOVERNMENT IS AT 68 PERCENT, 
ESSENTIALLY THE SAME LEVEL IT WAS WITH THE LAST GOVERNMENT IN 
1999 AFTER A DECADE OF WAR AND HDZ MISRULE HAD BROUGHT 
CROATIA TO ECONOMIC RUIN AND INTERNATIONAL ISOLATION.  THE 
SDP'S FOUR SMALLER COALITION PARTNERS HAVE BEGUN TO PREPARE 
THEMSELVES FOR THE ELECTION, AND OPPOSITION PARTIES ALREADY 
HAVE THEIR CAMPAIGN BILLBOARDS OUT.  THE SDP, HOWEVER, IS IN 
DISARRAY, AND RACAN FACES DISSENT WITHIN HIS OWN PARTY FROM 
BOTH THE LEFT AND THE RIGHT. 
 
¶2.  (C) IRI POLLSTERS SAY THAT IF THE SDP CAN TURN THINGS 
AROUND, A COALITION WHICH EXCLUDES THE STILL-UNRECONSTRUCTED 
HDZ CAN WIN IN ELECTIONS THIS AUTUMN.  THE INTERNATIONAL 
COMMUNITY AND CROATIAN VOTERS ARE RIGHT TO BE DISAPPOINTED BY 
THE OPPORTUNITIES MISSED BY THE RACAN GOVERNMENT, BUT THERE 
HAVE BEEN SOME IMPORTANT POSITIVE CHANGES.  FOR ALL THEIR 
PERSONAL AND PHILOSOPHICAL FAILINGS, THE PARTIES WHICH MAKE 
UP THIS GOVERNMENT ARE IN THE EUROPEAN MAINSTREAM.  ON ISSUES 
OF MOST CONCERN TO US BUT (REGRETABLY) NOT TO THE TYPICAL 
CROATIAN VOTER, THEIR PERFORMANCE IS VARIED: LITTLE PROGRESS 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00803  01 OF 04  111156Z 
OR COMMITMENT ON REFUGEE RETURNS, UNEVEN COOPERATION WITH 
ICTY, AND GOOD NEIGHBORLY RELATIONS HAVE BEEN BUILT.  THESE 
LEVELS WOULD NOT HAVE BEEN ACHIEVED UNDER AN HDZ GOVERNMENT 
BECAUSE ITS MANY OF ITS LEADING FIGURES AND CONSTITUENTS ARE 
FUNDAMENTALLY OPPOSED TO BUILDING AN OPEN, INCLUSIVE CROATIA. 
 
¶3.  (C) AS MUCH AS WE REGRET RACAN'S LACK OF LEADERSHIP, 
THERE IS AS YET NO ALTERNATIVE TO A COALITION INCLUDING THE 
SDP THAT DOES NOT INCLUDE THE FUNDAMENTALLY UNDEMOCRATIC HDZ. 
 UNLESS THE SDP CAN GET BACK ON ITS FEET, SUCH A COALITION 
MAY NOT PREVAIL AT THE POLLS IN OCTOBER.  END SUMMARY. 
 
IRI POLL SERVES AS ELECTION STARTING GUN 
---------------------------------------- 
 
¶4.  (C) CROATIA'S NEXT PARLIAMENTARY ELECTION MUST TAKE PLACE 
BEFORE APRIL 2004, BUT THE COALITION HAS ALL BUT FORMALLY 
ANNOUNCED ELECTIONS FOR OCTOBER 2003.  THE THREE LARGEST 
PARTIES OF THE FIVE-PARTY COALITION WHICH MAKE UP THE 
COALITION LED BY PM RACAN'S SOCIAL DEMOCRATIC PARTY (SDP) 
HAVE ALL ANNOUNCED THAT THEY WILL NOT JOIN A PRE-ELECTION 
COALITION.  A USAID-SPONSORED IRI POLL COMPLETED ON MARCH 25 
SHOWS THAT THE SDP STILL LEADS THE COALITION, BUT HAS THE 
SUPPORT OF ONLY 13 PERCENT OF RESPONDENTS WHO SAID THEY WOULD 
TAKE PART IN ELECTIONS, DOWN FROM 23 PERCENT IN JUNE 2001, 
BELOW THE OPPOSITION HDZ (22 PERCENT) AND FAR BEHIND THOSE 
WHO SAID THEY WOULD VOTE BUT HAVE NOT MADE UP THEIR MINDS (29 
PERCENT). 
 
VOTER DISSATISFACTION NEAR ALL-TIME HIGH 
---------------------------------------- 
                       CONFIDENTIAL 
 
PAGE 04        ZAGREB  00803  01 OF 04  111156Z 
 
¶5.  (C) ONE OF THE MOST STARTLING RESULTS FROM THE IRI POLL 
(CONDUCTED BY PULS, CROATIA'S LEADING PUBLIC-OPINION FIRM) IS 
THAT ONLY 22 PERCENT OF RESPONDENTS THINK THAT CROATIA IS 
HEADING IN THE RIGHT DIRECTION, DOWN FROM A PEAK OF 57 
PERCENT AFTER THE COALITION TOOK OFFICE IN JANUARY 2000. 
FULLY 68 PERCENT SAID THAT CROATIA IS BEING LED IN THE WRONG 
DIRECTION, VERY CLOSE TO THE LEVEL OF VOTER DISSATISFACTION 
IN 1999, AFTER NEARLY A DECADE OF WAR AND HDZ MISRULE.  THE 
POLL SHOWS THAT 73 PERCENT OF CROATIANS BELIEVE THAT THE SDP 
IS MOST RESPONSIBLE IN THE COALITION FOR GOC POLICY.  THREE 
TIMES AS MANY RESPONDENTS BELIEVE THE SDP IS RESPONSIBLE FOR 
SQUABBLES IN THE COALITION THAN THE SDP, AND 55 PERCENT 
EITHER THOUGHT THE GOVERNMENT HAD DONE NOTHING GOOD DURING 
ITS TENURE OR COULD NOT POINT TO A SINGLE POSITIVE 
ACCOMPLISHMENT. 
 
IRI:  COALITION "SURVIVABLE" 
---------------------------- 
 
¶6.  (C) NEVERTHELESS, IRI POLLSTERS SAID THE COALITION IN ITS 
CURRENT FORM IS "SURVIVABLE," PROVIDED THE SDP COULD GET ITS 
RATING UP TO 20 PERCENT.  THEY LAID OUT A STRATEGY -- WHICH 
THEY LATER PITCHED TO ALL COALITION PARTIES -- WHERE THE 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ9232 
 
PAGE 01        ZAGREB  00803  02 OF 04  111156Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AF-00    AGRE-00  AID-00   CIAE-00  INL-00 
      DODE-00  SRPP-00  DS-00    EB-00    FBIE-00  VC-00    TEDE-00 
      INR-00   LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00 
      OMB-02   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   TRSE-00  USIE-00  R-00     EPAE-00 
      IIP-00   PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00 
      SAS-00   SWCI-00    /006W 
                  ------------------54417B  111156Z /38 
P 111157Z APR 03 
FM AMEMBASSY ZAGREB 
TO SECSTATE WASHDC PRIORITY 9936 
INFO AMEMBASSY BELGRADE PRIORITY 
AMEMBASSY LJUBLJANA PRIORITY 
AMEMBASSY SARAJEVO PRIORITY 
AMEMBASSY SKOPJE PRIORITY 
USMISSION USOSCE PRIORITY 
USMISSION USNATO PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 04 ZAGREB 000803 
 
SIPDIS 
 
DEPARTMENT FOR EUR/SCE (NARDI) 
STATE PLEASE PASS TO USAID - EE/ECA (CONVERY) 
 
E.O. 12958: DECL: 04/16/2013 
TAGS: PGOV EAID EAID EAID EAID HR HRPGOV
SUBJECT: CROATIA ELECTIONS: RACAN'S SDP NEEDS TO TURN IT 
AROUND 
                       CONFIDENTIAL 
 
PAGE 02        ZAGREB  00803  02 OF 04  111156Z 
 
GOVERNMENT SHOULD FIRST TAKE RESPONSIBILITY FOR NOT LIVING UP 
TO VOTER EXPECTATIONS AND THEN GET THE MESSAGE OUT ON THINGS 
THEY HAVE DONE, ESPECIALLY ON JOB CREATION AND IN BRINGING 
CROATIA'S TOURIST INDUSTRY BACK TO LIFE. 
 
SDP GETS THE BAD NEWS 
--------------------- 
 
¶7.  (C) WE MET WITH SDP SECRETARY GENERAL IGOR DRAGOVAN, WHO 
ATTENDED IRI'S PRESENTATION OF THE POLL RESULTS TO HIS PARTY. 
 PM RACAN (PRESIDENT OF THE SDP) WAS NOT AVAILABLE, BUT KEY 
SENIOR LEADERS WERE PRESENT, INCLUDING DEPUTY PM/DEFENSE 
MINISTER ANTUNOVIC, LABOR MINISTER VIDOVIC AND INTERIOR 
MINISTER LUCIN.  AFTER A BRIEF GRIPE ABOUT A LEAK TO THE 
PRESS BY ANOTHER PARTY OF THE POLL'S UNFAVORABLE SHOWING OF 
THE SDP, DRAGOVAN EXPRESSED APPRECIATION FOR THE OPPORTUNITY 
TO BE ABLE TO SHAPE HIS PARTY'S MESSAGE IN TIME TO GET 
RESULTS. 
 
¶8.  (C) DRAGOVAN WAS DISCOURAGED, BUT NOT SURPRISED, BY THE 
FACT THAT VOTERS DON'T KNOW ANY OF THE COALITION'S 
ACCOMPLISHMENTS.  DRAGOVAN AGREED WITH IRI'S CRITICISM THAT 
PM RACAN'S INABILITY TO TAKE CREDIT FOR PROGRESS ON THE 
ECONOMY IS COMPOUNDED BY HIS UNWILLINGNESS TO DEVELOP A 
PROFESSIONAL COMMUNICATIONS STAFF.  THE ONE POLL RESULT THAT 
CAUGHT HIM BY SURPRISE WAS THAT VOTERS BELIEVE THE SDP IS 
RESPONSIBLE FOR MOST OF THE SQUABBLES BETWEEN COALITION 
PARTNERS.  DRAGOVAN INSISTED THAT THE CROATIAN PEASANT'S 
PARTY (HSS) HAS BEEN RESPONSIBLE FOR ALMOST ALL OF THE 
CONFLICTS. 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00803  02 OF 04  111156Z 
 
RACAN WANTS TO RUN ON HIS RECORD 
-------------------------------- 
 
¶9.  (C) DESPITE THE SDP'S CURRENT STANDING, DRAGOVAN IS 
OPTIMISTIC AND CLAIMS THE SDP HAS A PLAN TO GET OUT THE WORD. 
 HE GAVE US A COPY OF A BOOKLET THE SDP IS ISSUING TO ALL 
PARTY MEMBERS TO GIVE THEM CONCRETE FACTS TO REFUTE 
ALLEGATIONS ABOUT THE COALITION'S INACTION.  THE LIST OF 
ACCOMPLISHMENTS IS IMPRESSIVE, ESPECIALLY WHEN COMPARED WITH 
THE PRECEDING HDZ GOVERNMENT'S FAILURE.  THERE ARE "TALKING 
POINTS" FOR SDP RANK-AND-FILE ON ALL SUBJECT AREAS, BUT 
DRAGOVAN BELIEVES THE BOOKLET'S FRAMING OF THE GOC'S TRACK 
RECORD ON THE ECONOMY WILL BE MOST CONVINCING.  STATISTICS 
CITED IN THE SDP'S "WHAT WE HAVE ACCOMPLISHED" BOOKLET 
INCLUDE: 
 
- STEADY, IMPRESSIVE GROWTH IN GDP, FROM -0.4 PERCENT IN 1999 
TO 5.2 PERCENT IN 2002; 
- PER CAPITA GDP IS NOW 5,150 EURO, AHEAD OF NINE EU 
CANDIDATE COUNTRIES; 
- INFLATION DOWN STEADILY: 
- RETIREMENT OF MOST OF THE HDZ-ERA DEBT; 
- 3.2 BILLION DOLLARS IN FOREIGN DIRECT INVESTMENT: 
- REDUCTION OF THE STATE BUDGET OUTLAYS; 
- REDUCTION OF INTEREST RATES FOR CONSUMER CREDIT; 
- IMPROVING THE PERFORMANCE OF STATE OWNED ENTERPRISES; 
- INCREASING THE REAL WAGES OF THE AVERAGE WORKER; AND 
- REDUCING UNEMPLOYMENT FOR THE FIRST TIME IN 20 YEARS. 
 
¶10.  (C) DRAGOVAN TOLD US THAT THE SDP'S WAR CHEST IS FULL 
                       CONFIDENTIAL 
 
PAGE 04        ZAGREB  00803  02 OF 04  111156Z 
AND THEY PLAN TO ROLL OUT ADS THIS SUMMER TAKING CREDIT FOR 
THEIR ACCOMPLISHMENTS.  HE WAS FRUSTRATED THAT THE SDP'S 
SMALLER COALITION PARTNER HNS HAS BEEN ASSOCIATED WITH 
PROGRESS TOWARD COMPLETING THE ZAGREB-SPLIT HIGHWAY, WHICH 
VOTERS CITE AS ONE OF THE FEW ACHIEVEMENTS OF THIS GOVERNMENT 
(EVEN THOUGH THE HIGHWAY WILL NOT BE COMPLETED BEFORE 
ELECTIONS). 
 
DISSENT WITHIN THE SDP 
---------------------- 
 
¶11.  (C) IN ADDITION TO THE PROBLEM OF GETTING HIS MESSAGE 
OUT, RACAN FACES OPEN DISSENT FROM WITHIN HIS OWN PARTY'S 
RANKS.  ON APRIL 2, SDP MP ZLATKO SESELJ QUIT THE PARLIAMENT, 
RETURNING HIS MANDATE TO THE SDP.  SESELJ TOLD THE PRESS THAT 
HE IS FED UP THAT HIS PARTY HAS CONSISTENTLY BACKED DOWN IN 
THE FACE OF PRESSURE FROM THE HSS.  THE LAST STRAW IN 
SESELJ'S CASE WAS THE SDP AGREEING TO APPROVE THE HSS 
EDUCATION MINISTER'S PROPOSED HIGH SCHOOL TEXTBOOKS WHICH, 
ACCORDING TO SESELJ "ARE NOT WORTH THE PAPER THEY'RE PRINTED 
ON."  SESELJ, A CAREER EDUCATOR AND OWNER OF A PRIVATE HIGH 
SCHOOL IN ZAGREB, SAID THAT THE HSS TEXTBOOK "PASSED BECAUSE 
OF HSS PRESIDENT TOMCIC'S "BLACKMAIL." 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ9234 
 
PAGE 01        ZAGREB  00803  03 OF 04  111156Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AF-00    AGRE-00  AID-00   CIAE-00  INL-00 
      DODE-00  SRPP-00  DS-00    EB-00    FBIE-00  VC-00    TEDE-00 
      INR-00   LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00 
      OMB-02   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   TRSE-00  USIE-00  R-00     EPAE-00 
      IIP-00   PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00 
      SAS-00   SWCI-00    /006W 
                  ------------------54418B  111157Z /38 
P 111157Z APR 03 
FM AMEMBASSY ZAGREB 
TO SECSTATE WASHDC PRIORITY 9937 
INFO AMEMBASSY BELGRADE PRIORITY 
AMEMBASSY LJUBLJANA PRIORITY 
AMEMBASSY SARAJEVO PRIORITY 
AMEMBASSY SKOPJE PRIORITY 
USMISSION USOSCE PRIORITY 
USMISSION USNATO PRIORITY 
 
C O N F I D E N T I A L SECTION 03 OF 04 ZAGREB 000803 
 
SIPDIS 
 
DEPARTMENT FOR EUR/SCE (NARDI) 
STATE PLEASE PASS TO USAID - EE/ECA (CONVERY) 
 
E.O. 12958: DECL: 04/16/2013 
TAGS: PGOV EAID EAID EAID EAID HR HRPGOV
SUBJECT: CROATIA ELECTIONS: RACAN'S SDP NEEDS TO TURN IT 
AROUND 
                       CONFIDENTIAL 
 
PAGE 02        ZAGREB  00803  03 OF 04  111156Z 
 
¶12.  (C) ZDRAVKO TOMAC, CHAIR OF THE PARLIAMENT'S FOREIGN 
AFFAIRS COMMITTEE, IS ACTIVELY SUBVERTING SOME OF HIS PARTY'S 
TACTICS ON ELECTIONS.  DRAGOVAN TOLD US THAT RACAN HAS BEEN 
TRYING TO EASE TOMAC OUT THE DOOR FOR YEARS, BUT THE JOWLY, 
CANTANKEROUS PROFESSOR JUST WON'T GO.  FORMERLY A PARTY VICE 
PRESIDENT, TOMAC IS NO LONGER EVEN A MEMBER OF THE SDP 
CENTRAL COMMITTEE.  DRAGOVAN TOLD US THAT RACAN TRIED TO GET 
THE MESSAGE ACROSS BY FIRING TOMAC'S SISTER FROM A COMFY SPOT 
AS ASSISTANT MINISTER OF VETERANS' AFFAIRS, BUT TOMAC HANGS 
ON, USING HIS COMMITTEE CHAIR AS A PULPIT FOR HIS OWN PET 
POLICY: INSISTING THAT THE DAYTON AGREEMENT BE REVISED TO 
CREATE A SEPARATE ENTITY FOR ETHNIC CROATS IN BIH.  (NOTE: 
EACH TIME TOMAC MAKES SUCH AN ANNOUNCEMENT, GOC AND SDP 
OFFICIALS MAKE STATEMENTS DECLARING THAT TOMAC DOES NOT SPEAK 
FOR EITHER THE PARTY OR THE GOVERNMENT.) 
 
¶13.  (C) WE AND MANY IN THE MEDIA THOUGHT TOMAC HAD FINALLY 
CROSSED THE LINE WHEN AS A GUEST AT THE ANNUAL CONVENTION OF 
THE MODERATE OPPOSITION PARTY DEMOCRATIC CENTER (DC), HE WAS 
QUOTED AS SAYING HE WOULD SUPPORT DC PRESIDENT MATE GRANIC AS 
A CANDIDATE FOR PRIME MINISTER.  HOWEVER, RACAN'S ONLY 
RESPONSE WAS TO REMARK THAT "TOMAC SEEMS TO BE DISTANCING 
HIMSELF FROM THE SDP."   DRAGOVAN TOLD US THAT RACAN SEEKS TO 
AVOID THE APPEARANCE OF DISSENT WITHIN THE PARTY AND DOES NOT 
WANT TO ALIENATE THE MORE CONSERVATIVE SDP VOTERS WHO 
ASSOCIATE WITH TOMAC. 
 
ELECTION-YEAR LEGISLATION? 
-------------------------- 
 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00803  03 OF 04  111156Z 
¶14.  (C) ALTHOUGH IT IS LATE IN THE LEGISLATIVE SEASON FOR 
NEW INITIATIVES, THE SDP IS TRYING TO GET THROUGH TWO MORE 
"REFORMS" WHICH THEY HOPE WILL BE POPULAR WITH VOTERS.  ONE 
IS AN ELECTION-YEAR TAX REFORM, ANNOUNCED IN GENERAL TERMS ON 
APRIL 7.  THE SDP PROPOSES BROAD CUTS TO INCOME TAXES AND TO 
OFFSET THE LOSS WITH INCREASES IN PROPERTY TAXES.  THE OTHER 
IS REFORM OF THE LABOR CODE, BUT THE SDP EFFORT SEEMS TO HAVE 
RUN OUT OF STEAM.  FOLLOWING A LONG STALEMATE, GOVERNMENT, 
EMPLOYER, AND LABOR UNION NEGOTIATORS APPEARED TO BE ON TRACK 
TO REACHING A COMPROMISE ON A NEW LABOR LAW.  BUT ON APRIL 9, 
LABOR LEADERS WALKED OUT OF NEGOTIATIONS, INSISTING THAT THE 
GOC WAS NOT NEGOTIATING IN GOOD FAITH.  ONE OBSERVER NOTED 
THAT THE TIMING OF THE WALKOUT IS PREDICTABLE: UNIONS JUST 
WANT TO GET THE BEST DEAL THEY CAN BEFORE THEIR TRADITIONAL 
PROTEST ON MAY 1; IF THEY HELP BRING DOWN THE SDP, THEY ARE 
UNLIKELY TO GET A BETTER DEAL FROM THE HDZ. 
 
ELECTION LAW GAMBLE WOULD RELY ON AGREEMENT WITH BIH 
--------------------------------------------- ------- 
 
¶15.  (C) ON APRIL 3, THE CROATIAN PARLIAMENT PASSED TECHNICAL 
CHANGES TO EXISTING ELECTION LAW WHEN COALITION PARTNERS 
COULD NOT COME TO COMPROMISE ON A NEW ELECTORAL MODEL.  THE 
SABOR BROUGHT THE OLD LAW INTO LINE WITH THE NEW 
CONSTITUTIONAL LAW ON NATIONAL MINORITIES AND MADE SOME OTHER 
IMPORTANT TECHNICAL CHANGES, BUT DID NOT ADDRESS THE ISSUE OF 
DIASPORA VOTING.  ALL CROATIAN CITIZENS, REGARDLESS OF WHERE 
THEY RESIDE, STILL HAVE A RIGHT UNDER CROATIA'S CONSTITUTION, 
TO VOTE IN PARLIAMENTARY ELECTIONS.  IN THE LAST ELECTION, 
HARD-LINE NATIONALIST CROATS FROM BOSNIA USED THIS TO ELECT 
SIX MP'S ON THE HDZ SLATE. 
                       CONFIDENTIAL 
 
PAGE 04        ZAGREB  00803  03 OF 04  111156Z 
 
¶16.  (C) THE GOC IS COUNTING ON SIGNING A NEW BILATERAL 
AGREEMENT ON DUAL CITIZENSHIP WITH BIH WHICH WOULD PREVENT 
CROATS WHO VOTED IN BOSNIA FROM VOTING IN CROATIA.  WHILE THE 
MFA INFORMS US THAT NEGOTIATIONS ARE WELL ALONG, OTHER 
OBSERVERS WARN US THAT THIS AGREEMENT COULD BE AT RISK IF BIH 
DECIDES TO PLAY HARDBALL AND LINK THE DUAL CITIZENSHIP 
AGREEMENT TO PROGRESS ON OTHER ISSUES.  ONE SUCH ISSUE OF 
GREAT IMPORTANCE TO BIH IS THE LONG-PENDING AGREEMENT ON THE 
STATUS OF THE PORT OF PLOCE.  BIH IS TO GAIN SPECIAL ACCESS 
TO THE PORT IN EXCHANGE FOR FREE PASSAGE FOR TRAVELLERS 
THROUGH THE NEUM CORRIDOR (A STRETCH OF THE ADRIATIC COAST, 
PART OF BIH, WHICH SEPARATES CROATIA'S MAINLAND FROM THE 
DUBROVNIK REGION).  THE PARLIAMENT'S FOREIGN AFFAIRS 
COMMITTEE -- AT THE URGING OF NONE OTHER THAN ZDRAVKO TOMAC 
-- IS OPPOSING A GOC COMPROMISE ON AN AGREEMENT WITH BIH 
REGARDING THE STATUS OF THE PORT OF PLOCE. 
 
COMMENT 
------- 
 
¶17.  (C) WE WON'T TRY TO PREDICT THE OUTCOME OF ELECTIONS SO 
FAR IN ADVANCE, BUT SIMPLE ARITHMETIC ALLOWS US TO MAKE TWO 
PREDICTIONS CONFIDENTLY: NO SINGLE PARTY WILL BE ABLE TO FORM 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ9236 
 
PAGE 01        ZAGREB  00803  04 OF 04  111157Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AF-00    AGRE-00  AID-00   CIAE-00  INL-00 
      DODE-00  SRPP-00  DS-00    EB-00    FBIE-00  VC-00    TEDE-00 
      INR-00   LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00 
      OMB-02   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   TRSE-00  USIE-00  R-00     EPAE-00 
      IIP-00   PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00 
      SAS-00   SWCI-00    /006W 
                  ------------------544198  111157Z /38 
P 111157Z APR 03 
FM AMEMBASSY ZAGREB 
TO SECSTATE WASHDC PRIORITY 9938 
INFO AMEMBASSY BELGRADE PRIORITY 
AMEMBASSY LJUBLJANA PRIORITY 
AMEMBASSY SARAJEVO PRIORITY 
AMEMBASSY SKOPJE PRIORITY 
USMISSION USOSCE PRIORITY 
USMISSION USNATO PRIORITY 
 
C O N F I D E N T I A L SECTION 04 OF 04 ZAGREB 000803 
 
SIPDIS 
 
DEPARTMENT FOR EUR/SCE (NARDI) 
STATE PLEASE PASS TO USAID - EE/ECA (CONVERY) 
 
E.O. 12958: DECL: 04/16/2013 
TAGS: PGOV EAID EAID EAID EAID HR HRPGOV
SUBJECT: CROATIA ELECTIONS: RACAN'S SDP NEEDS TO TURN IT 
AROUND 
                       CONFIDENTIAL 
 
PAGE 02        ZAGREB  00803  04 OF 04  111157Z 
 
A GOVERNMENT ON ITS OWN AND NO COALITION WHICH DOES NOT 
INCLUDE EITHER THE HDZ OR THE SDP WILL BE ABLE TO GAIN MORE 
THAN 50 PERCENT OF THE MP'S IN THE NEXT PARLIAMENT. 
 
¶18.  (C) LIKE THE RESPONDENTS TO THE IRI POLL, WE HAVE BEEN 
DISAPPOINTED BY THE RACAN GOVERNMENT'S MISSED OPPORTUNITIES 
AND BY HIS INDECISIVE LEADERSHIP STYLE, BUT AN HDZ GOVERNMENT 
WOULD BE WORSE.  DESPITE ITS NEW FACADE, AND WHILE IT MIGHT 
MAKE THE TRAINS RUN ON TIME, THE HDZ REMAINS THE PARTY OF 
EXCLUSIONARY ETHNIC NATIONALISTS.  THEY WOULD OBSTRUCT THE 
PROCESS OF ADDRESSING THE LEGACY OF ETHNIC WAR.  AT SOME 
POINT IN THE FUTURE -- BUT CERTAINLY NOT IN TIME FOR THIS 
FALL'S ELECTIONS -- THE HDZ MAY CHANGE ENOUGH AT THE 
FUNDAMENTAL LEVEL TO BE A USEFUL PARTNER FOR THE 
INTERNATIONAL COMMUNITY.  AFTER ALL, FEW WHO SAW GEORGE 
WALLACE IN 1963 COULD HAVE PREDICTED HE WOULD RENOUNCE HIS 
SEGREGATIONIST VIEWS AND FIND SUPPORT 20 YEARS LATER AMONG 
MORE PROGRESSIVE VOTERS.  FOR NOW, THE PARTIES WHICH MAKE UP 
THE CURRENT COALITION ARE MORE LIKELY TO MOVE FORWARD ON 
POLICIES WHICH ADVANCE OUR GOALS FOR REGIONAL STABILITY, EVEN 
IF THEY DO SO ONLY WHEN PRESSURED AND EVEN THEN ONLY 
GRUDGINGLY. 
 
¶19.  (C) OUR USAID DEMOCRACY ASSISTANCE PROGRAMS HAVE BEEN 
RAMPED UP IN THIS ELECTION YEAR TO HELP THE SDP AND ALL OTHER 
REFORM-ORIENTED POLITICAL PARTIES IN CROATIA.  IN ADDITION TO 
PROFESSIONAL POLLING INFORMATION, WE ARE TRAINING PARTY 
LEADERS AT ALL LEVELS, ORGANIZING FOCUS GROUPS, AND HELPING 
PARTIES DEFINE HOW BEST TO TAILOR THEIR MESSAGES TO ACHIEVE 
VOTER RESPONSE. 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00803  04 OF 04  111157Z 
ROSSIN 
 
                       CONFIDENTIAL 
 
>