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 02 ZAGREB 000866 
 
SIPDIS 
 
E.O. 12958: DECL: 04/18/2013 
TAGS: PREL PREF PGOV ECON MARR MASS HR PREF PGOV ECON MARR MASS HR BK BKPREL
SUBJECT: CROATIA PROVIDING LIMITED SUPPORT TO CROATS IN BIH 
REF: A. (A) SARAJEVO 790 
 
     ¶B. (B) SARAJEVO 890 
 
                       CONFIDENTIAL 
 
PAGE 02        ZAGREB  00866  01 OF 02  181415Z 
CLASSIFIED BY: DARREN TAYLOR, POLITICAL OFFICER, FOR REASONS 1.5 (B) AN 
D (D). 
 
SUMMARY 
------- 
 
¶1. (C) BASED ON MEETINGS WITH KEY GOC AND GOBIH OFFICIALS IN 
CROATIA IN RECENT WEEKS, WE HAVE BEEN ABLE TO DETERMINE WHAT 
TYPES AND LEVELS OF FINANCIAL SUPPORT THE GOC IS PROVIDING TO 
ETHNIC CROATS IN BOSNIA -- TARGETED LARGELY TO THREE AREAS: 
PENSIONS FOR FORMER HVO SOLDIERS, REFUGEE RETURNS, AND 
CULTURAL COOPERATION.  MOST OF THE BENEFICIARIES ARE CROATIAN 
CITIZENS.  THE GOC IS SEEKING TO ENSURE THAT ALL AID IS 
COORDINATED WITH THE RELEVANT GOBIH MINISTRIES AND IS 
PROVIDED IN A TRANSPARENT WAY.  THE GOC MAINTAINS CONTROL 
OVER THE PROCESS BY WHICH THE ASSISTANCE IS CHANNELED TO BIH, 
THUS ELIMINATING THE POSSIBILITY THAT EXTREMIST BOSNIAN CROAT 
LEADERS WILL MISUSE THE FUNDING AS WAS THE CASE -- AND 
PROBABLY THE INTENT -- WITH THE TUDJMAN GOVERNMENT. 
 
¶2.  (C) WE ARE REASONABLY CONFIDENT THAT THERE IS A 
TRANSPARENT PROCESS AT WORK AND THAT THE GOC, UNLIKE ITS 
PREDECESSOR, IS SEEKING TO PLAY A CONSTRUCTIVE ROLE IN BIH. 
WHILE THERE MAY BE SOME CONCERNS OVER CONTINUED PENSION 
PAYMENTS, THESE PAYMENTS WERE APPROVED AS PART OF THE DAYTON 
PROCESS.  THERE HAVE BEEN NO COMPLAINTS BY IC OFFICIALS IN 
BOSNIA CONCERNING SUCH ASSISTANCE, WHICH IS RELATIVELY MODEST 
COMPARED TO FIVE YEARS AGO. OFFICIALS WE MET TO DISCUSS THESE 
MATTERS INCLUDE THE HEAD OF THE MFA,S NEIGHBORING RELATIONS 
DEPARTMENT, FILIP VUCAK; ASSISTANT MINISTER FOR THE OFFICE OF 
DISPLACED PERSONS AND REFUGEES, LOVRE PEJKOVIC; AND THE BIH 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00866  01 OF 02  181415Z 
AMBASSADOR TO CROATIA, ZLATKO DIZDAREVIC. END SUMMARY. 
 
PENSIONS/SOCIAL WELFARE PAYMENTS 
-------------------------------- 
 
¶3. (C) AT THE TOP OF THE GOC ASSISTANCE PROGRAMS TO CROATS IN 
BOSNIA ARE PENSION PAYMENTS TO FORMER HVO SOLDIERS AND THEIR 
BENEFICIARIES.  THE SCOPE OF THE PROGRAM IS BETWEEN 3 AND 5 
MILLION USD MONTHLY, WHICH COVERS A TOTAL OF ABOUT 10,000 
BENEFICIARIES.  THE DISTRIBUTION OF THE PAYMENTS IS OVERSEEN 
BY THE MINISTRY OF LABOR AND SOCIAL WELFARE IN CROATIA IN 
CONJUNCTION WITH ITS COUNTERPART IN BIH. 
 
¶4.  (C) THE GOC DOES NOT PROVIDE ANY ASSISTANCE FOR MILITARY 
EQUIPMENT/TRAINING OR SALARIES FOR BOSNIAN CROATS SERVING IN 
THE FEDERATION ARMY.  UNDER THE STANDING COMMITTEE ON 
MILITARY MATTERS (SCMM) ARRANGEMENT, AND PURSUANT TO A 
BILATERAL AGREEMENT BETWEEN THE GOC AND GOBIH, SUCH DIRECT 
SUPPORT WOULD BE CHANNELED THROUGH THE RELEVANT MINISTRIES IN 
THE BIH GOVERNMENT IN A CLEAR AND TRANSPARENT WAY.  ABOUT 
THREE MONTHS AGO, THERE WAS A DEBATE WITHIN CROATIA BASED ON 
COMPLAINTS THAT FORMER HVO SOLDIERS WERE BEING PAID PENSIONS 
AT LOWER LEVELS THAN SOLDIERS IN CROATIA.  THE GOC IS 
REVIEWING THE ISSUE AND IS CONSIDERING INCREASING THE 
PENSIONS PAID TO FORMERS HVO SOLDIERS TO BRING THEM ON PAR 
WITH THEIR HV COUNTERPARTS.  THIS WOULD MEAN ADDING TO THE 
EXISTING BUDGET FOR THIS ITEM BETWEEN $200,000 AND $600,000 A 
YEAR FOR THE INCREASED PAYMENTS. 
 
REFUGEE ASSISTANCE 
------------------ 
                       CONFIDENTIAL 
 
PAGE 04        ZAGREB  00866  01 OF 02  181415Z 
 
¶5. (C) SINCE 2001, THE GOC HAS BUDGETED ABOUT 3 MILLION USD 
PER YEAR AS PART OF A PROGRAM DESIGNED TO HELP BOSNIAN CROATS 
CURRENTLY LIVING IN CROATIA MOVE BACK TO BOSNIA.  THE GOC 
PROVIDES HOUSING MATERIALS TO BOSNIAN CROATS WHO, IN RETURN, 
SIGN CONTRACTS STIPULATING THEY WILL VACATE THE HOUSES THEY 
OCCUPY IN CROATIA ONCE THEIR HOMES IN BIH HAVE BEEN 
RECONSTRUCTED.  ASSISTANT MINISTER PEJKOVIC DIRECTLY OVERSEES 
THIS PROGRAM AND WORKS WITH HIS BIH COUNTERPART TO ENSURE 
THAT THE APPLICANTS HAVE NOT ALREADY RECEIVED ASSISTANCE FROM 
THE IC OR GOBIH.  IT IS A "SELF HELP" PROGRAM WHEREBY OWNERS 
ARE ACTUALLY RESPONSIBLE FOR THE CONSTRUCTION THEMSELVES. 
THE PROGRAM HAS NOT BEEN WELL MANAGED.  COMPLAINTS BY 
BENEFICIARIES ARE RAMPANT OVER THE PROCESS IN WHICH THE 
MATERIALS ARE DELIVERED (IN THREE STAGES), HIGH EXPENSES 
PLACED ON THE OWNERS TO COMPLETE RECONSTRUCTION, AND LACK OF 
GOC INVOLVEMENT IN THE PROCESS.  WHILE FUNDS FOR MATERIALS 
FOR OVER 300 HOUSES HAVE BEEN ALLOCATED, MANY OF THESE HOUSES 
HAVE NOT BEEN COMPLETED (SEE REFTELS). 
 
CULTURAL COOPERATION 
-------------------- 
 
¶6. (C) THE GOC ALSO ALLOCATES 3 MILLION USD PER YEAR TO 
IMPROVE CULTURAL, RELIGIOUS, AND EDUCATIONAL TIES WITH CROATS 
IN BOSNIA.  THESE FUNDS ARE PROVIDED IN A TRANSPARENT WAY IN 
COOPERATION WITH RELEVANT GOBIH MINISTRIES.  THE GOC MFA 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ1773 
 
PAGE 01        ZAGREB  00866  02 OF 02  181416Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AF-00    AGRE-00  AID-00   ACQ-00   CEA-01 
      CIAE-00  COME-00  CTME-00  INL-00   C-00     DODE-00  DOTE-00 
      PERC-00  SRPP-00  DS-00    EB-00    EXIM-01  E-00     FAAE-00 
      FBIE-00  VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00 
      ITC-01   LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00 
      OMB-01   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   STR-00   TRSE-00  USIE-00  DTC-00 
      PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00  SAS-00 
      SWCI-00    /009W 
                  ------------------57F411  181416Z /38 
O 181413Z APR 03 
FM AMEMBASSY ZAGREB 
TO SECSTATE WASHDC IMMEDIATE 9989 
INFO AMEMBASSY BELGRADE PRIORITY 
AMEMBASSY LJUBLJANA PRIORITY 
AMEMBASSY SARAJEVO PRIORITY 
AMEMBASSY SKOPJE PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 02 ZAGREB 000866 
 
SIPDIS 
 
E.O. 12958: DECL: 04/18/2013 
TAGS: PREL PREF PGOV ECON MARR MASS HR PREF PGOV ECON MARR MASS HR BK BKPREL
SUBJECT: CROATIA PROVIDING LIMITED SUPPORT TO CROATS IN BIH 
 
DETERMINES WHICH PROJECTS IT WILL SUPPORT IN BIH.  THE MONEY 
CAN BE USED TO REBUILD CHURCHES, HOSPITALS, LIBRARIES, 
SCHOOLS OR TO PROVIDE MATERIALS AND EQUIPMENT TO THOSE 
                       CONFIDENTIAL 
 
PAGE 02        ZAGREB  00866  02 OF 02  181416Z 
INSTITUTIONS.  WHILE THE AIM IS TO DEEPEN TIES TO THE CROAT 
COMMUNITY, THE MFA MAINTAINS THAT GOC DOES NOT DISCRIMINATE 
BY SUPPORTING PROJECTS THAT ARE EXCLUSIVELY FOR CROATS.  OUR 
CONTACTS MAINTAIN THAT SERBS AND MUSLIMS HAVE ACCESS TO THE 
PUBLIC FACILITIES THAT ARE LOCATED IN VARIOUS COMMUNITIES. 
 
¶7. (C) THERE HAVE BEEN NO COMPLAINTS FROM OHR OR THE IC IN 
BOSNIA CONCERNING THE USE OF THESE CULTURAL FUNDS.  THE ONLY 
COMPLAINTS HAVE COME FROM BOSNIAN CROAT LEADERS (HDZ) WHO 
CLAIM THAT THE GOC IS PROVIDING ONLY "PEANUTS."  (COMMENT: 
THIS IS TRUE COMPARED TO THE $85 MILLION PER YEAR THE TUDJMAN 
GOVERNMENT USED TO PROVIDE TO THE BOSNIAN CROATS DURING AND 
AFTER THE WAR.  THIS MONEY, WHICH WAS CHANNELED THROUGH THE 
NOW DEFUNCT HERCEGOVACKA BANKA, WAS SUPPOSED TO BE USED TO 
PURCHASE MILITARY EQUIPMENT, PAY SALARIES OF HVO SOLDIERS, 
AND PROVIDE SOCIAL ASSISTANCE TO CROATS IN BOSNIA.  MUCH OF 
IT WAS STOLEN BY THE CRIMINAL BOSNIAN CROAT LEADERSHIP. END 
COMMENT.) 
 
HEALTH INSURANCE 
---------------- 
 
¶8. (C) BIH AMBASSADOR TO CROATIA DIZDAREVIC TOLD US THAT THE 
GOC DOES NOT PROVIDE DIRECT PAYMENTS TO THE GOBIH FOR HEALTH 
INSURANCE FOR ETHNIC CROATS IN BOSNIA.  RATHER, THE GOC 
ALLOWS THEM TO RECEIVE HEALTH CARE IN CROATIA AT COSTS 
SIMILAR TO WHAT CROATIAN CITIZENS PAY.  THEY ARE NOT TREATED 
AS FOREIGNERS, WHO PAY HIGHER COSTS.  CROATS IN BOSNIA THAT 
USE HEALTHCARE FACILITIES IN BOSNIA RECEIVE COVERAGE UNDER 
BOSNIA,S HEALTHCARE SYSTEM.  THE GOC IS SEEKING TO 
DISCOURAGE CROATS IN BOSNIA FROM TRAVELING TO CROATIA BY 
                       CONFIDENTIAL 
 
PAGE 03        ZAGREB  00866  02 OF 02  181416Z 
REBUILDING AND EXPANDING SERVICES PROVIDED BY THE MAIN 
HOSPITAL IN MOSTAR. 
 
COMMENT 
------- 
 
¶9. (C) WE ARE CONFIDENT THAT GOC-PROVIDED ASSISTANCE TO 
CROATS IN BOSNIA IS TRANSPARENT AND DONE IN COOPERATION WITH 
GOBIH OFFICIALS.  THE TYPES OF ASSISTANCE BEING PROVIDED 
OUGHT TO HAVE A STABILIZING EFFECT IN BIH.  IT ALSO ALLOWS 
THE GOC TO CLAIM CREDIT FOR SEEKING TO MAINTAIN GOOD 
RELATIONS WITH ITS NEIGHBOR.  AMBASSADOR DIZDAREVIC TOLD US 
THAT THE GOBIH DOES NOT HAVE ANY MISGIVINGS ABOUT GOC 
INTENTIONS WITHIN BOSNIA AND IS PLEASED WITH THE ROLE THE GOC 
IS PLAYING.  THE GOC WOULD LIKE TO REDUCE THE AMOUNT OF 
SUPPORT IT IS PROVIDING TO CROATS IN BOSNIA, PARTICULARLY 
PENSION PAYMENTS AND ACCESS TO SUBSIDIZED HEALTH CARE. 
RESOLVING THE ISSUE OF DUAL CITIZENSHIP WILL BE THE ONLY WAY 
FOR THE GOC TO REMEDY THIS ISSUE. 
 
ROSSIN 
ROSSIN 
 
                       CONFIDENTIAL 
 
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