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 BRUSSELS 000775 
 
SIPDIS 
 
E.O. 12958: DECL: 03/07/2016 
TAGS: PREL EAID ZL EUN USEU BRUSSELS
SUBJECT: EU ENLARGEMENT OFFICIAL ON W. BALKANS 
 
REF: A. (A) CARVER-DICARLO EMAIL 1/29/06 
     ¶B. - (B) BRUSSELS 650 
 
Classified By: Political Officer Vincent Carver for reason 1.5 (b/d). 
 
SUMMARY 
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¶1.  (C) Heather Grabbe, Advisor to Enlargement Commissioner 
Rehn, and visiting EUR/SCE Director Charles English reviewed 
the Western Balkans March 1 (English's meeting with EU COWEB 
Troika reported septel).  Grabbe said EU FMs, at their 
informal "Gymnich" meeting in Salzburg March 10-11, would 
review visa facilitation, extension of preferential trade 
conditions, and increased scholarships as inducements for 
citizens in the Balkans to support EU accession and related 
reforms.  English urged the EU to consider ways to provide 
Serbia extra inducements and frontload pre-accession 
assistance.  Grabbe noted that Stabilization and Association 
Agreement (SAA) negotiations with Serbia, scheduled April 5, 
would be suspended indefinitely absent full cooperation from 
Belgrade with the ICTY.  Full cooperation, she specified, did 
not mean Mladic's arrest but did mean cooperation that would 
help lead to Mladic's arrest and transfer to The Hague, as in 
the Gotovina case.  Grabbe opined that Slovenia and Hungary 
might recognize Montenegro if the vote favoring independence 
falls in the "grey zone" of between 50 and 55 percent.  She 
said SAA negotiations with BiH were progressing slowly and 
that the EU had emphasized the need for cooperation with ICTY 
from all BiH elements.  Grabbe urged the U.S. to support a 
regional free trade agreement in the Balkans.  END SUMMARY 
 
GYMNICH:  PRACTICAL INDUCEMENTS FOR REGION 
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¶2.  (C) Grabbe outlined possible EU inducements for the W. 
Balkans that will be reviewed at the informal EU FMs' meeting 
("Gymnich") in Salzburg March 10-11 (ref A).  EU FMs will 
also meet with their Balkan counterparts at the Gymnich. 
Grabbe said all member states except France are now 
supportive of a slightly eased visa regime for the region's 
citizens, that would include visa facilitation for scholars 
and some students.  (Note:  France is also calling for an 
increase in Schengen visa fees from 35 euros to 60 euros). 
The aim of visa facilitation as well as a plan for increased 
scholarships for students from the region, Grabbe noted, is 
to make the European perspective a more tangible benefit and 
inducement for the citizens of the region to support 
continued reforms. 
 
¶3.  (C) English asked if the EU planned to provide Serbia 
extra inducements in light of the Kosovo final status talks. 
Grabbe said the EU wants to remain consistent and not offer 
Belgrade "special favors," but rather offer region-wide 
inducements. That said, given the political circumstances, 
she acknowledged that the EU might be able to make Serbia a 
priority.  Grabbe added that the EU continues to support 
combining the 31 bilateral free trade agreements (FTA) in the 
region into one FTA for the Balkans.  This would not only 
increase trade but also attract foreign investment given a 
combined market of approximately 20 million consumers.  The 
EU is also considering extending a diagonal cumulation of 
rules of origin benefits to the Balkans, thereby extending EU 
preferential trade treatment to more products partially 
produced in the Balkans.  Grabbe urged the U.S. to drop its 
reservations on a regional FTA.  English agreed to raise the 
issue upon return to Washington. 
 
SaM:  EU WANTS FULL COOPERATION WITH ICTY 
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¶4.  (C) Grabbe noted that the EU, in considering suspension 
of SAA negotiations with Belgrade, will rely heavily on ICTY 
Chief Prosecutor del Ponte's judgment and use other sources 
as well regarding whether SaM is cooperating fully with the 
ICTY on Mladic.  Overall, SaM cooperation with ICTY has 
deteriorated since 2005 and Rehn has been clear that the EU 
wants full cooperation or the April 5 round of SAA 
negotiations will be suspended and will not be resumed until 
full cooperation is established.  Grabbe added that, in the 
Commission's view, "full cooperation" does not mean the 
arrest and transfer of Mladic to The Hague, but it does mean 
providing the intelligence and documentation that would lead 
to such actions.  According to Grabbe, Serbian PM Kostunica 
indicated to Barroso and Rehn, during their February visit to 
Belgrade, that he still hoped Mladic would voluntarily 
surrender.  Grabbe said she viewed this a voluntary surrender 
an unlikely possibility. 
 
¶5.  (C) Grabbe said that Serbian FM Draskovic, in his meeting 
with the EU Troika following the GAERC (ref B) February 27, 
called for NATO to allow SaM to join PfP.  This, he stressed, 
would be a large incentive for the Serbian Army to cooperate 
on arresting Mladic.  English noted that Mladic's transfer to 
The Hague has been a key condition for NATO's moving forward 
on PfP for SaM.  Grabbe and English agreed on coordinating 
messages and positions on assistance to Belgrade and ICTY 
cooperation. 
 
Strategic Partnership with SaM 
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¶6.  (C) English outlined possible elements of a Western 
Strategic Partnership with Serbia, including debt relief. 
Grabbe noted that EU aid to Serbia is already high and near 
the level accorded candidate countries.  The EU, she added, 
might be able to increase financial assistance after final 
status is determined for Kosovo as a way to encourage 
Belgrade's European perspective.  English encouraged the EU 
to explore ways to frontload its assistance programs.  Grabbe 
agreed that the EU could explore providing additional 
capacity-building programs to help Serbia meet its SAA 
requirements. 
 
Montenegrin Referendum 
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¶7.  (C) Grabbe observed that if Montenegro becomes 
independent, the EU will have to draft a new SAA negotiating 
mandate for Montenegro and adapt its mandate for Serbia. 
Both moves would require unanimous approval by member states, 
but Grabbe said there was not a high likelihood that any 
member state would oppose such actions.  Asked what the EU 
would do if Montenegrins voted in the "grey zone" of between 
50 and 55 percent for independence, Grabbe noted that 
Slovenia and possibly Hungary would possibly recognize 
Montenegrin independence. 
 
BiH:  SLOW PACE OF SAA NEGOTIATIONS 
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¶8.  (C) EU SAA negotiations with Sarajevo are progressing 
slowly, Grabbe said.  Barroso clearly underscored to BiH 
authorities that all of BiH, not just the Republika Srpska, 
needs to cooperate with ICTY.  According to Grabbe, BiH is 
not providing ICTY with needed evidence and documents. 
 
¶9.  (U) EUR/SCE Director English has cleared this message. 
GRAY 
.