VZCZCXRO5113
RR RUEHAG RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBW #0590/01 1071153
ZNR UUUUU ZZH
R 171153Z APR 06
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 8375
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 BELGRADE 000590 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: EAID PGOV MW SR
SUBJECT:  TRANSFORMING MONTENEGRO THROUGH ASSISTANCE 
 
¶1. Summary: Supporting Montenegro's aspirations to become 
an open-market, Western democracy underlies all USG 
assistance to the Republic and its people. We are convinced 
that a strong economy is the best support for a strong 
democracy, and we therefore have increased our activities 
for development.  While many challenges to Montenegro's 
nascent democracy remain, the half-dozen recent examples 
reported here typify the USG's impact, in close cooperation 
with local partners, in transforming Montenegro into a more 
prosperous, democratic, and safer place. End summary. 
 
Stopping Trafficking in Persons 
------------------------------- 
 
¶2. Using SEED assistance funds, the Department of State 
supported the seconding of an experienced U.S. Federal 
Organized Crime Prosecutor as an advisor for a six-month 
TDY with the Office of the State Prosecutor in Montenegro. 
Trafficking in Persons (TIP) has been a major legal and 
political challenge for Montenegro, and two years ago it 
was at risk of receiving a failing ("Tier III") grade for 
its lack of effort in the TIP fight. 
 
¶3. Concluding his tour, the U.S. Federal Prosecutor 
observed "There has been significant progress in this area 
and I am optimistic that it will continue.  The courts have 
reacted to the aggressive pursuit of these cases by our 
advisor by imposing stiff sentences.  At my urging, in one 
case the prosecutors office appealed sentences imposed by 
the trial court because they were too lenient.  The Court 
of Appeals agreed and ordered higher sentences."  This USD 
150,000 project, executed by the U.S. Department of 
Justice, has helped turn around the picture on TIP in 
Montenegro -- before the project, only one TIP conviction 
had ever been pronounced in Montenegro.  During the 
project, six convictions were made, with the length of 
sentences rising five-fold. 
 
Fighting Organized Crime 
------------------------ 
 
¶4. Our advisor also cited significant progress in fighting 
organized crime as well.  Arrests have been made in the 
August 2005 gangland slaying of a deputy police chief and 
in high profile cases that had been investigated by the 
slain police officer. 
 
Ensuring a Fair Independence Referendum Campaign 
--------------------------------------------- --- 
 
¶5. On May 21, Montenegrin voters will go to the polls to 
decide whether to dissolve the State Union of Serbia and 
Montenegro.  This contentious issue has left the two 
opposing blocs at loggerheads, willing to suspect the other 
of underhanded tricks to win the vote.  To help calm 
tensions, USAID grantee, the National Democratic Institute 
(NDI) is working with local NGO the Center for Democratic 
Transition (CDT). CDT will monitor the referendum, put 750 
observers in the field on polling day to watch 1100 polling 
sites - the largest single observation mission in 
Montenegro.  CDT is also pushing the two opposing political 
blocs to sign a code of campaign conduct. 
 
Making Bays and Rivers Safe 
------------------------------- 
 
¶6. In 2005, the SaM military donated an unneeded naval mine 
tender boat to the Regional Center for Underwater Demining 
in Montenegro (RCUD).  To carry out its new tasks as the 
world's first civilian vessel for humanitarian underwater 
demining, the boat needed rehabilitation and advanced mine- 
hunting technology. With $40,000 in U.S. assistance, the 
vessel was refurbished and will enter service this summer 
with many of the same capabilities as the U.S. Navy's new 
submersible mine reconnaissance system. 
 
Ending Poaching 
--------------- 
 
¶7. Tourism accounts for over half of Montenegro's export 
earnings. A major draw is fresh local seafood.  The latter 
had been endangered by foreign poaching, which Montenegro 
was unable to stop. The Montenegro Border Security Program 
(MBSP), a SEED assistance project run by the Department of 
Homeland Security, supplied USD 330,000 in patrol boats and 
training to Montenegro's Maritime Unit.  This has allowed 
Montenegrin authorities to virtually eliminate poaching of 
fish supplies. 
 
Spreading the Benefits from Tourism 
----------------------------------- 
 
BELGRADE 00000590  002 OF 002 
 
 
 
¶8. U.S. assistance funded a souvenir and handicrafts fair 
that displayed over 500 crafts from 44 exhibitors/ 
entrepreneurs from various parts of Montenegro.  This 
event, the first of its kind, led to sales and contracts 
with tourism related firms for the future supply of 
souvenir craft items, and revitalizing the lagging economy 
in the Northern Montenegro. 
 
Small Business Development - Ice Sculpting 
------------------------------------------ 
 
¶9. A Consulate Podgorica Public Diplomacy program hosted 
world class ice sculptor and entrepreneur to highlight the 
income potential of ice sculpting in the hospitality 
industry. A number of qualified Montenegrin  artists were 
identified, trained, and equipped as new small business 
enterpreneurs. 
 
Improving Copyright Protection 
------------------------------ 
 
10.A low-cost SEED-funded speaker program in 2005 brought 
two U.S. artists to Montenegro to highlight the importance 
of intellectual property rights (IPR) from an artist's 
perspective. Montenegrin artists responded by launching a 
new organization to advocate protection of their rights 
under Montenegro's  new intellectual property law, 
multiplying the effect of the GoM's own crackdown on IPR 
violations. 
 
Marketing Specialized Agricultural Products 
------------------------------------------- 
 
¶11. USAID's Montenegro Competitiveness Project (MCP) 
assisted three small companies trading in herbal and forest 
products. Our assistance helped one of the companies 
identify a potential U.S. buyer and obtain needed FDA 
registration.  This led to the formation of a Medicinal 
Herb Consortium that exported Euros 42,952 worth of 
products to the U.S. in February of 2006. 
 
Bankruptcy Law Fixed After Visit From U.S. Judge 
--------------------------------------------- ---- 
 
12.An solid business bankruptcy law drafted with USAID 
assistance was gutted last December when the Montenegrin 
courts removed the law's economic incentive for prompt and 
professional supervision by the appointed bankruptcy 
supervisors.  A week-long visit in March by a U.S. 
bankruptcy judge with past experience in the Balkans and 
Montenegro enabled us to get the law back on track. 
 
POLT