VZCZCXRO0760
OO RUEHAG RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPS #0338/01 1111342
ZNR UUUUU ZZH
O 211342Z APR 06
FM USOFFICE PRISTINA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6042
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0660
RHMFISS/CDR USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHFMIUU/AFSOUTH NAPLES IT
RHMFIUU/CDR TF FALCON
RHEFDIA/DIA WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEPGEA/CDR650THMIGP SHAPE BE
RHEHNSC/NSC WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUFOANA/USNIC PRISTINA SR

UNCLAS SECTION 01 OF 03 PRISTINA 000338 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR DRL, INL, EUR/SCE 
NSC FOR BRAUN 
USUN FOR DREW SCHUFLETOWSKI 
 
E.O. 12958: N/A 
TAGS: PREL KCRM PGOV PINR KDEM UNMIK YI
SUBJECT: UNMIK FACILITATES OUTREACH TO NORTH KOSOVO SERBS 
 
SENSITIVE BUT UNCLASSIFIED, PROTECT ACCORDINGLY 
 
¶1. (SBU) SUMMARY.  On April 19 UNMIK hosted the first meeting 
of the Mitrovica Focus Group to encourage engagement between 
northern Kosovo Serb leaders and the international community. 
 The regional CCK representative, the mayors of the three 
northern Serb-majority municipalities and the UNMIK advisory 
board chairman described the difficulties faced in their 
region, including lack of infrastructure and employment 
opportunities, and pitched specific projects to potential 
international donors.  The European Commission (EC) 
representative said the EC has already pledged 10.5 million 
euros, and has more money potentially available for projects 
that facilitate integration.  END SUMMARY. 
 
MITROVICA FOCUS GROUP TO ENGAGE NORTH KOSOVO SERB LEADERS 
--------------------------------------------- ------------ 
 
¶2.  (SBU) On April 19 Pol/Econ Chief, PolOff and PolFSN 
attended the first meeting of the Mitrovica Focus Group (MFG) 
at UNMIK regional headquarters in south Mitrovica.  The 
meeting was chaired by UNMIK regional representative (and 
retired FSO) Jerry Gallucci.  Gallucci said he has engaged 
directly with Kosovo Serb leaders in the north (under 
instruction from SRSG Jessen-Petersen), including Belgrade 
negotiating team member and President of the Association of 
Serb Municipalities Marko Jaksic and head of the Serb 
National Council (SNV) Milan Ivanovic (both EO-listed). 
Gallucci said his outreach objectives are to maintain peace 
and calm in Mitrovica, engage in crisis management and ensure 
that problems there do not spill over into the rest of 
Kosovo. 
 
¶3.  (SBU) Gallucci said he believes the international 
community (IC) should also engage more directly with northern 
Serb leaders with a view to resolving some of the practical 
problems they face.  He suggested the international community 
fund small, high impact infrastructure projects in the north. 
 Gallucci said in 2005 the SRSG provided 100,000 euro to each 
of the three northern municipalities from the SRSG's 
contingency funds and said he will ask for additional funding 
this year. 
 
FUNDING FOR PARALLEL INSTITUTIONS 
--------------------------------- 
 
¶4.  (SBU) When E/P Chief noted some of the project proposals 
would fund Serbia-based (i.e. "parallel") institutions such 
as "Elektrokosmet" facilities, Gallucci responded that grants 
could be tailored to donor requirements.  He noted UNMIK 
recognizes the Kosovo Police Service (KPS) in the north 
contains members who simultaneously work for the Serbian 
Ministry of Interior (MUP); however, he said the KPS is the 
most accepted UNMIK institution operating in the north. 
(COMMENT.  One of the major challenges of the final status 
process is to adapt parallel institutions to whatever future 
is worked out for Kosovo.  There is general international 
agreement that the Kosovo budget, as strictly a practical 
matter, cannot afford to absorb the total cost of services 
provided by the parallel system.  The 48 electricity projects 
put forward at the MFG meeting for funding in northern Kosovo 
present an ironic example of a parallel institution that is 
evidently indirectly looking for help in serving its 
constituents.  END COMMENT.) 
 
"NORTHERN KOSOVO IS NOT PART OF KOSOVO" 
--------------------------------------- 
 
¶5.  (SBU) Gallucci predicted that once final status is 
determined later this year, the problem will be to keep the 
north from slipping away.  He said it is a "reality that 
northern Kosovo is not part of Kosovo."  He said the north is 
not integrated into the rest of Kosovo, and there is no 
longer any fixed NATO presence in the north.  He added there 
must be an IC presence in northern Kosovo after status is 
determined, and said the MFG initiative will help develop 
 
PRISTINA 00000338  002 OF 003 
 
 
relationships with leaders who are willing to cooperate. 
 
¶6.  (SBU) A European Commission (EC) representative attending 
the meeting said "we cannot close our eyes to de facto 
partition" and added the current situation will cause 
enormous difficulties for UNMIK's successor, probably the EU. 
 Gallucci responded that the problem was created in 1999 when 
NATO failed, in his view, to take control of the north; and 
he said he lacks the wherewithal, money and personnel to 
displace parallel institutions today.  He said UNMIK's main 
objective is to prevent further violence, and thereby prevent 
further displacements of Kosovo Serbs. 
 
¶7.  (SBU) Gallucci said he has had some success in his 
efforts to encourage the northern leaders to engage with 
Kosovo institutions.  For example, he is assisting the three 
northern mayors to participate in the Kosovo Consolidated 
Budget (KCB) process, and to go to Pristina for training on 
the KCB.  He has also organized three successful meetings of 
the six northern mayors (three Serb and three Albanian) to 
discuss technical issues related to regional water 
management. 
 
NORTHERN MAYORS DISCUSS INFRASTRUCTURE NEEDS 
-------------------------------------------- 
 
¶8.  (SBU) After meeting with the international 
representatives, Gallucci invited in the Kosovo Serb leaders. 
 These included Momir Kasalovic, Mitrovica region head of the 
Kosovo Coordination Center (CCK); Dragisa Milovic, mayor of 
Zvecan; Slavisa Ristic, mayor of Zubin Potok; Velimir 
Bojovic, mayor of Leposavic; and Srboljub Milenkovic, newly 
elected chairman of the UNMIK north Mitrovica Advisory Board 
(UAM).  All of the mayors expressed gratitude for the 
opportunity to discuss economic development, as opposed to 
politics. 
 
¶9.  (SBU) The mayors all highlighted similar problems in 
their jurisdictions, including high unemployment (especially 
among youth), as well as poor road conditions, housing and 
infrastructure.  They mentioned possibilities for investment, 
including livestock breeding, fruit farming and tourism; 
saying these would create opportunities and enable returns. 
The municipalities proposed specific projects, including 
rehabilitation of roads, sewage systems, water supply, 
electricity networks, schools and houses; and income 
generation projects such as markets, milk factories, and 
fresh fruit storage facilities. 
 
¶10.  (SBU) Milovic said that 3,000 Zvecan inhabitants lost 
their jobs when the Trpca lead mines closed, and said their 
greatest need is new jobs.  He mentioned the lack of sports 
facilities in the north, and linked that to increasing drug 
use among youth. 
 
¶11.  (SBU) Ristic said development plans for Zubin Potok are 
based on the municipality's natural resources, including 
water, forests and tourism.  He said specific problems 
include school overcrowding, the need for a health care 
facility and lack of housing for social welfare cases.  He 
blamed KFOR for the deteriorated road conditions. 
 
¶12. (SBU) Bojovic said Leposavic has several small factories 
which use raw materials brought in from Serbia and export the 
finished products back to Serbia.  He said UNMIK tariffs at 
the administrative boundary line (ABL) on both imports and 
exports raise the prices and make their goods uncompetitive. 
 
¶13.  (SBU) Milenkovic said the UAM budget for capital 
investment in north Mitrovica for 2006 is only 10,000 euros. 
He said the pre-war economy of Mitrovica was centered in the 
south, and the economy in the north has been "dead" since 
¶1999.  He said north Mitrovica needs a middle school, green 
market, trade center, sports hall, theater and more parking. 
 
EC PLEDGES FUNDING 
 
PRISTINA 00000338  003 OF 003 
 
 
------------------ 
 
¶14.  (SBU) At the close of the meeting, the EC representative 
said the EC has already pledged 10.5 million euros to fund 
projects in north Mitrovica and Zvecan.  He said additional 
funding is available, but expressed concern that the projects 
should facilitate further integration of northern Kosovo 
municipalities into the rest of Kosovo. 
 
¶15. (SBU) COMMENT.  Kosovo's three northern municipalities, 
de facto separated from Kosovo, are a potentially enormous 
problem, and the MFG is one small but concrete step aimed at 
improving relations with them.  Serbs in the north need 
positive incentives to engage with the international 
community and with Pristina-based Kosovo institutions.  The 
willingness of the northern leaders to participate in the MFG 
is a positive development, but is based on the belief that 
participation will result in funding.  USOP will continue to 
support and monitor the development of the MFG.  END COMMENT. 
 
¶16.  (U)  Post clears this message in its entirety for 
release to Special Envoy Ahtisaari. 
GOLDBERG