VZCZCXRO7592
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVJ #3089/01 3401037
ZNR UUUUU ZZH
P 061037Z DEC 06
FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC PRIORITY 4990
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 SARAJEVO 003089 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PREL BK
SUBJECT: MILORAD DODIK RECONFIRMED AS RS PREMIER 
 
 
SUMMARY 
------- 
¶1. (SBU) Milorad Dodik was confirmed for his third term as 
Republika Srpska (RS) Premier by the RS National Assembly 
November 30.  Both in personnel and policy matters, Dodik,s 
new RS Government will differ little from his previous 
cabinet.  Eleven of sixteen ministers have retained their 
posts, while the populist government program, rich with 
infrastructure investments, differs little from the agenda he 
introduced when he took office in February 2006.  In his 
address to the RSNA prior to the confirmation vote, Dodik 
confirmed openness for police reform and for improved 
functionality of state institutions, but insisted that the 
position and the institutions of the RS be respected.  Dodik 
repeated a warning that if there were attempts to abolish the 
RS, he would call for a referendum on its status.  END 
SUMMARY. 
 
DODIK RE-CONFIRMED BY AN OVERWHELMING VOTE 
------------------------------------------ 
¶2. (SBU) Following a one-hour speech in which Milorad Dodik 
presented both his proposed ministers and his plans for 
governing, both Dodik and his slate were confirmed by RS 
National Assembly votes.  The 60-vote majorities which both 
Dodik and his cabinet received constituted 18 votes more than 
the simple majorities necessary for confirmation, and 
included majorites among RSNA MPs from all of Bosnia and 
Herzegoina's three constituent peoples.  Dodik,s 
governent, including his own Alliance of Independent Socal 
Democrats (SNSD, 41 RSNA seats), the Party ofDemocratic 
Progress (PDP, 8 RSNA seats), the Socialist Party (SP, 3 RSNA 
seats), and the Democratic People,s Union (DNS, 3 RSNA 
seats), as well as the Bosniak parties, the Party of 
Democratic Action (SDA, 3 RSNA seats) and Party for BiH 
(SBiH, 3 RSNA seats).  Capsule biographies of Dodik and the 
members of his new cabinet will be reported septel. 
 
GOVERNMENT PRIORITIES LARGELY UNCHANGED 
--------------------------------------- 
¶3. (SBU) In a speech presenting his government's plans, Dodik 
continued to promote an agenda that is both populist and 
pro-business.  Emphasizing that his government's efforts had 
led both to higher wages and pensions and to increased 
employment and stock market activity, he promised continued 
work to stabilize both the business and the social 
environment.  On the business front, Dodik remained committed 
to expanding the private sector, through continued 
privatization and stimulating foreign investment.  Dodik 
again promised increased investment in infrastructure, such 
as roads and hospitals, based at least in part on 
privatization revenues.  (NOTE:  Dodik has already delivered 
on one of his campaign promises.  Earlier this week, the RSNA 
passed a draft RS Budget for 2007 that includes eight per 
cent pay increases for state workers.  END NOTE.) 
 
¶4. (SBU) As with the economy, Dodik restated his goals for 
the fight against crime and corruption.  Cooperation with 
ICTY was the first issue Dodik mentioned when addressing the 
responsibilities of the RS Police, saying it was ¬ just a 
legal obligation8 for all organs in the RS.  As for the 
fight against organized crime and corruption, Dodik argued 
that the Office of the RS Special Prosecutor and 
privatization review would both show results in the course of 
this four-year term. 
 
OPEN TO REFORM, BUT GUARDING RS PREROGATIVES 
-------------------------------------------- 
¶5. (SBU) During his speech, Dodik spoke of ongoing 
state-level reform projects, combining words of support with 
words of caution.  Dodik said that he supported police 
reform, but insisted that reform be achieved through 
agreement and not imposed.  He asserted that there was room 
for the RS Police within the three EC police reform 
principles.  Dodik also expressed support for constitutional 
reform, both for the March package of reforms, as well as for 
participation in a second round of talks on lower levels of 
government.  He noted that while his priority in such talks 
would be preservation of the RS as a federal unit within 
Bosnia, decisions about organization within the Federation of 
Bosnia and Herzegovina should be left to its leaders. 
Departing from his prepared text, Dodik restated a warning 
that if there was an attempt to abolish the RS, he was 
prepared to ask the RS people to express their will on its 
status in a referendum. 
 
GOVERNMENT ORGANIZATION, REPRESENTATION ABROAD 
--------------------------------------------- - 
¶6. (SBU) While most of Dodik,s plans are continuations of 
old priorities, there were at least two new wrinkles.  Citing 
the importance of energy projects for the future of the RS, 
Dodik proposed that the energy portfolio be separated from 
 
SARAJEVO 00003089  002 OF 002 
 
 
the economy portfolio to become the competency of a new RS 
Ministry of Energy.  Sources n the RS Government said that 
this decision woul be accompanied by a reshuffle of other 
portfolios, so that the total number of ministries in the RS 
Government would not increase from the current sixteen. 
Dodik also said that improving the image of the RS abroad was 
a priority of his next term.  To this end he pledged to open 
RS representative offices in both Washington and Brussels. 
These offices, according to Dodik, would not serve a protocol 
function but rather be engaged in issues like trade and 
tourism.  The RS currently has representative offices in 
several capitals, including Moscow, Berlin, Belgrade and 
Athens. 
 
COMMENT 
------- 
¶7. (SBU) It is not a surprise that Dodik,s team and 
government program are little changed from those that led to 
his victory at the polls October 1.  The very size and scope 
of this victory, however, will lead to changes in the tone 
and tempo of the Dodik government.  Given his margin of 
support among RS voters, Dodik is all the more likely to 
continue to insist, for instance, on police reform by 
consensus.  Moreover, with the commanding majority his 
coalition now controls in the RSNA, his RS legislative agenda 
is likely to face few, if any, significant hurdles.  END 
COMMENT. 
CEFKIN