VZCZCXRO8889
PP RUEHPOD
DE RUEWCSF #4968 0881215
ZNR UUUUU ZZH
P R 291238Z MAR 07
FM AMEMBASSY PODGORICA
TO RUEHC/SECSTATE WASHDC
INFO EUROPEAN POLITICAL COLLECTIVE
RUEHNO/USMISSION USNATO
RUEKJCS/SECDEF WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEHC/USAID WASHDC
RUEHGV/USMISSION GENEVA
RUEHPOD/AMEMBASSY PODGORICA

UNCLAS SECTION 01 OF 03 PODGORICA 000091 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL MARR EINV CVIS ECON PINR MW
SUBJECT: PRIME MINISTER, DEPUTY, DESCRIBE GOM GOALS: EURO-ATLANTIC 
INTEGRATION AND IMPROVED LIVING STANDARDS 
 
 
PODGORICA 00000091  001.6 OF 003 
 
 
SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY 
 
 
 
¶1. (U) PRIME MINISTER ZELKJO STURANOVIC AND DEPUTY PRIME 
MINISTER GORDANA DJUROVIC DESCRIBED THE CURRENT GOVERNMENTS 
GOALS AS EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING 
STANDARDS.  THE MINISTERS MET WITH VISITING EUR/SCE DIRECTOR 
CHRISTOPHER HOH AND CHARGE ON MARCH 28. THE PM SAID THAT 
MONTENEGROS NATO PRESENTATION DOCUMENT WOULD BE ADOPTED BY THE 
GOM ON APRIL 5, AND THAT MONTENEGRO'S GOAL IS TO JOIN THE WTO BY 
THIS FALL. THE DPM EMPHASIZED THE ONGOING ADOPTION OF PLANS IN 
THE ECONOMIC AREA. HOH'S OTHER MEETINGS UNDERSCORED MONTENEGRIN 
INTEREST IN ATTRACTING MORE AMERICAN INVESTMENT, AND AIRED 
QUESTIONS ABOUT WHEN THE U.S. EMBASSY WOULD BE ABLE TO ISSUE 
VISAS IN PODGORICA. MEDIA COVERAGE OF HOH'S VISIT REPORTED 
SEPTEL. END SUMMARY. 
 
 
 
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PRIME MINISTER: EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING 
STANDARDS 
 
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EURO-ATLANTIC INTEGRATION 
 
------------------------- 
 
 
 
¶2. (U) PRIME MINISTER ZELKJO STURANOVIC TOLD EUR/SCE DIRECTOR 
CHRISTOPHER HOH AND CHARGE THAT HIS GOVERNMENT'S TWO CENTRAL 
GOALS ARE EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING 
STANDARDS FOR THE PEOPLE OF MONTENEGRO. HE NOTED THAT 
MONTENEGRO, SINCE INDEPENDENCE LAST JUNE, HAS ALREADY JOINED 
NATOS PARTNERSHIP FOR PEACE (PFP), THE WORLD BANK, AND IMF. THE 
INITIALING OF THE STABILITY AND ACCESSION AGREEMENT (SAA) WITH 
THE EU ON MARCH 15 WILL BE FOLLOWED SOON BY MEMBERSHIP IN THE 
COUNCIL OF EUROPE, ADDED THE PM. THE PM SAID THE GOM THOUGHT THE 
RECENT THIRD WORKING PARTY MEETING OF THE WORLD TRADE 
ORGANIZATION (WTO) ON MONTENEGRO'S APPLICATION WENT WELL, AND 
THAT ONLY TWO MORE SUCH MEETINGS, IN JULY AND EARLY AUTUMN, 
WOULD BE NEEDED BEFORE MONTENEGRO WAS READY TO BECOME A FULL WTO 
MEMBER. 
 
 
 
¶3. (U) THE PM CONTINUED THAT PFP HAD ALREADY BROUGHT "MANY 
BENEFITS" TO MONTENEGRO -- NOT ONLY IN DEFENSE TRAINING AND 
REFORM, BUT ECONOMICALLY AS WELL, AS MEMBERSHIP IS SEEN BY 
INVESTORS AS AN INDICATOR OF POLITICAL MATURITY AND STABILITY. 
HE STRESSED THAT MONTENEGRO'S PRESENTATION DOCUMENT WOULD BE 
ADOPTED BY THE GOVERNMENT ON APRIL 5, AND PRESENTED T O NATO 
SHORTLY THEREAFTER. (DEPUTY DEFENSE MINISTER LJUBISA PEROVIC 
CONFIRMED TO POST THAT THE GOM HAS INCORPORATED SUGGESTIONS MADE 
BY NATO INTERNATIONAL STAFF ON THE DOCUMENT DRAFT.) 
 
 
 
LIVING STANDARDS 
 
---------------- 
 
 
 
¶4. (U) THE PM STRESSED THAT MONTENEGRO HAS ACHIEVED 
MACROECONOMIC STABILITY, WHILE ACHIEVING GDP GROWTH OF 7 PERCENT 
IN 2006, REDUCING INFLATION TO 2.6 PERCENT (WITHIN EURO ZONE 
TARGETS), INCREASING FOREIGN DIRECT INVESTMENT (FDI), CUTTING 
UNEMPLOYMENT IN HALF TO 14 PERCENT, ALL WHILE RUNNING A 
GOVERNMENT BUDGET SURPLUS. NEVERTHELESS, PUBLIC DEMANDS FOR 
BETTER LIVING STANDARDS HAVE NOT BEEN MET, SAID THE PM, ADDING 
THAT THE ENTIRE GOM WOULD FOCUS ON RAISING THE STANDARDS. TO 
REACH THAT, THE PM SAID HIS GOVERNMENT SOUGHT CONTINUED STRONG 
GDP GROWTH IN 2007, ASSISTED BY PENSION REFORM, AND REFORMS IN 
PUBLIC ADMINISTRATION. HE ASKED FOR THE CONTINUED SUPPORT OF THE 
INTERNATIONAL COMMUNITY IN THE REFORM PROCESS. HE NOTED THAT THE 
GOM HAS BEGUN TO INCLUDE THE POLITICAL OPPOSITION AND NGOS IN 
B T 
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PODGORICA 00000091  002.6 OF 003 
 
 
PLANNING AND IMPLEMENTING REFORMS (COMMENT: A PRACTICE 
STURANOVIC BEGAN WHEN HE WAS MINISTER OF JUSTICE IN THE LAST 
GOVERNMENT. END COMMENT.) 
 
 
 
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DEPUTY PRIME MINISTER: PLANNING FOR SUCCESS 
 
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¶5. (U) DEPUTY PRIME MINISTER GORDANA DJUROVIC NOTED THAT 
MONTENEGRO WAS ON TRACK TO THE EU WITH THE SAA, AND ON TRACK TO 
NATO WITH PFP.  FOR MONTENEGRO, THE PACE FOR JOINING THE EU WAS 
CONTROLLED MORE BY BRUSSELS' ABILITY TO COPE WITH WHAT THE DPM 
CALLED "EXPANSION SHOCK, NOT FATIGUE" THAN IT WAS BY 
MONTENEGRO'S ABILITY TO IMPLEMENT EU STANDARDS. SHE WELCOMED THE 
GESTURE OF THE OPPOSITION SOCIALIST PEOPLE'S PARTY (SNP), WHICH 
HOSTED HER AS THE FIRST-EVER GOM OFFICIAL TO VISIT THEIR 
OFFICES, MARKING THE 50TH ANNIVERSARY OF THE ROME TREATY. 
ENDORSING AN "OPEN ECONOMY ATTUNED TO EU STANDARDS," SHE 
REJECTED THOSE IN MONTENEGRO (INCLUDING HER COLLEAGUES AND 
STUDENTS AT THE ECONOMICS FACULTY) WHO HAVE VOICED STRONG 
SKEPTICISM ABOUT THE EU AND EU REGULATION, CALLING IT A "NEW 
VERSION OF TITOS NON-ALIGNED MOVEMENT." 
 
 
 
¶6. (U) DJUROVIC LAID OUT A NETWORK OF PLANS AND STRATEGIES TO 
REACH THE GOM'S ECONOMIC GOALS.  THE SPATIAL PLAN (A NATIONAL 
ZONING ORDNANCE) WILL BE ADOPTED SOON, TO CONTROL THE SCOPE AND 
PLACEMENT OF PHYSICAL DEVELOPMENTS, AND REGULATE THE 
AUGMENTATION OF THE SUPPORTING INFRASTRUCTURE. LINKED TO THAT IS 
THE PLAN FOR SUSTAINABLE DEVELOPMENT, TO BE ADOPTED NEXT WEEK. 
BOTH ARE CONNECTED TO THE NATIONAL ENERGY STRATEGY, "A VERY 
SENSITIVE ISSUE" ACCORDING TO THE DPM. (NOTE: CONSUMER 
ELECTRICITY PRICES ARE HIGH, EARLIER GOM PLANS FOR A LARGE 
HYDROELECTRIC PLANT AFFECTING THE TARA RIVER IN NORTHERN 
MONTENEGRO SUCCUMBED TO GRASSROOTS POLITICAL OPPOSITION (REF), 
AND PLANS TO PRIVATIZE THE STATE ELECTRIC MONOPOLY HAVE SHARP 
OPPOSITION -- EVEN THE RULING DPS'S COALITION PARTNER, THE 
SOCIAL DEMOCRATIC PARTY (SDP) HAS MADE OPPOSITION TO DIVESTURE A 
CORE ISSUE. YET MONTENEGRO ONLY UTILIZES 17 PERCENT OF ITS 
HYDROELECTRIC CAPACITY.  END NOTE.)  THE LAST TWO PIECES ARE THE 
THIRD EDITION OF THE ECONOMIC REFORM AGENDA, AN OPEN DOCUMENT 
PROVIDING CLEAR BENCHMARKS FOR THE GOVERNMENT'S ECONOMIC 
PERFORMANCE, AND A "MID-TERM DEVELOPMENT STRATEGY." ALL 
TOGETHER, DJUROVIC EXPECTS MONTENEGRO TO BE ECONOMICALLY READY 
TO JOIN THE EU IN 2011. 
 
 
 
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DEFENSE AND FOREIGN POLICY -- KOSOVO AND ARTICLE 98 
 
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¶7. (SBU) PM STURANOVIC ASSURED HOH THAT MONTENEGRO WOULD 
CONTINUE TO PLAY A CONSTRUCTIVE (IF LOW-KEY) ROLE ON KOSOVO.  HE 
STRESSED THAT STABILITY IN KOSOVO WAS A CENTRAL INTEREST FOR 
MONTENEGRO, ITS NEIGHBOR. DEFENSE MINISTER BORO VUCINIC TOLD HOH 
AND CHARGE ON MARCH 28 THAT THE GOM WAS WILLING AND READY TO 
ENTER INTO AN ARTICLE 98 (INTERNATIONAL CRIMINAL COURT) 
AGREEMENT WITH THE USG BY AN EXCHANGE OF DIPLOMATIC NOTES, AN 
APPROACH VUCINIC SAID WAS SUPPORTED BY FM ROCEN (CURRENTLY 
VISITING MOSCOW). 
 
 
 
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AMERICAN INVESTMENT 
 
------------------- 
 
 
 
¶8. (U) A RECURRING THEME IN ALL OF HOH'S MEETINGS (EVEN DURING A 
PRESS CONFERENCE TO MARK THE ENTRY INTO SERVICE OF A SONAR 
 
PODGORICA 00000091  003.3 OF 003 
 
 
SYSTEM TO DETECT UNDERWATER MINES AND UXO) WAS THE RELATIVE 
ABSENCE OF AMERICAN INVESTMENT IN MONTENEGRO. HOH REPEATEDLY 
NOTED THE ABSENCE OF KEY INCENTIVES, MOST NOTICEABLY AN IMPROVED 
RULE OF LAW SYSTEM, AND GREATER CLARITY ON FUTURE ECONOMIC 
CONDITIONS.  HOH NOTED THAT BETTER RULE OF LAW IN MONTENEGRO 
WOULD REQUIRE JUDICIAL REFORMS, WHERE COURT DECISIONS ON 
COMMERCIAL DISPUTES ARE UNIFORMLY TAKEN, WITHOUT EXCESSIVE 
DELAY, BASED ON THE MERITS OF THE CASE, AND NOT ON EXTRANEOUS, 
PERSONAL FACTORS.  HE WELCOMED THE ESTABLISHMENT OF A GOM BOARD 
(THAT INCLUDES OPPOSITION MPS AND NGOS) TO FIGHT ORGANIZED CRIME 
AND CORRUPTION, BUT CAUTIONED THAT IMPLEMENTATION OF 
ANTI-CORRUPTION MEASURES WAS VITAL.  HE POINTED TO MONTENEGRO'S 
NEW AMBASSADOR IN THE U.S. AS THE LEAD ON GETTING THE WORD OUT 
TO AMERICAN INVESTORS ON THE ATTRACTIVENESS OF MONTENEGRO'S 
ECONOMIC FUTURE. 
 
 
 
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U.S. VISAS 
 
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¶9. (U) THE UNIVERSAL QUESTION FROM ALMOST ALL MONTENEGRINS TO 
HOH WAS -- WHEN CAN WE STOP GOING TO BELGRADE TO GET VISAS, AND 
COME TO THE U.S. EMBASSY IN PODGORICA?  HOH REPLIED THAT THIS 
WAS A STEP SOUGHT BY THE USG AS WELL, BUT ONE DIFFICULT TO 
IMPLEMENT IN PRACTICE, AND ONE THAT WOULD TAKE TIME TO PUT INTO 
EFFECT. 
 
 
 
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THE PM'S HEALTH 
 
--------------- 
 
 
 
¶10. (SBU) PM STURANOVIC, DIAGNOSED WITH LUNG CANCER (NFI) IN 
DECEMBER 2006, AND WHO TURNED 47 IN JANUARY, APPEARED IN GOOD 
HEALTH IN HIS LONG MEETING WITH HOH -- WHICH FOLLOWED AN EVEN 
LONGER AND NO DOUBT MORE CONTENTIOUS MEETING WITH THE HEAD OF 
THE LABOR UNIONS.  STURANOVIC WAS NOT AS ANIMATED, HOWEVER, AS 
IN EARLIER MEETINGS WITH EMBOFFS PRIOR TO BECOMING PM. NOR HAS 
STURANOVIC, A HEAVY SMOKER, GIVEN UP THE HABIT. 
 
 
 
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COMMENT 
 
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¶11. (U) HOH'S VISIT AND MEETINGS, WITH GOM OFFICIALS, OPPOSITION 
POLITICIANS, AND THE PRIVATE SECTOR, UNDERSCORED THE 
MONTENEGRINS' APPRECIATION OF THE POSITIVE ROLE PLAYED BY THE 
USG IN THE LAST DECADE IN HELPING STABILIZE MONTENEGRO AND THE 
BROADER BALKAN REGION. WHILE THE MONTENEGRINS ALWAYS REMIND US 
THAT MONTENEGRO IS A SMALL COUNTRY, THEY ARE LOOKING TO PLAY A 
POSITIVE, STABILIZING ROLE IN THEIR NEIGHBORHOOD.  END COMMENT. 
 
 
 
¶12. (U) THIS CABLE WAS NOT CLEARED BY EUR/SCE HOH BEFORE HIS 
DEPARTURE. 
BARNES