VZCZCXRO3147
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0427/01 1221309
ZNR UUUUU ZZH
P 021309Z MAY 07
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 7622
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 ZAGREB 000427 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EAID SR HR EUN MI RO BU GR BK MW YI
TU,UNMIK 
 
SUBJECT:  STABILITY PACT TRANSITION:  SEECP AGREES ON RCC SECRETARY 
GENERAL AND SECRETARIAT LOCATION NOMINATIONS 
 
Ref: A) Brussels 1253     B) Zagreb 184 
 
¶1.  (SBU) Summary:   Stability Pact-SEECP meetings April 24-25 in 
Zagreb yielded consensus on the final institutional documents 
related to the creation of the proposed Regional Cooperation Council 
(RCC) as the successor to the Stability Pact in early 2008. 
Consensus with respect to the nomination of Croatian Foreign 
Ministry State Secretary Hido Biscevic as the first Secretary 
General (SG) of the RCC and for Sarajevo as the location of the RCC 
secretariat was delayed until Serbia, which saw its bids for the 
 
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secretariat and for the SG fail, finally concurred on the April 30 
 
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decision deadline.   Planning continues for the May 11 SEECP Prime 
Ministers meeting in Zagreb, to be proceeded by meetings of the 
SEECP Political Directors on May 9, with the Stability Pact Regional 
Table and the SEECP Foreign Ministers following on May 10.  With the 
RCC SG and locations decided, maneuvering within the SEECP is now 
focusing on the leadership of the proposed RCC liaison office in 
Brussels, with Serbia and Bulgaria the initial competitors to place 
one of their nationals in the position. End Summary 
 
¶2.  (U)  IWG:  Despite concerns over a change of Serbian nominees 
for the SG post after the original March 31 deadline (Ref A), the 
April 24 Stability Pact-SEECP led Institutional Working Group and 
the April 24-25 SEECP Political Directors meetings proceeded 
smoothly.  The IWG was able to conclude work on the RCC statute, 
which was adopted by consensus and transmitted to the SEECP PolDirs 
for incorporation into the documents being prepared for the May 11 
Summit. 
 
¶3. (U) Discussion focused on the IWG task of formulating the RCC 
statute and touched on the uncertainty of the SG candidacies.  There 
was concern and disappointment over Serbia's handling of its nominee 
for the SG position, which might leave only one candidate and 
revealed the thinness of the regional cooperation leadership pool. 
However, the group recognized that resolution of the SG and RCC 
location issues resided, as agreed, with the SEECP as a requirement 
of regional ownership and leadership.  The sole contentious issue to 
arise in the IWG involved a strong and successful Greek effort to 
ensure that the proposed RCC Secretariat liaison office be clearly 
associated with the task of representing the SEECP to the EU (and 
NATO) in Brussels. 
 
¶4.   (U) A number of key Stability Pact donors (Norway, Germany, 
Austria, US, and the European Commission) had concerns about the SG 
situation, and the Norwegian rep (Amb. Gieselen) raised the issue of 
the candidates' availability during the transition period leading up 
to February 2008.  IWG co-chair Grigic (representing the SEECP) 
noted that, while the agreed procedures and RCC statute did not 
address the issue specifically, both candidates would be available 
to meet the needs of the transition. 
 
¶5.  (SBU) PolDirs on  RCC Location:   The Political Directors 
discussion, chaired by Croatian Foreign Ministry State Secretary(and 
RCC SG candidate) Biscevic, focused first on the RCC secretariat and 
Secretary General decisions before moving to work on Zagreb Summit 
 
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documents.  The issue of the RCC location was addressed in a 
straight-forward discussion and tour de table. Sarajevo received a 
near consensus, with the Moldovan rep, apparently with instructions 
to support Belgrade, opting to consult with Chisinau, joining 
consensus the next day.  Serbia, with its bid receiving no support, 
indicated that it would take a position on April 30, the agreed 
deadline for deciding the PolDir recommendation to the SEECP FMs. 
 
¶6.   (SBU) PolDirs on the SG:   The discussion of the SG issue was 
more involved, complication by a review of the validity of the 
substitute Serbian candidacy.  After discussion, a consensus emerged 
to accept the second candidacy (former Serbian Ambassador to Croatia 
Simurdic) for consideration and to proceed to a decision.  During 
the discussion, Stability Pact Special Coordinator Busek responded 
to a request for his views.  He reviewed the Serbian handling of its 
nomination, and acknowledged his own efforts to promote a Serbian 
candidacy to ensure competition and a strong regional candidate. He 
endorsed Biscevic as the best candidate and as someone to whom he 
would be proud to pass the Stability Pact legacy.  The Biscevic 
candidacy then quickly gained a near consensus. Moldova demurred in 
order to seek guidance from Chisinau, again joining consensus the 
following day.  Given the impending defeat of its candidate, Serbia 
again reserved its position until the April 30 deadline for a final 
PolDirs decision.  For his part, Biscevic handled the meeting 
respectfully and impartially as Chair, and expressed his personal 
commitment to the regional cooperation challenge should his 
nomination be confirmed. 
 
¶7.  (U) SEECP Foreign Ministers Meeting and Summit Planning:  The 
list of likely Summit attendees is evolving, and now includes German 
Chancellor Merkel, EU Commission President Barroso, Enlargement 
Commissioner Rehn, European Parliament President Pottering, 
Stability Pact Special Coordinator, UNMIK/Kosovo SRSG Ruecker 
(likely to be accompanied by Kosovo's PM Ceku), and UN Special Envoy 
Ahtisaari's Deputy Rohan.   The initial Croatian decision to invite 
 
ZAGREB 00000427  002 OF 002 
 
 
representatives from only the five major donors to the RCC Board 
provoked a protest from Slovenia, and now all ten RCC donor 
governments will be included in the program.  The latest version of 
the draft Zagreb Declaration does not include a Russian, although 
Amb. Grigic had indicated to Stability Pact interlocutors in late 
March that Russian Foreign Minister Lavrov would be invited as 
well. 
 
¶8.  (SBU) Comment:  This first phase of the Stability Pact 
transition is nearing a close.  The stage is set for the SG and 
location nominations to receive Stability Pact Regional Table 
concurrence on May 10 and final SEECP endorsement via FMs on May 10 
and PMs on May 11. 
 
¶9.  (SBU) The maneuvering within the SEECP is now shifting to the 
question of the leadership of the proposed Brussels liaison office. 
In its note agreeing to the nominees, Belgrade also served notice 
that it will expect a prominent role, most notably with regard to 
heading the Brussels office.  It will face competition with incoming 
SEECP CiO Bulgaria, which has also signaled its desire to lead the 
office.  For his part, the initial Serbian candidate, former 
Serbia-Montenegro FM and SP Working Table I Chair Goran Svilanovic 
has probed for support to open the door for him to become a 
candidate for Brussels.  Stability Pact sources indicate that he 
faces dim prospects, given that Serbian PM Kostunica and others will 
not accept him for the role because of his liberal stance on Kosovo 
and the fact that the RCC will need active Serbian engagement in 
regional cooperation if it is to succeed. 
 
¶10. (U)  Looking ahead on the Stability Pact transition, the 
accepted timetable through February 2008 calls for an energetic 
effort to conclude a seat agreement for the RCC secretariat by June 
30, and the Bosnians have indicated that they expect to meet this 
deadline.  The timetable then allows six months (through December) 
for SEECP governments and UNMIK/Kosovo to complete internal 
procedures and in some cases, Parliamentary ratification before the 
agreement takes effect.  Work on a separate agreement to establish 
the Brussels liaison office would proceed through the fall, although 
it is likely that it will be completed later in the spring of 2008. 
 The successful SG nominee would begin to engage on the transition 
agenda as early as June, when he would be expected to attend the 
initial PolDirs meeting hosted by the incoming Bulgarian SEECP CiO 
as well as a couple of Stability Pact meetings, at the working 
tables or perhaps even the scheduled ministerials (Information 
Society on June 21 in Sarajevo and Investment Compact in early July 
in Belgrade).  The main push to organize the RCC secretariat and to 
prepare the final transition would come in the fall, after the 
summer holiday period. 
 
¶11.  (SBU)   Final Note:  With Kosovo negotiations at a critical 
juncture, Russian participation in the SEECP Summit is of 
considerable interest.  At this point, Russian Ambassador to Croatia 
Konarovsky will represent Russia at the May 10 Stability Pact 
Regional Table, but we have heard nothing further from the Croatian 
hosts with respect to the SEECP FM and PM meetings since Grigic 
indicated some weeks ago that FM Lavrov would be invited.  Russian 
participation in the Stability Pact has been low key or non-existent 
over the years.   End Comment. 
 
Bradtke