VZCZCXRO8325
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0618/01 1791332
ZNR UUUUU ZZH
P 281332Z JUN 07
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 7862
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 ZAGREB 000618 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EUR, EUR/SCE 
USNATO FOR JONES, UNDERWOOD 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KPAO MOPS MARR NATO HR DEFENSE REFORM
SUBJECT: CROATIA COMMITTED TO NATO REFORM RECOMMENDATIONS 
 
REF: A. STATE 83552 
     ¶B. ZAGREB 593 
     ¶C. ZAGREB 395 AND PREVIOUS 
 
(U) Sensitive, but unclassified; please handle accordingly. 
 
¶1. (SBU) SUMMARY AND COMMENT: Ambassador, DCM, and PolOff 
delivered ref A points during week of June 18 to FM Kolinda 
Grabar-Kitarovic, Asst DefMin Igor Pokaz, and MFA NATO Office 
Director Neven Mikec respectively.  GoC representatives were 
grateful for USG support and guidance and emphasized 
commitment to continued progress in reforms in run-up to 
NATO's Bucharest Summit.  On June 20, Ambassador also 
discussed the POTUS Tirana A-3 lunch with PM Sanader, who 
stressed that the GoC is addressing all issues raised by 
President Bush.  While the GoC is visibly confident about a 
NATO invitation in 2008, they are clearly taking nothing for 
granted and continue to push ahead on reforms.  END SUMMARY 
AND COMMENT. 
 
COMMITMENT TO DEMOCRATIC VALUES 
------------------------------- 
 
¶2. (SBU) The GoC has focused particular effort on democratic 
reforms, as they also have a significant impact on EU 
accession and eventual OSCE mission closure.  Croatia has 
achieved concrete progress in all key areas, though refugee 
return issues and judicial reform remain key areas to watch. 
According to Mikec, property restitution will likely remain 
unaddressed at least until after parliamentary elections 
expected in November.  Post has raised this at the highest 
levels and will continue to press for some kind of progress, 
particularly after parliamentary elections. 
 
¶3. (SBU) On refugee returns, the GoC has agreed to meet by 
the end of 2007 specific benchmarks set in consultation with 
the international community, including construction of 
apartments and resolution of issues related to pension credit 
for years worked under the Serb administration and housing 
for former occupants of socialized housing.  We are hopeful 
that the GoC has finally gained traction on dealing with 
these issues.  Post and its partners in the international 
community will continue to press for sustainable solutions. 
 
¶4. (SBU) Judicial reform remains a key area of concern, 
though Post has witnessed significant progress.  The judicial 
backlog is shrinking, and high profile war crimes cases 
against ethnic Croatians are proceeding without noticeable 
protest, including the Ademi-Norac case transferred from the 
Hague Tribunal. 
 
¶5. (SBU) In the fight against corruption, the GoC recently 
made dramatic progress with the arrest of six employees of 
the Croatian Privatization Fund, three of whom were vice 
presidents (ref B).  While it is not yet clear if these 
arrests will lead to convictions and what the political 
implications will be for the four government ministers who 
sit on the Fund's supervisory board, the GoC has clearly 
given the Chief State Prosecutor full latitude to pursue the 
case despite any potential damage to the ruling party 
(septel). 
 
¶6. (SBU) In combating trafficking in persons, the GoC 
continues to improve its cooperation with NGOs to identify 
and assist victims of trafficking and has increased its 
efforts to investigate and prosecute trafficking crimes. 
Post is still waiting to see convictions. 
 
¶7. (SBU) Croatia's constructive engagement in the region 
continues to be one of its greatest contributions to 
stability.  In addition to active participation in A-3 
structures, the GoC maintains vigorous and positive bilateral 
relations with every country in the region.  Croatia just 
concluded its successful chairmanship of the South East 
European Cooperation Process with the formation of a 
permanent Regional Cooperation Council (RCC), the successor 
to the Stability Pact initiative.  Croatian leaders have made 
helpful contributions And on the final status of Kosovo and 
can be counted on to do more in the future. 
 
CONTRIBUTING TO ALLIANCE SECURITY 
--------------------------------- 
 
¶8. (SBU) Croatia's self-financed and caveat-free ISAF 
contingent, currently 172 troops, continues to be its 
greatest contribution to NATO operations, with plans to raise 
the number to 200 by the end of 2007 and to 300 in 2008.  Of 
note, the contribution includes trainers embedded with the 
Afghan National Army, an operational role no other non-member 
 
ZAGREB 00000618  002 OF 002 
 
 
has taken on.  Croatia is also contributing to NATO readiness 
by hosting training exercises, including IDASSA '07 in May, 
the largest NATO civilian disaster response exercise ever 
held in a non-member state.  The GoC is preparing to host a 
large-scale NATO maritime exercise in October.  The GoC has 
also offered a variety of military training to Iraqi soldiers 
and may begin courses in Croatia this fall. 
 
¶9. (SBU) The Croatian military is clearly serious about 
drawing from their Afghanistan experience to increase their 
interoperability and develop lessons-learned for future 
NATO-led stability operations.  It is increasing its number 
of deployable units through a self-evaluation system under 
the Operational Capabilities Concept (OCC).  A Military 
Police Platoon has been certified as deployable, while an 
Engineering Platoon (Demining) and Light Infantry Company 
(Motorized) have self-evaluated as deployable and are 
awaiting NATO certification.  A Special Operations Platoon, 
NBC platoon, and helicopter detachment are planned for 
self-evaluation in the next two years. 
 
¶10. (SBU) The GoC appears to be on track to reach 2 percent 
of GDP target for defense spending in 2010, assuming normal 
economic growth.  Lowering personnel costs is an ongoing and 
long-term challenge.  On hardware acquisitions, Mikec said 
the GoC is unlikely to back away from plans to buy 12 fighter 
jets despite Allied recommendations to focus on rotary wing 
assets. 
 
¶11. (SBU) Mikec noted that constitutional changes are being 
prepared to modify Croatia's deployment approval process to 
allow direct implementation of Article 5.  These changes, 
however, which are part of an interministerial constitutional 
review, will not be considered until 2008. 
 
¶12. (SBU) With assistance from Post's EXBS program and other 
donor nations, the GoC continues to make concrete progress in 
improving border security.  Customs seizures of contraband 
are up, in part thanks to USG-donated equipment, and 
Croatia's non-proliferation regime is becoming increasingly 
effective.  The GoC recently approved deployment of two 
officers to Naples to participate in Operation Active 
Endeavor. 
 
SUCCESS IN BUILDING BROAD PUBLIC SUPPORT 
---------------------------------------- 
 
¶13. (SBU) The GoC's efforts to build public support for NATO 
membership have produced impressive results, with a poll 
published June 27 showing public support at 52 percent with 
only 23 percent opposition.  This is steady with results from 
mid-May, showing that any bump from earlier events in the 
Serbian parliament appears to have stuck for the moment. 
Leaders have not missed an opportunity to preach the benefits 
of NATO.  It was a central theme in all speeches in the June 
25 Statehood Day celebration, which included a NATO public 
information booth on Zagreb's main square. 
 
PROTECTING NATO CLASSIFIED - UNFINISHED BUSINESS 
--------------------------------------------- --- 
 
¶14. (SBU) The protection of NATO classified information 
remains an area where the GoC has unfinished homework.  The 
GoC's original draft legislation ran into problems with human 
rights groups who feared overly broad classification 
authority.  A new draft expected in July may address these 
concerns and bring rapid progress on this issue. 
 
STATUS OF FORCES AGREEMENT 
--------------------------- 
 
¶15. (SBU) The long saga of supplemental SOFA negotiations may 
be nearing a close, though the issue of detention of service 
members accused of crimes and the duration of the USG's 
obligation to produce them for trial remains contentious. 
The GoC has struggled to compromise on this issue, while 
protecting what they perceive as an issue of the independence 
of their judiciary and the danger of impunity.  We will 
continue to discuss this issue based on a recent exchange of 
proposals between Zagreb and Washington. 
BRADTKE