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OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHPS #0520/01 1871204
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O 061204Z JUL 07
FM USOFFICE PRISTINA
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C O N F I D E N T I A L SECTION 01 OF 03 PRISTINA 000520 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/SCE, SCRS, DRL, INL, PRM, AND S/WCI, NSC FOR 
BRAUN, USUN FOR SCHULETOWSKI, USOSCE FOR STEVE STEGER 
 
E.O. 12958: DECL: 07/02/2017 
TAGS: EAID PGOV PREF PRM YI
SUBJECT: KOSOVO:  SUBSTANTIAL NUMBER OF SERBS RETURN TO 
FERIZAJ/UROSEVAC AREA 
 
REF: PRISTINA 404 
 
Classified By: CHIEF OF MISSION TINA KAIDANOW FOR REASONS 1.4 (b) and ( 
d) 
 
¶1. (SBU)  SUMMARY.  A total of 82 Serb villagers from Srpski 
Babush, located in Ferizaj/Urosevac municipality, returned to 
their recently-reconstructed homes on Saturday, June 23. 
Greeted warmly by Ferizaj Mayor Faik Grainca, most returnees 
told us they are happy with their homes, but some unresolved 
demands for additional UNDP contributions by village leader 
Novitsa Jovanovic remain.  While this large-scale return to 
the largest PISG-funded return project to date is welcome, 
Jovanovic's threats to depart if these issues are not 
resolved leave some doubt as to its sustainability.  US KFOR 
is keeping close watch on the returns area and assisting not 
only with security but with basic living conditions, as well. 
 END SUMMARY. 
 
BACKGROUND 
 
¶2.  (SBU)  Costing some 2.4 million euros, the reconstruction 
of Srpski Babush village (40 kilometers south of Pristina in 
Ferizaj/Urosevac municipality) is the largest PISG-funded 
returns project to date (reftel).  Reconstruction of 74 homes 
and a school was completed in December 2006, but residents 
expressed dissatisfaction with the condition of the homes and 
demanded additional funds for furniture and income 
generation.  Officials from UNDP and the PISG Ministry of 
Communities and Returns cited pressure from former Returns 
Minister Petkovic, a Serb fired by PM Ceku for corruption, as 
the key factor preventing returnees from occupying their new 
homes.  (Note: Petkovic was reportedly trying to prevent the 
project from succeeding without him, according to UNDP 
sources.  End note)  Nonetheless, 82 Serbs returned June 23 
with KFOR and Kosovo Police Service (KPS) escorts, where they 
were greeted by Ferizaj Mayor Grainca. 
 
TERMS AND CONDITIONS 
 
¶3.  (SBU)  UNDP Project Development Coordinator Michael Dixon 
provided USOP with a summary of the terms of this project. 
Seventy five families were to be accommodated in 74 homes 
(one duplex), and allowed to select 800 euro worth of 
furniture and appliances. (Note: No element of this plan 
provided for direct cash payments to returnees.  End Note). 
Only 11 families chose to come and select their furniture in 
April 2007.  Additionally, UNDP (working through the NGO 
European Perspective, or EP) developed a plan for income 
generation, with a pre-set cap of 2,000 euro worth of 
equipment per household.  The plan was put together by a 
small Serbia-based NGO ("Synergy"), headed by village leader 
Novitsa Jovanovic, for which he was paid around 3,000 euro 
for a fairly detailed plan centered around a chicken farm and 
agricultural equipment. 
 
OVERALL SATISFACTION; NO VANDALISM... 
 
¶4.  (SBU)  During a USOP visit to the village June 25 and 
numerous UNDP visits from 23 June to date, returnees have 
expressed overall satisfaction with the quality of their 
homes.  Poloff met a group of returnees outside the school 
building; they initially expressed gratitude for their houses 
and for USOP's attention.  However, some had been sleeping on 
the floor while delivery teams worked to get furniture in all 
the homes.  (Note: Dixon told us that, in his view, 
responsibility for any delays in furniture delivery lies 
primarily with the large number of returnees who failed to 
participate in the April selection process organized by UNDP. 
 End note)  Some residents complained to us that their homes 
lacked water and/or power, but reports from June 23 and 27 
indicated that these issues had been resolved and/or never 
existed to the extent claimed.  Srpski Babush has suffered 
practically no economically-motivated thefts of new equipment 
and furniture nor any vandalism.  When Poloff asked the crowd 
of Serb returnees why they thought this was so, one older 
villager answered "this is because we have good (Albanian) 
 
PRISTINA 00000520  002 OF 003 
 
 
neighbors here."  Additionally, UNDP told us that KFOR had 
done an "exceptionally good job" keeping an eye on the 
village since reconstruction finished.  US KFOR commander BG 
Earhart confirmed to COM July 4 that his troops were keeping 
a close eye on the returns and not only maintaining security 
but assisting with deliveries of goods and necessities to the 
villagers. 
 
...TEMPERED BY ADDITIONAL DEMANDS 
 
¶5.  (C) Despite the agreement with UNDP and the Serbs' 
overall satisfaction, the returnees, led by Jovanovic, have 
continually demanded more, most notably income generation 
equipment far in excess of the 2,000 euro per-family (150,000 
total) limit; UNDP's estimate of Jovanovic's total demand for 
income generation equipment is roughly 225,000 euros.  Dixon 
told poloff that Jovanovic himself requested 5,670 euro worth 
of computer and office equipment for his mother's house, and 
thinks Jovanovic may be trying to expand his NGO operations 
in this way.  Dixon also said that UNDP will not provide 
income generation equipment in excess of the 2,000 euro 
limit, nor will it accept a demand that the 
furniture/appliance limit be raised to 900 euros.  Jovanovic 
told poloff June 25 that the villagers would leave June 29 
unless their demands were met; UNDP subsequently met with the 
villagers and settled several issues, but Jovanovic 
reportedly made further threats to leave.  (Note: As of July 
5, the returnees are still there, according to UNDP and OSCE 
and no new deadlines/demands have been made.  End Note). 
Returnees arrived with only one bag each, came mostly without 
their full families, and some have reportedly requested 
housewares such as bedsheets and pillows, which OSCE 
officials delivered July 4. 
 
¶6.  (C) When visiting the village, Poloff noticed that most 
returnees appeared happier and more satisfied before 
Jovanovic arrived to join the conversation, after which the 
group became more confrontational as Jovanovic theatrically 
enumerated problems with water, power, and furniture, and 
then went on to list some of his additional demands to UNDP 
for equipment.  Dixon told Poloff that Jovanovic is a 
"master" of such brinksmanship and has manipulated the 
process from the beginning to try and compel UNDP to give the 
returnees more than originally agreed. 
 
POSSIBLE MOTIVES 
 
¶7.  (C) When asked his opinion about why this group had 
returned, especially after such a long holdout, Dixon 
speculated that former Minister Petkovic, now out of power, 
might have reversed himself and pushed the group to come back 
in an attempt to show his continuing usefulness.  Dixon also 
noted that current Returns Minister Branislav Grbic had been 
much easier to work with than Petkovic, has fully supported 
this return, and has displayed thorough understanding of the 
construction and engineering issues involved with the 
project.  Poloff asked some villagers why they had come back; 
one said that his 1.5 hectares in Kosovo would help 
supplement his 4,000 dinar (roughly USD 66) per month pension 
from Serbia. 
 
COMMENT 
 
¶8.  (C) The complex mix of factors preventing large-scale 
Serb returns to Kosovo remains an obstacle to progress in 
this area (reftel).  With the long-term intentions of the 
Srpski Babush returnees unknown for now, and given the 
complicating factor of Jovanovic's machinations, it is 
difficult to assess the long-term sustainability of this 
return.  Still, indicators remain largely positive.  Given 
the relatively large size, high profile, and media coverage 
of this project, it would be a significant development if 
Srpski Babush returnees stayed and rebuilt their lives in 
Kosovo.  We will follow developments on this issue and 
continue to encourage sustainable returns by supporting 
reasonable needs and helping UNDP push back on unreasonable 
demands. 
 
PRISTINA 00000520  003 OF 003 
 
 
KAIDANOW