VZCZCXRO2506
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0642/01 1841536
ZNR UUUUU ZZH
R 031536Z JUL 07
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 7885
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 03 ZAGREB 000642 
 
SIPDIS 
 
SIPDIS 
 
FOR EUR/SCE, EUR/RPM 
 
E.O. 12958: N/A 
TAGS: PREL PGOV OSCE PREF KWCI HR WAR CRIMES REFUGEES
SUBJECT: OSCE MISSION TO CROATIA: WINDING DOWN ITS MANDATE 
 
REF: A. ZAGREB 565 
     ¶B. ZAGREB 551 
     ¶C. ZAGREB 472 
     ¶D. ZAGREB 399 
     ¶E. ZAGREB 227 
 
(U) Sensitive but unclassified; please handle accordingly. 
 
¶1. (SBU) SUMMARY and COMMENT.  This is a joint Embassy Zagreb 
and USOSCE cable and represents our strategy in moving 
forward toward OSCE Croatia mission closure.  While we 
believe full closure could be achieved by the end of 2007, 
there is no consensus on this issue among European missions 
in Zagreb or in Vienna.  OSCE mission closure remains high on 
the GOC's priority list, and the GOC has stepped up its 
efforts to complete the two remaining primary OSCE mandate 
goals (Refs C and D): the GOC has agreed to meet specific 
benchmarks on refugee return programs by the end of the year, 
and has offered a proposal for monitoring domestic war crimes 
trials. 
 
¶2. (SBU) The GOC refugee return benchmarks are ambitious but 
realistic, and the prospect of OSCE closure is the best 
motivation for the GOC to achieve them.  Achieving the bulk 
of these targets will demonstrate clear forward momentum on 
refugee programs, and will justify mission closure by the end 
of the year.   Continued OSCE monitoring of war crimes trials 
is not necessary beyond this year, as local NGOs have 
demonstrated adequate capacity (Ref E).  However, given 
concerns expressed by certain European countries that war 
crimes trials will need monitoring into 2008, we may need to 
compromise in allowing a follow-on structure to be created in 
order to reach consensus.  A reporting requirement or other 
Vienna-based mechanism would also help overcome residual 
concerns on refugee issues.  Serbia is concerned that there 
be an international role to keep up the pressure on both 
issues and could insist on keeping the mission open if not 
satisfied. END SUMMARY and COMMENT. 
 
KEY MOMENT FOR CROATIA, BUT NO EUROPEAN CONSENSUS 
--------------------------------------------- ------------- 
 
¶3. (SBU) The remainder of 2007 is the key opportunity both 
for the international community to press hard on these core 
issues and for the GOC to demonstrate it can achieve 
technically what it has promised politically.  There is clear 
political will for progress, demonstrated last month by PM 
Sanader's "personal commitment" to U/S Burns (Ref A). 
Sanader's upcoming 10 July visit to the OSCE in Vienna will 
keep up the GOC's momentum and further signal its plans 
ahead. 
 
¶4. (SBU) The Head of the OSCE Mission in Croatia and some key 
European missions agree it is time for OSCE resources to be 
re-allocated to priorities elsewhere; many are neutral; and 
some are strongly opposed:  in particular, the head of the 
European Commission delegation in Zagreb wants to continue 
the OSCE presence to support progress on some difficult 
acquis communitaire issues relating to Croatia's upcoming EU 
membership.  Some European countries want the OSCE to remain 
in order to monitor and press for progress on the key mandate 
issues of refugee return and war crimes trial monitoring. 
The Serbian delegation in Vienna has insisted privately to 
USOSCE that there be some type of international umbrella for 
continued monitoring not only of war crimes trials but also 
issues related to refugee return. 
 
¶5. (SBU) A decision will have to be taken at the end of the 
year either closing the mission or extending it; lack of 
consensus on either will de facto close the mission. 
 
REFUGEES: CLEAR BENCHMARKS FOR 2007 
--------------------------------------- 
 
¶6. (U) On numerous occasions (ref B and C), the GOC has 
agreed to meet the following benchmarks on the refugee 
portfolio: 
-- 1. Four hundred apartments outside the Areas of Special 
State Concern (ASSC) allocated - about 10% of program 
applications; 
-- 2. One thousand apartments inside the ASSC allocated - 
about 30% of remaining program applications; 
-- 3. Convalidation (pension credit for time worked under the 
Serb administration) solution finalized; 
-- 4. Residents in Vukovar in OTR (occupancy and tenancy 
rights holders -- former tenants of socialized housing) 
apartments possess leases and appropriate paperwork. 
 
¶7. (U) In the GOC's regular "Plenary Meeting" with the OSCE 
held on 19 June, Minister for Sea, Transport, Trade and 
Development Bozidar Kalmeta reported that the GOC has 
 
ZAGREB 00000642  002 OF 003 
 
 
purchased 136 apartments and has allocated 50 (e.g. 
beneficiaries are living in the apartments) outside the ASSC. 
 The GOC plans to purchase another 190 this year and complete 
the program by the end of 2009, a timeline sped up at the 
urging of the international community.  Approximately 4,500 
families have applied to the program.  Apartment purchase and 
construction remains very slow; along with the OSCE, the EU, 
and the UNHCR, we continue to press for speedy implementation. 
 
¶8. (SBU) Inside the ASSC, about 4,500 out of 8,000 total 
applications have been resolved (note: people of all 
ethnicities and those who have been living in the Vukovar 
region).  There are about 3,000 families who have received an 
approval and are awaiting housing.  A critical impediment to 
program implementation remains the convoluted land ownership 
registry, as well as permitting, zoning, and other local 
procedures.  Nevertheless, the GOC is on the hook to resolve 
these "technical difficulties."  While many other facets of 
the refugee program remain, progress on OTR benchmarks will 
be our key indicator for measuring success this year.  If the 
bulk of these targets are not achieved, we would consider a 
continued - but reduced - presence for 2008.  The 
international community (including Embassy Zagreb) will 
remain vigilant in monitoring further progress in the years 
to come.   We will also encourage other bilateral missions to 
become actively engaged on refugee returns, and will continue 
to engage them on OSCE-related issues. 
 
WAR CRIMES MONITORING: FUNCTION OVER FORM 
------------------------------------------- 
 
¶9. (SBU) Minister of Justice Ana Lovrin assured the OSCE and 
Zagreb of the GOC's commitment to prosecute war crimes 
regardless of ethnicity, and reaffirmed Croatia's commitment 
to strong regional cooperation, which has included 
facilitating testimony of Croatian witnesses in Belgrade's 
Special War Crimes Chamber and arranging for witnesses from 
both Bosnia and Serbia to testify in Croatian courts. 
Croatia's Chief State Prosecutor Mladen Bajic has led efforts 
to promote cooperation among prosecutors and recently 
transferred evidence to his counterparts in both Montenegro 
and Serbia so suspects who cannot be extradited to Croatia 
can be tried in other jurisdictions.  In addition, the Zagreb 
County Court recently began hearing the Ademi-Norac case; it 
received significant public attention.  Both presiding judge 
Marin Mrcela and prosecutor Antun Kvakan are close Embassy 
contacts -- their competence and intense public scrutiny 
should keep this trial on track. 
 
¶10. (SBU) A war crimes monitoring function will not be 
necessary beyond 2007 -- both local NGO trial monitoring and 
extensive media attention now help ensure accountability of 
the judiciary.  Local NGOs have demonstrated adequate 
capacity through two years of monitoring supported by Embassy 
grants (ref E).  However, there is no consensus in the 
international community on the continued need for OSCE trial 
monitoring; several European bilateral missions (notably the 
British, Swedes and the EC delegation), are pushing for the 
OSCE presence to monitor not only the ICTY cases but also the 
dozens of domestic war crimes trials.  Therefore, we may need 
to compromise in allowing some type of follow-on structure to 
be created for at least the next year to monitor the 
Ademi-Norac case, transferred from the International Criminal 
Tribunal for the former Yugoslavia (ICTY) under rule 11bis, 
as well as domestic war crimes trials. 
 
The Future of the OSCE in Croatia 
--------------------------------- 
 
¶11. (SBU) On war crimes issues, some type of follow-on 
structure may be a feasible compromise in order to reach 
consensus on closing the mission at the end of 2007.  A war 
crimes monitoring operation could be staffed by local 
employees, in particular those who are experienced with local 
trial monitoring.  The Chief State Prosecutor believes this 
presence should include an international head; Serbia is 
likely to press for it, and try to enlist Russian help.  A 
follow-on structure could be directed from either Vienna or 
Warsaw, and should be very small; it should not be necessary 
beyond 2008.  A condition of this extended presence, however, 
should include an investment in capacity-building efforts, 
working closely with local NGOs to mentor them on appropriate 
trial monitoring activities and reporting, as Embassy Zagreb 
has done through its War Crimes program.  This final phase 
should fully address any European concerns about local 
capacity.  By mid to late 2008, we expect the Ademi-Norac 
case would be completed, and the structure would be able to 
transition its domestic trial monitoring completely to local 
organizations. 
 
¶12.  (SBU) On refugee return issues, failure of the GOC to 
 
ZAGREB 00000642  003 OF 003 
 
 
meet its commitments or the need to achieve a broad consensus 
may also require some kind of follow-on reporting mechanism, 
with enagement from Vienna or Warsaw. 
 
COMMITMENTS ON ADDITIONAL MANDATE ITEMS 
------------------------------------------ 
 
¶13. (U) In its OSCE Plenary Meetings, the GOC has agreed to 
complete other mandate-related items.  The GOC committed in 
writing to OSCE HOM Fuentes to: 
-- provide adequate resources for the ombudsman and 
Constitutional Court; 
-- complete elections for the Constitutional Court before 
Parliamentary elections (expected in November); 
-- approve the Law on Free Legal Aid, incorporating Council 
of Europe suggestions, and present it to Parliament in July. 
In addition, the GOC held a roundtable, attended by the Prime 
Minister, on expanding minority employment within the state 
administration, and plans a follow-up roundtable in the fall. 
 By the end of 2007, all remaining commitments should be 
achieved. 
BRADTKE 
BRADTKE