UNCLAS        ZAGREB 00717

SIPDIS
R 271445Z JUL 07

FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 7971
INFO RUEHBW/AMEMBASSY BELGRADE 1965
RUEHVJ/AMEMBASSY SARAJEVO 0256
RUEHPS/USOFFICE PRISTINA 0585

UNCLAS SECTION 01 OF 02 ZAGREB 000717 
 
SIPDIS 
 
H FOR MARK SMITH PASS TO CODEL BEAN 
EUR/SCE FOR HOH, BALIAN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OREP PREL PGOV HR
SUBJECT: CODEL BEAN Visits Croatia 
 
¶1. Summary: CODEL Bean visited Zagreb on 22-23 July and met with 
Croatian business, government, and parliamentary leaders. 
Discussion at most meetings focused on Croatia's leadership and 
stabilizing role in the region, Kosovo, future membership in NATO 
and the EU, its international contributions to peace-keeping, and 
the improving Croatian economic and investment climate.  End 
Summary. 
 
Parliament Considers Croatia's Role Outside Its Borders 
 
¶2. The CODEL met with parliamentary representatives from several 
major political parties and committees.  Representatives included 
Gordan Jandrokovic (HDZ), Chair of the Foreign Affairs Committee, 
Nikola Ivanis (PGS), Deputy Committee Chair, Tonino Picula (SDP) and 
Marin Jurjevic (SDP), committee members, and Milorad Pupovac (SDSS), 
Chair of the Committee on Inter-Parliamentary Cooperation. 
 
¶3. Regional Relations: When asked about Croatia serving as a role 
model in the region, Jandrokovic pointed out that although some war 
wounds still need to heal, Croatia has relatively quickly crossed 
the path from war-time intolerance to a tolerant democratic society. 
 A good deal of war-related issues have already been resolved, he 
observed, and Croatia is prepared to contribute to the resolution of 
outstanding regional issues including the status of Kosovo and a new 
constitution in BiH.  Pupovac noted that Croatia continues to 
cooperate with its neighbors and will share its progress with them. 
It's time for the region to turn to the present, discard prior 
policies that resulted in war crimes, ethnic cleansing and political 
isolation, and proceed with war crimes prosecution and regional 
cooperation, he stated.  Ivanis told the CODEL that Croatia-Serbia 
relations and their lasting "harmonization" are the most important 
regional issue.  Although the radicals won a plurality in Serbia, 
maintaining good relations are important, he remarked. 
 
¶4. Kosovo: Jandrokovic admitted that Kosovo remains the most 
difficult regional question.  International consensus is important, 
he reaffirmed, noting that Croatia will follow the lead of the 
international community.  Picula, former Minister of Foreign 
Affairs, told the CODEL that the entire region is concerned with 
security, cooperation and solidarity and that once the status of 
Kosovo is resolved, all ethnic communities will be agreed on future 
political goals for the region.  Pupovac, who is serving as an OSCE 
envoy to Kosovo, stated his hope that Kosovo be organized as a 
multiethnic society, with equal opportunities for Albanians, Serbs 
and others.  He noted that his work with Kosovo Serbs is difficult 
and risky, but that he has the support of President Mesic, PM 
Sanader, and U.S. representatives in Zagreb.  Pupovac cautioned 
against unilateral recognition, stating that there are not 
sufficient mechanisms to respond to an unstable situation.  Both 
Croatia and Serbia, he believes, represent stability in the region. 
We should "build" rather than "proclaim" status, at which point the 
transition will be easier to manage.  Finally, referring to Serbs' 
heritage and tradition there, Pupovac said that it is important to 
give Serbia the feeling that if it loses Kosovo, Kosovo won't be 
lost for the Serbs. 
 
¶5. International Involvement:  Looking ahead to parliamentary 
elections, Jandrokovic assured the delegation that whichever party 
wins the tight race, the main foreign policy goals would not change. 
 Like other participant countries, Croatia is struggling with public 
support of its troops in Afghanistan.  Nevertheless, the Government 
is aware it needs to take part in global processes and help bring 
stability to the world's hot spots.  Referring to UN peacekeepers 
who oversaw the peaceful reintegration of Croatia in the 90s, he 
reaffirmed, "If we want to be an equal partner, we need to give, not 
only receive." 
 
Foreign Minister Reaffirms Policy Priorities 
 
¶6. In a prior meeting, Minister of Foreign Affairs and European 
Integration Kolinda Grabar-Kitarovic presented Croatia's three major 
foreign policy priorities - accession to the European Union and 
NATO, cooperation in the region, and Croatia's position in the 
international community and organizations. 
 
¶7. The minister briefed the delegation about the pace and current 
state of EU membership negotiations and the development of relations 
with NATO.  She discussed Croatia's active participation in UN 
bodies and peacekeeping missions, as well as the presence of 
Croatian forces in Afghanistan.  Speaking about regional issues, 
Grabar-Kitarovic noted that Croatia wanted to be helpful in finding 
a sustainable solution in Kosovo.  Settlement of the issue should 
ensure the stability of the entire region, she said.  The minister 
informed the delegation about the recent establishment of the 
Regional Cooperation Council and the future role of the South East 
European Cooperation Process.  Referring to border disputes with 
Slovenia, she said that any outstanding issues should be settled 
bilaterally and by fully respecting international law. 
 
Business, Economy Performing Well 
 
¶8. In a breakfast session with CODEL, State Secretary and Assistant 
Minister of Finance, Ante Zigman, 3M Country Manager Tomislav Slat 
and FedEx Regional Manager/AMCHAM Croatia president Josip Krznaric 
briefed the CODEL on the state of the economy and business 
conditions.  All local representatives agreed that the economy was 
performing well, and that the GOC had initiated some positive 
programs - specifically Hitro, the one-stop shop for business 
formation.  Zigman asserted that the permitting process for 
greenfield investment has been reduced to less than two years, and 
in response to CODEL's question, reaffirmed that Americans (and 
other foreign investors) can buy property in Croatia.  Chamber 
President Krznaric noted that although Croatia is not one of the top 
U.S. export markets (currently ranked 116th), U.S. companies are 
present and active in the market.  There is little manufacturing 
investment from the U.S., as Croatia missed the initial wave of U.S. 
investment in Central Europe in the 90s due to the war, but there 
has been a recent increase in activity.  Slat commented that 
Croatia's improved infrastructure should help the country to serve 
as a regional distribution hub.  The group agreed that NATO 
membership and EU accession are independent validations of Croatia's 
progress to date. 
 
¶9. CODEL did not have the opportunity to clear this cable. 
BRADTKE