VZCZCXRO4337
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBW #1148/01 3110800
ZNR UUUUU ZZH
P 060800Z NOV 08
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC PRIORITY 0608
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNS/NSC WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 BELGRADE 001148 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL EINV SR
SUBJECT: SERBIA'S SANDZAK:  WHAT A DIFFERENCE A YEAR MAKES 
 
REF: A) BELGRADE 786, B) BELGRADE 279 
 
Summary 
------- 
 
¶1. (SBU) Though still facing significant economic and political 
challenges, Novi Pazar, the largest predominantly Muslim city in 
Serbia, is no longer the potential tinderbox that it was just a year 
ago.  May's election of a democratically oriented - though 
inexperienced - mayor, and the subsequent removal of the city's 
longstanding strong man, have reduced the political tensions that 
long suffocated this Bosniak majority town in southwestern Serbia. 
The new pro-American mayor has committed himself to multi-ethnic and 
multi-party governance while promoting openness and accountability, 
but he has yet to be truly tested.  Though the political feud among 
the divided Muslim community lingers, name calling has replaced last 
year's street violence.  The easing of political tensions in Novi 
Pazar is testament to an effective U.S. strategy of engaging all 
sides while addressing the long term endemic problems of an isolated 
and frequently politically manipulated corner of Serbia.  End 
Summary. 
 
Novi Pazar:  New Mayor, New Mandate 
----------------------------------- 
 
¶2. (SBU) Following May's local elections, Novi Pazar (population 
120,000) formed a new municipal government led by the Sandzak 
Democratic Party (SDP) in coalition with the local Serb list (Ref 
A).  The new coalition ended more than ten years of rule by Sulejman 
Ugljanin of the Democratic Action Party (SDA).  In July, Mirsad 
Djerlek assumed the office of mayor, and has called for an open 
multi-ethnic, multi-party administration committed to good 
governance.  Ugljanin's ouster and Djerlek's message of compromise 
have reduced the political tensions that were mounting against 
Ugljanin.  Though Novi Pazar has many political and economic 
hurdles, our contacts all report that the atmosphere has changed 
from opposition to cooperation. 
 
Committed to Working Together... 
------------------------------- 
 
¶3.  (SBU) Novi Pazar's mayor told the Ambassador during an October 
29-30 visit to the city that he was committed to a multi-ethnic 
municipal government.  Djerlek said he recognized that ethnic 
relations between the Serbian minority (15%) and the Muslim majority 
(85%) were poor, and he was committed to addressing the problem 
through dialogue and cooperation with the local Serbian list 
coalition partners.  Djerlek also said he would work with Ugljanin's 
SDA, which only the day before began attending municipal assembly 
sessions.  Djerlek also cited a constructive meeting he had with SDA 
mayors from the nearby municipalities of Sjenica and Tutin. Djerlek 
said he would continue to engage feuding Muslim leaders, stating 
that he would "encourage them to talk for a year, rather than to 
fight for a day." 
 
...And with the United States 
--------------------------- 
 
¶4.  (SBU) In addition to working with his local citizens, Djerlek 
said he was committed to working closely with the United States. 
Djerlek told the Ambassador he would quickly finalize construction 
of a municipal property that would serve as the newest American 
Corner in Serbia. 
On October 29 Djerlek signed an MOU to join USAID's Municipal 
Economic Growth Activity (MEGA) program in an effort to improve the 
region's business and investment climate.  He also welcomed quick 
U.S. technical assistance to address a significant municipal debt 
that he inherited from the previous government.  Djerlek asked for 
our assistance in bringing the economic and political needs of Novi 
Pazar to the forefront of national decision makers in Belgrade. 
 
NGO and Business Leaders:  Change and Challenges 
--------------------------------------------- --- 
 
¶5.  (SBU) Civic and business leaders told the Ambassador that the 
political climate had calmed since the peaceful conclusion of May's 
local election.  They credited the mayor for his openness but 
recognized significant challenges.  Representatives of local NGO's 
said Novi Pazar is faced with huge demographic divisions facing 
women, youth, and minorities.  Unemployment among youth was nearly 
50%, and was even higher for women, resulting in a growing idle 
population.  Novi Pazar's business leaders in the local niche 
textile trade said they had the capacity to expand production but 
were limited by difficult access to external markets and the lack of 
design and marketing capability.  Businessmen were concerned that 
government lending and credits would dry up during this economic 
downturn and there would be no access to capital on private markets. 
  In order to provide greater business and educational 
opportunities, all called for a more open visa regime for travel to 
 
BELGRADE 00001148  002 OF 002 
 
 
the EU, a desire heard in all corners of Serbia. 
 
Muslim Community Feud Ongoing, But Less Tense 
--------------------------------------------- 
 
¶6.  (SBU) Muslim leaders from the feuding communities also 
acknowledged a decrease in tensions with the new local government. 
Mufti Muamer Zukorlic, leader of the larger and more prominent 
Islamic Community in Serbia, said that with Ugljanin's removal the 
region was hopeful for progress.  (Comment:  Zukorlic receives 
political support from the SDP party and his rival Zilkic from 
Ugljanin's SDA Party.  End Comment)  He said, however, that the new 
municipal government must deliver on progress and if it "does not 
pass the test, voters will vote them out at the next opportunity." 
He left open exactly who would fill that political space if the 
current government could not deliver.  A new local government was 
only part of the solution, Zukorlic said, stating that he also 
wanted to see changes in the national government's interactions with 
Novi Pazar, particularly regarding security, judicial, and 
educational issues. He said that after years of neglect, Belgrade 
needed to treat Novi Pazar (and him) as a partner which merited 
respect. 
 
¶7.  (SBU) Reis Adem Zilkic, of the marginalized Islamic Community of 
Serbia, welcomed the decrease of tensions since the elections but 
said there was still "a long way to go before the Bosniak community 
was able to heal itself."  Like Zukorlic, he called for better 
relations between Belgrade authorities and Novi Pazar.  He committed 
himself to dialogue with both local and national actors in order to 
foster greater goodwill.  (Comment:  Though both were invited to 
this year's Iftar hosted by the Ambassador, only Zilkic attended. 
Zukorlic refused citing his opposition to our talking to Zilkic's 
group.  Zilkic delivered an apparently constructive speech at the 
Iftar calling for reconciliation, a gesture more political than 
sincere, given the defeat of his sponsor Ugljanin.  End Comment.) 
 
Comment 
------- 
 
¶8.  (SBU) While time may have healed some of the political wounds in 
Novi Pazar, our increased engagement over the past year has also 
helped create a more inclusive and calm environment.  The USAID 
mission maintains a field office in Novi Pazar that has worked with 
local leaders to address underlying structural problems in the 
business climate and local governance.  Embassy officials, including 
the DCM and Ambassador, have also traveled more than six times to 
this isolated region in the past year in an effort to foster a 
dialogue among all parties and to encourage the small civil society 
to work with the municipal government which it long mistrusted. 
Though the mayor and the municipality will have some major 
challenges ahead, particularly in this difficult economic period, 
the groundwork has been set and dialogue may now replace distrust. 
End Comment. 
 
 
MUNTER