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PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
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DE RUEHVB #0886/01 3581408
ZNR UUUUU ZZH
P 231408Z DEC 08
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 8881
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ZAGREB 000886 
 
SIPDIS 
 
FOR EUR/SCE, EUR/PPD, EUR/RPM AND EUR/ERA 
OSD FOR POPOVICH 
 
E.O. 12958: N/A 
TAGS: PREL PGOV HR
SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - DECEMBER 23, 2008 
 
¶1.  (U) MINISTRY OF DEFENSE STATE SECRETARY DIES IN SKI 
ACCIDENT: 
Major General Gordan Cacic, State Secretary of the Ministry 
of Defense for Policy and International Affairs, died in a 
ski accident in Italy on Saturday, 20 December 2008.  MG 
Cacic previously served for seven years as the Director of 
the Military Security and Intelligence Agency.  He was a 
graduate of the U.S. National Defense University, Industrial 
College of the Armed Forces, as well as the George C. 
Marshall Center for Security Studies.  Cacic was one of the 
most decorated officers of the Homeland War and his feats of 
bravery and resilience in the face of enemy fire have 
legendary status.  He was very pro-U.S. in his views and was 
a force for modernization in the Croatian Armed Forces.  He 
had been thought to be a viable candidate to replace the 
current CHOD at the end of his mandate. (BMcAloon) 
 
¶2.  (U) NATO PROMOTED VIA TRAM IN ZAGREB: 
The City of Zagreb Association of war veterans' clubs and the 
city's managing company "Zagreb Holding" sponsored a tram 
(streetcar) promoting Croatia's entrance into NATO.  The tram 
displaying NATO symbols and all member states' flags took its 
maiden voyage down the streets of the Croatian capital on 
December 22.  It will continue running until Croatia becomes 
a full member of the Alliance.  Mayor Milan Bandic joined the 
veterans and representatives of the Ministry of Defense on 
the tram's first trip, which also took citizens for a free 
ride.  Mirko Ljubicic, who organized the campaign on behalf 
of Zagreb veterans, said to the local press that the "tram 
campaign was the nicest season's greeting to the veterans, 
government and the citizens of Croatia."  "Moreover, we wish 
a Merry Christmas to our neighbors in Slovenia too, and ask 
them to support us because we have always regarded the 
Slovenes as our friends," Ljubicic said.  Embassy Zagreb was 
represented at the NATO tram event.  (ZTomic, DMatijas) 
 
¶3.  (U) SHIPYARD WORKERS DEMONSTRATE: 
Brodosplit, 3. Maj and Brodotrogir shipyard workers 
demonstrated on Monday in Split, Rijeka and Trogir against 
the privatization model that Croatia agreed to with the EU. 
President of the Independent Brodosplit Union Assembly (NSB) 
Nikica Veljaca is adamant that the shipyards not pay the 
price for "the Croatian ticket to the EU."  He maintains that 
the losses the shipyards have accumulated are not the fault 
of the workers but rather the "product of poor management, 
performed by (managers) placed by the Government."  The 
messages from all 3 shipyards were similar.  The protesters 
insist on respecting the privatization laws, including the 
provision in the privatization tenders that the core business 
and the jobs remain after sale.  (Note:  In Croatia, 
shipbuilding employs some 160,000 people.  End Note.)  Unions 
also want the State to keep a 25-percent ownership stake in 
the shipyards.  Deputy Prime Minister Damir Polancec is to 
meet with union representatives on Tuesday to discuss the 
situation further.  Unless an agreement is reached, the union 
threatens to stage demonstration in Zagreb and even in 
Brussels if necessary.  (DMatijas) 
 
¶4.  EU: POLITICIANS NOTE NEED FOR DIALOGUE, BUT BLAST 
SLOVENIAN "BLACKMAILING": 
(U) In the wake of the Slovenian blockage of the opening 
and closing of several EU chapters, Croatian politicians 
across the political spectrum have emphasized the need to 
increase talks between Ljubljana and Zagreb, but were 
cool to the notion that Croatia should give ground on the 
border dispute.  Croatian PM Ivo Sanader labeled the 
Slovenian actions as blackmail, and noted that he was 
willing to meet with Slovenia Premier Bahut Pahor to 
resolve the issue in the coming days, but insisted that 
Croatia would not trade its territory for moving forward 
in its EU bid. Because Zagreb viewed the Slovenian actions 
as unprecedented in the history of European integration, 
Sanader was also adamant that any meeting between the two 
leaders would include EU officials as well.  The leader 
of Croatia's main opposition party, Zoran Milanovic, urged 
dialogue between the two capitals, but also characterized 
Slovenia's actions as blackmail. 
Several smaller parties emphasized that Croatia should not 
give-up too much vis-Q-vis the border in order to gain 
entry to the EU. While Vesna Pusic, leader of the 
opposition Croatian People's Party and chairwomen of 
Croatia's bi-partisan EU negotiation council, criticized 
Slovenia's actions and noted that Croatia would never 
hamper the EU accession process for other countries 
(such as Serbia, for one) because of outstanding bilateral 
disputes.  Croatia was able to open the "public 
procurement" chapter for negotiations, and provisionally 
close the chapters on "economic and monetary policy", 
 
ZAGREB 00000886  002 OF 002 
 
 
"intellectual property", and "information society and 
media." (DMeges) 
BRADTKE