VZCZCXRO2328
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHBW #0063/01 0221000
ZNR UUUUU ZZH
P 221000Z JAN 09
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC PRIORITY 0894
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNS/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 BELGRADE 000063 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL SR
SUBJECT: SERBIA: FRAGILE CALM IN NOVI PAZAR BELIES ENDURING 
TENSIONS 
 
REF: 08 BELGRADE 1148 
 
Summary 
------- 
 
¶1.  (SBU) The city leadership of Novi Pazar, situated in the heart 
of Serbia's southwestern predominantly Muslim Sandzak region, is 
actively confronting budget issues, encouraging religious 
conciliation, and seeking the attention of the government in 
Belgrade.  The city's dueling Islamic communities over the past few 
months have observed a tense truce, minimizing violent clashes and 
seeking to consolidate their constituencies.  Recent clash between 
the opposition Bosniak coalition and municipal authorities 
illustrates that conciliation and rule of law remain elusive 
objectives, however.  End Summary. 
 
Energetic Mayor Takes on Budget Crisis 
-------------------------------------- 
 
¶2.   (SBU) Speaking to visiting Emboffs on January 13, Novi Pazar 
Mayor Mirsad Djerlek, a member of the Sandzak Democratic Party 
(SDP),  touted his efforts to bring the city budget under control 
and develop an industrial park that could soften the blow of the 
global economic crisis.  Noting that salaries of city employees were 
the second highest in Serbia (behind only those in Vranje), Djerlek 
was relieved that his plan for 10% cut in public salaries had won 
grudging support from the local assembly.  He was also looking to 
reduce the number of city employees by 10% but said this initiative 
would be introduced only once a planned industrial park had opened. 
Djerlek explained that he was pushing to create jobs through the 
development of an industrial park by acquiring the land holdings of 
the bankrupt companies Raska and Polivic, a 30 hectare plot of land 
valued at about 29 million Euros.  This plan was supported by Social 
Policy and Labor Minister Rasim Ljajic, who is also Sandzak 
Democratic Party (SDP) President and Djerlek's political benefactor. 
 Djerlek was hopeful that the Economy Ministry would finance the 
city's acquisition of the property.  He told us Economy Minister 
Mladjan Dinkic (G-17 Plus) was aware of the plan and his team had 
provided some assistance in dealing with technical issues. 
 
Dueling Clerics Stand Down for Now 
---------------------------------- 
 
¶3. (SBU) Djerlek was confident that Novi Pazar's rival Islamic 
communities would be willing to forgo violent clashes with mediation 
from the mayor's office.  Djerlek pointed to his role in mediating a 
dispute over finding public venues for both rival communities to 
welcome pilgrims who participated in the haj.  Representatives of 
the Meshihat of the Islamic Community in Serbia (led by Mufti 
Zukorlic) shared Djerlek's assessment.  Deputy mufti Resad ef. 
Plojovic, president Hajro ef. Tutic, and spokesperson Sead ef. 
Sacirovic told us that the levels of tension between the two 
communities had steadied and cooperation with local police had 
improved, something which would have been unthinkable a year ago. 
Tutic said that the departure of former Novi Pazar mayor, SDA 
leader, and current Minister without Portfolio Sulejman Ugljanin 
from the local scene was a positive development.  Tutic highlighted 
continued difficulties with Belgrade ministries, citing an ongoing 
problem with the Education Ministry regarding free religious 
instruction and enduring corruption by judges loyal to Ugljanin. 
 
¶4. (SBU) Zukorlic's rival, Reis Zilkic of the Belgrade-based Islamic 
Community of Serbia, said there had been some progress in 
reconciliation, crediting his non-political approach to outstanding 
issues, which he said was distinct from that of Zukorlic.  Zilkic 
condemned the Zukorlic-organized demonstrations on January 11 
expressing solidarity with Hamas, arguing that religion should not 
be politicized in such fashion.  He added that the economic crisis 
had resulted in a noticeable downturn in donations, which could 
impede his efforts to establish an office in Belgrade.  In an 
apparent effort to boost his own profile in Belgrade, Zilkic asked 
us to facilitate a meeting between him and Ljajic. 
 
Local Unrest Continues 
----------------------- 
 
¶6.  (SBU) The relative calm that all parties highlighted in their 
conversations with us was broken on January 17 when representatives 
of Ugljanin's Party of Democratic Action (SDA) retook by force a 
municipal office that city (SDP) authorities had seized the previous 
day.  In the shootout that ensued, one SDA member was wounded by 
gunfire in what an SDA spokesman claimed was an assassination 
attempt ordered by Ljajic against Ugljanin.  Ljajic and Ugljanin met 
with Prime Minister Cvetkovic on January 19; during the meeting, 
Ljajic reportedly demanded the firing of Novi Pazar police officials 
 
BELGRADE 00000063  002 OF 002 
 
 
who failed to stop the altercation, as well as the "re-defining" of 
relations of parties within the ruling coalition, widely interpreted 
as a threat to withdraw the SDP's members from the ruling coalition. 
 
 
Comment 
------- 
 
¶7.  (SBU) Novi Pazar continues to face a challenging economic crisis 
with a young mayor who thus far appears ready to make the tough 
decisions needed to break with the past and implement much-needed 
reforms.  The latest flare-up between SDA and SDP demonstrates that 
there is a long way to go and that the troubled relationship between 
the two Bosniak parties, and the feuding Islamic communities behind 
them, remains a powder keg.  The Ambassador this week will host an 
event to raise awareness among the diplomatic and NGO community of 
Sandzak's persistent problems.  While aid and investment are on the 
wish-list of the city's leaders, developing the will to crack down 
on corruption and smuggling, promoting religious tolerance, and 
upholding the rule of law continue to be crucial for Novi Pazar's 
future stability.   End Comment. 
 
MUNTER