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DE RUEHVB #0124/01 0641405
ZNR UUUUU ZZH
P 051405Z MAR 09
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9056
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
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UNCLAS SECTION 01 OF 02 ZAGREB 000124 
 
SENSITIVE 
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 - MARCH 5, 2009 
 
¶1.  (U) GENERAL ZAGOREC SENTENCED TO SEVEN YEARS: 
On March 2, a Zagreb court sentenced General (retired) 
Vladimir Zagorec to seven years in prison for 
abuse of office during wartime and stealing $5 million worth 
of diamonds upon leaving his post at the 
Ministry of Defense in 2000.  In addition to the seven years, 
Zagorec was ordered to pay back $5 million 
plus court costs.  His lawyers plan to appeal the verdict and 
the prosecutors are also appealing for 
a stronger sentence.  Additional information will be reported 
septel.  (CZIMMER) 
 
¶2.  (U) CROATIAN SERBS START FOURTH POLITICAL PARTY: 
Croatian Serbs held a convention on February 28 to initiate 
the formation of an additional Croatian 
Serb political party, the Democratic Party of Serbs.  This 
will be the fourth party in Croatia 
representing Croatian Serbs.  Members of the founding 
committee criticized the leading Independent 
Democratic Serbian Party (SDSS) led by Milorad Pupovac for 
not doing enough to help the Serb 
community in Croatia and for making too many concessions to 
the government.  The SDSS is 
currently part of the ruling coalition.  According to press 
reports, Veljko Dzakula, the head of 
the NGO Serb Democratic Forum (SDF), is chairman of the 
founding committee and a likely president 
for the new party, however SDF officials deny that Dzakula 
has any political ambitions.  The new 
party intends to stand in upcoming local elections and its 
main goal will be the return of Serb 
refugees.  (JNCallahan) 
 
¶3.  (U) CROATIA AND HUNGARY AGREE TO CONNECTING GAS PIPELINES: 
Croatian gas distribution company Plinacro and Hungarian FGSZ 
Gas Transmission company will sign a 359 million EUR 
agreement on March 5 for a connecting gas pipeline between 
Varsfold in Hungary and Slobodnica in Croatia.  The new 
pipeline will be 298 kilometers long, of which 88 kilometers 
will be on the Croatian side and 210 on the Hungarian.  The 
pipeline will be finished by the end of 2010.  Plinacro 
stated that this "is a historic moment for the energy future 
of the country, because with the completion of this project, 
Croatia will have a new source for receiving natural gas for 
the first time in 30 years."  The new pipeline will also be 
used to transport gas from the (not yet built) LNG terminal 
on Krk towards Hungary, and Croatia will be able to connect 
to several possible international lines such as Nabucco, Blue 
Stream or South Stream. (DMatijas) 
 
¶4.  (U) PROSECUTORS TO ESTABLISH UNIT TO MANAGE SEIZED ASSETS: 
Minister of Justice Ivan Simonovic announced on an evening 
news program on March 4 that the Croatian State Prosecutors 
Office is forming a special unit to manage forfeited assets. 
Post has worked closely with Croatian officials to develop 
this unit beginning with an ICITAP-funded study visit to 
California in October 2008 by prosecutors to examine asset 
forfeiture and management systems.  The new unit will further 
strengthen Croatia's capacity for asset seizure, following a 
major expansion of asset forfeiture provisions in the new 
criminal code passed in December 2008.  (CZimmer) 
 
¶5.  (U) SPECIALIZED COURTS TO HEAR ORGANIZED CRIME AND 
CORRUPTION CASES: 
The Croatian Ministry of Justice announced that as of Monday, 
March 2, departments are now 
operational in the four largest courts to fast-track cases 
brought by the State Prosecutor's 
Office for the Suppression of Organized Crime and Corruption 
(USKOK).  These so-called "USKOK 
courts" are located in the county courts in Zagreb, Rijeka, 
Osijek and Split.  This completes a 
court reform initiated in October 2008 after a high-profile 
killing thought to have links to 
organized crime.  The Minister of Justice, Ivan Simonovic, 
said the new departments will 
significantly increase the courts' efficiency.  Media 
reported that 169 cases involving 1040 
defendants will be sent to these courts with an additional 70 
cases and 263 defendants still 
under investigation in the pipeline.  All USKOK judges are 
appointed for a four year term after 
undergoing a security and background check. (Djukic/CZimmer) 
 
¶6.  (SBU) MORE JOCKEYING IN MAYORAL RACE FOR OSIJEK: 
The Social Democratic Party (SDP) branch in Osijek announced 
on February 27 that they would 
 
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support former Croatian Ambassador to Bosnia and Herzegovina, 
Josip Vrbosic, for mayor.  The 
SDP's decision creates an alliance between the local branches 
of the Croatian Peasant Party (HSS) 
and the Croatian Social Liberal Party (HSLS).  This alliance 
is despite the fact the HSS and HSLS 
are part of the coalition HDZ government at the national 
level.  It is also likely that the local 
branch of the Croatian Peoples Party will soon decide to 
support Vrbosic.  Meanwhile, 
Branimir Glavas's party, the Croatian Democratic Alliance of 
Slavonia and Baranja (HDSSB), has 
decided that he no longer will be the party's candidate for 
mayor. Comment: Glavas, perhaps more 
burdened by his war-crimes trial than he lets on, is fading 
in his political relevance--even in 
eastern Slavonija. (DMeges) 
 
BRADTKE