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PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
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ZNR UUUUU ZZH
P 051201Z JUN 09
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9279
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ZAGREB 000326 
 
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 - JUNE 5, 2009 
 
REF: ZAGREB 294 
 
¶1. (U) BRIEF TRADE WAR WITH BOSNIA RESOLVED (FOR NOW): 
The Croatian Minister of Agriculture and officials of the 
Veterinary Office met with Bosnian counterparts over the May 
30-31 weekend in an attempt to resolve a growing meat trade 
war that threatened Croatia's $400m export market in food 
products to Bosnia.  Bosnia had recently banned all Croatian 
imports of live animals and meat products, claiming concerns 
over phytosanitary issues such as mad cow disease and avian 
flu, as well as complaints that Croatia had failed to 
properly notify the Bosnians when it decided to ban imports 
of Bosnian live fish to harmonize with EU standards.  The 
officials reached agreement that Croatia would also lift a 
long-standing ban on imports of beef and meat products from 
Bosnia, with both countries lifting bans on poultry and fish 
products.  Discussions will continue on the livestock ban, 
which remains in effect.  This rift is not likely to be the 
last between Croatia and Bosnia, as Croatia continues to 
erect trade barriers and adopt regulations in preparation for 
EU accession that negatively impact Bosnian imports. 
(DWestfall) 
 
¶2.  (U) ACCUSED PUKANIC ASSASSIN ARRESTED IN BELGRADE: 
Bosnian-Serb Zeljko Milovanovic, a prime suspect in last 
November's murder of magazine publisher Ivo Pukanic and his 
associate Niko Franjic, was arrested on May 31 in Belgrade. 
Milovanovic is wanted by the police of Croatia, Serbia, and 
Bosnia and Herzegovina.  Croatia accuses Milovanovic of 
transporting the explosives that were used in the blast that 
killed Ivo Pukanic, former owner and editorial director of 
the Zagreb-based political weekly Nacional, and Niko Franjic, 
the former marketing director for Nacional.  Milovanovic is 
charged with multiple crimes and has escaped from prison 
several times.  He is on Interpol's APB list, and also on the 
Osijek County Court APB list because of war crimes committed 
during the war against Croatian civilians.  Croatian media 
report that Milovanovic has Serbian citizenship and therefore 
cannot be extradited to Croatia.  However, according to 
Croatian officials, under the terms of a bilateral agreement 
on prosecutorial cooperation, Milovanovic can be prosecuted 
in Serbia for the crimes he committed in Croatia.  (VDjukic) 
 
¶3.  (U) CONTROVERSIAL SINGER'S CONCERT INCLUDES SOME USE OF 
FASCIST SYMBOLS: 
Controversial pop singer Marko Perkovic Thompson's May 30 
concert on Zagreb's main square passed without major 
incidents, and with the local press showing only moderate 
interest.  Some 30-50,000 people packed the Jelacic square in 
cold rainy weather, with many waving Croatian flags. 
According to press reports, the spectacle was marred only by 
small groups of 'heated' young men waving Nazi salutes and 
singing Ustasha songs.  Three people wearing Ustasha insignia 
were arrested, and another three were detained for violent 
behavior.  However, the Ministry of Interior said that the 
number of offenders could grow once officials have reviewed 
video footage of the concert.  The concert took place on 
Zagreb's War Veterans' Day, but unlike last year, the city of 
Zagreb refrained from co-funding it.  Zagreb mayor Milan 
Bandic had come under increased pressure by his (Social 
Democratic Party) leadership not to sponsor the concert 
because some of Thompson's lyrics are widely considered to 
reflect nationalist views and sympathy for the Ustasha (the 
Nazi puppet regime in Croatia during WW2).  This year's 
concert, coming on the eve of the second round of municipal 
elections, did draw criticism from Bandic's rival for the 
mayor's office, liberal Josip Kregar, who felt it indirectly 
supported Bandic's campaign.  Bandic did in fact easily win 
the election the following day.  (MJelenc) 
 
¶4.  (U) EU GIVES GREEN LIGHT TO ONE SHIPYARD PRIVATIZATION 
PLAN, RED LIGHT TO ANOTHER: 
European Commissioner for Market Competition Neelie Kraus has 
given a positive opinion regarding the proposed privatization 
model for the Uljanik shipyard in Pula (reftel).   The EC has 
not approved, however, the plan to turn the Kraljevica 
shipyard into a megayacht-building facility, which would have 
taken it out of the shipyard census and eased the need to 
make capacity cuts at other shipyards.  Deputy Prime Minister 
Polancec announced that the Ministry of Economy, after 
receiving the positive opinion, has sent the EC a copy of the 
Government's proposed privatization tender for Uljanik.  The 
tender will offer 58% of the shares to a strategic investor 
and 25% to the employees.  It is not clear what will happen 
to the remaining 17%.   Uljanik is widely considered to be 
the best-performing of the shipyards, and may have the best 
chance of attracting investors.  (DMatijas) 
 
 
ZAGREB 00000326  002 OF 002 
 
 
¶5.  (U) EMBASSY SPONSORS CONFERENCE ON DIGITAL LIBRARIES: 
Bringing together librarians, researchers, and educators from 
over 20 countries, the Libraries in the Digital Age 
Conference addressed the changing environment for libraries 
and information systems in the digital world.  Held in 
Dubrovnik at the Inter-University Center and at the 
University of Zadar, the conference reflected on the rapid 
shift from physical to digital libraries and their impact on 
scholarship, education and government.  The Embassy has 
supported this annual conference since its inception in 2000. 
 Of the featured speakers, seven out of nine were from the 
United States, including Dr. Kaye Howe, Executive Director of 
the National Science Foundation Digital Library, and Dr. 
Marcia Bates of UCLA, who were co-sponsored by the Embassy. 
Our support for this conference builds on our outreach to 
public libraries and support for other library association 
conferences.  Libraries are important institutions in Croatia 
as a source of community activity and are heavily visited 
given the relatively high cost of books, newspapers and 
periodicals.  (KWetzel) 
 
¶6. (U) USCG LIAISON OBSERVES SMOOTH OPERATIONS IN SPLIT AND 
HVAR PORTS: 
On June 1-4, the U.S. Coast Guard's international port 
security liaison officer for Croatia visited port facilities 
in Split and Hvar to observe implementation of the 
International Ship and Port Facility Security (ISPS) Code. 
The liaison officer offered suggestions for improving 
implementation of the code at the "North Port" facility in 
Split by requiring the contracting company that operates the 
facility to take a larger role in developing and implementing 
the security plan. In Hvar, staff impressed the liaison with 
their ability to keep the port operating smoothly to 
accommodate the high traffic of the tourist season, despite 
the port's small size, close proximity to onshore businesses, 
and strong and frequently shifting winds. The liaison 
suggested formalizing the de facto team of port authority, 
police, fire department, and nautical center staff who 
already coordinate closely on key aspects of port operations. 
(SLitke) 
BRADTKE