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PP RUEHIK
DE RUEHVB #0775 3651226
ZNR UUUUU ZZH
P 311226Z DEC 09
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9778
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS ZAGREB 000775 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KCOR HR
SUBJECT: ZAGREB DAILY REPORT: DECEMBER 31, 2009 
 
¶1. (U) GoC DECIDES PROVIDE CROATIAN VERSION OF EU acquis 
communautaire TO INTERESTED NEIGHBORS: The GoC decided on 
December 30 to make available the Croatian translation of the 
European Union's acquis communautaire to interested countries 
in Southeast Europe. (SEE SEPTEL FOR DETAILS). 
 
¶2. (U) ANOTHER CORRUPTION CASE: CROATIAN POSTAL BANK (HPB) 
MANAGERS ARRESTED IN ZAGREB: Croatian authorities detained 
six individuals, including two former members of the 
management board for the State-owned Croatian Postal Bank 
(HPB) December 30 on charges related to the misappropriation 
of up to $250 million from the HPB.  A seventh suspect, the 
former head of HPB, is expected to be detained when (or if) 
he returns from a ski vacation in Austria.  Authorities 
believe the suspects received or arranged huge loans from HPB 
outside of proper procedures.  The Croatian National Bank 
(HNB) issued a statement in reaction to the arrests, 
partially absolving the current management from suspicions 
that the poor business practices of the former managers still 
continue at HPB.  According to a HPB statement, after the 
detained managers left the bank last summer, the current 
management board 'cleaned up' the loan portfolio, introduced 
greater transparent loan-granting procedures and improved 
cost controls. 
 
¶3. (U) BANDIC, JOSIPOVIC SQUARE OFF IN TV DEBATE; EARLY POLLS 
FAVOR JOSIPOVIC: Croatians were treated December 30 to 
back-to-back TV debates - on public broadcaster HRT1 and on 
private NovaTV - between Social Democratic Party (SDP) 
candidate Ivo Josipovic and independent candidate Milan 
Bandic.  While the debates seem to be judged more or less as 
a draw, the starkly differing styles of the two candidates 
were on full display, which Bandic summoned up by saying that 
Josipovic's experience comes "from a book and mine from 
life."  Josipovic, true to form, lectured Bandic on several 
occasions regarding the legal specifics of the role of the 
president and argued Bandic was incapable - insinuating that 
Bandic is corrupt- of fighting corruption.  Bandic, for his 
part, emphasized his faith and hard work for ordinary 
citizens, while attacking Josipovic for being a pawn of the 
SDP leadership.  Meanwhile, Promocija-Plus conducted a 
telephone poll of 1500 respondents after the first election 
round and gave Josipovic a sold lead.  Josipovic received the 
support of 53.5% of the respondents, while Bandic received 
only 33.7% support with roughly 13% still undecided. 
 
¶4. (U) VETERANS GROUPS SPLITTING VOTE; BANDIC SECURES VOTE OF 
BOSNIAN CROATS: Veterans' organizations - a sizable 
constituency in country with over 400,000 registered vets -- 
are generally backing independent candidate Milan Bandic, 
with several associations in Zagreb and Vukovar expressing 
their support of Bandic. Josipovic's campaign, however, 
announced endorsement of his candidacy by a group of 17 
prominent war veterans, including (somewhat incongruously) 
ICTY indictee generals Rahim Ademiand Tihomir Blaskic. 
Meanwhile, Bandic, as expected  gained the public support of 
the main Croatian parties in Bosnia-Hercegovina, the Croatian 
Democratic Union of Bosnia-Hercegovina (HDZ-BiH) and the HDZ 
¶1990.  (NOTE: The ruling HDZ in Croatia publicly stated it 
will not support either candidate.)  In its press release, 
the HDZ 1990 said Bandic's platform clearly stated his 
positions on Bosnia-Hercegovina and the position of Bosnian 
Croats. explaining that "he publicly pushed for ensuring 
their institutional equality, which we consider significant 
in light of the necessary constitutional reforms." 
WALKER