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C O N F I D E N T I A L SECTION 01 OF 06 LJUBLJANA 000028 
 
SIPDIS 
 
E.O. 12958: DECL: 02/10/2010 
TAGS: PREL MARR NATO SI
SUBJECT: SCENESETTER FOR ADMIRAL MARK FITZGERALD 10 
FEBRUARY 2010 VISIT TO THE REPUBLIC OF SLOVENIA 
 
Classified By: CDA Brad Freden, reasons 1.4(b,d) 
 
¶1. (SBU) Admiral Fitzgerald:  Welcome to Slovenia.  Your trip 
provides an excellent opportunity to reinforce the message of 
strong U.S. government support for Slovenia and its 
commitment to participating in NATO and other international 
missions.  The Government of Slovenia (GoS) recently approved 
the deployment of an Operational Mentoring and Liaison Team 
in Afghanistan (OMLT) in October 2010 with no national 
functional caveats.   Slovenia currently has more than 500 
soldiers (almost seven percent of its military) deployed 
abroad in international missions; this from a country with a 
population of only two million.  Your visit is important for 
maintaining momentum in a country still struggling to find 
its place in NATO and the world.. 
 
Slovenia's Contributions to NATO and Regional Security 
--------------------------------------------- --------- 
 
¶2. (SBU) Slovenia,s military has taken great strides in a 
short time to become an all-volunteer force that is 
professional, equipped and ready to contribute to the 
collective security of the NATO Alliance.  Slovene 
contributions represent quality even if the quantity in 
absolute terms is not large.  U.S. and multinational 
commanders repeatedly praise Slovene soldiers for their 
professionalism and quality.  Slovenia has approximately 
seven percent of its armed forces deployed abroad, in 
Afghanistan, Kosovo, Bosnia, Lebanon, and Syria. 
 
¶3.  (SBU) Slovenia is an important partner in our efforts to 
stabilize the Western Balkans, integrate these countries into 
European and Euro-Atlantic institutions, and further the 
democratic transformation of each nation,s polity.  Slovenia 
has the highest per capita GDP of any post-communist country 
and was the first country in CEE to adopt the Euro. 
Economically, politically and militarily, Slovenia is boxing 
above its weight.  Slovenia served as the Chairman-in-Office 
of the Council of Europe from May to November 2009, as well 
as President of the European Union Council from January to 
June 2008, Chairman-in-Office of the 
Organization for Security and Co-operation in Europe (OSCE) 
in 2005 and Chairman of the International Atomic Energy 
Agency (IAEA) Board of Governors in 2006-2007.  Slovenia was 
the first of the twelve new members of the European Union to 
take on the organization,s presidency, a role that can be 
challenging even for larger countries. 
 
¶4.  (U) Several U.S. General  / Flag Grade Civilian and 
Military leaders have visited Slovenia in the last 12 months, 
further highlighting the importance of the U.S.-Slovene 
military partnership.  These include 
 
4A. (U) James Clapper, Under Secretary of Defense for 
Intelligence. 
 
4B. (U) Admiral James G. Stavridis, Commander, U.S. European 
Command and NATO Supreme Allied Commander Europe. 
 
4C. (U) Ms. Letitia "Tish" Long, Deputy Director Defense 
Intelligence Agency. 
 
4D. USS VICKSBURG (CG 69) visited Koper, 10-13 July 2009. 
 
4E. (U) Scheduled to visit in the next 45 days are: 
 
4E1. (U) Senator George Voinovich (R-OH), Senate 
Appropriations Committee. 
 
4E2. (U) Senator Jeanne Shaheen (D-NH), Senate Foreign 
Relations Committee. (Note: Shaheen chairs the Subcommittee 
on European Affairs, which has jurisdiction over NATO, among 
other areas). 
 
4F. (U) - The USS JOHN L HALL (FFG 32) will visit Koper, 
15-18 March 2010. 
 
Priorities in Bilateral Relationship 
------------------------------------ 
 
 
LJUBLJANA 00000028  002 OF 006 
 
 
¶5. (C) Our top priorities for the period 2010-2011 are: 
(1) Successful resolution of the border dispute with Croatia 
in a manner that allows Croatia to join the European Union as 
quickly as possible; 
(2) A qualitative and quantitative increase in Slovenia,s 
contribution to the NATO International Security Assistance 
Force (ISAF) in Afghanistan, including willingness to take on 
more challenging missions; 
(3) Continued proactive engagement of the Slovenian 
government, businesses and non-governmental organizations 
(NGO) in support of democratic institution-building, economic 
development and European integration of the Western Balkans; 
(4) Continued deployment of a full battalion in NATO,s KFOR 
mission in Kosovo; and 
(5) Slovenian acceptance of one or two detainees from 
Guantanamo 
 
¶6.  (U) Unfortunately, in the near term, the global economic 
crisis is having a negative impact on all of our priorities, 
putting pressure on the Slovenian defense budget, limiting 
Slovenia,s ability to deploy troops abroad, train and equip 
its forces, and hindering bilateral trade and investment. 
 
¶7. (SBU) We respectfully request that the Commander, U.S. 
Allied Joint Force Command Naples and Commander, U.S. Naval 
Forces Europe and Africa stress the following Key Points when 
meeting with the Slovene Government officials. 
 
7A.  (SBU)  His appreciation of the Slovene Government,s 
commitment to deploy an Operational Mentoring and Liaison 
Team (OMLT) in Afghanistan without national functional 
caveats. 
 
7B. (SBU) His support for SECDEF approval of the Embassy,s 
request for Non-reimbursable Round-trip Travel for Slovenian 
Prime Minister Borut Pahor and Defense Minister Ljubica 
Jelusic from Ljubljana, Slovenia, to Afghanistan for a three 
day period in March 2010. Embassy Country Team believes this 
visit is critical to maintain domestic political support for 
increased engagement in Afghanistan. 
 
7C. (U) Stress the crucial role that peaceful and prosperous 
Slovenia plays in contributing to regional stability in the 
Balkans. 
 
MOD and SAF in Transition 
------------------------- 
 
¶8.  (SBU) The forward looking views of Minister of Defense, 
Dr. Ljubica Jelusic, about the necessity of defense force 
transformation have led to some significant changes since she 
took office in late November 2008.  She appointed Mr. Uros 
Krek, a National Defense University (NDU) graduate, as her 
State Secretary.  In addition, she relieved LTG Albin Gutman 
as the Chief of the General Staff and replaced him with Major 
General Alojz Steiner, a graduate of the National Defense 
University, explaining the importance of SAF leadership 
focused on transformation.  She promoted Brigadier Branimir 
Furlan, an Army War College graduate, to be the Deputy Chief 
of the General Staff, and placed Brigadier Bojan Pograjc, 
also a National Defense University graduate, into the 
position of chief of their equivalent to U.S. Army Training 
and Doctrine Command in July 2009. Finally, she extended 
Brigadier Alan Geder, a U.S. Army War College graduate, as 
the commander of Forces Command and was influential in 
placing Colonel Dobran Bo 
zic,  another NDU graduate, as Commander of First Brigade, 
which is the Slovene  war-fighting, brigade.   She has 
initiated an overall strategic defense review and has also 
led an interagency review of Slovenia,s Afghanistan policy. 
She is placing much importance on a  capabilities-based, 
approach to strategy and a  project-based, approach to 
procurement monies. 
 
¶9.  (SBU) The bottom-line for the MOD and Slovene Armed 
Forces (SAF) is that they are at a critical juncture in their 
transformation.  There are still many former Yugoslav 
officers and Enlisted in influential positions at the mid 
levels of the SAF, , some of whom are suspicious of U.S. 
intentions and/or reluctant to embrace reforms.  Continued 
 
LJUBLJANA 00000028  003 OF 006 
 
 
strong USG engagement is needed to support the efforts of the 
Minister and the present western-oriented leadership. 
 
¶10.  (U) Background:  The SAF underwent a major 
reorganization from 2003 to 2005, with the goal of changing 
from a conscription-based territorial defense force to a 
professional, deployable, and combat capable military with 
NATO.    The SAF is also responsible for civil-military 
disaster relief and continually assists with fire-fighting, 
mountain and water rescue, and disaster relief from 
earthquakes and floods. Conscription ended earlier than 
expected, in October 2003, and compulsory reserve service 
will end by 2010. As of January 2010, Slovenia's professional 
force included 7,593 soldiers and 1,712 reservists. The 
current force structure consists of one fully professional 
motorized infantry brigade and two cadre/reserve force 
mechanized brigades.  The professional brigade represents 
Slovenia's deployable reaction force. The Slovene Armed 
Forces also include a small air force, equipped with 
helicopters (Bell 412 and AS 532AL Cougar) and turbo-prop 
fixed wing aircraft (Pilatus PC9M), and a naval attachment, i 
ncluding a coastal patrol boat (HPL-21 Ankaran). 
 
U.S. Military Assistance 
------------------------ 
 
¶11.  (U) The United States provides bilateral military 
assistance to Slovenia, through International Military 
Education and Training (IMET), Foreign Military Financing 
(FMF) program, the State Partnership Program (with the 
Colorado National Guard), the George C. Marshall European 
Center for Security Studies, the U.S. European Command 
(EUCOM) Security Cooperation  Program, and the Regional 
Counterterrorism Fellowship Program (CTFP) and Counter 
Narcotics Training program.  The Mission,s Office of Defense 
Cooperation continues to stretch modest IMET and FMF funding 
($733,000 for IMET and $400,000 for FMF in FY09), sending 
increasing numbers of students to the U.S. for training and 
maximizing FMF purchases.  In order to stretch their IMET 
dollars, Slovenia co-funds training for its students which 
doubles the amount of students sent to US training. 
Decreasing IMET or FMF would have a significant impact on 
total numbers of students trained and would impact the pace 
of transformation. 
 
Mil-Mil Initiatives 
------------------- 
 
¶12.  (SBU) Slovenia,s government announced on 24 December 
2009 that it intends to lead an Operational Mentor and 
Liaison Team (OMLT) in Afghanistan, augmented by the Colorado 
National Guard, with an intended deployment date of October 
¶2010.  We are actively engaged with the Ministry of Defense 
and the Slovene Armed Forces in working through the initial 
tasks encompassing personnel, training, equipment, and 
information needs in support of the OMLT initiative.  Other 
mil-mil activities have included cooperative engagements with 
component commands, i.e., US Army Europe and US Air Forces 
Europe for Joint Terminal Attack Controllers / Joint Forward 
Observes training, Counter-IED training, convoy escort 
training, opening up a training range for F16s based at 
Aviano Air Base in Italy and Slovene PC-9s, and increasing 
visibility on Slovene desires to establish a Center of 
Excellence for Mountain Warfare, to include  top-off, 
courses for soldiers going to the Afghanistan Theater. 
 
¶13.  (U) Slovenia has contributed 10,000 rifles, 60 mortars 
and over 17,000 rounds of mortars to Afghanistan.  They also 
funded the delivery of the materiel themselves via pre-paid 
NATO flight hours.  Slovenia could possibly respond 
positively to our request that it donate more equipment. 
 
¶14.  (U) Two recent initiatives are the intended purchase of 
a Tactical Transport Aircraft (TTA) in 2012 or later and the 
establishment of a Master Information Exchange Agreement 
(MIEA).  Slovenia is preparing to receive the Price and 
Availability information for the purchase of a C130J 
tactical transport aircraft.  Slovenia is hard at work 
calculating the overall costs of such a purchase, but does 
have a definite vision of how they would use such an aircraft 
 
LJUBLJANA 00000028  004 OF 006 
 
 
regionally and externally.  Their idea of a transport hub for 
Southeastern Europe and beyond with TTA aircraft or a Depot 
facility has potential for regional military and civil 
defense cooperation,  and access for all NATO / Membership 
Action Plan (MAP) nations.   The MIEA umbrella agreement 
would open up mutually-beneficial exchange opportunities for 
US and Slovene Defense Industry scientists and defense 
experts.  Scientific research is is one of this country,s 
notable strengths.  Slovenia would be eligible for eventual 
cooperative production under s 
uch and agreement.  We expect ratification of this agreement 
and project start dates within the next two years.  All of 
these initiatives are supported by the Mission Country Team. 
 
JMTC and JMRC 
------------- 
 
¶15.  (U) The relationship between the SAF and the Joint 
Multi-National Training Center (JMTC) and Joint Multinational 
Readiness Center (JMRC) has exploded over the last two years. 
 It has become the norm that SAF units train at JMTC/JMRC 
prior to their deployments.  In January and February 2009, 
the SAF sent over 1,100 personnel to train at JMTC/JMRC prior 
to their rotations to Kosovo and Afghanistan.   In addition, 
the SAF sent over 100 personnel to act as civilians on the 
battlefield (COBs), which greatly relieved the active duty 
and contract personnel required to perform that mission. In 
preparation for the NATO Kosovo Force (KFOR) 12 rotation, 
they have continued their involvement with a recently 
completed Mission Rehearsal Exercise along with the US Army 
173rd Airborne Brigade Combat Team.  In fact, Slovene Armed 
Forces have built deployments to JMTC and JMRC into their 
yearly training plan. 
 
¶16.  (U) One Slovene Navy initiative remains on the table and 
has an interesting background:  as a means of eliminating its 
debt, Russia entered into a contract to build a new 
multi-purpose vessel with delivery to SAF planned in 2010. 
The vessel is allegedly being built to NATO standards.  It 
will be 49 meters in length and require a crew of 24.   It 
will require some personnel increases in the navy which is 
currently comprised of 59 individuals.   The SAF also plans 
to use this vessel for search and rescue operations. 
 
A Valued Ally with Domestic Challenges 
-------------------------------------- 
 
¶17.  (U) Slovenia's economy is highly dependent on foreign 
trade.  Accordingly, the economy has suffered from the 
recessions in export markets, primarily Germany.  About 
three-quarters of Slovenia's trade is with the EU. 
Additionally, the country has penetrated successfully the 
Balkan and eastern European markets, including the former 
Soviet Union region.  This high level of openness makes 
Slovenia extremely sensitive to economic conditions in its 
main trading partners and changes in its international price 
competitiveness.  Keeping labor costs in line with 
productivity is thus a key challenge for Slovenia's economic 
well-being.  Services contributed the most to the national 
output in 2007, accounting for 63.5 percent of GDP.  Industry 
and construction comprised 34.4 percent of GDP; and, 
agriculture, forestry, and fishing accounted for 
2 percent of GDP. 
 
¶18.  (U) Historically, economic management in Slovenia is 
relatively good, but has suffered greatly during the 
recession.   Slovenia,s public budget deficit rose to 5.5% 
of GDP in 2009 and will likely exceed 6% in 2010, exceeding 
the 3% limit set in the European Union,s Growth and 
Stability Pact.  As a percentage of GDP, Slovenia,s total 
public debt remains at a manageable 30%, well under the 60% 
limit set by the Growth and Stability Pact. 
 
¶19.  (U) The current government is actively introducing 
measures to shore up Slovenian businesses in light of the 
global economic crisis.  The biggest influence on the Slovene 
economy in 2010, however, will be the ability of Slovenia,s 
export markets, notably Germany, to weather the financial 
storm. 
 
 
LJUBLJANA 00000028  005 OF 006 
 
 
Foreign Relations and Regional Cooperation 
------------------------------------------ 
 
¶20.  (U) In regular public statements, Slovenia's highest 
politicians underscore their government's commitment to 
expanding cooperative arrangements with neighbors and active 
contributions to international efforts aimed at bringing 
stability to southeast Europe. Resource 
limitations are a concern for the government, which does not 
wish to see itself spread too thin. Nonetheless, the Slovenes 
are taking concrete steps toward a more outward looking and 
constructive role in regional and international security 
arrangements, as resources allow. 
 
¶21.  (U) Slovenia takes an active role in humanitarian 
assistance with donations to the victims of the Southeast 
Asian tsunami, the Pakistani earthquake, and Hurricane 
Katrina, as well as ongoing assistance to refugees in Darfur 
and support for the World Food Program.  Most recently, 
Slovenia donated approximately $135 million in funds, 
materiel (tents) and transportation costs to the relief 
efforts following the Haiti earthquake. 
 
¶22.  (U) Through its International Trust Fund for Demining 
and Mine Victims Assistance (ITF), Slovenia has created the 
demining instrument of choice for the international community 
in Bosnia and Herzegovina, the rest of the Balkans, and now 
even further afield in Central Asia and Cyprus. The 
organization has raised over $203 million since its inception 
in 1998 (with the United States contributing over $92 
million). 
 
¶23.  (U) Slovenia is engaged with 29 countries in bilateral 
military exchange--most actively with the U.S.--and in 
regional cooperative arrangements in central and southeast 
Europe; it participates in or intends to contribute forces 
for five major multinational regional peacekeeping bodies. 
 
¶24.  (U) Slovenia participates in the Proliferation Security 
Initiative (PSI) to halt the proliferation of weapons of mass 
destruction (WMD), their delivery systems, and related 
materials worldwide.  Slovenia has ratified all 13 
international anti-terrorism conventions, and is party to the 
Wassenaar arrangement controlling exports of weapons and 
sensitive technology to countries of concern.  Slovenia also 
participates in Southeast European Defense Ministerial (SEDM) 
activities. 
 
Relations with Neighbors 
------------------------ 
 
¶25.  (SBU) Slovenia's bilateral relations with its neighbors 
are generally harmonious and cooperative. However, in late 
2008 and early 2009, the border dispute with Croatia occupied 
headlines in both countries. Croatia,s April 2009 accession 
to NATO required Slovene ratification, and several small 
Slovene political parties tried to force a public referendum 
on the ratification. The push for a referendum failed due to 
lack of support, and Slovenia,s parliament ratified 
Croatia,s NATO accession by an overwhelming majority.  In 
November 2009, the two Prime Ministers signed an arbitration 
agreement that gives an independent tribunal authority to 
settle the border dispute.  However, Slovenia has yet to 
ratify the agreement.  Other outstanding issues between the 
two countries include property rights, Croatian depositors' 
savings in the Ljubljanska Banka from Yugoslav times, and the 
Krsko nuclear power plant which is co-owned by Slovenia and 
Croatia. 
 
U.S.-Slovenia Bilateral Relations 
--------------------------------- 
 
¶26.  (U) Since 1992, the United States and the Republic of 
Slovenia have developed an impressive track record of 
cooperation on bilateral, regional, and global issues. The 
United States has worked closely with the Slovenes to resolve 
succession issues stemming from the breakup of Yugoslavia. 
Slovenia provided invaluable assistance to the United States 
and NATO by facilitating the deployment of the Implementation 
Force (IFOR)--and subsequently Stabilization Force (SFOR)--to 
 
LJUBLJANA 00000028  006 OF 006 
 
 
Bosnia after the conclusion of the Dayton accords. With 
strong U.S. support, Slovenia has developed the International 
Trust Fund as the demining instrument of choice in the 
Balkans and is expanding operations to include the Caucasus. 
 
¶27.  (U) On the economic front, the United States has worked 
to develop bilateral trade and investment with Slovenia. 
Under the Support for Eastern European Democracy (SEED) Act, 
the U.S. provided technical assistance on enterprise 
competitiveness, banking and pension reform, competition 
policy, and debt restructuring.  Reflecting the progress 
Slovenia has made in these areas, Slovenia was among the 
first transition countries to  graduate, from the SEED 
program. 
 
¶28.  (U) In October 1997, Slovenia joined the group of 
countries--now numbering 35--whose citizens enjoy the 
privilege of visa-free travel to the United States. 
 
¶29.  (SBU) Given Slovenia's economic success and location, 
its history, language, business ties, and insights into the 
region, Slovenia is an important partner in advancing the 
shared goal of regional political and economic stability. 
The utility of this partnership was demonstrated by effective 
U.S.-Slovenian cooperation on a broad mix of issues at the 
U.S.-EU Summit held in Ljubljana in June 2008.  More than 
geographically, Slovenia is a bridge from developed Europe 
into the Balkans, an area of the continent where significant 
diplomatic and security challenges remain.  Our interests are 
aligned in the region (including expansion of NATO and EU) 
and our future partnership is crucial.  Slovenia,s expertise 
and strong ties give extra value to its involvement in the 
region. 
FREDEN