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PP RUEHIK
DE RUEHVB #0122 0571413
ZNR UUUUU ZZH
P 261413Z FEB 10
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9938
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS ZAGREB 000122 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON HR
SUBJECT: ZAGREB DAILY ACTIVITY REPORT: FEBRUARY 26, 2010 
 
POLITICAL RELATIONS BETWEEN CROATIA AND SERBIA STAGNATING, FM 
JANDROKOVIC SAYS 
 
¶1. (U)  Political relations between Croatia and Serbia are 
stagnating, Croatian Foreign Minister Gordan Jandrokovic said 
in a February 25 television interview; although he stressed 
that the countries had good cooperation on economic, police, 
judicial and cultural issues.  Jandrokovic was responding to 
questions about Serbian President Boris Tadic's comments 
earlier in the week that relations between the two countries 
would be damaged if The Hague war crimes tribunal acquits 
Croatian General Ante Gotovina.  Both Jandrokovic, and in a 
separate statement Prime Minister Kosor, described Tadic's 
comments as inappropriate pressure on the ICTY.  Jandrokovic 
added that Tadic "should be a bit more careful about what he 
says" considering that Serbia has not extradited either 
Bosnian Serb military leader Ratko Mladic or Croatian Serb 
rebel leader Goran Hadzic to The Hague.  Despite political 
tensions, Jandrokovic raised the possibility of a meeting 
between President Ivo Josipovic and President Tadic at a 
summit of Southeastern European countries in March in 
Slovenia. 
 
EVEN AS CROATIA SEEKS SERBIAN TOURISTS AS BELGRADE TOURISM 
FAIR 
 
¶2. (U) Despite the on-going political exchanges (see previous 
item), Croatia was officially represented at Belgrade's 
International Tourism Fair for the first time since the 
break-up of Yugoslavia.  Croatian Tourism Minister Damir Bajs 
personally attended to promote Croatia as a summer holiday 
destination for Serbians.  According to Bajs, Croatia wants 
to increase the number of Serbian tourists in Croatia to 
above the 2009 figure of nearly 90,000.  Bajs also discussed 
the possibility of increasing the number of flights from 
Belgrade to Croatian destinations with Serbian Minister of 
Economy and Regional Development Mladjan Dinkic.  Currently, 
there is only one weekly flight from Belgrade to JAT Airways 
to Pula.  Bajs claimed there were no legal obstacles to more 
flights, but that increased routes will depend not so much on 
flight permits but on demand levels and the profitability of 
the routes.  Local media reported that Croatia's presentation 
was well received, but that Serbian tour operators want 
reductions in Croatian hotel prices to make the offers more 
attractive for their clients. 
 
U.S. EURASIAN ENERGY ENVOY BEGINS VISIT TO CROATIA 
 
¶3. (U) U.S. Special Envoy for Eurasian Energy Ambassador 
Richard Morningstar began a two-day visit to Croatia on 
February 25 with a trip to the island of Krk, site of 
Croatia's largest oil terminal and proposed site of a LNG 
terminal.  He met with Ante Markov, director of state-owned 
oil-pipeline operator JANAF, and discussed JANAF expansion, 
Croatia's role in regional energy issues, and Prime Minister 
Kosor's March 1-2 visit to Moscow.  On February 26, 
Ambassador Morningstar is meeting with the American Chamber 
of Commerce in Zagreb, PM Kosor, and member of Parliament 
Kresimir Cosic, who has been heading the Sabor's 
consideration of national energy policy.  Amb. Morningstar 
will have dinner with leading energy specialists and 
officials involved in the LNG terminal at the Residence. 
 
AMBASSADOR FOLEY ATTENDS AMCHAM INTELLECTUAL PROPERTY 
CONFERENCE 
 
¶4. (U) U.S. Ambassador to Croatia James Foley opened an IPR 
conference on February 25 organized by the American Chamber 
of Commerce in Croatia.  In his remarks, the Ambassador 
stressed the importance of innovation and intellectual 
property protection for economic growth and noted U.S. 
support of reforms aimed at liberalizing Croatia's economy. 
Ljiljana Kuterovac from the State Intellectual Property 
Office commented that intellectual property is still 
insufficiently protected in Croatia.  Most IPR protection 
cases in Croatia are brought by foreigners and individuals, 
in contrast to global trends, where patent protection is 
mainly used by companies.  She added that Croatia is second 
to last among European countries according to the number of 
patents registered with the European Patent Office.  The 
State Intellectual Property Office is proposing changes to 
the government's intellectual property development strategy, 
and pushing for wider application of intellectual property 
protection in the industry in accordance with international 
and European standards. 
FOLEY