US embassy cable - 04ZAGREB300

C O N F I D E N T I A L ZAGREB 000300 
 
SIPDIS 
 
 
DEPARTMENT FOR EUR/SCE 
THE HAGUE FOR CLIFTON AND JOHNSON 
 
E.O. 12958: DECL: 02/20/2014 
TAGS: PREL, PGOV, KAWC, HR, UK, War Crimes 
SUBJECT: CROATIA TRYING TO CONVINCE UK IT IS COOPERATING 
WITH ICTY 
 
CLASSIFIED BY: DCM PATRICK S. MOON FOR REASONS 1.5 (B,D) 
 
    SUMMARY 
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1.  (C) THE UK MAY BE EASING THE CRITERIA BY WHICH IT WILL 
MEASURE CROATIA'S COOPERATION WITH THE INTERNATIONAL CRIMINAL 
TRIBUNAL FOR THE FORMER YUGOSLAVIA (ICTY).  IN ADVANCE OF A 
FEBRUARY 11 VISIT BY FM ZUZUL TO LONDON, A BRITISH EMBASSY 
OFFICER INFORMED US THAT IF PM SANADER MAKES A CLEAR PUBLIC 
STATEMENT OF HIS GOVERNMENT'S INTENT TO ARREST AND TRANSFER 
ICTY PIFWC ANTE GOTOVINA AND MAKES KEY CHANGES TO SENIOR 
INTELLIGENCE SERVICE PERSONNEL, HMG WOULD AGREE TO MOVE 
FORWARD WITH THE RATIFICATION PROCESS OF CROATIA'S 
STABILIZATION AND ASSOCIATION AGREEMENT (SAA) WITH THE 
EUROPEAN UNION.  END SUMMARY. 
 
2.  (C) FROM FEBRUARY 11 - 12, CROATIAN FOREIGN MINISTER 
MIOMIR ZUZUL VISITED LONDON TO URGE FORWARD PROGRESS TOWARD 
UK RATIFICATION OF CROATIA'S SAA.  THE UK AND THE NETHERLANDS 
ARE WITHHOLDING RATIFICATION UNTIL CROATIA DEMONSTRATES IN 
THE MOST CONCRETE TERMS THAT IT IS COOPERATING WITH ICTY. 
UNTIL RECENTLY, THE PRIMARY BENCHMARK HMG HAS BEEN WILLING TO 
ACCEPT IS THE APPREHENSION AND SUBSEQUENT TRANSFER TO ICTY 
CUSTODY OF ICTY PIFWC ANTE GOTOVINA. 
 
3.  (C) ON FEBRUARY 9, A BRITISH EMBASSY OFFICER BASED IN 
ZAGREB BRIEFED US THAT THE UK WOULD NOW CONSIDER MOVING 
FORWARD WITH THE SAA IF CROATIA TOOK THE FOLLOWING STEPS: PM 
SANADER MUST MAKE AN UNEQUIVOCAL PUBLIC STATEMENT DECLARING 
HIS READINESS TO ARREST GOTOVINA AND CERTAIN SENIOR OFFICIALS 
AFFILIATED WITH CROATIAN INTELLIGENCE SERVICES WOULD HAVE TO 
LEAVE THEIR POSTS.  THE BRITISH EMBASSY OFFICER SAID THAT 
    ZELJKO BAGIC, A SENIOR STAFFER TO PRESIDENT MESIC, WOULD HAVE 
TO GO BECAUSE HE HAS MISMANAGED CROATIA'S INTELLIGENCE 
SERVICES AND HAS BEEN TAINTED WITH CORRUPTION.  THE OTHER 
OFFICIAL WAS DESCRIBED ONLY AS "OFFICIALS WITH CLOSE LINKS TO 
HERVOJE PETRAC."  PETRAC IS NOW A WEALTHY CROATIAN 
BUSINESSMAN WITH DIVERSE INTERESTS, BUT IS WIDELY RUMORED TO 
HAVE GOTTEN HIS START IN MONEY-LAUNDERING DURING THE WAR.  HE 
HAS BEEN THE SUBJECT OF POLICE INVESTIGATIONS, BUT NO 
INDICTMENTS HAVE BEEN FILED.  PETRAC EMPLOYS THE DAUGHTER OF 
DAMIR LONCARIC, HEAD OF CROATIA'S INTELLIGENCE AGENCY. 
 
4.  (C) IN A CONVERSATION WITH THE AMBASSADOR ON FEBRUARY 14, 
BRITISH AMBASSADOR NICHOLAS JARROLD CONFIRMED THAT HMG WAS 
CONSIDERING CHANGING ITS MEASURE OF HOW TO JUDGE CROATIA'S 
COOPERATION WITH ICTY.  WHILE HE MADE NO MENTION OF THE 
"PETRAC CONNECTION," HE DID CONFIRM THAT HMG WOULD SEEK 
BAGIC'S OUSTER. 
 
COMMENT 
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5.  (C) THE UK DECISION -- STILL UNCONFIRMED -- TO MOVE THE 
GOALPOSTS A FEW YARDS CLOSER WOULD BE A POSITIVE RESULT OF 
THE SANADER GOVERNMENT'S EFFORT TO CONVINCE THE EU (AND US) 
THAT CROATIA IS REALLY LOOKING FOR GOTOVINA AND THAT GOTOVINA 
IS NOT IN CROATIA.  BUT THE NEW BENCHMARKS ARE STILL TOUGH 
POLITICAL HURDLES; IN AN APPEARANCE ON BBC'S "HARD TALK" 
SUBSEQUENT TO HIS MEETINGS IN LONDON, FM ZUZUL REPEATEDLY 
DODGED A DIRECT QUESTION ABOUT WHETHER HIS GOVERNMENT WOULD 
ARREST GOTOVINA. 
 
    6.  (C) WHILE THE INSISTENCE AT SACKING SENIOR INTEL 
OFFICIALS COULD SEEM ODD, IT REFLECTS UK FRUSTRATION -- WHICH 
WE SHARE -- WITH THE INTELLIGENCE ESTABLISHMENT IN ZAGREB. 
MORE SIGNIFICANT THAN BAGIC'S AND LONCARIC'S ALLEGED 
CONNECTIONS WITH ORGANIZED CRIME ARE THEIR LINKS TO PEOPLE 
WHO HAVE HAD CONTACT WITH GOTOVINA.  BAGIC WAS REPORTEDLY THE 
CONNECTION DURING MESIC'S BRIEF (AND VERY INDIRECT) CONTACT 
WITH GOTOVINA IN 2003.  LONCARIC'S CONNECTION TO PETRAC -- 
WHO IS WIDELY BELIEVED TO BE THE MONEY BEHIND THE 
SENSATIONALIST NEWSWEEKLY "NACIONAL" -- MAY HAVE LED TO 
GOTOVINA'S SURFACING IN THAT PUBLICATION AROUND THE SAME 
TIME.  FINALLY, SINCE SANADER CANNOT SACK EITHER BAGIC OR 
LONCARIC WITHOUT MESIC'S ASSENT, THIS BENCHMARK MAY BE 
IMPOSSIBLE FOR THE GOC TO ACHIEVE. 
FRANK 
 
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