US embassy cable - 03ZAGREB578

C O N F I D E N T I A L ZAGREB 000578 
 
SIPDIS 
 
E.O. 12958: DECL: 03/12/2008 
TAGS: PREL, PGOV, ECON, EFIN, MK, SR, BK, SI, MW, HR 
SUBJECT: UNBLOCKING SFRY ASSETS: PICULA SAYS GOC STILL 
LOOKING AT PROPOSAL 
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PAGE 02        ZAGREB  00578  141741Z 
 
REF: A. (A) STATE 50887 
     B. (B) ZAGREB 450 
 
CLASSIFIED BY: NICHOLAS HILL, POLITICAL ECONOMIC 
COUNSELOR, FOR REASONS 1.5 (B) AND (D) 
 
1.  (C) THE AMBASSADOR DELIVERED DEMARCHE (REF A) CONCERNING 
USG PLANS TO UNBLOCK SFRY ASSETS TO FOREIGN MINISTER PICULA 
MARCH 14.  PICULA WAS NON-COMMITTAL, BUT AGAIN POINTED TO THE 
DIFFICULTY OF PROVIDING A HOLD HARMLESS IN THE ABSENCE OF A 
RATIFIED SUCCESSION AGREEMENT.  AS HE HAS IN PREVIOUS 
MEETINGS WITH THE PRIME MINISTER AND FOREIGN MINISTER, THE 
AMBASSADOR STRESSED SEVERAL TIMES THAT PROVIDING A HOLD 
HARMLESS AGREEMENT WOULD NOT PREJUDICE CROATIA'S CASE WITH 
RESPECT TO THE ASI.  IN THE ABSENCE OF A HOLD HARMLESS, 
HOWEVER, CROATIA STOOD TO LOSE ALMOST $52 MILLION. 
 
2.   (C) THE AMBASSADOR UNDERSCORED THE APRIL 15 DEADLINE IN 
THE DEMARCHE, BUT NOTED THAT ANY DECISION SHOULD COME 
SUFFICIENTLY IN ADVANCE TO GIVE TIME TO REVIEW THEIR 
POSITIONS TO OTHER SUCCESSOR STATES WHO HAVE BEEN TAKING 
THEIR LEAD FROM THE GOC. 
ROSSIN 
 
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