US embassy cable - 03ZAGREB1718

C O N F I D E N T I A L ZAGREB 001718 
 
SIPDIS 
 
 
E.O. 12958: DECL: 07/31/2013 
TAGS: PREL, PGOV, BK, HR, Regional Issues 
SUBJECT: ASHDOWN IN ZAGREB 
 
REF: ZAGREB 1674 
 
CLASSIFIED BY: AMBASSADOR RALPH FRANK FOR REASONS 1.5 (B) AND (D) 
 
SUMMARY 
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1.  (C) DURING A JULY 30 VISIT TO ZAGREB, HIGH REPRESENTATIVE 
ASHDOWN PRAISED THE RACAN GOVERNMENT'S PRODUCTIVE POLICY 
TOWARD BOSNIA OVER THE PAST THREE YEARS AND EXPRESSED HOPE 
    THAT THE POLICY WOULD CONTINUE AFTER UPCOMING ELECTIONS IN 
CROATIA.  HE REFUSED TO BE ENGAGED IN NEGOTIATIONS ON THE 
STATUS OF THE PORT OF PLOCE AND ON A ROAD CONSTRUCTION 
PROJECT IN THE REGION OF NEUM, BIH, AND ENCOURAGED THE SIDES 
TO WORK THROUGH THESE BILATERAL ISSUES THEMSELVES.  IN A 
PRIVATE MEETING WITH THE AMBASSADOR, ASHDOWN DESCRIBED OHR'S 
AMBITIOUS WORK PLAN FOR THIS AUTUMN AND ASKED THAT WE URGE 
CROATIAN POLITICIANS TO ABSTAIN FROM CAMPAIGN RHETORIC WHICH 
COULD AFFECT PROGRESS IN BIH.  HE AGREED TO CONTINUE TO PRESS 
OTHER INTERNATIONAL COMMUNITY ACTORS TO ENSURE THE GOC MEETS 
REFUGEE RETURN IMPLEMENTATION BENCHMARKS.  END SUMMARY. 
 
2.  (C) HIGH REPRESENTATIVE PADDY ASHDOWN VISITED ZAGREB ON 
JULY 30 AT THE INVITATION OF THE CROATIAN GOVERNMENT.  IN 
MEETINGS WITH PRESIDENT MESIC, PM RACAN, WITH 
PARLIAMENTARIANS AND WITH THE PRESS, ASHDOWN PRAISED THE 
RACAN GOVERNMENT'S "PRODUCTIVE" POLICY TOWARD BIH AND 
PRESIDENT MESIC'S MORAL LEADERSHIP IN THE REGION.  IN HIS 
MEETING WITH THE AMBASSADOR, ASHDOWN THANKED THE USG FOR ITS 
STEADFAST SUPPORT OF OHR'S MISSION. 
 
3.  (C) ASHDOWN SAID THAT HE REJECTED EFFORTS BY BOTH RACAN 
AND MESIC TO GET OHR TO ENGAGE ON THE CORRIDOR 5C ROAD 
PROJECT AND ON THE STATUS OF THE PORT OF PLOCE, BOTH ISSUES 
ASHDOWN BELIEVES SHOULD REMAIN BILATERAL ISSUES.  AS HE DID 
DURING HIS MEETING WITH THE AMBASSADOR (REF), RACAN TOLD 
ASHDOWN THAT HE WAS CONCERNED ABOUT THE SPECTER OF "ISLAMIC 
FUNDING" FOR THE IMPORTANT ROAD CONSTRUCTION PROJECT AND 
THOUGHT THAT THE TENDERING PROCESS WOULD BE BIASED TOWARD A 
MAYLAYSIAN FIRM.  ASHDOWN SAID HE ASSURED RACAN THAT THE 
BIDDING FOR THE PROJECT WOULD BE TO EUROPEAN STANDARDS AND 
    THAT CONCERNS SHOULD BE DIRECTED TO THE GOBIH, NOT TO OHR. 
ASHDOWN SAID HE WAS PLEASED THAT IT APPEARED THE TWO SIDES 
WERE COMING TO CLOSURE ON THE ISSUE OF A BILATERAL AGREEMENT 
ON THE STATUS OF THE PORT OF PLOCE. 
 
4.  (C) ASHDOWN SAID HE WAS VERY RELIEVED TO HEAR CONFIDENT 
PREDICTIONS FROM THE CURRENT COALITION ABOUT THE LIKELY 
OUTCOME OF CROATIA'S NEXT PARLIAMENTARY ELECTIONS.  HE SAID 
THAT FOR ALL ITS FAULTS, THE RACAN GOVERNMENT'S POLICY TOWARD 
BIH HAS BEEN A "RAY OF LIGHT" IN THE REGION.  ASHDOWN 
DESCRIBED A SERIES OF PROJECTS AIMED AT STRENGTHENING 
NATIONAL-LEVEL BIH INSTITUTIONS WHICH OHR HOPES TO PRESS 
FORWARD IN THE COMING MONTHS.  HE ALERTED THE AMBASSADOR THAT 
NATIONALIST-LEANING POLITICIANS IN CROATIA MAY OBJECT TO SOME 
OF THESE REFORMS; HE ASKED THAT THE USG URGE POLITICAL 
LEADERS TO ABSTAIN FROM MAKING THEM ISSUES IN THE UPCOMING 
ELECTION CAMPAIGN. 
 
5.  (C) ASHDOWN SAID THAT HE PLANNED A NEW REGIONAL 
INITIATIVE TO RE-OPEN TRADE CORRIDORS FROM THE BIH REGION IN 
TREBINJE TO THE CROATIAN CITY OF DUBROVNIK.  TREBINJE'S 
PROXIMITY TO DUBROVNIK AND THE "DE FACTO ECONOMIC BLOCKADE" 
OF TRADE INTO CROATIA HAS TURNED THE TREBINJE REGION OF BIH 
INTO A "NEST OF THIEVES."  HE HOPES TO ENGAGE WITH 
INTERNATIONAL ORGANIZATIONS TO URGE THE CROATIAN GOVERNMENT 
TO FACILITATE THE MOVEMENT OF PRODUCTS AND SERVICES -- 
ESPECIALLY AGRICULTURAL PRODUCTS -- TO DUBROVNIK.  ASHDOWN 
SAID HE EXPECTED A FAIR HEARING IN ZAGREB, BUT HAD FEW HOPES 
THAT DUBROVNIK MAYOR SUICA (HDZ) WOULD BE RECEPTIVE TO THE 
INITIATIVE. 
 
    6.  (C) THE AMBASSADOR TOLD ASHDOWN THAT REFUGEE RETURN AND 
REINTEGRATION ISSUES REMAIN A TOP USG CONCERN FOR THE REGION. 
 DESPITE POSITIVE ANNOUNCEMENTS OF NEW PROJECTS AND 
CROSS-BORDER MEETINGS, THE U.S. WILL CONTINUE TO PRESS THE 
GOC FOR PROGRESS ON IMPLEMENTATION BEFORE GIVING CROATIA 
CREDIT FOR ADDRESSING THIS ISSUE.  THE AMBASSADOR ASKED 
ASHDOWN TO ENSURE THAT IN MEETINGS WITH EU COLLEAGUES, HE 
PRESS THEM TO INSIST ON RESULTS ON THE GROUND, NOT 
ANNOUNCEMENTS IN ZAGREB.  ASHDOWN READILY AGREED THAT THE 
TIME TO APPLY LEVERAGE IS NOW, AND SAID HE WOULD RAISE THE 
ISSUE, ESPECIALLY WITH THOSE EU COUNTRIES LESS LIKELY TO HOLD 
CROATIA ACCOUNTABLE. 
FRANK 
 
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