wikileaks ico  Home papers ico  Cables mirror and Afghan War Diary privacy policy Privacy
Identifier
Created
Classification
Origin
03ZAGREB1238
2003-05-30 13:54:00
CONFIDENTIAL
Embassy Zagreb
Cable title:  

CROATIA: SUSPENSION OF MILITARY ASSISTANCE WOULD

Tags:   MARR  PREL  KTIA  ABUD  MASS  HR  KICC  NATO 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
						C O N F I D E N T I A L SECTION 01 OF 02 ZAGREB 001238 

SIPDIS

STATE FOR EUR (BOGUE) AND PM (LINO)
DEFENSE FOR OSD/DASD-EURASIA (RICARDEL), OSD-P (SHELTON)
AND DSCA-ERASA
CONFIDENTIAL

PAGE 02 ZAGREB 01238 01 OF 02 301414Z
USEUCOM FOR J4

E.O. 12958: DECL: 05/03/2013
TAGS: MARR PREL KTIA ABUD MASS PREL KTIA ABUD MASS HR HRMARR KICC NATO
SUBJECT: CROATIA: SUSPENSION OF MILITARY ASSISTANCE WOULD
SLOW PROGRESS TOWARD NATO, LIMIT BORDER SECURITY

REF: A. STATE 139892

B. STATE 139186 (NOTAL)

CLASSIFIED BY: POLOFF A.F.GODFREY FOR REASONS 1.5 (B,D)

SUMMARY
-------

C O N F I D E N T I A L SECTION 01 OF 02 ZAGREB 001238

SIPDIS

STATE FOR EUR (BOGUE) AND PM (LINO)
DEFENSE FOR OSD/DASD-EURASIA (RICARDEL), OSD-P (SHELTON)
AND DSCA-ERASA
CONFIDENTIAL

PAGE 02 ZAGREB 01238 01 OF 02 301414Z
USEUCOM FOR J4

E.O. 12958: DECL: 05/03/2013
TAGS: MARR PREL KTIA ABUD MASS PREL KTIA ABUD MASS HR HRMARR KICC NATO
SUBJECT: CROATIA: SUSPENSION OF MILITARY ASSISTANCE WOULD
SLOW PROGRESS TOWARD NATO, LIMIT BORDER SECURITY

REF: A. STATE 139892

B. STATE 139186 (NOTAL)

CLASSIFIED BY: POLOFF A.F.GODFREY FOR REASONS 1.5 (B,D)

SUMMARY
--------------


1. (C) CROATIA IS HEAVILY RELIANT ON FMF AND IMET FUNDING TO
ACHIEVE ITS GOALS OF MODERNIZATION AND INTEROPERABILITY WITH
NATO. AS CROATIA STRUGGLES TO DOWNSIZE AND RESTRUCTURE ITS
MILITARY, NEARLY 70 PERCENT OF ITS DEFENSE BUDGET IS CONSUMED
BY PERSONNEL COSTS. THE LOSS OF U.S. MILITARY ASSISTANCE
PROGRAMS WILL CERTAINLY SLOW CROATIA'S PROGRESS TOWARD
ELIGIBILITY FOR NATO MEMBERSHIP AND THEREBY AFFECT OUR
EFFORTS TO PROMOTE REGIONAL STABILITY IN SOUTH CENTRAL EUROPE
BY MOVING THE REGION'S COUNTRIES INTO EURO-ATLANTIC
INSTITUTIONS AND USING THE LEVERAGE OF THE NATO ACCESSION
PROCESS TO SPEED REFORMS.


2. (C) CROATIA VALUES THE HIGH LEVEL OF BILATERAL DEFENSE
COOPERATION AND WOULD REGRET THE IMPACT AN ASSISTANCE CUTOFF
WOULD HAVE ON THAT RELATIONSHIP, PERHAPS EVEN MORE THAN THE
IMPACT OF THE LOSS OF ASSISTANCE ITSELF. POST IS WORKING TO
CONFIDENTIAL

PAGE 03 ZAGREB 01238 01 OF 02 301414Z
MITIGATE THE IMMEDIATE IMPACT OF SEVERING MILITARY
ASSISTANCE. AT RISK IS USD 5.5 MILLION IN UNOBLIGATED FMF
FUNDS FROM FY 2003. WHILE WE HAVE NOT YET TAKEN STEPS WHICH

WOULD WEAKEN OUR EFFORTS WITH THE GOC TO NEGOTIATE AN ARTICLE
98 AGREEMENT, IT IS LIKELY THAT MOST OF THE FY03 FMF FUNDS
COULD BE OBLIGATED BEFORE THE JULY 1 DEADLINE. END SUMMARY.

CROATIA RELIES ON FMF FOR MODERNIZATION, INTEROPERABILITY
-------------- --------------


3. (C) BECAUSE THE GOC IS STILL STRUGGLING WITH DOWNSIZING
AND RESTRUCTURING ITS MILITARY, PERSONNEL COSTS ARE A
DISPROPORTIONATELY HIGH PORTION OF THE ANNUAL MOD BUDGET. IN
ITS MAY 2003 REPORT TO NATO'S NORTH ATLANTIC COUNCIL IN ITS
FIRST MEMBERSHIP ACTION PLAN REVIEW, CROATIA REPORTED THAT
MILITARY PROCUREMENT MAKES UP ONLY ABOUT 18 PERCENT OF ITS
TOTAL BUDGET. SUBTRACT FROM THIS AN EXPENSIVE
UPGRADE/OVERHAUL TO ITS AGING FLEET OF MIG AIRCRAFT AND THE
PAYMENTS TO SERVICE AN EX-IM BANK LOAN USED FOR THE PURCHASE
OF COASTAL AND AIR SURVEILLANCE RADARS, AND THE $5.5 MILLION
FMF BUDGET IS THE EQUIVALENT OF NEARLY 30 PERCENT OF
CROATIA'S OWN NATIONAL DEFENSE MODERNIZATION BUDGET. ALL OF
THE EQUIPMENT IN THE CURRENT FMF PROCUREMENT PIPELINE IS
INTENDED TO SUPPORT CROATIA'S GOALS OF INTEROPERABILITY WITH
NATO.

FMF COMMUNICATIONS EQUIPMENT SUPPORTS BORDER SECURITY
-------------- --------------


4. (C) CROATIA'S TOP PRIORITIES FOR FMF, AS DEVELOPED BY MOD
PLANNERS IN CLOSE COOPERATION WITH EMBASSY ZAGREB'S ODC, HAVE
CONFIDENTIAL

PAGE 04 ZAGREB 01238 01 OF 02 301414Z
BEEN TO PROCURE VHF AND OTHER WIDE-BAND RADIOS, IFF EQUIPMENT
FOR CAF HELICOPTERS, MILES EQUIPMENT AND NIGHT VISION GOGGLES
FOR THE GROUND FORCES. THESE PURCHASES WILL HELP ACHIEVE
FORCE INTEROPERABILITY WITH NATO. RADIO EQUIPMENT ALSO PLAYS
A ROLE IN ENSURING CROATIA IS CAPABLE OF CONTROLLING ITS LONG
MARITIME BORDER; WITHOUT THIS COMMUNICATIONS CAPABILITY,
CROATIA'S NEWLY INSTALLED RADAR SYSTEMS WOULD NOT BE FULLY
INTEGRATED.

THE NUMBERS: WHAT IS AT STAKE
--------------


5. (C) ALL OF THE FY 2000 AND 2001 FMF FUNDS HAVE BEEN
OBLIGATED, ALTHOUGH EQUIPMENT HAS NOT YET BEEN DELIVERED. OF
THE USD 5 MILLION ALLOCATED FOR FY 2002, USD 377,867 REMAINS
TO BE OBLIGATED (WORK ON THIS CASE HAS BEEN ONGOING; A CHANGE
IN PRICE FOR NIGHT VISION GOGGLES HAS PREVENTED COMPLETION;
IT IS NOT LIKELY TO BE COMPLETE BEFORE THE JULY 1 CUTOFF).
NONE OF THE USD 5.5 MILLION FOR FY 2003 HAS BEEN OBLIGATED,
AND UNLESS PROMPT ACTION IS TAKEN, THIS FUNDING IS AT RISK OF
BEING SUSPENDED. USD 700,000 WAS ALLOCATED FOR FY 2003 IMET
PROGRAMS WITH CROATIA. OF THIS AMOUNT, USD 599,179 WILL BE
OBLIGATED BY JUNE 30, LEAVING USD 100,821 AT RISK OF BEING
SUSPENDED AND REALLOCATED.

CONFIDENTIAL

CONFIDENTIAL PTQ5507

PAGE 01 ZAGREB 01238 02 OF 02 301414Z
ACTION EUR-00

INFO LOG-00 MFA-00 NP-00 AF-00 AID-00 ACQ-00 CIAE-00
INL-00 PERC-00 SRPP-00 DS-00 EB-00 FBIE-00 FO-01
VC-00 TEDE-00 INR-00 IO-00 JUSE-00 LAB-01 L-00
VCE-00 AC-01 NSAE-00 NSCE-00 OIC-02 OMB-01 PA-00
PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00
SSO-00 SS-00 TRSE-00 T-00 USIE-00 DTC-00 PMB-00
DSCC-00 LBA-00 PRM-00 DRL-01 G-00 NFAT-00 SAS-00
SWCI-00 /007W
-------------- 6D1C37 301414Z /38
O 301354Z MAY 03
FM AMEMBASSY ZAGREB
TO SECSTATE WASHDC IMMEDIATE 0369
SECDEF WASHDC IMMEDIATE
INFO HQ USEUCOM VAIHINGEN GE//ECJ4-ID// IMMEDIATE
AMEMBASSY BELGRADE PRIORITY
AMEMBASSY LJUBLJANA PRIORITY
AMEMBASSY SARAJEVO PRIORITY
AMEMBASSY SKOPJE PRIORITY
AMEMBASSY TIRANA PRIORITY
USEU BRUSSELS PRIORITY
USMISSION USNATO PRIORITY

C O N F I D E N T I A L SECTION 02 OF 02 ZAGREB 001238

SIPDIS

STATE FOR EUR (BOGUE) AND PM (LINO)
DEFENSE FOR OSD/DASD-EURASIA (RICARDEL), OSD-P (SHELTON)
AND DSCA-ERASA
CONFIDENTIAL

PAGE 02 ZAGREB 01238 02 OF 02 301414Z
USEUCOM FOR J4

E.O. 12958: DECL: 05/03/2013
TAGS: MARR PREL KTIA ABUD MASS PREL KTIA ABUD MASS HR HRMARR KICC NATO
SUBJECT: CROATIA: SUSPENSION OF MILITARY ASSISTANCE WOULD
SLOW PROGRESS TOWARD NATO, LIMIT BORDER SECURITY

CROATIA VALUES BILATERAL DEFENSE RELATIONSHIP
--------------


6. (C) FOREIGN MINISTER PICULA TOLD THE AMBASSADOR ON MAY 29
THAT CROATIA WILL REGRET THE POTENTIAL DAMAGE DONE TO THE
BILATERAL MILITARY AND OVERALL U.S. - CROATIA RELATIONSHIP
EVEN MORE THAN THE LOSS OF THE FUNDING. PICULA SAID CROATIA
HIGHLY VALUES THE POSITIVE RELATIONS THE MOD HAS DEVELOPED
WITH DOD AS ONE OF THE "MOST POSITIVE" ASPECTS OF THE BROADER
BILATERAL RELATIONSHIP. IN AN EARLIER MEETING WITH THE
AMBASSADOR, CROATIA'S AMBASSADOR TO THE U.S. IVAN GRDESIC
PRAISED THE OUTSTANDING CUMULATIVE EFFECT THE IMET PROGRAMS
ARE HAVING ON THE PROFESSIONALISM OF THE CAF'S OFFICER CORPS.
THESE OFFICERS RETURN TO CROATIA WITH A VISION OF A MODERN
MILITARY, ORIENTED TOWARD NATO AND READY TO ENGAGE WITH THE
U.S. TO ACHIEVE OUR SHARED GOALS IN THE REGION.

NEXT STEPS
--------------


7. (C) WE CONTINUE TO PRESS HARD FOR THE GOC TO ENGAGE MORE
SERIOUSLY TO NEGOTIATE AN ARTICLE 98 AGREEMENT, BUT WE HAVE
NO SERIOUS EXPECTATION THAT THE GOC WILL AGREE. WE WILL
ENGAGE WITH MOD PROCUREMENT SPECIALISTS TO COMMIT THE BULK OF
CONFIDENTIAL

PAGE 03 ZAGREB 01238 02 OF 02 301414Z
THE FY 2003 FMF FUNDS AT RISK. SINCE THERE IS NO TIME TO
BUILD A NEW FMF CASE BEFORE THE JULY 1 CUTOFF, THE ONLY WAY
TO OBLIGATE THESE FUNDS IS TO AMEND AN EXISTING CASE. FOR
CROATIA, THIS MAKES GOOD SENSE, SINCE THE EXISTING CASE FOR
PURCHASE OF VHF RADIOS HAS BEEN IDENTIFIED BY THE MOD AS A
TOP PRIORITY FOR FUTURE FMF FUNDING.


8. (C) WE HAVE BEEN RELUCTANT TO PRESENT THIS APPROACH TO
THE MOD IN ORDER TO RETAIN AS MUCH LEVERAGE AS POSSIBLE TO
ENCOURAGE THE GOC TO NEGOTIATE AN ARTICLE 98 AGREEMENT. WE
EXPECT AN INTER-AGENCY TEAM LED BY PM'S AMBASSADOR MARISA
LINO TO DISCUSS THIS ISSUE IN ZAGREB ON JUNE 12. POST'S
OFFICE OF DEFENSE COOPERATION WAS INFORMED ON MAY 30 BY
DEFENSE SECURITY COOPERATION AGENCY (DSCA) EXPERTS THAT IT
WOULD BE NECESSARY TO BEGIN THE PROCESS OF COMMITTING
UNOBLIGATED FMF FUNDING BY JUNE 4 IN ORDER TO BE SURE TO BE
ABLE TO MEET THE JULY 1 DEADLINE. WE WILL ENGAGE WITH THE
MOD IN AN EFFORT TO COMMIT THE FY 2003 FUNDS IN TIME.
ROSSIN

CONFIDENTIAL

>