UNBLOCKING SFRY ASSETS: PICULA SAYS GOC STILL

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
CONFIDENTIAL

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

CONFIDENTIAL

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