CROATIA PROVIDING LIMITED SUPPORT TO CROATS IN BIH

C O N F I D E N T I A L SECTION 01 OF 02 ZAGREB 000866 SIPDIS E.O. 12958: DECL: 04/18/2013 TAGS: PREL PREF PGOV ECON MARR MASS HR PREF PGOV ECON MARR MASS HR BK BKPREL SUBJECT: CROATIA PROVIDING LIMITED SUPPORT TO CROATS IN BIH REF: A. (A) SARAJEVO 790 ¶B. (B) SARAJEVO 890 CONFIDENTIAL PAGE 02 ZAGREB 00866 01 OF 02 181415Z CLASSIFIED BY: DARREN TAYLOR, POLITICAL OFFICER, FOR REASONS 1.5 (B) AN D (D). SUMMARY -------------- ¶1. (C) BASED ON MEETINGS WITH KEY GOC AND GOBIH OFFICIALS IN CROATIA IN RECENT WEEKS, WE HAVE BEEN ABLE TO DETERMINE WHAT TYPES AND LEVELS OF FINANCIAL SUPPORT THE GOC IS PROVIDING TO ETHNIC CROATS IN BOSNIA -- TARGETED LARGELY TO THREE AREAS: PENSIONS FOR FORMER HVO SOLDIERS, REFUGEE RETURNS, AND CULTURAL COOPERATION. MOST OF THE BENEFICIARIES ARE CROATIAN CITIZENS. THE GOC IS SEEKING TO ENSURE THAT ALL AID IS COORDINATED WITH THE RELEVANT GOBIH MINISTRIES AND IS PROVIDED IN A TRANSPARENT WAY. THE GOC MAINTAINS CONTROL OVER THE PROCESS BY WHICH THE ASSISTANCE IS CHANNELED TO BIH, THUS ELIMINATING THE POSSIBILITY THAT EXTREMIST BOSNIAN CROAT LEADERS WILL MISUSE THE FUNDING AS WAS THE CASE -- AND PROBABLY THE INTENT -- WITH THE TUDJMAN GOVERNMENT. ¶2. (C) WE ARE REASONABLY CONFIDENT THAT THERE IS A TRANSPARENT PROCESS AT WORK AND THAT THE GOC, UNLIKE ITS PREDECESSOR, IS SEEKING TO PLAY A CONSTRUCTIVE ROLE IN BIH. WHILE THERE MAY BE SOME CONCERNS OVER CONTINUED PENSION PAYMENTS, THESE PAYMENTS WERE APPROVED AS PART OF THE DAYTON PROCESS. THERE HAVE BEEN NO COMPLAINTS BY IC OFFICIALS IN BOSNIA CONCERNING SUCH ASSISTANCE, WHICH IS RELATIVELY MODEST COMPARED TO FIVE YEARS AGO. OFFICIALS WE MET TO DISCUSS THESE MATTERS INCLUDE THE HEAD OF THE MFA,S NEIGHBORING RELATIONS DEPARTMENT, FILIP VUCAK; ASSISTANT MINISTER FOR THE OFFICE OF DISPLACED PERSONS AND REFUGEES, LOVRE PEJKOVIC; AND THE BIH CONFIDENTIAL PAGE 03 ZAGREB 00866 01 OF 02 181415Z AMBASSADOR TO CROATIA, ZLATKO DIZDAREVIC. END SUMMARY. PENSIONS/SOCIAL WELFARE PAYMENTS -------------- ¶3. (C) AT THE TOP OF THE GOC ASSISTANCE PROGRAMS TO CROATS IN BOSNIA ARE PENSION PAYMENTS TO FORMER HVO SOLDIERS AND THEIR BENEFICIARIES. THE SCOPE OF THE PROGRAM IS BETWEEN 3 AND 5 MILLION USD MONTHLY, WHICH COVERS A TOTAL OF ABOUT 10,000 BENEFICIARIES. THE DISTRIBUTION OF THE PAYMENTS IS OVERSEEN BY THE MINISTRY OF LABOR AND SOCIAL WELFARE IN CROATIA IN CONJUNCTION WITH ITS COUNTERPART IN BIH. ¶4. (C) THE GOC DOES NOT PROVIDE ANY ASSISTANCE FOR MILITARY EQUIPMENT/TRAINING OR SALARIES FOR BOSNIAN CROATS SERVING IN THE FEDERATION ARMY. UNDER THE STANDING COMMITTEE ON MILITARY MATTERS (SCMM) ARRANGEMENT, AND PURSUANT TO A BILATERAL AGREEMENT BETWEEN THE GOC AND GOBIH, SUCH DIRECT SUPPORT WOULD BE CHANNELED THROUGH THE RELEVANT MINISTRIES IN THE BIH GOVERNMENT IN A CLEAR AND TRANSPARENT WAY. ABOUT THREE MONTHS AGO, THERE WAS A DEBATE WITHIN CROATIA BASED ON COMPLAINTS THAT FORMER HVO SOLDIERS WERE BEING PAID PENSIONS AT LOWER LEVELS THAN SOLDIERS IN CROATIA. THE GOC IS REVIEWING THE ISSUE AND IS CONSIDERING INCREASING THE PENSIONS PAID TO FORMERS HVO SOLDIERS TO BRING THEM ON PAR WITH THEIR HV COUNTERPARTS. THIS WOULD MEAN ADDING TO THE EXISTING BUDGET FOR THIS ITEM BETWEEN $200,000 AND $600,000 A YEAR FOR THE INCREASED PAYMENTS. REFUGEE ASSISTANCE -------------- CONFIDENTIAL PAGE 04 ZAGREB 00866 01 OF 02 181415Z ¶5. (C) SINCE 2001, THE GOC HAS BUDGETED ABOUT 3 MILLION USD PER YEAR AS PART OF A PROGRAM DESIGNED TO HELP BOSNIAN CROATS CURRENTLY LIVING IN CROATIA MOVE BACK TO BOSNIA. THE GOC PROVIDES HOUSING MATERIALS TO BOSNIAN CROATS WHO, IN RETURN, SIGN CONTRACTS STIPULATING THEY WILL VACATE THE HOUSES THEY OCCUPY IN CROATIA ONCE THEIR HOMES IN BIH HAVE BEEN RECONSTRUCTED. ASSISTANT MINISTER PEJKOVIC DIRECTLY OVERSEES THIS PROGRAM AND WORKS WITH HIS BIH COUNTERPART TO ENSURE THAT THE APPLICANTS HAVE NOT ALREADY RECEIVED ASSISTANCE FROM THE IC OR GOBIH. IT IS A "SELF HELP" PROGRAM WHEREBY OWNERS ARE ACTUALLY RESPONSIBLE FOR THE CONSTRUCTION THEMSELVES. THE PROGRAM HAS NOT BEEN WELL MANAGED. COMPLAINTS BY BENEFICIARIES ARE RAMPANT OVER THE PROCESS IN WHICH THE MATERIALS ARE DELIVERED (IN THREE STAGES),HIGH EXPENSES PLACED ON THE OWNERS TO COMPLETE RECONSTRUCTION, AND LACK OF GOC INVOLVEMENT IN THE PROCESS. WHILE FUNDS FOR MATERIALS FOR OVER 300 HOUSES HAVE BEEN ALLOCATED, MANY OF THESE HOUSES HAVE NOT BEEN COMPLETED (SEE REFTELS). CULTURAL COOPERATION -------------- ¶6. (C) THE GOC ALSO ALLOCATES 3 MILLION USD PER YEAR TO IMPROVE CULTURAL, RELIGIOUS, AND EDUCATIONAL TIES WITH CROATS IN BOSNIA. THESE FUNDS ARE PROVIDED IN A TRANSPARENT WAY IN COOPERATION WITH RELEVANT GOBIH MINISTRIES. THE GOC MFA CONFIDENTIAL CONFIDENTIAL PTQ1773 PAGE 01 ZAGREB 00866 02 OF 02 181416Z ACTION EUR-00 INFO LOG-00 NP-00 AF-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00 CTME-00 INL-00 C-00 DODE-00 DOTE-00 PERC-00 SRPP-00 DS-00 EB-00 EXIM-01 E-00 FAAE-00 FBIE-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01 LAB-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 SSO-00 STR-00 TRSE-00 USIE-00 DTC-00 PMB-00 DSCC-00 PRM-00 DRL-01 G-00 NFAT-00 SAS-00 SWCI-00 /009W -------------- 57F411 181416Z /38 O 181413Z APR 03 FM AMEMBASSY ZAGREB TO SECSTATE WASHDC IMMEDIATE 9989 INFO AMEMBASSY BELGRADE PRIORITY AMEMBASSY LJUBLJANA PRIORITY AMEMBASSY SARAJEVO PRIORITY AMEMBASSY SKOPJE PRIORITY C O N F I D E N T I A L SECTION 02 OF 02 ZAGREB 000866 SIPDIS E.O. 12958: DECL: 04/18/2013 TAGS: PREL PREF PGOV ECON MARR MASS HR PREF PGOV ECON MARR MASS HR BK BKPREL SUBJECT: CROATIA PROVIDING LIMITED SUPPORT TO CROATS IN BIH DETERMINES WHICH PROJECTS IT WILL SUPPORT IN BIH. THE MONEY CAN BE USED TO REBUILD CHURCHES, HOSPITALS, LIBRARIES, SCHOOLS OR TO PROVIDE MATERIALS AND EQUIPMENT TO THOSE CONFIDENTIAL PAGE 02 ZAGREB 00866 02 OF 02 181416Z INSTITUTIONS. WHILE THE AIM IS TO DEEPEN TIES TO THE CROAT COMMUNITY, THE MFA MAINTAINS THAT GOC DOES NOT DISCRIMINATE BY SUPPORTING PROJECTS THAT ARE EXCLUSIVELY FOR CROATS. OUR CONTACTS MAINTAIN THAT SERBS AND MUSLIMS HAVE ACCESS TO THE PUBLIC FACILITIES THAT ARE LOCATED IN VARIOUS COMMUNITIES. ¶7. (C) THERE HAVE BEEN NO COMPLAINTS FROM OHR OR THE IC IN BOSNIA CONCERNING THE USE OF THESE CULTURAL FUNDS. THE ONLY COMPLAINTS HAVE COME FROM BOSNIAN CROAT LEADERS (HDZ) WHO CLAIM THAT THE GOC IS PROVIDING ONLY "PEANUTS." (COMMENT: THIS IS TRUE COMPARED TO THE $85 MILLION PER YEAR THE TUDJMAN GOVERNMENT USED TO PROVIDE TO THE BOSNIAN CROATS DURING AND AFTER THE WAR. THIS MONEY, WHICH WAS CHANNELED THROUGH THE NOW DEFUNCT HERCEGOVACKA BANKA, WAS SUPPOSED TO BE USED TO PURCHASE MILITARY EQUIPMENT, PAY SALARIES OF HVO SOLDIERS, AND PROVIDE SOCIAL ASSISTANCE TO CROATS IN BOSNIA. MUCH OF IT WAS STOLEN BY THE CRIMINAL BOSNIAN CROAT LEADERSHIP. END COMMENT.) HEALTH INSURANCE -------------- ¶8. (C) BIH AMBASSADOR TO CROATIA DIZDAREVIC TOLD US THAT THE GOC DOES NOT PROVIDE DIRECT PAYMENTS TO THE GOBIH FOR HEALTH INSURANCE FOR ETHNIC CROATS IN BOSNIA. RATHER, THE GOC ALLOWS THEM TO RECEIVE HEALTH CARE IN CROATIA AT COSTS SIMILAR TO WHAT CROATIAN CITIZENS PAY. THEY ARE NOT TREATED AS FOREIGNERS, WHO PAY HIGHER COSTS. CROATS IN BOSNIA THAT USE HEALTHCARE FACILITIES IN BOSNIA RECEIVE COVERAGE UNDER BOSNIA,S HEALTHCARE SYSTEM. THE GOC IS SEEKING TO DISCOURAGE CROATS IN BOSNIA FROM TRAVELING TO CROATIA BY CONFIDENTIAL PAGE 03 ZAGREB 00866 02 OF 02 181416Z REBUILDING AND EXPANDING SERVICES PROVIDED BY THE MAIN HOSPITAL IN MOSTAR. COMMENT -------------- ¶9. (C) WE ARE CONFIDENT THAT GOC-PROVIDED ASSISTANCE TO CROATS IN BOSNIA IS TRANSPARENT AND DONE IN COOPERATION WITH GOBIH OFFICIALS. THE TYPES OF ASSISTANCE BEING PROVIDED OUGHT TO HAVE A STABILIZING EFFECT IN BIH. IT ALSO ALLOWS THE GOC TO CLAIM CREDIT FOR SEEKING TO MAINTAIN GOOD RELATIONS WITH ITS NEIGHBOR. AMBASSADOR DIZDAREVIC TOLD US THAT THE GOBIH DOES NOT HAVE ANY MISGIVINGS ABOUT GOC INTENTIONS WITHIN BOSNIA AND IS PLEASED WITH THE ROLE THE GOC IS PLAYING. THE GOC WOULD LIKE TO REDUCE THE AMOUNT OF SUPPORT IT IS PROVIDING TO CROATS IN BOSNIA, PARTICULARLY PENSION PAYMENTS AND ACCESS TO SUBSIDIZED HEALTH CARE. RESOLVING THE ISSUE OF DUAL CITIZENSHIP WILL BE THE ONLY WAY FOR THE GOC TO REMEDY THIS ISSUE. ROSSIN ROSSIN CONFIDENTIAL >