GOC COMMITTED TO CLOSING REFUGEE PORTFOLIO; RECENT

C O N F I D E N T I A L ZAGREB 001801

SIPDIS


EUR/SCE FOR JMITCHELL
PRM FOR ADEWEY AND TTARGOS
BELGRADE FOR DSALAZAR

E.O. 12958: DECL: 10/14/2014
TAGS: PGOV PHUM PREF
SUBJECT: GOC COMMITTED TO CLOSING REFUGEE PORTFOLIO; RECENT
PROGRESS, BUT BARRIERS REMAIN

Classified By: Kirsten B. Selinger for Reasons 1.5 (b) and (d)

Summary and Comment


1. (U) During his 29 SEP ) 2 OCT trip to Croatia, Assistant
Secretary for PRM Arthur Dewey visited several refugee return

SIPDIS
sites - both trouble spots and successes - and heard that the
barriers to additional returns include a lack of economic
opportunity in the war-affected areas, bureaucratic hold-ups,
lingering resistance to ethnic Serbs, and the existence of a
&secret8 list of war-crimes indictments. FM Zuzul
emphasized the GOC,s intense commitment to concluding the
refugee portfolio, noting that they were past &the point of
no return8 on its resolution. While many refugees have
moved on and may no longer wish to return, the GOC wants and
needs to close the returns chapter, facilitating return for
those who wish to in a transparent manner. As such, its
upcoming public information campaign in Serbia and Montenegro
(SAM) and Bosnia (BiH) will publicize its program for
potential returnees who lost socialized housing ) the final
and most difficult housing category. Continued international
pressure is needed, according to the OSCE, UNHCR and EU, in
order to meet their goal of wrapping up the returns issue by
the end of 2006.


2. (C) Dewey met with ethnic Serb MP Milorad Pupovac, who
praised PM Sanader,s political commitment to reintegration
and significant progress on housing for returnees, but noted
that the PM,s message of reconciliation has still not
trickled down to all members of his party and administration.
In the coming months, the ethnic Serb party (SDSS) will
reevaluate its coalition with the GOC; concrete progress will
be critical in maintaining their support, and recent comments
indicate they are not fully pleased with developments. End
Summary and Comment.

FM Zuzul: &Only One Way to Proceed8


3. (U) The political commitment of the GOC was repeatedly
underscored during the visit, most notably in a meeting with
FM Miomir Zuzul. The GOC has &made a decision that we want
to solve8 the issues of refugee return and war criminals.
The GOC knows there is only one way to proceed, Zuzul said,
and that its chances for Euro-Atlantic integration hinge on
these two issues, specifically resolving housing for returns
and handing over fugitive General Gotovina to the ICTY.
Since the HDZ took power the atmosphere for returns has
changed significantly, Zuzul asserted. We are proud of what
has been achieved in less than a year, he said, noting that
PM Sanader has twice visited ethnic Serb homes, the first PM
to do so. The GOC goal is to create the conditions for
returns, including stimulating economic development. In that
regard, Zuzul asked Dewey for ideas to redevelop the
economically-depressed war-affected areas.

Ethnic Serb View: War Crimes Charges Are Continuing Barrier


4. (C) PM Sanader,s genuine commitment was reaffirmed in
Dewey,s meeting with Serbia and Montenegro Ambassador Milan
Simurdic and Pupovac, although they noted that others have
not jumped on board the PM,s reconciliation train. In fact,
some are standing in the way and are turning back the
democratic process, Pupovac stated firmly. Certain
politicians will have to leave the GOC, he cautioned, or we
will reconsider our coalition. (Note: Pupovac is referring
in part to unpopular and long-serving Assistant Minister for
Displaced Persons and Refugees Lovre Pejkovic, who has been
repeatedly criticized for inaction and obstruction of the
returns process on many fronts. End Note.) In recent days,
Pupovac has spoken out publicly about the lack of practical
support for returns, calling administrative barriers and
policy inconsistencies an alternate form of ethnic cleansing.


5. (C) Of serious concern to both is the alleged &secret
list8 of persons accused of war crimes, which has taken on
mythic proportions within the refugee community. Pupovac and
Simurdic agreed that fear of arrest remains the major
deterrent to additional returns to Croatia. The Chief State
Prosecutor is finalizing a review of all ongoing war crimes
investigations with the goal of eliminating unfounded


accusations. He has promised a comprehensive list of the
remaining cases (about 1,900) to Pupovac in the coming weeks.
While only a few returnees per month are arrested and most
are quickly released, Pupovac said that news of any arrest
has a chilling effect on refugee return as it spreads via
word of mouth in refugee communities. Pupovac intends to
approach Sanader on this issue, and said receipt of an
accurate list will play into his party,s further
participation in the coalition, hinting at an internal review
by the end of this year.


6. (SBU) Simurdic praised the positive approach of the GOC,
but complained that they have not established a permanent
dialogue with the GOS. For example, he was not invited to
the launch of the GOC/OSCE/UNHCR/EU public information
campaign to encourage refugee returns, targeted predominantly
at individuals currently living in Serbia and Montenegro.
The GOC is using the ethnic Serb SDSS as a substitute for
dialogue with the GOS, he said. In Dewey,s meeting with
Zuzul, the FM had admitted its failure in communicating with
Belgrade, attributing it to Belgrade,s lack of organization
and clear representative.

Field Visits: Barriers Remain, Progress Slow


7. (U) In numerous visits to returnee families, and to civil
society organizations that assist refugee returns, A/S Dewey
saw GOC-funded settlements for Bosnian Croats and property
repossession sites of Croatian Serbs. However, looting of
Serb properties (mainly by Croats who occupied the properties
after the war) remains a practical barrier to habitation.
Many potential returnees, according to several NGOs, are also
deterred by a lack implementation of laws at the national and
local levels, minimal access to GOC funding for returns, and
bureaucratic obstruction.
DELAWIE


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