CROATIA TRYING TO CONVINCE UK IT IS COOPERATING

C O N F I D E N T I A L ZAGREB 000300

SIPDIS


DEPARTMENT FOR EUR/SCE
THE HAGUE FOR CLIFTON AND JOHNSON

E.O. 12958: DECL: 02/20/2014
TAGS: PREL PGOV KAWC HR UK
SUBJECT: CROATIA TRYING TO CONVINCE UK IT IS COOPERATING
WITH ICTY

CLASSIFIED BY: DCM PATRICK S. MOON FOR REASONS 1.5 (B,D)

SUMMARY
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1. (C) THE UK MAY BE EASING THE CRITERIA BY WHICH IT WILL
MEASURE CROATIA'S COOPERATION WITH THE INTERNATIONAL CRIMINAL
TRIBUNAL FOR THE FORMER YUGOSLAVIA (ICTY). IN ADVANCE OF A
FEBRUARY 11 VISIT BY FM ZUZUL TO LONDON, A BRITISH EMBASSY
OFFICER INFORMED US THAT IF PM SANADER MAKES A CLEAR PUBLIC
STATEMENT OF HIS GOVERNMENT'S INTENT TO ARREST AND TRANSFER
ICTY PIFWC ANTE GOTOVINA AND MAKES KEY CHANGES TO SENIOR
INTELLIGENCE SERVICE PERSONNEL, HMG WOULD AGREE TO MOVE
FORWARD WITH THE RATIFICATION PROCESS OF CROATIA'S
STABILIZATION AND ASSOCIATION AGREEMENT (SAA) WITH THE
EUROPEAN UNION. END SUMMARY.


2. (C) FROM FEBRUARY 11 - 12, CROATIAN FOREIGN MINISTER
MIOMIR ZUZUL VISITED LONDON TO URGE FORWARD PROGRESS TOWARD
UK RATIFICATION OF CROATIA'S SAA. THE UK AND THE NETHERLANDS
ARE WITHHOLDING RATIFICATION UNTIL CROATIA DEMONSTRATES IN
THE MOST CONCRETE TERMS THAT IT IS COOPERATING WITH ICTY.
UNTIL RECENTLY, THE PRIMARY BENCHMARK HMG HAS BEEN WILLING TO
ACCEPT IS THE APPREHENSION AND SUBSEQUENT TRANSFER TO ICTY
CUSTODY OF ICTY PIFWC ANTE GOTOVINA.


3. (C) ON FEBRUARY 9, A BRITISH EMBASSY OFFICER BASED IN
ZAGREB BRIEFED US THAT THE UK WOULD NOW CONSIDER MOVING
FORWARD WITH THE SAA IF CROATIA TOOK THE FOLLOWING STEPS: PM
SANADER MUST MAKE AN UNEQUIVOCAL PUBLIC STATEMENT DECLARING
HIS READINESS TO ARREST GOTOVINA AND CERTAIN SENIOR OFFICIALS
AFFILIATED WITH CROATIAN INTELLIGENCE SERVICES WOULD HAVE TO
LEAVE THEIR POSTS. THE BRITISH EMBASSY OFFICER SAID THAT
ZELJKO BAGIC, A SENIOR STAFFER TO PRESIDENT MESIC, WOULD HAVE
TO GO BECAUSE HE HAS MISMANAGED CROATIA'S INTELLIGENCE
SERVICES AND HAS BEEN TAINTED WITH CORRUPTION. THE OTHER
OFFICIAL WAS DESCRIBED ONLY AS "OFFICIALS WITH CLOSE LINKS TO
HERVOJE PETRAC." PETRAC IS NOW A WEALTHY CROATIAN
BUSINESSMAN WITH DIVERSE INTERESTS, BUT IS WIDELY RUMORED TO
HAVE GOTTEN HIS START IN MONEY-LAUNDERING DURING THE WAR. HE
HAS BEEN THE SUBJECT OF POLICE INVESTIGATIONS, BUT NO
INDICTMENTS HAVE BEEN FILED. PETRAC EMPLOYS THE DAUGHTER OF
DAMIR LONCARIC, HEAD OF CROATIA'S INTELLIGENCE AGENCY.


4. (C) IN A CONVERSATION WITH THE AMBASSADOR ON FEBRUARY 14,
BRITISH AMBASSADOR NICHOLAS JARROLD CONFIRMED THAT HMG WAS
CONSIDERING CHANGING ITS MEASURE OF HOW TO JUDGE CROATIA'S
COOPERATION WITH ICTY. WHILE HE MADE NO MENTION OF THE
"PETRAC CONNECTION," HE DID CONFIRM THAT HMG WOULD SEEK
BAGIC'S OUSTER.

COMMENT
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5. (C) THE UK DECISION -- STILL UNCONFIRMED -- TO MOVE THE
GOALPOSTS A FEW YARDS CLOSER WOULD BE A POSITIVE RESULT OF
THE SANADER GOVERNMENT'S EFFORT TO CONVINCE THE EU (AND US)
THAT CROATIA IS REALLY LOOKING FOR GOTOVINA AND THAT GOTOVINA
IS NOT IN CROATIA. BUT THE NEW BENCHMARKS ARE STILL TOUGH
POLITICAL HURDLES; IN AN APPEARANCE ON BBC'S "HARD TALK"
SUBSEQUENT TO HIS MEETINGS IN LONDON, FM ZUZUL REPEATEDLY
DODGED A DIRECT QUESTION ABOUT WHETHER HIS GOVERNMENT WOULD
ARREST GOTOVINA.


6. (C) WHILE THE INSISTENCE AT SACKING SENIOR INTEL
OFFICIALS COULD SEEM ODD, IT REFLECTS UK FRUSTRATION -- WHICH
WE SHARE -- WITH THE INTELLIGENCE ESTABLISHMENT IN ZAGREB.
MORE SIGNIFICANT THAN BAGIC'S AND LONCARIC'S ALLEGED
CONNECTIONS WITH ORGANIZED CRIME ARE THEIR LINKS TO PEOPLE
WHO HAVE HAD CONTACT WITH GOTOVINA. BAGIC WAS REPORTEDLY THE
CONNECTION DURING MESIC'S BRIEF (AND VERY INDIRECT) CONTACT
WITH GOTOVINA IN 2003. LONCARIC'S CONNECTION TO PETRAC --
WHO IS WIDELY BELIEVED TO BE THE MONEY BEHIND THE
SENSATIONALIST NEWSWEEKLY "NACIONAL" -- MAY HAVE LED TO
GOTOVINA'S SURFACING IN THAT PUBLICATION AROUND THE SAME
TIME. FINALLY, SINCE SANADER CANNOT SACK EITHER BAGIC OR
LONCARIC WITHOUT MESIC'S ASSENT, THIS BENCHMARK MAY BE
IMPOSSIBLE FOR THE GOC TO ACHIEVE.
FRANK

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