BAD TEST RESULTS FORCE GMO ISSUE

UNCLAS SECTION 01 OF 03 ZAGREB 000578 SIPDIS SENSITIVE STATE FOR EB/MTA/ATT VIENNA FOR FAS BUDAPEST FOR ENVIRO HUB E.O. 12958: N/A TAGS: EAGR ECON ETRD SENV TBIO TSPL HR SUBJECT: BAD TEST RESULTS FORCE GMO ISSUE SUMMARY -------------- ¶1. (U) THE RECENT SCANDAL AROUND THE ALLEGED PRESENCE OF NON-APPROVED GMOS IN 14 FOOD SAMPLES HAS SPED THE ADOPTION OF REGULATIONS ON LABELING AND APPROVAL OF GMOS AND STIRRED PUBLIC DEBATE, EVEN THOUGH SUBSEQUENT TESTS FOUND THAT ONLY ONE OF THE SAMPLES HAD MORE THAN ONE PERCENT GMO CONTENT. THE GOVERNMENT HAS TRIED TO STRIKE A COMPROMISE POSITION PUBLICLY, BY SAYING THAT IMPORTS OF GMOS WOULD BE PERMITTED, IF LABELED, BUT THAT CROATIA WOULD REMAIN "GMO FREE" BECAUSE SOWING OF GM CROPS WOULD NOT BE ALLOWED. THE GOVERNMENT HAS ADOPTED THE EU-APPROVED LIST OF GM PRODUCTS AND THE EU THRESHOLD OF 0.9 PERCENT FOR LABELING. MEANWHILE, VARIOUS REGIONS ARE CONSIDERING FOLLOWING ISTRIA'S LEAD IN DECLARING "GMO-FREE" ZONES. END SUMMARY. THE STORM BREAKS -------------- ¶2. (U) IN FEBRUARY, CROATIAN NATIONAL TELEVISION ANNOUNCED THAT THE FIRST TESTING OF GMO PRESENCE IN FOOD SAMPLES WAS DONE IN AN OSIJEK (IN THE RURAL EAST OF CROATIA) FOOD QUALITY-BIOTECHNOLOGY TESTING LABORATORY. ONE OF ONLY TWO BIOTECH TESTING LABS IN CROATIA, THE FACILITY LACKS ISO CERTIFICATION. IT TESTED 33 FOOD SAMPLES FOR QUALITY AND GMO PRESENCE. IN 14 SAMPLES FROM BOTH CROATIAN AND FOREIGN COMPANIES, IT REPORTED MORE THAN ONE PERCENT OF GMO PRESENCE. IN ADDITION, IT DETECTED MEAT IN "VEGETARIAN" PATE AND PORK AND BEEF IN "CHICKEN" PATE. THE GMO "CONTAMINATED" PRODUCTS WERE SOY AND SOY PRODUCTS, VEGETARIAN PATE, CORN FLAKES, OIL, AND CANNED CORN. ¶3. (U) THE STORY DOMINATED THE HEADLINES FOR SEVERAL DAYS, AND POPPED UP INTERMITTENTLY FOR WEEKS. MOST NEWS STORIES WERE FAIRLY MATTER-OF-FACT -- NON-LABELED GMOS HAVE BEEN FOUND IN FOOD. SOME NEWS PROGRAMS EVEN NOTED THAT NO HARMFUL EFFECTS OF GMOS HAD BEEN PROVEN. HOWEVER, THE MERE FACT THAT GMOS WERE FOUND PROMPTED A PUBLIC OUTCRY. GREENS PORTRAYED THE RESULTS AS VINDICATION OF YEARS OF DIRE WARNINGS, AND RENEWED CALLS FOR A TOTAL BAN ON BIOTECH. (IRONICALLY, GMOS WERE ALREADY DE FACTO BANNED. WHILE A LAW HAD BEEN PASSED ALLOWING THE IMPORT OF GMOS ONCE REGISTERED AND LABELED, IN THE ABSENCE OF REGULATIONS, NO PERMITS COULD BE ISSUED.) AS A RESULT OF THE FUROR, CONSUMERS THREATENED TO SUE COMPANIES THAT DID NOT LABEL GMOS, CONSUMER GROUPS DEMANDED THAT THE COMPANIES IN QUESTION BE PUNISHED, PRODUCERS THREATENED THE LAB FOR PUBLISHING PARTIAL INFORMATION, SUPERMARKETS PLEDGED TO WITHDRAW THE FOOD CONTAINING GMOS, AND THE SANITARY INSPECTION SERVICE TIGHTENED UP INSPECTIONS ON THE BORDER, REQUESTING GMO-FREE CERTIFICATES FOR FRESH PRODUCE AND COMMODITIES, TAKING SAMPLES, ETC. ¶4. (SBU) A CONTACT IN PUBLIC HEALTH SERVICES HEADQUARTERS FUMED TO US THAT THE LAB IN OSIJEK HAD ACTED IRREGULARLY AND IRRESPONSIBLY. IN THE ABSENCE OF REGULATION OF LAST YEAR'S FOOD LAW, THERE WERE NO GUIDELINES FOR TESTING. HE SPECULATED THAT THE SAMPLING WAS DONE TO CREATE AN UPROAR AND TO POLITICIZE THE ISSUE OF GMOS. HE ALSO QUESTIONED THE VALIDITY OF THE TESTING -- CORRECTLY AS IT TURNED OUT. ¶5. (U) THE ZAGREB PUBLIC HEALTH SERVICE INITIALLY CROSS CHECKED 12 SAMPLES OF THE SAME PRODUCTS, BUT DIFFERENT LOTS BECAUSE THE OSIJEK LABORATORY DID NOT WANT TO SHARE ITS SAMPLES. ONLY ONE SAMPLE HAD MORE THAN ONE PERCENT OF GMOS, FIVE HAD TRACES OF GMOS, AND SEVEN HAD NO GMOS. AFTER THE ZAGREB LAB WAS FINALLY ABLE TO OBTAIN SAMPLES FROM THE OSIJEK LAB, AN ISO-CERTIFIED LABORATORY IN BERN PROVED THAT THE ZAGREB LABORATORY HAD THE CORRECT RESULTS AND THE OSIJEK LABORATORY WAS WRONG. ¶6. (U) THE ONE PRODUCT SAMPLE WITH OVER ONE PERCENT OF GMO PRESENCE WAS A SAUSAGE PRODUCED IN CROATIA BY A CROATIAN SUBSIDIARY OF THE SLOVENIAN COMPANY, PERUTNINA PTUJ. THE SAUSAGE CONTAINED SOY EXTRACT THAT WAS PROBABLY BOUGHT FROM A DUTCH COMPANY WITH OFFICES IN ZAGREB. THE MEDIA REPORTED THAT THE SOYBEANS WERE SOURCED FROM THE U.S. ¶7. (U) TWO OTHER SAMPLES COULD NOT BE CATEGORIZED AS GMO OR GMO-FREE. ONE TESTED AT 0.76 PERCENT GMO PRESENCE IN ZAGREB AND 1.15 PERCENT IN BERN (IT WILL BE RETESTED) AND ANOTHER SAMPLE WAS CONTAMINATED WITH BROCCOLI VIRUS SIMILAR TO ONE GENETIC MODIFICATION (THAT PRODUCT CONTAINS BROCCOLI AND SOY BEANS). ZAGREB 00000578 001.2 OF 003 IN 14 FOOD SAMPLES HAS SPED THE ADOPTION OF REGULATIONS ON LABELING AND APPROVAL OF GMOS AND STIRRED PUBLIC DEBATE, EVEN THOUGH SUBSEQUENT TESTS FOUND THAT ONLY ONE OF THE SAMPLES HAD MORE THAN ONE PERCENT GMO CONTENT. THE GOVERNMENT HAS TRIED TO STRIKE A COMPROMISE POSITION PUBLICLY, BY SAYING THAT IMPORTS OF GMOS WOULD BE PERMITTED, IF LABELED, BUT THAT CROATIA WOULD REMAIN "GMO FREE" BECAUSE SOWING OF GM CROPS WOULD NOT BE ALLOWED. THE GOVERNMENT HAS ADOPTED THE EU-APPROVED LIST OF GM PRODUCTS AND THE EU THRESHOLD OF 0.9 PERCENT FOR LABELING. MEANWHILE, VARIOUS REGIONS ARE CONSIDERING FOLLOWING ISTRIA'S LEAD IN DECLARING "GMO-FREE" ZONES. END SUMMARY. THE STORM BREAKS -------------- ¶2. (U) IN FEBRUARY, CROATIAN NATIONAL TELEVISION ANNOUNCED THAT THE FIRST TESTING OF GMO PRESENCE IN FOOD SAMPLES WAS DONE IN AN OSIJEK (IN THE RURAL EAST OF CROATIA) FOOD QUALITY-BIOTECHNOLOGY TESTING LABORATORY. ONE OF ONLY TWO BIOTECH TESTING LABS IN CROATIA, THE FACILITY LACKS ISO CERTIFICATION. IT TESTED 33 FOOD SAMPLES FOR QUALITY AND GMO PRESENCE. IN 14 SAMPLES FROM BOTH CROATIAN AND FOREIGN COMPANIES, IT REPORTED MORE THAN ONE PERCENT OF GMO PRESENCE. IN ADDITION, IT DETECTED MEAT IN "VEGETARIAN" PATE AND PORK AND BEEF IN "CHICKEN" PATE. THE GMO "CONTAMINATED" PRODUCTS WERE SOY AND SOY PRODUCTS, VEGETARIAN PATE, CORN FLAKES, OIL, AND CANNED CORN. ¶3. (U) THE STORY DOMINATED THE HEADLINES FOR SEVERAL DAYS, AND POPPED UP INTERMITTENTLY FOR WEEKS. MOST NEWS STORIES WERE FAIRLY MATTER-OF-FACT -- NON-LABELED GMOS HAVE BEEN FOUND IN FOOD. SOME NEWS PROGRAMS EVEN NOTED THAT NO HARMFUL EFFECTS OF GMOS HAD BEEN PROVEN. HOWEVER, THE MERE FACT THAT GMOS WERE FOUND PROMPTED A PUBLIC OUTCRY. GREENS PORTRAYED THE RESULTS AS VINDICATION OF YEARS OF DIRE WARNINGS, AND RENEWED CALLS FOR A TOTAL BAN ON BIOTECH. (IRONICALLY, GMOS WERE ALREADY DE FACTO BANNED. WHILE A LAW HAD BEEN PASSED ALLOWING THE IMPORT OF GMOS ONCE REGISTERED AND LABELED, IN THE ABSENCE OF REGULATIONS, NO PERMITS COULD BE ISSUED.) AS A RESULT OF THE FUROR, CONSUMERS THREATENED TO SUE COMPANIES THAT DID NOT LABEL GMOS, CONSUMER GROUPS DEMANDED THAT THE COMPANIES IN QUESTION BE PUNISHED, PRODUCERS THREATENED THE LAB FOR PUBLISHING PARTIAL INFORMATION, SUPERMARKETS PLEDGED TO WITHDRAW THE FOOD CONTAINING GMOS, AND THE SANITARY INSPECTION SERVICE TIGHTENED UP INSPECTIONS ON THE BORDER, REQUESTING GMO-FREE CERTIFICATES FOR FRESH PRODUCE AND COMMODITIES, TAKING SAMPLES, ETC. ¶4. (SBU) A CONTACT IN PUBLIC HEALTH SERVICES HEADQUARTERS FUMED TO US THAT THE LAB IN OSIJEK HAD ACTED IRREGULARLY AND IRRESPONSIBLY. IN THE ABSENCE OF REGULATION OF LAST YEAR'S FOOD LAW, THERE WERE NO GUIDELINES FOR TESTING. HE SPECULATED THAT THE SAMPLING WAS DONE TO CREATE AN UPROAR AND TO POLITICIZE THE ISSUE OF GMOS. HE ALSO QUESTIONED THE VALIDITY OF THE TESTING -- CORRECTLY AS IT TURNED OUT. ¶5. (U) THE ZAGREB PUBLIC HEALTH SERVICE INITIALLY CROSS CHECKED 12 SAMPLES OF THE SAME PRODUCTS, BUT DIFFERENT LOTS BECAUSE THE OSIJEK LABORATORY DID NOT WANT TO SHARE ITS SAMPLES. ONLY ONE SAMPLE HAD MORE THAN ONE PERCENT OF GMOS, FIVE HAD TRACES OF GMOS, AND SEVEN HAD NO GMOS. AFTER THE ZAGREB LAB WAS FINALLY ABLE TO OBTAIN SAMPLES FROM THE OSIJEK LAB, AN ISO-CERTIFIED LABORATORY IN BERN PROVED THAT THE ZAGREB LABORATORY HAD THE CORRECT RESULTS AND THE OSIJEK LABORATORY WAS WRONG. ¶6. (U) THE ONE PRODUCT SAMPLE WITH OVER ONE PERCENT OF GMO PRESENCE WAS A SAUSAGE PRODUCED IN CROATIA BY A CROATIAN SUBSIDIARY OF THE SLOVENIAN COMPANY, PERUTNINA PTUJ. THE SAUSAGE CONTAINED SOY EXTRACT THAT WAS PROBABLY BOUGHT FROM A DUTCH COMPANY WITH OFFICES IN ZAGREB. THE MEDIA REPORTED THAT THE SOYBEANS WERE SOURCED FROM THE U.S. ¶7. (U) TWO OTHER SAMPLES COULD NOT BE CATEGORIZED AS GMO OR GMO-FREE. ONE TESTED AT 0.76 PERCENT GMO PRESENCE IN ZAGREB AND 1.15 PERCENT IN BERN (IT WILL BE RETESTED) AND ANOTHER SAMPLE WAS CONTAMINATED WITH BROCCOLI VIRUS SIMILAR TO ONE GENETIC MODIFICATION (THAT PRODUCT CONTAINS BROCCOLI AND SOY BEANS). ZAGREB 00000578 002.1 OF 003 HAVE FULL LABELING AND REGISTRATION REGULATIONS IN PLACE, IMPORTERS SAY THEIR CUSTOMERS (ESPECIALLY SUPERMARKETS) ARE ASKING FOR PROOF THAT PRODUCTS ARE GMO-FREE AND BORDER INSPECTORS ARE REQUESTING LAB CERTIFICATES THAT IMPORTS ARE GMO FREE. THIS IS A PROBLEM FOR INTERNATIONAL COMPANIES WHICH SOURCE THEIR INPUTS ON WORLD MARKETS WHERE IT IS CUSTOMARY TO ACCEPT A STATEMENT FROM A SUPPLIER THAT THE PRODUCT IS GMO-FREE. THEY ONLY REQUEST A LAB CERTIFICATE IF THEY DISCOVER THAT THE SUPPLIER IS NOT RELIABLE. ¶9. (U) EVEN SOME CROATIAN EXPORTERS HAVE TO GIVE GMO-FREE CERTIFICATES TO THEIR FOREIGN CUSTOMERS. ONE EXAMPLE IS A SLOVENIAN COOKING OIL FACTORY THAT IS ASKING ITS CROATIAN SUPPLIER TO CERTIFY ITS SUNFLOWER OIL AS GMO-FREE, DESPITE THE FACT THAT THERE ARE NO GMO SUNFLOWERS BEING COMMERCIALIZED. THE GOVERNMENT'S NEXT STEPS -------------- ¶10. (U) THE COMPANY THAT PRODUCED THE SAUSAGE WITH GMO PRESENCE HAD TO WITHDRAW IT FROM THE MARKET (THEY DID SO VOLUNTARILY),AND MAY BE PUNISHED FOR NOT LABELING GMO PRESENCE, FOR WHICH FINES ARE SEVERE. IN THEIR FAVOR IS THE FACT THAT THERE WERE NO REGULATIONS THAT ESTABLISHED THRESHOLDS, DETAILS OF LABELING, OR TESTING REQUIREMENTS. ¶11. (U) IN REACTION TO THE UPROAR, THE CROATIAN GOVERNMENT SPED UP THE PROCEDURE OF FORMING THE FOOD AGENCY AND QUICKLY DRAFTED REGULATIONS FOR GMO LABELING AND THRESHOLDS. REGULATIONS ON REQUIREMENTS FOR BIOTECH TESTING LABS WILL BE PREPARED WITHIN A MONTH, AND PROCEDURES ON "NOVELTY FOOD APPROVALS" IN SIX MONTHS. ¶12. (U) AT ITS MARCH 12 SESSION, THE GOVERNMENT ADOPTED THE REGULATION ON THE LEVEL OF GMO IN PRODUCTS PLACED ON THE MARKET. THIS REGULATION STIPULATES THAT PRODUCTS CONTAINING ACCIDENTAL OR TECHNOLOGICALLY UNAVOIDABLE TRACES OF ALLOWED GMO AT THE LEVEL OF 0.9 PERCENT OR LESS IN A PRODUCT OF ONE INGREDIENT, OR 0.9 PERCENT OR LESS OF ALLOWED GMO OF EACH INGREDIENT OF THE PRODUCT, NEED NOT BE MARKED AS PRODUCTS CONTAINING GMO. AN EXCEPTION TO THIS THRESHOLD IS REPRODUCTIVE PLANT MATERIAL (SEED) CONTAINING GMO IN ANY AMOUNT, WHICH MUST BE MARKED. ¶13. (U) UNTIL ALL IMPLEMENTING REGULATIONS ON PERMISSION TO PLACE GMOS AND PRODUCTS CONTAINING GMOS ON THE MARKET IN THE CROATIA ARE ADOPTED, ONLY THE EU-APPROVED LIST OF 15 VARIETIES OF SOY, CORN, RAPESEED AND COTTON ARE PERMITTED. STRANGE DEFINITION OF "GMO-FREE" -------------- ¶14. (SBU) CROATIAN HEALTH MINISTER ANDRIJA HEBRANG, WHO IS ALSO THE DEPUTY PRIME MINISTER FOR THE ECONOMY, COMMENTED, "THE POSITION OF THE GOVERNMENT IS THAT CROATIA MUST BE A GMO-FREE COUNTRY AND GMO PRODUCTS WILL NOT BE PRODUCED IN CROATIA. THOSE IMPORTED FROM ABROAD MUST BE SUBJECT TO STRINGENT CHECKS." HOWEVER, THERE IS NO LEGAL WAY TO DECLARE THE COUNTRY OR A REGION "GMO-FREE," ALTHOUGH THE LAW ON PROTECTION OF NATURE DOES HAVE PROVISIONS TO DECLARE CERTAIN AREAS GMO-FREE TO PROTECT NATURE PRESERVES, TOURISM OR ORGANIC PRODUCTION. THAT DID NOT STOPPED ISTRIA COUNTY FROM DECLARING ITSELF "GMO-FREE" LAST YEAR. AT THE TIME, THE COUNTY PREFECT SHEEPISHLY ADMITTED TO US THAT HE HAD NO LEGAL BASIS TO DO SO, AND NO WAY TO ENFORCE IT. BUT "IT'S A TYPE OF MARKETING," HE DECLARED. POZESKO-SLAVONSKA AND KRAPINSKO-AAGORSKA COUNTIES FOLLOWED SUIT. RECENTLY EIGHT HSS (CROATIAN PEASANT'S PARTY) COUNTRY PREFECTS SUGGESTED TO THEIR COUNTY ASSEMBLIES TO DECLARE GMO-FREE ZONES AS WELL. COMMENT -------------- ¶15. (SBU) WHILE THE OSIJEK LAB WAS SHOWN TO BE INCOMPETENT, IT IS LIKELY THAT THE FOES OF BIOTECHNOLOGY SCORED PUBLIC RELATIONS POINTS, AT LEAST IN THE SHORT-TERM. AT THE MARCH 12 GOVERNMENT MEETING, THE CABINET DECIDED TO BASE THE NEW FOOD AGENCY -- WHICH WILL APPROVE NEW BIOTECH PRODUCTS FOR MARKETING -- IN OSIJEK. THE GENESIS OF THIS DECISION WAS NOT ENTIRELY RELATED TO THE GMO-TESTING ISSUE -- THERE HAS ZAGREB 00000578 002.2 OF 003 HAVE FULL LABELING AND REGISTRATION REGULATIONS IN PLACE, IMPORTERS SAY THEIR CUSTOMERS (ESPECIALLY SUPERMARKETS) ARE ASKING FOR PROOF THAT PRODUCTS ARE GMO-FREE AND BORDER INSPECTORS ARE REQUESTING LAB CERTIFICATES THAT IMPORTS ARE GMO FREE. THIS IS A PROBLEM FOR INTERNATIONAL COMPANIES WHICH SOURCE THEIR INPUTS ON WORLD MARKETS WHERE IT IS CUSTOMARY TO ACCEPT A STATEMENT FROM A SUPPLIER THAT THE PRODUCT IS GMO-FREE. THEY ONLY REQUEST A LAB CERTIFICATE IF THEY DISCOVER THAT THE SUPPLIER IS NOT RELIABLE. ¶9. (U) EVEN SOME CROATIAN EXPORTERS HAVE TO GIVE GMO-FREE CERTIFICATES TO THEIR FOREIGN CUSTOMERS. ONE EXAMPLE IS A SLOVENIAN COOKING OIL FACTORY THAT IS ASKING ITS CROATIAN SUPPLIER TO CERTIFY ITS SUNFLOWER OIL AS GMO-FREE, DESPITE THE FACT THAT THERE ARE NO GMO SUNFLOWERS BEING COMMERCIALIZED. THE GOVERNMENT'S NEXT STEPS -------------- ¶10. (U) THE COMPANY THAT PRODUCED THE SAUSAGE WITH GMO PRESENCE HAD TO WITHDRAW IT FROM THE MARKET (THEY DID SO VOLUNTARILY),AND MAY BE PUNISHED FOR NOT LABELING GMO PRESENCE, FOR WHICH FINES ARE SEVERE. IN THEIR FAVOR IS THE FACT THAT THERE WERE NO REGULATIONS THAT ESTABLISHED THRESHOLDS, DETAILS OF LABELING, OR TESTING REQUIREMENTS. ¶11. (U) IN REACTION TO THE UPROAR, THE CROATIAN GOVERNMENT SPED UP THE PROCEDURE OF FORMING THE FOOD AGENCY AND QUICKLY DRAFTED REGULATIONS FOR GMO LABELING AND THRESHOLDS. REGULATIONS ON REQUIREMENTS FOR BIOTECH TESTING LABS WILL BE PREPARED WITHIN A MONTH, AND PROCEDURES ON "NOVELTY FOOD APPROVALS" IN SIX MONTHS. ¶12. (U) AT ITS MARCH 12 SESSION, THE GOVERNMENT ADOPTED THE REGULATION ON THE LEVEL OF GMO IN PRODUCTS PLACED ON THE MARKET. THIS REGULATION STIPULATES THAT PRODUCTS CONTAINING ACCIDENTAL OR TECHNOLOGICALLY UNAVOIDABLE TRACES OF ALLOWED GMO AT THE LEVEL OF 0.9 PERCENT OR LESS IN A PRODUCT OF ONE INGREDIENT, OR 0.9 PERCENT OR LESS OF ALLOWED GMO OF EACH INGREDIENT OF THE PRODUCT, NEED NOT BE MARKED AS PRODUCTS CONTAINING GMO. AN EXCEPTION TO THIS THRESHOLD IS REPRODUCTIVE PLANT MATERIAL (SEED) CONTAINING GMO IN ANY AMOUNT, WHICH MUST BE MARKED. ¶13. (U) UNTIL ALL IMPLEMENTING REGULATIONS ON PERMISSION TO PLACE GMOS AND PRODUCTS CONTAINING GMOS ON THE MARKET IN THE CROATIA ARE ADOPTED, ONLY THE EU-APPROVED LIST OF 15 VARIETIES OF SOY, CORN, RAPESEED AND COTTON ARE PERMITTED. STRANGE DEFINITION OF "GMO-FREE" -------------- ¶14. (SBU) CROATIAN HEALTH MINISTER ANDRIJA HEBRANG, WHO IS ALSO THE DEPUTY PRIME MINISTER FOR THE ECONOMY, COMMENTED, "THE POSITION OF THE GOVERNMENT IS THAT CROATIA MUST BE A GMO-FREE COUNTRY AND GMO PRODUCTS WILL NOT BE PRODUCED IN CROATIA. THOSE IMPORTED FROM ABROAD MUST BE SUBJECT TO STRINGENT CHECKS." HOWEVER, THERE IS NO LEGAL WAY TO DECLARE THE COUNTRY OR A REGION "GMO-FREE," ALTHOUGH THE LAW ON PROTECTION OF NATURE DOES HAVE PROVISIONS TO DECLARE CERTAIN AREAS GMO-FREE TO PROTECT NATURE PRESERVES, TOURISM OR ORGANIC PRODUCTION. THAT DID NOT STOPPED ISTRIA COUNTY FROM DECLARING ITSELF "GMO-FREE" LAST YEAR. AT THE TIME, THE COUNTY PREFECT SHEEPISHLY ADMITTED TO US THAT HE HAD NO LEGAL BASIS TO DO SO, AND NO WAY TO ENFORCE IT. BUT "IT'S A TYPE OF MARKETING," HE DECLARED. POZESKO-SLAVONSKA AND KRAPINSKO-AAGORSKA COUNTIES FOLLOWED SUIT. RECENTLY EIGHT HSS (CROATIAN PEASANT'S PARTY) COUNTRY PREFECTS SUGGESTED TO THEIR COUNTY ASSEMBLIES TO DECLARE GMO-FREE ZONES AS WELL. COMMENT -------------- ¶15. (SBU) WHILE THE OSIJEK LAB WAS SHOWN TO BE INCOMPETENT, IT IS LIKELY THAT THE FOES OF BIOTECHNOLOGY SCORED PUBLIC RELATIONS POINTS, AT LEAST IN THE SHORT-TERM. AT THE MARCH 12 GOVERNMENT MEETING, THE CABINET DECIDED TO BASE THE NEW FOOD AGENCY -- WHICH WILL APPROVE NEW BIOTECH PRODUCTS FOR MARKETING -- IN OSIJEK. THE GENESIS OF THIS DECISION WAS NOT ENTIRELY RELATED TO THE GMO-TESTING ISSUE -- THERE HAS ZAGREB 00000578 003.1 OF 003 IN THE RURAL EAST. HOWEVER, THE GOVERNMENT ALSO FELT A NEED TO PLACATE THE PUBLIC AND LOCAL OFFICIALS IN EASTERN CROATIA. ¶16. (SBU) EVEN WHILE MORE AND MORE CROATIANS MAY HAVE SOME UNDERSTANDING THAT GMOS ARE NOT HARMFUL, THEY WANT TO KNOW IF GMOS ARE IN THEIR FOOD, AND IF POSSIBLE, TO AVOID THEM. WHILE THE GOVERNMENT DECISION TECHNICALLY OPENS THE MARKET TO EU-APPROVED VARIETIES, WE DOUBT THAT LABELED GMOS WILL BE APPEARING ON SUPERMARKET SHELVES ANY TIME SOON, ALTHOUGH THEY MAY BE MAKING A (REPEAT) APPEARANCE IN FEED LOTS. FRANK ZAGREB 00000578 003.2 OF 003 IN THE RURAL EAST. HOWEVER, THE GOVERNMENT ALSO FELT A NEED TO PLACATE THE PUBLIC AND LOCAL OFFICIALS IN EASTERN CROATIA. ¶16. (SBU) EVEN WHILE MORE AND MORE CROATIANS MAY HAVE SOME UNDERSTANDING THAT GMOS ARE NOT HARMFUL, THEY WANT TO KNOW IF GMOS ARE IN THEIR FOOD, AND IF POSSIBLE, TO AVOID THEM. WHILE THE GOVERNMENT DECISION TECHNICALLY OPENS THE MARKET TO EU-APPROVED VARIETIES, WE DOUBT THAT LABELED GMOS WILL BE APPEARING ON SUPERMARKET SHELVES ANY TIME SOON, ALTHOUGH THEY MAY BE MAKING A (REPEAT) APPEARANCE IN FEED LOTS. FRANK NNNN