`I AM NOT A TROUBLEMAKER': COM MEETS NEW SLOVENIAN

UNCLAS LJUBLJANA 000062

SIPDIS


DEPT FOR EUR/NCE, EUR/ERA, EUR/RPM, EB, OES
DEPT PLEASE PASS TO USTR/ERRION
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SAVICH
JUSTICE FOR AAG SANSONETTI

E.O. 12958: N/A
TAGS: ECON ETRD PINR SI
SUBJECT: `I AM NOT A TROUBLEMAKER': COM MEETS NEW SLOVENIAN
ENVIRONMENT MINISTER JANEZ PODOBNIK

REF: 04 LJUBLJANA 884


1. Summary: In a January 24 courtesy call, new Minister of
Environment and Spatial Planning, Janez Podobnik told COM about
his plans for the Ministry, highlighting challenges of nuclear
waste disposal and biotech. He also stated that there might be
opportunities for US investors as Slovenia plans for a waste
disposal incinerator and seeks to build wind-powered electrical
plants. In addition to environmental matters, the discussion
covered some political ground since Podobnik is also president
of coalition partner Slovene People's Party (SLS). Podobnik
noted that while the coalition was operating smoothly, it was
difficult to be in "third place" (ie. the third party in a four
party coalition). On the subject of relations with Croatia,
Podobnik, referring to his late-September 2004 arrest by
Croatian police in a contested border region stated "I am not a
troublemaker." Podobnik hopes and expects that the dispute and
pending charges will be resolved in a diplomatic fashion. End
Summary.

--------------
Ministry's Main Priorities
--------------


2. COM, accompanied by DCM, Econ Off, and Econ/Comm FSN, began
the meeting asking Podobnik for his main priorities for the
Ministry. Podobnik replied that he would focus on the three
areas corresponding to the focus areas of the Ministry:
environment, spatial planning, and housing. On the environment,
Podobnik said that his priority is to identify a location for
an incinerator for the dual purpose of waste disposal and
energy creation. In addition, Podobnik said he will focus on
preserving and maintaining the potable water supply since it
represents a strategic resource in Slovenia.
On spatial planning, Podobnik said he will strive to decrease
potential barriers to foreign investors in areas where he has
influence such as the location of infrastructure, including
railroads, highways, and gas lines. COM told Podobnik that the
Ministry and the GoS should do everything they can to increase
the speed and the transparency of the processes foreign
investors must go through to begin operations in Slovenia. On
housing, Podobnik plans to increase the volume of construction
of low-income housing.

--------------
Opportunities for US Investors
--------------


3. Noting Podobnik's comments on the incinerator, COM said
that the U.S. is a global leader in the field of environmental
technology and that we might be able to provide Slovenia with
assistance in finding partners in this area. Podobnik welcomed
U.S. participation in both the incinerator project and in the
forthcoming (albeit temporarily delayed) wind energy project.
Podobnik told COM that in March 2005, the Ministry will
organize an incinerator seminar in Slovenia. He hopes to
attract experts in the field, to hear success stories of best
practices, and to attract potential investors. Podobnik noted
that in spite of Slovenia's small size, a project of this
nature would reach far beyond its borders, as green energy is
gaining in importance in this region of the world.

--------------
Nuclear Waste
--------------


4. (Background: The waste disposal solution for Slovenia's only
nuclear plant in Krsko, near the Croatian border, has yet to be
resolved despite more than 20 years of discussions. Probably
the largest environmental issue in Slovenia, nuclear waste has
been stored at the facility site while the government searches
for a more permanent solution. Unfortunately, one does not yet
appear on the horizon.) When COM asked Podobnik about progress
in finding a permanent solution for nuclear waste storage,
Podobnik turned to Professor Dr. Marjan Vezjak, Director of the
Office for International and European Affairs. Vezjak stated
that Slovenia, as many other European countries, will try to
solve this problem inside the EU. The goal of the Ministry is
to identify at least one location for disposal of low and
medium radioactive waste and have a solution for this problem
by 2008.

-------------- --------------
Wind Generated Power and Interest in AAG Sansoneti's Expertise
-------------- --------------


5. Podobnik told COM that he strongly supports "green" energy,
and that this type of power is part of the government's
coalition contract. The planned project of having a series of
wind-operated power plants has stalled, however, due to the
strong environmental concerns amongst the population and a
negative environmental impact report from the Ministry's own
environmental agency. Podobnik asked the COM for advice in
solving this problem. COM replied that each case must be
weighed on its own merits and that careful negotiations between
the government, local authorities and NGOs could be key, with
the understanding that compromises must often be made. Marko
Starman, State Secretary at the Ministry, (and an SLS political
appointee and longtime Embassy contact from his time in the
Ministry of Justice handling denationalization issues),noted
that the Ministry's goal will be to increase the transparency
of this project and deal with the situation in a way that will
avoid lawsuits. Starman expressed interest in cooperating with
and getting advice from Assistant Attorney General for the
Environment Thomas Sansonetti, with whom he met in November of

2004.

--------------
Biotech and GMOs
--------------


6. On biotechnology and GMOs, Podobnik stated that he believes
Europe and, consequently, Slovenia, will form a balanced
strategy. Podobnik is convinced that a good legal foundation is
essential in dealing with this issue. As a medical doctor and
politician, Podobnik believes that skepticism, precaution, and
control are needed in this field. Noting that the biotech
field lacks good practice in Slovenia as well as in the EU,
Vezjak added that he believes the EU is leaning towards
allowing GMOs in strictly determined limits only.

-------------- --------------
Political Agenda and Slovenian-Croatian Relations
-------------- --------------


7. Switching form environmental topics, COM asked Podobnik for
his perception of how the SLS is faring in the new government.
Podobnik who is new to the Government, but a well-known figure
in Slovene politics, stated that the SLS started well in the
new government. He also noted the SLS has very good
connections with the municipalities as they rank number one
among the parties in the number of city mayors. Podobnik rated
Prime Minister Jansa an excellent leader and said his
relationship with Jansa is good. Despite the positive feeling
about the new government and the change in the political
climate, Podobnik stated several times during the conversation
that it is difficult being the number three coalition party
member. (Note: After the October 2004 parliamentary elections,
the SLS formed a coalition government with Slovenian Democratic
Party (SDS) led by PM Janez Jansa, the New Slovenia Party (Nsi)
led by Finance Minister Andrej Bajuk and the Slovenian
Pensioners Party (DeSUS). End Note).


8. COM asked Podobnik for his perceptions of Slovenia's
relations with Croatia. In contrast to his easy manner up to
this point in the meeting, Podobnik stated somewhat stiffly
that the incident prior to the recent elections [when he was
arrested by Croatian authorities on the Slovenia-Croatia border
in an area long understood to be in dispute] was addressed by
the Croatians in a "non-European manner," since Podobnik was a
member of EU parliament at the time of the incident. Noting he
is not a "troublemaker," Podobnik suggested this incident will
be resolved diplomatically. [Note. Most likely after a meeting
between Justice Ministers in February. End Note] Podobnik said
that he is committed to strengthening relations between
Slovenia and Croatia as the two countries share the Sava and
Donava rivers in addition to the Adriatic Sea. Because of this,
Podobnik believes the two countries will have many good
opportunities to cooperate closely in numerous environmental
projects.

ROBERTSON


NNNN

2005LJUBLJ00062 - Classification: UNCLASSIFIED



v1.6.2