Identifier
Created
Classification
Origin
06BELGRADE590
2006-04-17 11:53:00
UNCLASSIFIED
Embassy Belgrade
Cable title:  

TRANSFORMING MONTENEGRO THROUGH ASSISTANCE

Tags:  EAID PGOV MW SR 
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RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBW #0590/01 1071153
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R 171153Z APR 06
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 8375
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 BELGRADE 000590 

SIPDIS

SIPDIS

DEPARTMENT PASS TO USAID

E.O. 12958: N/A
TAGS: EAID PGOV MW SR
SUBJECT: TRANSFORMING MONTENEGRO THROUGH ASSISTANCE

UNCLAS SECTION 01 OF 02 BELGRADE 000590

SIPDIS

SIPDIS

DEPARTMENT PASS TO USAID

E.O. 12958: N/A
TAGS: EAID PGOV MW SR
SUBJECT: TRANSFORMING MONTENEGRO THROUGH ASSISTANCE


1. Summary: Supporting Montenegro's aspirations to become
an open-market, Western democracy underlies all USG
assistance to the Republic and its people. We are convinced
that a strong economy is the best support for a strong
democracy, and we therefore have increased our activities
for development. While many challenges to Montenegro's
nascent democracy remain, the half-dozen recent examples
reported here typify the USG's impact, in close cooperation
with local partners, in transforming Montenegro into a more
prosperous, democratic, and safer place. End summary.

Stopping Trafficking in Persons
--------------


2. Using SEED assistance funds, the Department of State
supported the seconding of an experienced U.S. Federal
Organized Crime Prosecutor as an advisor for a six-month
TDY with the Office of the State Prosecutor in Montenegro.
Trafficking in Persons (TIP) has been a major legal and
political challenge for Montenegro, and two years ago it
was at risk of receiving a failing ("Tier III") grade for
its lack of effort in the TIP fight.


3. Concluding his tour, the U.S. Federal Prosecutor
observed "There has been significant progress in this area
and I am optimistic that it will continue. The courts have
reacted to the aggressive pursuit of these cases by our
advisor by imposing stiff sentences. At my urging, in one
case the prosecutors office appealed sentences imposed by
the trial court because they were too lenient. The Court
of Appeals agreed and ordered higher sentences." This USD
150,000 project, executed by the U.S. Department of
Justice, has helped turn around the picture on TIP in
Montenegro -- before the project, only one TIP conviction
had ever been pronounced in Montenegro. During the
project, six convictions were made, with the length of
sentences rising five-fold.

Fighting Organized Crime
--------------


4. Our advisor also cited significant progress in fighting
organized crime as well. Arrests have been made in the
August 2005 gangland slaying of a deputy police chief and
in high profile cases that had been investigated by the
slain police officer.

Ensuring a Fair Independence Referendum Campaign
-------------- ---


5. On May 21, Montenegrin voters will go to the polls to

decide whether to dissolve the State Union of Serbia and
Montenegro. This contentious issue has left the two
opposing blocs at loggerheads, willing to suspect the other
of underhanded tricks to win the vote. To help calm
tensions, USAID grantee, the National Democratic Institute
(NDI) is working with local NGO the Center for Democratic
Transition (CDT). CDT will monitor the referendum, put 750
observers in the field on polling day to watch 1100 polling
sites - the largest single observation mission in
Montenegro. CDT is also pushing the two opposing political
blocs to sign a code of campaign conduct.

Making Bays and Rivers Safe
--------------


6. In 2005, the SaM military donated an unneeded naval mine
tender boat to the Regional Center for Underwater Demining
in Montenegro (RCUD). To carry out its new tasks as the
world's first civilian vessel for humanitarian underwater
demining, the boat needed rehabilitation and advanced mine-
hunting technology. With $40,000 in U.S. assistance, the
vessel was refurbished and will enter service this summer
with many of the same capabilities as the U.S. Navy's new
submersible mine reconnaissance system.

Ending Poaching
--------------


7. Tourism accounts for over half of Montenegro's export
earnings. A major draw is fresh local seafood. The latter
had been endangered by foreign poaching, which Montenegro
was unable to stop. The Montenegro Border Security Program
(MBSP),a SEED assistance project run by the Department of
Homeland Security, supplied USD 330,000 in patrol boats and
training to Montenegro's Maritime Unit. This has allowed
Montenegrin authorities to virtually eliminate poaching of
fish supplies.

Spreading the Benefits from Tourism
--------------

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8. U.S. assistance funded a souvenir and handicrafts fair
that displayed over 500 crafts from 44 exhibitors/
entrepreneurs from various parts of Montenegro. This
event, the first of its kind, led to sales and contracts
with tourism related firms for the future supply of
souvenir craft items, and revitalizing the lagging economy
in the Northern Montenegro.

Small Business Development - Ice Sculpting
--------------


9. A Consulate Podgorica Public Diplomacy program hosted
world class ice sculptor and entrepreneur to highlight the
income potential of ice sculpting in the hospitality
industry. A number of qualified Montenegrin artists were
identified, trained, and equipped as new small business
enterpreneurs.

Improving Copyright Protection
--------------

10.A low-cost SEED-funded speaker program in 2005 brought
two U.S. artists to Montenegro to highlight the importance
of intellectual property rights (IPR) from an artist's
perspective. Montenegrin artists responded by launching a
new organization to advocate protection of their rights
under Montenegro's new intellectual property law,
multiplying the effect of the GoM's own crackdown on IPR
violations.

Marketing Specialized Agricultural Products
--------------


11. USAID's Montenegro Competitiveness Project (MCP)
assisted three small companies trading in herbal and forest
products. Our assistance helped one of the companies
identify a potential U.S. buyer and obtain needed FDA
registration. This led to the formation of a Medicinal
Herb Consortium that exported Euros 42,952 worth of
products to the U.S. in February of 2006.

Bankruptcy Law Fixed After Visit From U.S. Judge
-------------- --------------

12.An solid business bankruptcy law drafted with USAID
assistance was gutted last December when the Montenegrin
courts removed the law's economic incentive for prompt and
professional supervision by the appointed bankruptcy
supervisors. A week-long visit in March by a U.S.
bankruptcy judge with past experience in the Balkans and
Montenegro enabled us to get the law back on track.

POLT