BOSNIA: PIC POLITICAL DIRECTORS PUSH FOR

C O N F I D E N T I A L SECTION 01 OF 03 SARAJEVO 002752

SIPDIS

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E.O. 12958: DECL: 11/06/2016
TAGS: BK PGOV PREL
SUBJECT: BOSNIA: PIC POLITICAL DIRECTORS PUSH FOR
CONSTITUTIONAL REFORM

REF: SARAJEVO 1464

Classified By: AMBASSADOR DOUGLAS MCELHANEY, REASONS 1.4 (B) AND (D)


1. (C) Summary: The Political Directors of the Peace
Implementation Council (PIC) Steering Board pushed for
constitutional and police reform during the October 19-20
meeting. The Board discussed the OHR June 2007 closure and
subsequent role of an expanded European Union Special
Representative (EUSR). In a private session several European
PIC representatives expressed concern that Bosnia might not
be ready yet for an OHR closure by June 2007. OHR High
Representative Christian Schwarz-Schilling suggested
extending the OHR mandate or giving Bonn powers to the EUSR.
EUR DAS Rosemary DiCarlo, the UK, EU Council and EC argued
against altering the OHR closure timetable. OHR updated
Steering Board members on plans to end the Brcko Supervisor
regime and to resolve political deadlock in the Mostar city
government. Bosnian government officials told the PIC they
expect no progress on reforms until the new government is
formed, not likely before February 2007. End Summary

Pressure on Constitutional Reform
--------------


2. (C) PIC Political Directors used their October 19-20
meeting to press Bosnian political leaders on constitutional
reform and urge them to adopt quickly the U.S.-brokered
package of constitutional amendments agreed to in March. At
the HighRep's request, DAS DiCarlo addressed a reception for
leaders of Bosnia's eight main political parties hosted by
the PIC to remind the leaders of the critical importance of
constitutional reform for BiH's Euro-Atlantic aspirations and
to urge them to adopt the amendment package as soon as
possible. DAS DiCarlo also underlined the commitment the
party leaders has made to Secretary Rice on constitutional
reform. The PIC also used U.S.-proposed language in its
communique to stress the importance of constitutional reform
to Bosnia's Euro-Atlantic aspirations.

Keeping Police Reform on Track
--------------


3. (C) Members of the PIC Steering Board also urged Bosnian
leaders to proceed immediately with police reform. The
Steering Board noted that the work of the Directorate for
Police Restructuring is not dependent on the formation of a
new government and should continue. Steering Board members
pressed individual Bosnian politicians to support the police
reform process. SNSD President Milorad Dodik told OHR HR
Schwarz-Schilling during the POLDIR's reception that he was
not yet willing to change his position on police reform, but
would not want to block an SAA as he sees the future of the
RS in European integration. The PIC Communique emphasized
the need for all parties to take fundamental decisions
allowing for the implementation of police reform. (NOTE: On
the weekend after the PIC meeting, Dodik publicly announced
that he was willing to block the SAA process if police reform
did not meet RS criteria. END NOTE).

EUSR Mandate
--------------


4. (C) HighRep Schwarz-Schilling stressed the importance of
having a fully-staffed reinforced EUSR office in place prior
to June 2007 in order to ensure that the transition from OHR
to EUSR is seamless. He also called on EU members of the PIC
to ensure that the European Union Council provided the EUSR
with a clear mandate on security, political, and rule of law
issues, including constitutional and police reform. He also
challenged the EU recommendation to provide the Commission
rather than the EUSR with a mandate for educational issues.
During discussion of the communique, the HighRep also
objected strongly to a Commission proposal to strike language
that noted the EUSR would represent the EU in phase two
constitutional reform negotiations. (Comment: The HighRep's
decision to publicly challenge the Commission on education
and constitutional reform before the entire PIC Steering
Board did not sit well with other EU Political Directors and
exposed the HighRep's private claims that Brussels has
endorsed his vision of an EUSR as inaccurate. End Comment).

Europeans Uneasy about OHR Closure Timetable
--------------


5. (C) In an open Steering Board Session on OHR closure, PIC
political directors discussed logistical plans for closing
OHR. Although several references were made to the upcoming

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February PIC final decision on closure, no Steering Board
member publicly questioned the June 2007 timetable. DAS
Rosemary DiCarlo told the group that the U.S. has seen
nothing to cause it to alter the earlier assessment that OHR
should close in June 2007. However, in a POLDIR's only
session several European PIC Political Directors expressed
concern that Bosnia may not be ready for full OHR closure in
June 2007. They cited the nationalist rhetoric during the
recent election campaign, the complete lack of progress on
reform over the last six months, and the potential impact of
a Kosovo final status decision as reasons for their concern.


6. (C) The HighRep echoed many of these concerns and
suggested that the PIC needed to develop a "Plan B" to manage
this contingency. He also argued that agreement on a "Plan
B" was required by the December 6 PIC, since actual financial
and staffing cuts would have to start in December 2006 and
could not be reversed, if the PIC judged in February that a
"Plan B" was necessary. With this in mind, the HighRep first
suggested contingency planning for keeping OHR open until
June 2008. This would cost $10 million and funds would need
to be committed by December 2006 before the actual OHR
drawdown begins. This option received no support although
the Canadians suggested revisiting the OHR closure decision
in December.


7. (C) OHR High Representative Schwarz-Schilling then
suggested retaining a small "Bonn Powers Unit," but residing
within EUSR. The EUSR would also have the title of HR. In
support of this proposal, the HighRep noted that the EUSR
would inherit some of the functions that currently reside
with the OHR for monitoring and ensuring compliance with the
Dayton Agreement. Turkey, Germany, and Japan supported this
option. France, Italy, UK, the EC, the EU Council
Secretariat, Russia and the US opposed any transference of

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Bonn powers to the EUSR. The UK, France and Italy made clear
that if Bonn Powers were deemed needed, then OHR should
remain in some form. DAS DiCarlo agreed but pushed to stick
with the current timetable and start the OHR drawdown in
December while awaiting a final February 2007 PIC decision on
OHR closure.

Brcko
--------------


8. (C) Newly named-OHR Brcko Supervisor Raffi Gregorian
briefed the PIC on Brcko. Plans to end the Supervisory
Regime are moving forward, but are behind schedule, he
stressed. His aim was to be in a position to recommend
ending the regime by March or April 2007, but it would
require pressing Brcko District Authorities on some long
overdue implementation of prior Supervisory Orders.
Gregorian informed the PIC that he was considering issuing a
new Supervisory Order that would provide for fines when
District Officials failed to meet their legal obligations.
Two other issues also required resolution before the
Supervisory Regime could end, he added. First, the dispute
between Brcko and the entities on tax revenue allocation must
be solved; second, the State-level parliament needed to adopt
a State Law on Brcko that would regulate the relationship
between the State institutions and the District.

Mostar
--------------


9. (C) Due to the lack of tangible progress in unifying the
Mostar city administration, OHR HR appointed Norbert
Winterstein as a special envoy to the city.
Schwarz-Schilling described Winterstein's role as mediator to
help overcome deadlock in civil service appointments, the
unification of public utilities, and telecom issues. Should
Mostar city officials fail to adopt Winterstein's
recommendations, the HR will consider going against "his
practice of interfering" and using the Bonn Powers.

Bosnian Leaders on Reform Efforts
--------------


10. (SBU) Bosnian Council of Ministers members Adnan Terzic,
Barisa Colak, and Mladen Ivanic briefed PIC Steering Board
members on the overall lack of progress of the reform agenda.
Terzic lamented that nothing had been accomplished since the
last PIC due to election rhetoric and obstructionism. Colak
expressed hope that the newly elected officials could drop
their pre-election campaign rhetoric and work on police
reform under the three principles required by the EU for a
SAA agreement. Colak and Ivanic agreed that no concrete
steps could be made on any reforms until the new government

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is up and running most likely sometime by February.


11. (U) EUR DAS Rosemary DiCarlo cleared this cable.
MCELHANEY