Identifier
Created
Classification
Origin
06ZAGREB1232
2006-10-11 12:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Zagreb
Cable title:
CROATIA RESOLVES BILATERAL ISSUE WITH ITALY; STILL
how-toVZCZCXRO5803 RR RUEHAG RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVB #1232 2841252 ZNR UUUUU ZZH R 111252Z OCT 06 FM AMEMBASSY ZAGREB TO RUEHC/SECSTATE WASHDC 6773 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS ZAGREB 001232
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PREL HR IT REGIONAL ISSUES
SUBJECT: CROATIA RESOLVES BILATERAL ISSUE WITH ITALY; STILL
WORKING ON SLOVENIA
UNCLAS ZAGREB 001232
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PREL HR IT REGIONAL ISSUES
SUBJECT: CROATIA RESOLVES BILATERAL ISSUE WITH ITALY; STILL
WORKING ON SLOVENIA
1. (U) Removing a bilateral irritant and potential obstacle
to EU membership, the GOC announced October 9 that it would
acknowledge by exchange of diplomatic notes with Italy that
Croatian citizens face no obstacles buying real estate in
Italy, and it will extend the principle of reciprocity to
Italian citizens seeking to buy property in Croatia. The
press reported that having "verified Italian statements"
about the unimpeded ability of Croatian citizens to buy
property in Italy, the Croatian MFA indicated that the
domestic real estate market would henceforth be open to
Italian citizens.
2. (SBU) MFA State Secretary Biscevic confirmed the
reciprocity agreement to the Ambassador October 9. He also
noted that in addition to resolving the immediate bilateral
problem and meeting EU requirements for the free flow of
capital, the deal overcame longstanding Italian political
objections to accepting USD 34 million in Croatian
compensation for property seized from Italian citizens (the
"Esuli") after World War II. COMMENT: The market is still
not fully liberalized. All foreigners wishing to purchase
property need Justice Ministry approval, a slow process. To
avoid this, many foreigners, including Italians, are already
buying property by incorporating shell companies. END
COMMENT.
2. (U) Meanwhile, the Croatian press reported on a similar
request for reciprocal treatment from the Slovenian
government, following the adoption in June of a law to
permit Croatian citizens to buy property in Slovenia. The
Croatian MFA announced that it would investigate the
conditions under which Croatian citizens actually exercise
ownership rights (as it had done with the Italian
assertions) and had asked the GOS for additional information
before making a determination about reciprocity.
Bradtke
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PREL HR IT REGIONAL ISSUES
SUBJECT: CROATIA RESOLVES BILATERAL ISSUE WITH ITALY; STILL
WORKING ON SLOVENIA
1. (U) Removing a bilateral irritant and potential obstacle
to EU membership, the GOC announced October 9 that it would
acknowledge by exchange of diplomatic notes with Italy that
Croatian citizens face no obstacles buying real estate in
Italy, and it will extend the principle of reciprocity to
Italian citizens seeking to buy property in Croatia. The
press reported that having "verified Italian statements"
about the unimpeded ability of Croatian citizens to buy
property in Italy, the Croatian MFA indicated that the
domestic real estate market would henceforth be open to
Italian citizens.
2. (SBU) MFA State Secretary Biscevic confirmed the
reciprocity agreement to the Ambassador October 9. He also
noted that in addition to resolving the immediate bilateral
problem and meeting EU requirements for the free flow of
capital, the deal overcame longstanding Italian political
objections to accepting USD 34 million in Croatian
compensation for property seized from Italian citizens (the
"Esuli") after World War II. COMMENT: The market is still
not fully liberalized. All foreigners wishing to purchase
property need Justice Ministry approval, a slow process. To
avoid this, many foreigners, including Italians, are already
buying property by incorporating shell companies. END
COMMENT.
2. (U) Meanwhile, the Croatian press reported on a similar
request for reciprocal treatment from the Slovenian
government, following the adoption in June of a law to
permit Croatian citizens to buy property in Slovenia. The
Croatian MFA announced that it would investigate the
conditions under which Croatian citizens actually exercise
ownership rights (as it had done with the Italian
assertions) and had asked the GOS for additional information
before making a determination about reciprocity.
Bradtke