CROATIAN GOVERNMENT TO PROPOSE ALLOWING

UNCLAS ZAGREB 000140

SIPDIS

SENSITIVE BUT UNCLASSIFIED

DEPT FOR L/CID - V.PADMANABHAN, EUR/OHI - J.BECKER,
EUR/SCE - B.BELL, CASC - R.DOWELL

E.O. 12958: N/A
TAGS: CASC KIDE KTIA PHUM PREL HR
SUBJECT: CROATIAN GOVERNMENT TO PROPOSE ALLOWING
FOREIGNERS FULL ACCESS TO PROPERTY RESTITUTION LAW -
NO BILATERAL AGREEMENT REQUIRED

REF: 05 ZAGREB 1747


1. (SBU) SUMMARY: In a January 31 meeting with the
Ambassador, the Croatian Minister of Justice
confirmed reports that the GOC will propose amending
the 1996 Restitution Act, as already amended in 2002,
to allow foreigners to file claims under the Act's
provisions without the need for a bilateral or
international agreement governing the issue. The
Minister hopes that the Croatian Parliament (Sabor)
will consider and pass the amendment by March 2006.
After passage of the amendment, American citizens and
other foreigners would be given a six month period to
file claims. The Minister also confirmed that a 1999
Constitutional Court decision effectively extends the
time period covered by the law to include claims for
property taken as early as April 6, 1941. Given the
new policy, the GOC has decided not to pass the
agreement already initialed with Austria to the Sabor
for approval. END SUMMARY.


2. (U) The Ambassador and Chief of the Consular
Section met with the Croatian Minister of Justice on
January 31, 2006. The meeting was scheduled with the
intent to push the GOC to set a date for the start of
negotiations on a bilateral agreement that would
allow American citizens access to Croatia's property
restitution law. Several days before the meeting, we
learned that the GOC was considering a policy
reversal and that a proposal to drop the bilateral
agreement requirement was in the works.


3. (SBU) In their meeting, Minister of Justice Vesna
Skare Ozbolt, confirmed to the Ambassador that the
Prime Minister and his Cabinet had reached an
agreement with President Mesic on a proposed
amendment to the 1996 Restitution Act. The amendment
would allow foreigners complete access to the law on
an equal basis with Croatian citizens and would drop
the prerequisite for a bilateral agreement governing
the issue. She added that the GOC would include all
of the more generally applicable provisions of the
agreement that was negotiated with Austria (but never
passed to the Sabor). Given the policy change, the
GOC decided that it would not pass the initialed
Austrian agreement to the Sabor for approval.


4. (SBU) The Minister hopes that the Sabor will
review the proposed amendment in an "emergency
procedure" and pass it by March 2006. Once the
amendment is passed, the GOC will allow foreigners a
six-month time frame within which to file claims.
Claims already submitted by foreigners since the
passage of the 2002 amendment will be considered
valid and will not need to be re-submitted.


5. (SBU) In response to a question from conoff, the
Minister confirmed that a 1999 Constitutional Court
decision effectively allows claimants to file claims
for property taken as early as April 6, 1941. The
Minister noted that the Constitutional Court decision
has the same effect as legislation and confirmed that
once foreign claimants have access to the Restitution
Act, they may file claims for property taken as early
as April 6, 1941. The Ambassador and conoff observed
that the expansion of the dates covered by the law
was not widely known or understood. We suggested
that the planned amendment and GOC information
campaign specifically note that claims for property
seized between April 6, 1941 and May 14, 1945 could
be submitted under the Restitution Act, as amended.
FRANK