CROATIA PROACTIVE ON ARMS CONTROL ISSUES

S E C R E T ZAGREB 000542 SIPDIS SIPDIS DEPARTMENT FOR EUR/SCE, EUR/PRA, ISN/CPI, ISN/ECC, INL/AAE, AND EUR/ACE DEFENSE FOR OSD/POLICY:STRAUSS AND WINTERNITZ JUSTICE FOR ICITAP DTRA FOR PREDMORE AND PETERSON E.O. 12958: DECL: 04/27/2016 TAGS: PARM ETTC PREL HR SUBJECT: CROATIA PROACTIVE ON ARMS CONTROL ISSUES REF: A. FRIEDMAN-KESSLER E-MAILS OF 4/4/06 ¶B. ZAGREB 414 AND RELATED ¶C. 05 ZAGREB 1832 ¶D. FRIEDMAN-KESSLER E-MAILS OF 3/8/06 ¶E. FRIEDMAN-KESSLER E-MAILS OF 10/19/05 ¶F. ZAGREB 215 AND RELATED ¶G. FRIEDMAN ARIEX REPORT-O-GRAM E-MAIL OF 3/30/06 Classified By: PolOff Justin Friedman, reasons 1.4 (b) & (d) ¶1. (C) SUMMARY and COMMENT: Over the past year (refs) the Government of Croatia has quietly but steadily built a track record of proactive cooperation and coordination with the USG on concrete arms control cases. Croatian industry has a long history of business ties to problematic Middle Eastern States. While the USG can contribute to strengthening law enforcement and prosecution capacities through EXBS and other programs, the GoC has made significant strides in firming up its controls over military goods exports. END SUMMARY and COMMENT. ¶2. (C) From the days of Yugoslavia,s non-alignment, Croatian industry, including arms manufacturers, have built up a loyal clientele among some of the more problematic states of the Middle East, including Libya, Syria, and Iran. The Government of Croatia has actively worked to bring these industries under governmental supervision to ensure that any sales contemplated do not violate GoC,s arms control commitments or contravene the GoC,s primary foreign policy objectives of joining NATO and the EU. ¶3. (S) Over the last year, primarily at the working level, the GoC has taken the initiative to consult with the USG over any military-related sales to questionable countries. From helmets to Syria (ref A),pilot boats to Iran (ref B),or flight simulators or civilian communications gear to Libya (refs C, D and E),GoC contacts have reached out to the USG to seek advice and guidance before counseling local industry on specific sales opportunities. ¶4. (S) While most firms have complied with GoC instructions, there are still a few bad eggs based in Croatia seeking to sell militarily useful equipment to problematic states. A new law on Economic Crimes is currently under interagency review that could go a long way to filling the legal holes revealed by the Adrinek case (ref F). Post,s EXBS Advisor has been working closely with the Ministry of Economy to have new legislation cover brokering activities. ¶5. (SBU) Post will continue to support capacity development of Croatian law enforcement agencies through EXBS and the ICITAP programs. Post also welcomes ongoing support from DTRA (ref G) and DoD-funded programs that could help develop further GoC capacities to detect, deter, and prosecute firms and individuals violating Croatian arms control law. FRANK