Identifier
Created
Classification
Origin
07BELGRADE111
2007-01-24 16:35:00
CONFIDENTIAL
Embassy Belgrade
Cable title:
K+1: ROLLING OUT THE SERBIAN BENEFITS PACKAGE
how-toVZCZCXRO7252 PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHBW #0111/01 0241635 ZNY CCCCC ZZH P 241635Z JAN 07 FM AMEMBASSY BELGRADE TO RHEHNSC/NSC WASHDC PRIORITY 1282 RUEHC/SECSTATE WASHDC PRIORITY 0130 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 BELGRADE 000111
SIPDIS
SIPDIS
STATE FOR U/S BURNS, EUR A/S FRIED AND DAS DICARLO; EUR/SCE
PLEASE PASS TO STEVE GEE FOR SE WISNER
E.O. 12958: DECL: 01/24/2017
TAGS: PBTS PGOV PHUM PREL SR
SUBJECT: K+1: ROLLING OUT THE SERBIAN BENEFITS PACKAGE
REF: A.
C O N F I D E N T I A L SECTION 01 OF 03 BELGRADE 000111
SIPDIS
SIPDIS
STATE FOR U/S BURNS, EUR A/S FRIED AND DAS DICARLO; EUR/SCE
PLEASE PASS TO STEVE GEE FOR SE WISNER
E.O. 12958: DECL: 01/24/2017
TAGS: PBTS PGOV PHUM PREL SR
SUBJECT: K+1: ROLLING OUT THE SERBIAN BENEFITS PACKAGE
REF: A. 1. 2006 BELGRADE 1719
B. 2. 2006 BELGRADE 1996
C. 3. 2006 BELGRADE 1824
D. 4. 2006 BELGRADE 1891
Classified By: Ambassador Michael C. Polt for reasons 1.4 (b) and (d).
--------------
SUMMARY
--------------
1. (C) As we approach the endgame in the Kosovo status
process, this Mission is preparing to activate the third
phase of our K 1 strategy, the rollout of the Serbian
benefits package, to demonstrate the continued U.S.
commitment to Serbia's future beyond Kosovo. This rollout
would involve the incentives already agreed to by the
interagency community. Through a combination of economic
assistance programs, people-to-people exchanges, public
diplomacy campaigns, and bilateral initiatives that enhance
our relations, this package aims to deliver tangible benefits
to Serbian citizens and to help the country move beyond the
emotionally charged issue of Kosovo and toward a more
democratic, prosperous future.
2. (C) In reftels 1 and 2, we outlined the first two phases
of our K 1 strategy: 1) engaging and supporting democratic
forces in the run-up to the January 21 parliamentary
elections, including a get-out-the-vote (GOTV) campaign, and
2) developing a consequence management plan to prepare for
the aftermath of the Kosovo settlement. Within the limits of
our existing resources, we plan to roll out the benefits
package over the course of the next several months,
intensifying our public outreach and messages in the weeks
following the Kosovo settlement and preceding planned
presidential elections this spring. A fourth phase of K 1,
which we will outline in a later message, will focus on our
engagement with a new democratic government to address
pending ICTY obligations, strengthen democratic institutions,
and propel Serbia toward Euro-Atlantic integration. End
summary.
--------------
ECONOMIC ASSISTANCE -- "JOBS SERBIA"
--------------
3. (SBU) Over the next few months, we plan to launch a host
of activities aimed at bolstering the economy, particularly
in ways that positively impact ordinary Serbians, while
emphasizing that Serbia itself must make economic
revitalization and EU integration -- and, by implication, not
Kosovo -- its primary focus for the future. This message
will draw on points from Serbia's recently adopted National
Development Strategy, which emphasizes the work Serbia must
carry out in order to reduce the development gap: namely,
through lowering country risk, attracting foreign investment,
and ultimately increasing GDP per capita.
4. (SBU) A large part of our assistance resources in 2007
will go toward job creation under several initiatives that
will carry the brand "Jobs Serbia." For instance, we are
developing a long-term $23 million program to improve the
efficiency and competitiveness of agribusiness, a sector
which currently accounts for about 25 percent of the
country's GDP and 26 percent of exports. The program aims to
improve agricultural productivity by transferring technology,
strengthening institutions that help farmers learn modern
management techniques, and increasing linkages to the private
sector. The benefits of this new program should flow
primarily to rural areas, where development lags and
unemployment is increasing.
5. (SBU) Through another $14 million program in private
sector development, we plan to offer technical assistance in
sectors of high-growth potential, shoring up some of Serbia's
most promising enterprises and developing human capital in
these sectors over the next four to five years. In the
coming weeks, we will announce an expansion of our MEGA
program to include 10 additional municipalities to build
their capacity to attract foreign direct investment. And we
are in the midst of developing a $21.4 million SCoPES program
to work with vulnerable populations in up to 12
municipalities in Southern Serbia and Sandzak, partly through
grants to small enterprises. Public diplomacy efforts will
highlight each of these programs and their far-reaching
benefits to the Serbian public.
--------------
BELGRADE 00000111 002 OF 003
PEOPLE-TO-PEOPLE EXCHANGES
--------------
6. (SBU) An integral part of the benefits package will be
people-to-people exchanges, which we have named "Serbian
Exchange Experience in America" (SEEAmerica). We are
planning a splashy publicity campaign to unveil this program,
encompassing high school and undergraduate exchanges, as well
as exchanges for citizens, from teachers and police chiefs to
doctors and municipal bureaucrats. Such exchanges would
complement other ongoing public diplomacy exchanges such as
the International Visitors and Speakers programs, and could
go far in injecting optimism and energy into a population
that has long felt isolated. SEEAmerica could directly
benefit thousands of Serbian citizens and forge stronger
bilateral relations and understanding.
--------------
PUBLIC MESSAGES
--------------
7. (U) In December we kicked off a media campaign calling on
residents to vote on how to spend $1 million for the city of
Belgrade, either on a new fleet of ambulances or on
renovation of the "Dom Omladine" youth center. Based on the
overwhelming response -- nearly 70,000 votes -- this project
generated positive interest and a boost to the quality of
life in Serbia's capital. We will continue to derive
substantial PD impact during the implementation phase.
8. (SBU) In addition to publicizing U.S. economic assistance
and exchange programs, our public diplomacy efforts will
include delivering positive messages to the Serbian people on
the Kosovo settlement and next steps for Serbia. Through
media interviews, speeches, and other public events, we will
demonstrate support for UN Special Envoy Ahtisaari's
recommendations, underscore that we are working with our
Contact Group partners and the UNSC to finalize future
status, and express our commitment to peace and stability in
the region. Both privately and publicly, we will urge the
government of Serbia to act responsibly and to encourage the
citizens of Serbia and Serbs in Kosovo accept the status
decision as one that can lead Serbia toward democratic and
economic growth. We need to recognize that U.S. and
international spokespeople have limited influence over public
opinion on Kosovo. Therefore, we will identify progressive
Serbs who have the public credibility to speak out in support
of those elements of the Ahtisaari Plan that substantially
improve living conditions of Kosovar Serbs.
9. (SBU) Official U.S. visitors can reinforce these positive
messages as well as further normalize relations between
Serbia and the United States. This could include a
well-timed visit ultimately by the Secretary, and until then
by Under Secretary Burns and Assistant Secretary Fried to
announce our support for the Kosovo settlement, and visits
and DVC briefings from Ambassador Wisner and Deputy Assistant
Secretary DiCarlo. Visits of high-level politicians and
SIPDIS
celebrities from the U.S. could also help the United States
reach the younger generation and project a new and positive
direction for U.S.-Serbian relations.
--------------
DEFENSE RELATIONS
--------------
10. (C) The benefits package includes bilateral initiatives,
particularly in the defense sector. Our defense cooperation
has gained great momentum following last year's signing of
the Status of Forces Agreement, initiation of a State
Partnership Program, and NATO's invitation for Serbia to join
the Partnership for Peace. Once a Kosovo settlement is
behind us, we would encourage and support Serbia's
aspirations for Intensified Dialogue and IPP with NATO, as a
precursor to a Membership Action Plan. We would also support
Serbia's membership in the Adriatic Charter and the Southeast
Europe Defense Ministerial (SEDM) and encourage Southeast
Europe Brigade (SEEBRIG) to offer participation in
deployments. Our public diplomacy efforts in the coming
months will highlight this strong partnership, as well as
publicize new bilateral activities.
11. (C) We are seeking the Department's approval of $500,000
in funding requested from the 2007 budget for IMET assistance
in Serbia, without the conditions that were previously
attached (see reftel 3). IMET programs would fill a critical
need in the Serbian armed forces as they prepare for PfP and
ultimately NATO membership, giving them crucial English
language training and exposure to western military practices.
BELGRADE 00000111 003 OF 003
Other defense initiatives in the works include continued
State Partnership Program activities with the Ohio National
Guard, the opening of an Office of Defense Cooperation in
Belgrade, increased funding to help enhance Serbia's defense
reform, expanded training opportunities through the Marshall
Center and other institutes, and increased senior-level DoD
civilian and military delegations visits to Belgrade.
--------------
OTHER INITIATIVES
--------------
12. (C) We advocate a range of other bilateral initiatives
aimed at easing Serbia's transition beyond the Kosovo status
talks and toward integration with Europe and the United
States. These include removing the time-consuming Visas Bear
requirement for Serbian diplomats traveling to the United
States (see reftel 4),and bringing Serbia into the
Millennium Challenge Account. We support the concept of an
Invest-in-Serbia conference (perhaps part of the Department's
planning for a broader Balkan conference),and we think that
the time is right for a new push to conclude both an Open
Skies Agreement and a Bilateral Investment Treaty. We should
encourage the Congress to remove all remaining conditionality
on bilateral assistance, an irritant which has outlived its
usefulness and no longer has a discernible impact on policy.
And we expect Serbia to benefit from the anticipated $100
million in Kosovo-related debt relief from the United States,
although we will tread lightly in touting this benefit to
avoid any accusation that such debt relief is some sort of
compensation or reward for the loss of Kosovo.
13. (C) In addition to these large-scale initiatives, the New
Embassy Compound construction will be a symbolic milestone in
our bilateral relations. The project will translate to jobs
and money for the Serbian people, as we expect more than 60
percent of the $100 million cost of the new Embassy will be
spent on local labor and materials, and 200-600 local
citizens will be employed over the course of the
construction. The Embassy will also continue to play a vital
role in supporting the International School of Belgrade as it
moves to a new, bigger campus. As part of our K 1 message,
we will take opportunities with the media and public to
emphasize that the NEC and the Embassy's strong support for
the ISB represent a renewed and positive partnership with
Serbia.
--------------
THE ROLLOUT
--------------
14. (C) The rollout of these economic assistance programs,
exchanges, public messages, and bilateral initiatives will
continue over the coming months as we monitor the aftershocks
of the Kosovo settlement and local parliamentary elections
and as we head into Serbian presidential elections. At a
time when the Serbian people and their government feel the
sting from the "loss" of Kosovo, the benefits package aims to
bring real and tangible gains to Serbia to help keep it on a
positive track for the future. We will be careful not to
present this package as "compensation" for Kosovo, but rather
as a definitive way forward toward Europe from the
destructive policies and difficult times of its past.
POLT
SIPDIS
SIPDIS
STATE FOR U/S BURNS, EUR A/S FRIED AND DAS DICARLO; EUR/SCE
PLEASE PASS TO STEVE GEE FOR SE WISNER
E.O. 12958: DECL: 01/24/2017
TAGS: PBTS PGOV PHUM PREL SR
SUBJECT: K+1: ROLLING OUT THE SERBIAN BENEFITS PACKAGE
REF: A. 1. 2006 BELGRADE 1719
B. 2. 2006 BELGRADE 1996
C. 3. 2006 BELGRADE 1824
D. 4. 2006 BELGRADE 1891
Classified By: Ambassador Michael C. Polt for reasons 1.4 (b) and (d).
--------------
SUMMARY
--------------
1. (C) As we approach the endgame in the Kosovo status
process, this Mission is preparing to activate the third
phase of our K 1 strategy, the rollout of the Serbian
benefits package, to demonstrate the continued U.S.
commitment to Serbia's future beyond Kosovo. This rollout
would involve the incentives already agreed to by the
interagency community. Through a combination of economic
assistance programs, people-to-people exchanges, public
diplomacy campaigns, and bilateral initiatives that enhance
our relations, this package aims to deliver tangible benefits
to Serbian citizens and to help the country move beyond the
emotionally charged issue of Kosovo and toward a more
democratic, prosperous future.
2. (C) In reftels 1 and 2, we outlined the first two phases
of our K 1 strategy: 1) engaging and supporting democratic
forces in the run-up to the January 21 parliamentary
elections, including a get-out-the-vote (GOTV) campaign, and
2) developing a consequence management plan to prepare for
the aftermath of the Kosovo settlement. Within the limits of
our existing resources, we plan to roll out the benefits
package over the course of the next several months,
intensifying our public outreach and messages in the weeks
following the Kosovo settlement and preceding planned
presidential elections this spring. A fourth phase of K 1,
which we will outline in a later message, will focus on our
engagement with a new democratic government to address
pending ICTY obligations, strengthen democratic institutions,
and propel Serbia toward Euro-Atlantic integration. End
summary.
--------------
ECONOMIC ASSISTANCE -- "JOBS SERBIA"
--------------
3. (SBU) Over the next few months, we plan to launch a host
of activities aimed at bolstering the economy, particularly
in ways that positively impact ordinary Serbians, while
emphasizing that Serbia itself must make economic
revitalization and EU integration -- and, by implication, not
Kosovo -- its primary focus for the future. This message
will draw on points from Serbia's recently adopted National
Development Strategy, which emphasizes the work Serbia must
carry out in order to reduce the development gap: namely,
through lowering country risk, attracting foreign investment,
and ultimately increasing GDP per capita.
4. (SBU) A large part of our assistance resources in 2007
will go toward job creation under several initiatives that
will carry the brand "Jobs Serbia." For instance, we are
developing a long-term $23 million program to improve the
efficiency and competitiveness of agribusiness, a sector
which currently accounts for about 25 percent of the
country's GDP and 26 percent of exports. The program aims to
improve agricultural productivity by transferring technology,
strengthening institutions that help farmers learn modern
management techniques, and increasing linkages to the private
sector. The benefits of this new program should flow
primarily to rural areas, where development lags and
unemployment is increasing.
5. (SBU) Through another $14 million program in private
sector development, we plan to offer technical assistance in
sectors of high-growth potential, shoring up some of Serbia's
most promising enterprises and developing human capital in
these sectors over the next four to five years. In the
coming weeks, we will announce an expansion of our MEGA
program to include 10 additional municipalities to build
their capacity to attract foreign direct investment. And we
are in the midst of developing a $21.4 million SCoPES program
to work with vulnerable populations in up to 12
municipalities in Southern Serbia and Sandzak, partly through
grants to small enterprises. Public diplomacy efforts will
highlight each of these programs and their far-reaching
benefits to the Serbian public.
--------------
BELGRADE 00000111 002 OF 003
PEOPLE-TO-PEOPLE EXCHANGES
--------------
6. (SBU) An integral part of the benefits package will be
people-to-people exchanges, which we have named "Serbian
Exchange Experience in America" (SEEAmerica). We are
planning a splashy publicity campaign to unveil this program,
encompassing high school and undergraduate exchanges, as well
as exchanges for citizens, from teachers and police chiefs to
doctors and municipal bureaucrats. Such exchanges would
complement other ongoing public diplomacy exchanges such as
the International Visitors and Speakers programs, and could
go far in injecting optimism and energy into a population
that has long felt isolated. SEEAmerica could directly
benefit thousands of Serbian citizens and forge stronger
bilateral relations and understanding.
--------------
PUBLIC MESSAGES
--------------
7. (U) In December we kicked off a media campaign calling on
residents to vote on how to spend $1 million for the city of
Belgrade, either on a new fleet of ambulances or on
renovation of the "Dom Omladine" youth center. Based on the
overwhelming response -- nearly 70,000 votes -- this project
generated positive interest and a boost to the quality of
life in Serbia's capital. We will continue to derive
substantial PD impact during the implementation phase.
8. (SBU) In addition to publicizing U.S. economic assistance
and exchange programs, our public diplomacy efforts will
include delivering positive messages to the Serbian people on
the Kosovo settlement and next steps for Serbia. Through
media interviews, speeches, and other public events, we will
demonstrate support for UN Special Envoy Ahtisaari's
recommendations, underscore that we are working with our
Contact Group partners and the UNSC to finalize future
status, and express our commitment to peace and stability in
the region. Both privately and publicly, we will urge the
government of Serbia to act responsibly and to encourage the
citizens of Serbia and Serbs in Kosovo accept the status
decision as one that can lead Serbia toward democratic and
economic growth. We need to recognize that U.S. and
international spokespeople have limited influence over public
opinion on Kosovo. Therefore, we will identify progressive
Serbs who have the public credibility to speak out in support
of those elements of the Ahtisaari Plan that substantially
improve living conditions of Kosovar Serbs.
9. (SBU) Official U.S. visitors can reinforce these positive
messages as well as further normalize relations between
Serbia and the United States. This could include a
well-timed visit ultimately by the Secretary, and until then
by Under Secretary Burns and Assistant Secretary Fried to
announce our support for the Kosovo settlement, and visits
and DVC briefings from Ambassador Wisner and Deputy Assistant
Secretary DiCarlo. Visits of high-level politicians and
SIPDIS
celebrities from the U.S. could also help the United States
reach the younger generation and project a new and positive
direction for U.S.-Serbian relations.
--------------
DEFENSE RELATIONS
--------------
10. (C) The benefits package includes bilateral initiatives,
particularly in the defense sector. Our defense cooperation
has gained great momentum following last year's signing of
the Status of Forces Agreement, initiation of a State
Partnership Program, and NATO's invitation for Serbia to join
the Partnership for Peace. Once a Kosovo settlement is
behind us, we would encourage and support Serbia's
aspirations for Intensified Dialogue and IPP with NATO, as a
precursor to a Membership Action Plan. We would also support
Serbia's membership in the Adriatic Charter and the Southeast
Europe Defense Ministerial (SEDM) and encourage Southeast
Europe Brigade (SEEBRIG) to offer participation in
deployments. Our public diplomacy efforts in the coming
months will highlight this strong partnership, as well as
publicize new bilateral activities.
11. (C) We are seeking the Department's approval of $500,000
in funding requested from the 2007 budget for IMET assistance
in Serbia, without the conditions that were previously
attached (see reftel 3). IMET programs would fill a critical
need in the Serbian armed forces as they prepare for PfP and
ultimately NATO membership, giving them crucial English
language training and exposure to western military practices.
BELGRADE 00000111 003 OF 003
Other defense initiatives in the works include continued
State Partnership Program activities with the Ohio National
Guard, the opening of an Office of Defense Cooperation in
Belgrade, increased funding to help enhance Serbia's defense
reform, expanded training opportunities through the Marshall
Center and other institutes, and increased senior-level DoD
civilian and military delegations visits to Belgrade.
--------------
OTHER INITIATIVES
--------------
12. (C) We advocate a range of other bilateral initiatives
aimed at easing Serbia's transition beyond the Kosovo status
talks and toward integration with Europe and the United
States. These include removing the time-consuming Visas Bear
requirement for Serbian diplomats traveling to the United
States (see reftel 4),and bringing Serbia into the
Millennium Challenge Account. We support the concept of an
Invest-in-Serbia conference (perhaps part of the Department's
planning for a broader Balkan conference),and we think that
the time is right for a new push to conclude both an Open
Skies Agreement and a Bilateral Investment Treaty. We should
encourage the Congress to remove all remaining conditionality
on bilateral assistance, an irritant which has outlived its
usefulness and no longer has a discernible impact on policy.
And we expect Serbia to benefit from the anticipated $100
million in Kosovo-related debt relief from the United States,
although we will tread lightly in touting this benefit to
avoid any accusation that such debt relief is some sort of
compensation or reward for the loss of Kosovo.
13. (C) In addition to these large-scale initiatives, the New
Embassy Compound construction will be a symbolic milestone in
our bilateral relations. The project will translate to jobs
and money for the Serbian people, as we expect more than 60
percent of the $100 million cost of the new Embassy will be
spent on local labor and materials, and 200-600 local
citizens will be employed over the course of the
construction. The Embassy will also continue to play a vital
role in supporting the International School of Belgrade as it
moves to a new, bigger campus. As part of our K 1 message,
we will take opportunities with the media and public to
emphasize that the NEC and the Embassy's strong support for
the ISB represent a renewed and positive partnership with
Serbia.
--------------
THE ROLLOUT
--------------
14. (C) The rollout of these economic assistance programs,
exchanges, public messages, and bilateral initiatives will
continue over the coming months as we monitor the aftershocks
of the Kosovo settlement and local parliamentary elections
and as we head into Serbian presidential elections. At a
time when the Serbian people and their government feel the
sting from the "loss" of Kosovo, the benefits package aims to
bring real and tangible gains to Serbia to help keep it on a
positive track for the future. We will be careful not to
present this package as "compensation" for Kosovo, but rather
as a definitive way forward toward Europe from the
destructive policies and difficult times of its past.
POLT