Identifier
Created
Classification
Origin
07PODGORICA91
2007-03-29 12:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Podgorica
Cable title:  

PRIME MINISTER, DEPUTY, DESCRIBE GOM GOALS: EURO-ATLANTIC

Tags:  PREL MARR EINV CVIS ECON PINR MW 
pdf how-to read a cable
VZCZCXRO8889
PP RUEHPOD
DE RUEWCSF #4968 0881215
ZNR UUUUU ZZH
P R 291238Z MAR 07
FM AMEMBASSY PODGORICA
TO RUEHC/SECSTATE WASHDC
INFO EUROPEAN POLITICAL COLLECTIVE
RUEHNO/USMISSION USNATO
RUEKJCS/SECDEF WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEHC/USAID WASHDC
RUEHGV/USMISSION GENEVA
RUEHPOD/AMEMBASSY PODGORICA
UNCLAS SECTION 01 OF 03 PODGORICA 000091 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL MARR EINV CVIS ECON PINR MW
SUBJECT: PRIME MINISTER, DEPUTY, DESCRIBE GOM GOALS: EURO-ATLANTIC
INTEGRATION AND IMPROVED LIVING STANDARDS


PODGORICA 00000091 001.6 OF 003


SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY



UNCLAS SECTION 01 OF 03 PODGORICA 000091

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL MARR EINV CVIS ECON PINR MW
SUBJECT: PRIME MINISTER, DEPUTY, DESCRIBE GOM GOALS: EURO-ATLANTIC
INTEGRATION AND IMPROVED LIVING STANDARDS


PODGORICA 00000091 001.6 OF 003


SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY




1. (U) PRIME MINISTER ZELKJO STURANOVIC AND DEPUTY PRIME
MINISTER GORDANA DJUROVIC DESCRIBED THE CURRENT GOVERNMENTS
GOALS AS EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING
STANDARDS. THE MINISTERS MET WITH VISITING EUR/SCE DIRECTOR
CHRISTOPHER HOH AND CHARGE ON MARCH 28. THE PM SAID THAT
MONTENEGROS NATO PRESENTATION DOCUMENT WOULD BE ADOPTED BY THE
GOM ON APRIL 5, AND THAT MONTENEGRO'S GOAL IS TO JOIN THE WTO BY
THIS FALL. THE DPM EMPHASIZED THE ONGOING ADOPTION OF PLANS IN
THE ECONOMIC AREA. HOH'S OTHER MEETINGS UNDERSCORED MONTENEGRIN
INTEREST IN ATTRACTING MORE AMERICAN INVESTMENT, AND AIRED
QUESTIONS ABOUT WHEN THE U.S. EMBASSY WOULD BE ABLE TO ISSUE
VISAS IN PODGORICA. MEDIA COVERAGE OF HOH'S VISIT REPORTED
SEPTEL. END SUMMARY.



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PRIME MINISTER: EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING
STANDARDS

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EURO-ATLANTIC INTEGRATION

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2. (U) PRIME MINISTER ZELKJO STURANOVIC TOLD EUR/SCE DIRECTOR
CHRISTOPHER HOH AND CHARGE THAT HIS GOVERNMENT'S TWO CENTRAL
GOALS ARE EURO-ATLANTIC INTEGRATION AND IMPROVED LIVING
STANDARDS FOR THE PEOPLE OF MONTENEGRO. HE NOTED THAT
MONTENEGRO, SINCE INDEPENDENCE LAST JUNE, HAS ALREADY JOINED
NATOS PARTNERSHIP FOR PEACE (PFP),THE WORLD BANK, AND IMF. THE
INITIALING OF THE STABILITY AND ACCESSION AGREEMENT (SAA) WITH
THE EU ON MARCH 15 WILL BE FOLLOWED SOON BY MEMBERSHIP IN THE
COUNCIL OF EUROPE, ADDED THE PM. THE PM SAID THE GOM THOUGHT THE
RECENT THIRD WORKING PARTY MEETING OF THE WORLD TRADE
ORGANIZATION (WTO) ON MONTENEGRO'S APPLICATION WENT WELL, AND
THAT ONLY TWO MORE SUCH MEETINGS, IN JULY AND EARLY AUTUMN,
WOULD BE NEEDED BEFORE MONTENEGRO WAS READY TO BECOME A FULL WTO
MEMBER.




3. (U) THE PM CONTINUED THAT PFP HAD ALREADY BROUGHT "MANY

BENEFITS" TO MONTENEGRO -- NOT ONLY IN DEFENSE TRAINING AND
REFORM, BUT ECONOMICALLY AS WELL, AS MEMBERSHIP IS SEEN BY
INVESTORS AS AN INDICATOR OF POLITICAL MATURITY AND STABILITY.
HE STRESSED THAT MONTENEGRO'S PRESENTATION DOCUMENT WOULD BE
ADOPTED BY THE GOVERNMENT ON APRIL 5, AND PRESENTED T O NATO
SHORTLY THEREAFTER. (DEPUTY DEFENSE MINISTER LJUBISA PEROVIC
CONFIRMED TO POST THAT THE GOM HAS INCORPORATED SUGGESTIONS MADE
BY NATO INTERNATIONAL STAFF ON THE DOCUMENT DRAFT.)



LIVING STANDARDS

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4. (U) THE PM STRESSED THAT MONTENEGRO HAS ACHIEVED
MACROECONOMIC STABILITY, WHILE ACHIEVING GDP GROWTH OF 7 PERCENT
IN 2006, REDUCING INFLATION TO 2.6 PERCENT (WITHIN EURO ZONE
TARGETS),INCREASING FOREIGN DIRECT INVESTMENT (FDI),CUTTING
UNEMPLOYMENT IN HALF TO 14 PERCENT, ALL WHILE RUNNING A
GOVERNMENT BUDGET SURPLUS. NEVERTHELESS, PUBLIC DEMANDS FOR
BETTER LIVING STANDARDS HAVE NOT BEEN MET, SAID THE PM, ADDING
THAT THE ENTIRE GOM WOULD FOCUS ON RAISING THE STANDARDS. TO
REACH THAT, THE PM SAID HIS GOVERNMENT SOUGHT CONTINUED STRONG
GDP GROWTH IN 2007, ASSISTED BY PENSION REFORM, AND REFORMS IN
PUBLIC ADMINISTRATION. HE ASKED FOR THE CONTINUED SUPPORT OF THE
INTERNATIONAL COMMUNITY IN THE REFORM PROCESS. HE NOTED THAT THE
GOM HAS BEGUN TO INCLUDE THE POLITICAL OPPOSITION AND NGOS IN
B T
#0091
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PODGORICA 00000091 002.6 OF 003


PLANNING AND IMPLEMENTING REFORMS (COMMENT: A PRACTICE
STURANOVIC BEGAN WHEN HE WAS MINISTER OF JUSTICE IN THE LAST
GOVERNMENT. END COMMENT.)



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DEPUTY PRIME MINISTER: PLANNING FOR SUCCESS

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5. (U) DEPUTY PRIME MINISTER GORDANA DJUROVIC NOTED THAT
MONTENEGRO WAS ON TRACK TO THE EU WITH THE SAA, AND ON TRACK TO
NATO WITH PFP. FOR MONTENEGRO, THE PACE FOR JOINING THE EU WAS
CONTROLLED MORE BY BRUSSELS' ABILITY TO COPE WITH WHAT THE DPM
CALLED "EXPANSION SHOCK, NOT FATIGUE" THAN IT WAS BY
MONTENEGRO'S ABILITY TO IMPLEMENT EU STANDARDS. SHE WELCOMED THE
GESTURE OF THE OPPOSITION SOCIALIST PEOPLE'S PARTY (SNP),WHICH
HOSTED HER AS THE FIRST-EVER GOM OFFICIAL TO VISIT THEIR
OFFICES, MARKING THE 50TH ANNIVERSARY OF THE ROME TREATY.
ENDORSING AN "OPEN ECONOMY ATTUNED TO EU STANDARDS," SHE
REJECTED THOSE IN MONTENEGRO (INCLUDING HER COLLEAGUES AND
STUDENTS AT THE ECONOMICS FACULTY) WHO HAVE VOICED STRONG
SKEPTICISM ABOUT THE EU AND EU REGULATION, CALLING IT A "NEW
VERSION OF TITOS NON-ALIGNED MOVEMENT."




6. (U) DJUROVIC LAID OUT A NETWORK OF PLANS AND STRATEGIES TO
REACH THE GOM'S ECONOMIC GOALS. THE SPATIAL PLAN (A NATIONAL
ZONING ORDNANCE) WILL BE ADOPTED SOON, TO CONTROL THE SCOPE AND
PLACEMENT OF PHYSICAL DEVELOPMENTS, AND REGULATE THE
AUGMENTATION OF THE SUPPORTING INFRASTRUCTURE. LINKED TO THAT IS
THE PLAN FOR SUSTAINABLE DEVELOPMENT, TO BE ADOPTED NEXT WEEK.
BOTH ARE CONNECTED TO THE NATIONAL ENERGY STRATEGY, "A VERY
SENSITIVE ISSUE" ACCORDING TO THE DPM. (NOTE: CONSUMER
ELECTRICITY PRICES ARE HIGH, EARLIER GOM PLANS FOR A LARGE
HYDROELECTRIC PLANT AFFECTING THE TARA RIVER IN NORTHERN
MONTENEGRO SUCCUMBED TO GRASSROOTS POLITICAL OPPOSITION (REF),
AND PLANS TO PRIVATIZE THE STATE ELECTRIC MONOPOLY HAVE SHARP
OPPOSITION -- EVEN THE RULING DPS'S COALITION PARTNER, THE
SOCIAL DEMOCRATIC PARTY (SDP) HAS MADE OPPOSITION TO DIVESTURE A
CORE ISSUE. YET MONTENEGRO ONLY UTILIZES 17 PERCENT OF ITS
HYDROELECTRIC CAPACITY. END NOTE.) THE LAST TWO PIECES ARE THE
THIRD EDITION OF THE ECONOMIC REFORM AGENDA, AN OPEN DOCUMENT
PROVIDING CLEAR BENCHMARKS FOR THE GOVERNMENT'S ECONOMIC
PERFORMANCE, AND A "MID-TERM DEVELOPMENT STRATEGY." ALL
TOGETHER, DJUROVIC EXPECTS MONTENEGRO TO BE ECONOMICALLY READY
TO JOIN THE EU IN 2011.



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DEFENSE AND FOREIGN POLICY -- KOSOVO AND ARTICLE 98

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7. (SBU) PM STURANOVIC ASSURED HOH THAT MONTENEGRO WOULD
CONTINUE TO PLAY A CONSTRUCTIVE (IF LOW-KEY) ROLE ON KOSOVO. HE
STRESSED THAT STABILITY IN KOSOVO WAS A CENTRAL INTEREST FOR
MONTENEGRO, ITS NEIGHBOR. DEFENSE MINISTER BORO VUCINIC TOLD HOH
AND CHARGE ON MARCH 28 THAT THE GOM WAS WILLING AND READY TO
ENTER INTO AN ARTICLE 98 (INTERNATIONAL CRIMINAL COURT)
AGREEMENT WITH THE USG BY AN EXCHANGE OF DIPLOMATIC NOTES, AN
APPROACH VUCINIC SAID WAS SUPPORTED BY FM ROCEN (CURRENTLY
VISITING MOSCOW).



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AMERICAN INVESTMENT

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8. (U) A RECURRING THEME IN ALL OF HOH'S MEETINGS (EVEN DURING A
PRESS CONFERENCE TO MARK THE ENTRY INTO SERVICE OF A SONAR

PODGORICA 00000091 003.3 OF 003


SYSTEM TO DETECT UNDERWATER MINES AND UXO) WAS THE RELATIVE
ABSENCE OF AMERICAN INVESTMENT IN MONTENEGRO. HOH REPEATEDLY
NOTED THE ABSENCE OF KEY INCENTIVES, MOST NOTICEABLY AN IMPROVED
RULE OF LAW SYSTEM, AND GREATER CLARITY ON FUTURE ECONOMIC
CONDITIONS. HOH NOTED THAT BETTER RULE OF LAW IN MONTENEGRO
WOULD REQUIRE JUDICIAL REFORMS, WHERE COURT DECISIONS ON
COMMERCIAL DISPUTES ARE UNIFORMLY TAKEN, WITHOUT EXCESSIVE
DELAY, BASED ON THE MERITS OF THE CASE, AND NOT ON EXTRANEOUS,
PERSONAL FACTORS. HE WELCOMED THE ESTABLISHMENT OF A GOM BOARD
(THAT INCLUDES OPPOSITION MPS AND NGOS) TO FIGHT ORGANIZED CRIME
AND CORRUPTION, BUT CAUTIONED THAT IMPLEMENTATION OF
ANTI-CORRUPTION MEASURES WAS VITAL. HE POINTED TO MONTENEGRO'S
NEW AMBASSADOR IN THE U.S. AS THE LEAD ON GETTING THE WORD OUT
TO AMERICAN INVESTORS ON THE ATTRACTIVENESS OF MONTENEGRO'S
ECONOMIC FUTURE.



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U.S. VISAS

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9. (U) THE UNIVERSAL QUESTION FROM ALMOST ALL MONTENEGRINS TO
HOH WAS -- WHEN CAN WE STOP GOING TO BELGRADE TO GET VISAS, AND
COME TO THE U.S. EMBASSY IN PODGORICA? HOH REPLIED THAT THIS
WAS A STEP SOUGHT BY THE USG AS WELL, BUT ONE DIFFICULT TO
IMPLEMENT IN PRACTICE, AND ONE THAT WOULD TAKE TIME TO PUT INTO
EFFECT.



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THE PM'S HEALTH

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10. (SBU) PM STURANOVIC, DIAGNOSED WITH LUNG CANCER (NFI) IN
DECEMBER 2006, AND WHO TURNED 47 IN JANUARY, APPEARED IN GOOD
HEALTH IN HIS LONG MEETING WITH HOH -- WHICH FOLLOWED AN EVEN
LONGER AND NO DOUBT MORE CONTENTIOUS MEETING WITH THE HEAD OF
THE LABOR UNIONS. STURANOVIC WAS NOT AS ANIMATED, HOWEVER, AS
IN EARLIER MEETINGS WITH EMBOFFS PRIOR TO BECOMING PM. NOR HAS
STURANOVIC, A HEAVY SMOKER, GIVEN UP THE HABIT.



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COMMENT

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11. (U) HOH'S VISIT AND MEETINGS, WITH GOM OFFICIALS, OPPOSITION
POLITICIANS, AND THE PRIVATE SECTOR, UNDERSCORED THE
MONTENEGRINS' APPRECIATION OF THE POSITIVE ROLE PLAYED BY THE
USG IN THE LAST DECADE IN HELPING STABILIZE MONTENEGRO AND THE
BROADER BALKAN REGION. WHILE THE MONTENEGRINS ALWAYS REMIND US
THAT MONTENEGRO IS A SMALL COUNTRY, THEY ARE LOOKING TO PLAY A
POSITIVE, STABILIZING ROLE IN THEIR NEIGHBORHOOD. END COMMENT.




12. (U) THIS CABLE WAS NOT CLEARED BY EUR/SCE HOH BEFORE HIS
DEPARTURE.
BARNES