Identifier
Created
Classification
Origin
07SARAJEVO2395
2007-11-07 07:25:00
SECRET
Embassy Sarajevo
Cable title:  

BOSNIA- DEVELOPMENTS IN GEORGIAN MLRS SALE

Tags:  PGOV PREL MARR BK 
pdf how-to read a cable
VZCZCXYZ0003
PP RUEHWEB

DE RUEHVJ #2395/01 3110725
ZNY SSSSS ZZH
P 070725Z NOV 07
FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC PRIORITY 7333
INFO RUEHBW/AMEMBASSY BELGRADE PRIORITY 0486
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0072
RUEHSI/AMEMBASSY TBILISI PRIORITY 0015
RUEHC/SECSTATE WASHDC PRIORITY 7334
RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHMFISS/COMUSNAVEUR NAPLES IT PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEHNO/USMISSION USNATO PRIORITY 0180
RUEHBS/USEU BRUSSELS PRIORITY
RUFOAOA/USNIC SARAJEVO PRIORITY
S E C R E T SARAJEVO 002395 

SIPDIS

SIPDIS

DEPT FOR EUR (DICARLO),EUR/SCE (HOH, FOOKS),EUR/RPM
DOD FOR FATA, BEIN
USNIC FOR WIGHTMAN

E.O. 12958: DECL: 11/07/2017
TAGS: PGOV PREL MARR BK
SUBJECT: BOSNIA- DEVELOPMENTS IN GEORGIAN MLRS SALE

REF: SARAJEVO 1738

Classified By: Ambassador Charles English for reasons 1.4 (b) and (d)

S E C R E T SARAJEVO 002395

SIPDIS

SIPDIS

DEPT FOR EUR (DICARLO),EUR/SCE (HOH, FOOKS),EUR/RPM
DOD FOR FATA, BEIN
USNIC FOR WIGHTMAN

E.O. 12958: DECL: 11/07/2017
TAGS: PGOV PREL MARR BK
SUBJECT: BOSNIA- DEVELOPMENTS IN GEORGIAN MLRS SALE

REF: SARAJEVO 1738

Classified By: Ambassador Charles English for reasons 1.4 (b) and (d)


1. (S) Summary. The dispute over the proposed sale of
Bosnian Multiple Launch Rocket System (MLRS) components to
Georgia has resurfaced -- this time with an unusual new
twist. As previously reported (reftel),an earlier request
by Georgia to purchase the systems was scuttled on "foreign
policy grounds" after Russia objected. A few months ago, a
new export license request was filed and is awaiting a
decision. Now, however, Chief of the Joint Staff Lt. General
Sifet Podzic is complaining that individuals in the
Government of the Republika Sprska and the Office of Bosnian
Serb member of the Presidency Nebojsa Radmanovic illegally
blocked a recent attempt to move the MLRS components from
their base in the RS to a refurbishment facility in the
Federation. Podzic asserts that this illustrates the
existence of illegitimate Bosnian-Serb political influence
within the Bosnian Armed Forces. A member of Radmanovic's
staff and Deputy Defense Minister Igor Crnadak (a Bosnian
Serb) confirm that the move of the components was blocked,
but claim that the transfer lacked the necessary
authorization and was being done surreptitiously, driven by
corrupt interests. While we do not share Podzic's view that
this incident proves that the RS leadership has nefarious
sway over the Armed Forces, it does raise questions about
blurred lines of authority within the military. It also
indicates that momentum remains behind what looks to be a
suspect arms sale. End Summary.

Background
--------------


2. (S) We have continued to monitor the possible sale of MLRS
systems from Bosnia to Georgia. As we reported previously
(reftel),an initial sale of the systems was scuttled after
strenuous Russian objections in the Fall of 2006. Several
months ago, a Seychelles-registered brokering firm, Melvale,
reapplied for an export license for the items, and the
Bosnian government has yet to reach a final decision as to

whether to allow the export. The Ministry of Foreign Trade
is waiting for the Ministry of Foreign Affairs to provide
expert comment on the transaction before forwarding the
matter to the Presidency for final decision. In September,
the Bosnian-Serb newspaper Fokus ran a series of articles on
the MLRS transfer alleging corrupt interests in the
Presidency and Ministry of Foreign Affairs were driving the
resurrection of the sale. Based on numerous discussions on
the transfer with senior government officials, we continue to
skeptically view the legitimacy of this transaction.

PODZIC: BOSNIAN-SERB BACK CHANNEL UNDERMINES MILITARY
-------------- --------------


3. (S) CHOD LTG Podzic requested lunch with us October 17 to
discuss what he labeled a "critical" issue that required USG
intervention. Considering the extreme sensitivity of the
issue, Podzic asked that we not bring an Embassy translator
to the lunch meeting. Podzic told us that at the end of
September, President Radmanovic's Security Advisor Dzuro
Beronja and the RS Government's Military Advisor Dusko
Cetkovic had illegally intervened to block the transfer of
MLRS components from RS to a refurbishment facility in the
Federation at Novi Travnik. The items were part of the
potential sale to Georgia. Podzic told us that Minister
Cikotic had issued legitimate orders to transfer the MLRS
components, but that Beronja and Cetkovic had intervened with
their contacts in the Ministry of Defense and Armed Forces to
have the transport convoy turned around after it had left
Banja Luka. Podzic said that Beronja and Cetkovic were
acting under the direct control of RS Prime Minister Milorad
Dodik in sending a signal that the RS government could
interfere at will in the Armed Forces and military matters,
and that President Radmanovic was unaware of Beronja's
actions. Podzic asked that we intervene with NATO HQ
Sarajevo to seek the removal of Beronja and Cetkovic who
Podzic claimed were a "serious threat" to the independence of
the military.

BERONJA: ILLEGITIMATE SMUGGLING ATTEMPT
--------------


4. (S) We followed up on the matter with both Beronja and
Danilo Petrovic, President Radmanovic's Foreign Policy
Advisor. Beronja largely confirmed that incident in question
took place but provided a different explanation for his
intervention. Beronja told us that the movement of the MLRS
equipment from Banja Luka, which was clearly an initial step
in its export to Georgia, was illegal without Presidency
sanction. Beronja pointed out that the Presidency had yet to
consider the Georgia deal for a second time, and considering
that it had been rejected in the first instance, it was
highly unlikely to be approved. (Comment. Exporting the
items to Georgia would require Presidency approval. Simply
moving the items around the country would not require
Presidency input or sanction, but Beronja has a valid point
that this transfer from Banja Luka was directly linked to a
yet to be approved arms transfer. Comment.)


5. (S) Beronja said that it was clear that personal
financial, and most probably corrupt, interests, were driving
the process this time around. Beronja noted that the
movement of the MLRS components was scheduled to take place
when most senior leadership officials were out of the
country, further raising his suspicions that whoever was
pushing the sale was attempting to circumvent established
legal procedures and avoid scrutiny. Beronja said his role
was limited to calling Deputy Defense Minister Igor Crnadak
and Deputy Chief of the Joint Staff Major General Miladin
Milojcic, both Bosnian Serbs, and inquiring as to the
authority under which the items were being moved. Beronja
asserted that he did not know who ordered the convoy to turn
around, but stressed that neither he nor Cetkovic issued any
such orders to commanders nor did they illegitimately
influence the process. Beronja told us that his behavior
would withstand any outside scrutiny, and we should "follow
the money" on the Georgia deal to determine who is breaking
the law and acting contrary to Bosnia's interests. Beronja
said he was acting under the authority of President
Radmanovic, who was kept informed of developments in the
matter.

CRNADAK: LEGAL CONFUSION BUT NO ILL-INTENT
--------------


6. (S) Deputy Minister Crnadak provided us with further
details on the incident. Crnadak told us that Defense
Minister Selmo Cikotic had signed the order to move the
equipment after receiving a request from the Novi Travnik
firm. Crnadak acknowledged that Beronja contacted him once
the MLRS systems had left Banja Luka to relay President
Radmanovic's concerns that the movement violated Presidency
perogatives on arms exports and the disposition of surplus
military property. Crnadak told us that since the items were
not being transported out of military necessity but for
commercial purposes, he believed that Radmanovic's question
of authority was legitimate. Crnadak said he immediately
informed Cikotic of the issue, and the minister rescinded his
order to move the items out of Banja Luka pending formal
Presidency authorization to approve the sale to Georgia.
Crnadak said that the law governing such transfers was
unclear, but he and Cikotic agreed that they would now seek
Presidency authorization before they moved any surplus items.


COMMENT
--------------


7. (S) Comment. This recent development in the Georgia MLRS
transfer demonstrates that the sale is far from dead, and its
financial and political backers still seek its realization.
Crnadak and Beronja are correct in asserting that Presidency
perogatives were ignored in moving the MLRS components from

Banja Luka to Novi Travnik. Whether this was done out of
ignorance of the procedures (as Crnadak claims) or was an
attempt to illegally sneak items out of the country
(Beronja's view) is unclear. Considering the circumstances
of the transfer, we do not share Podzic's dire view that the
incident indicates that Dodik and the RS leadership have
nefarious sway over the Armed Forces. It is apparent,
however, that Bosnian-Serb military officers in Banja Luka
tipped Beronja off to the movement of the equipment. Such
contacts would contravene the established chain of command
and are another indication that military officials in both
entities maintain questionable ties with the political
leadership. End Comment.
ENGLISH