AMBASSADOR'S MEETS WITH BIH FOREIGN MINISTER SVEN

S E C R E T SECTION 01 OF 03 SARAJEVO 000541

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DEPT FOR EUR (DICARLO),EUR/SCE (FOOKS/HOH)
EB/ESC/ICE (GARVERICK AND LEWANDOWSKI
NSC FOR BRAUN

E.O. 12958: DECL: 03/09/2017
TAGS: PREL MARR PARM PGOV PINR ENRG EPET BK
SUBJECT: AMBASSADOR'S MEETS WITH BIH FOREIGN MINISTER SVEN
ALKALAJ

REF: SARAJEVO 510

Classified By: DCM JUDITH CEFKIN FOR REASON 1.4. (B) AND (D)


1. (S) Summary: The Ambassador, accompanied by the DCM,
called on new Bosnian Foreign Minister Sven Alkalaj at the
Ministry March 7. In a wide-ranging exchange, Minister
Alkalaj reviewed Bosnia's efforts to fulfill itsPartnership
for Peace (PfP) commitments, and disussed the current
controversy over the Bosnian Ctizenship Law (Refel) and the
Republika Srpska's(RS) sale of refineries to the Russian
firm Transneft. The Ambassador reiterated USG support for
Bosnia's NATO and EU aspriations, regretting that the recent
talks over Police Reform -- a requirement for signing the EU
Stabilization and Association Agreement (SAA) -- had
deadlocked. The Ambassador pressed the Minster to hold the
line against the proposed sale of munitions from a Bosnian
firm to Venezuela. Alkalaj said he would. Alkalaj also
outlined his plans to improve Foreign Ministry effectiveness
and said he hopes to visit Washington in April. End Summary.

Venezuela Arms
--------------


2. (S) The Ambassador said we had heard that a Venezuela
delegation would soon be visiting Bosnia and urged Alkalaj to
hold the line against approval of any arms or munitions sales
to Venezuela. Explaining that as a matter of policy, where
not already prohibited by law, the USG will no longer approve
the sale or license of lethal defense articles and services
to Venezuela, the Ambassador reviewed the basis of our
concerns, including the potential for diversion to terrorist
groups and the risk that weapons being replaced would
contribute to the black and grey arms market in the
hemisphere. Noting that the quantity and type of arms
Venezuela is seeking far exceeds its defense needs, the
Ambassador stressed that this issue is extremely important to
the U.S. and its friends.


3. (S) Alkalaj promised that he would continue to hold the
line against the approval of Igman Konjic's proposed sale of
ammunition. The problem, he explained, is that the
Venezuelan government had already paid Igman Konjic, and the
company had used these funds to produce the munitions, even
though no license had been approved. Still, he reiterated
his commitment to keeping the deal on hold and promised to
alert us if Igman Konjic renewed pressure on the government
to relieve it from its predicament.

Defense Cooperation
--------------


4. (C) Alkalaj stated the Government's intention to make
quick progress in fulfilling Bosnia's PfP commitments, with
the goal of becoming a NATO member by 2009. Though he
admitted that this goal may be wildly optimistic, it was
important, he said, to think big. Confirming that the NATO
Secretary General would make a brief visit to Sarajevo on

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March 16th, Alkalaj said they would use the occasion to sign
Bosnia's NATO Security Agreement, and Bosnia is making
progress on its Individual Parntership Program (IPP) and
Planning and Review Process (PARP). He acknowledged that the
lack of agreement on transfer of entity defense property to
the State is blocking full implementation of the Defense
Reform. He bemoaned RS Prime Minister Dodik's obstruction on
this issue. He expressed confidence that Selmo Cikotic, once
he assumes office in late April, would be an effective
Defense Minister. The Ambassador asked who would be named as
Bosnia's new Ambassador to NATO. Alkalaj said the decision is
up to the Presidency and will depend on the usual balancing
of ethnic quotas, but that there is agreement that it's the
"Serb's turn," former Defense Minister Radovanovic would be
the obvious candidate. He said BiH planned to send a staff
of around eight to its NATO Mission.


5. (C) Alkalaj briefly raised the Iraq mission. Noting
that the Poles, who where currently providing protection for
Bosnia's Explosive Ordinance Disposal unit, would be
redeploying, he asked would would take over protection for
the unit. The Ambassador promised to check into that and get
back to Alkalaj.


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Police Reform
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6. (C) The Ambassador noted our disappointment over the
failure of the March 6 round of Police Reform talks but
promised that we would keep pressing all the parties to sign
up to a deal that will pass muster with the EU. The hope is
to have an agreement in time for EU Commissioner Ollie Rehn's
visit on March 16, but that goal is looking increasingly
illusory. Alkalaj agreed that it was important to keep
pressing, but added cynically that he believed the EU's real
interest is in restarting SAA talks with Serbia, Bosnia, he
said, is just an afterthought.

Bosnia-Serbia Tensions Over Citizenship Law
--------------


7. (C) The Ambassador suggested the GBiH invite Serb leaders
for an official visit to Sarajevo, or, alternatively to plan
a state-level visit there once Serbia has a new government.
Alkalaj agreed it was important to break the Belgrade-Banja
Luka curcuit and said he would do it. At present though, he
regretted, his position on the Bosnian Citizenship law was
complicating his position vis-a-vis Serbia. (Note: As
reported Reftel, under Article 17 of the Bosnian Citizenship
Law, Bosnia will not recognize dual citizenship for a foreign
citizenship acquired after 1998, unless Bosnia has an Treaty
with the country in question recognizing dual citizenship.
Alkalaj recently informed the Government of Serbia that it's
bilateral agreement on dual citizenship between Bosnia and
Serbia-Montenegro was no longer valid, since "the state of
Serbia-Montenegro" no longer exists. End Note.)


8. (C) Alkalaj said that if the Bosnian Parliament abolished
Article 17 of the Citizenship law, dual Bosnian-Serbian
citizenship, would not be a problem. Bosniak members of
parliament had tried several times to repeal Article 17, but
Serb representatives had blocked this effort through the
entity voting clause, because they wanted to bar the large
Bosniak diaspora in the U.S. and Canada from the right to
return and/or vote in Bosnia. Thus they were carrying out
ethnic cleansing through other means. While reiterating his
conviction that his position was justified under the Vienna
Convention, Alkalaj acknowledged that he was hoping to put
pressure on Bosnian Serbs to make a deal to support the
repeal of Article 17. (Comment: Citing the recent ICJ
decision on Serbia-Montenegro, the Office of the High
Representative has concluded that Serbia is the successor
state to Serbia-Montengro and, therefore, does not support
Alkalaj's interpretation of status of the existing dual
citizenship agreement. End Comment.)

Council of Ministers Deadlocked
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9. (C) The Ambassador elicited Alkalaj's views on the growing
polorization among members of the Council of Ministers (COM).
Alkalaj reviewed the events leading to the current deadlock,
explaining that RS representatives are furious because the
two Bosniak Ministers -- Sadovic (Interior) and Halilovic
(Refugees and Human Rights) had blocked approval of the sale
to Russia's Transneft of oil refineries in the RS, asking to
first see the contract. The real issue, Alkalaj noted,
involves the timeline for phasing in the technology that will
keep emissions at an acceptable standard. Alkalaj said that
the Russians had compromised and had agreed to reduce the
amount of grace period they were requesting for introducing
the necessary technology. As a a former energy executive,
Alkalaj did not think it necessary to see the actual sale
contract, but he said the Russians and RS should be
tranparent in sharing the "contractual timeline," outlining
what the investor plans to do when, with regard to the
refineries.


10. (C) Comment: Alkalaj is not in a position to sway the
voting on this issue. In the COM, in order for a measure to
pass, at least two members of each constituent peoples must
support it. In a dicussion of this same issue, earlier in the
week with Finance Minster Vrankic, Vrankic had said that
President Silajdzic had decreed that Alkalaj's vote could not
count as part of the "Bosniak quota" because Alkalaj is
Jewish. This, even though Silajdzic selected Alkalaj to fill

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one of his "Bosniak portfolios." The Ambassador pressed
Alkalaj on this, asking why he accepted essentially being
"disenfranchised" within the COM. A visibly uncomfortable
Alkalaj, quickly changed the subject. End Comment.

Plans for MFA
--------------


11. (SBU) The Ambassador asked whether Alkalaj had any plans
to reorganize MFA. Alkalaj said the Ministry is badly in
need of revamping to put it on par with "modern European
Embassies." The problem he faces is inadequate budget and
restrictions on hiring authority. (Note: The Ministry does
not have independent hiring authority. Hiring is handled by
Bosnia's Civil Service Commission. End Note.) Within these
constraints though, he would do what he could. In
particular, he emphasized his desire to have a real Political
Director and to bolster BiH's economic diplomacy. He also is
in the process of hiring three young U.S.-educated assistants
as part of his immediate staff.

Travel to Washington
--------------


12. (SBU) Alkalaj said he would like to visit Washington
sometime in April. The Ambassador welcomed this proposal and
said he would be happy to make suggestions for the Minister's
program once he decides on the timeframe.
MCELHANEY