SERBIA: ENVIRONMENT AND SPATIAL PLANNING MINISTER KEEN ON

UNCLAS BELGRADE 001027

SIPDIS
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SSAVICH

E.O. 12958: N/A
TAGS: ECON EINV SENV SR
SUBJECT: SERBIA: ENVIRONMENT AND SPATIAL PLANNING MINISTER KEEN ON
ENVIRONMENTAL COOPERATION, BUT PESSIMISTIC ON RESTITUTION

SUMMARY
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1. During their September 30 meeting, the new Minister for
Environment and Spatial Planning Oliver Dulic reiterated to the
Ambassador his request for U.S. support in formulating and
implementing environmental and land legislation. Dulic also offered
a number of suggestions for his ministry and the Embassy to raise
public awareness of environmental issues. Dulic was not optimistic
that land restitution issues would be resolved in the near future,
citing the Finance Ministry's inability to compensate claimants
given the current budget deficit. END SUMMARY.

ENTHUSIASM FOR COOPERATION ON ENVIRONMENTAL ISSUES
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2. On September 30, the Ambassador met with the new Minister of the
Environment and Spatial Planning (MESP) Oliver Dulic (DS),whom he
had met with frequently while the latter was Speaker of Parliament
in the former administration. In Dulic's new role, he covers
environmental, land, construction, and restitution legislation.
Dulic appears to be the link between the Economy Ministry which
would prioritize construction and land development projects, the
Finance Ministry that would fund them and the Infrastructure
Ministry which would implement projects.


3. Dulic was enthusiastic about U.S.-Serbian cooperation on
environmental issues and had asked for U.S. assistance prior to the
meeting. In September 2008, Dulic sent a letter to the Embassy
requesting support for the ministry's land and environmental
initiatives. In the letter and in the meeting, Dulic proposed a
joint Ministry-Embassy environmental event centered on Al Gore's
book "An Inconvenient Truth." (MESP has recently ordered 1,000
copies of book.) Dulic proposed ways in which the Embassy, MESP,
and the Ministry of Education could work together to instill
environmental awareness and responsibility in Serbian youth. Dulic
said his ministry was interested in hearing from and working with
potential U.S. companies looking to invest in recycling, waste
management, and related businesses.

NO LAND RESTITUTION SOLUTION IN SIGHT
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4. Dulic was pessimistic that Serbia's restitution issues would be
resolved anytime soon. Although his ministry will author
legislation and change land bylaws, the Finance Ministry will first
have to determine the method of restitution and finance it.
Specifically, the Finance Ministry will need to decide if and how it
will compensate landowners for disputed land. Since Serbia is
suffering a severe budget deficit, Dulic does not think it will be
financially viable for the government to compensate restitution
claimants. The Ambassador stressed the need for a fair and
equitable land law and underscored the importance the land law would
have on attracting foreign investment.

COMMENT
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5. The Embassy's relationship with Dulic in his previous position
was excellent and he indicated his interest in continuing
cooperation in his new role. Dulic proactively sought out Embassy
assistance, while several of his DS colleagues continued to cling to
the "no contact policy" of the Action Plan following Kosovo's
declaration of independence. Joint projects with the ministry,
especially in the environment area, will address one of Serbia's
many serious deficits. Unfortunately, despite Dulic's desire to
quickly bring to a close restitution issues, he is resigned in the
short term that the complexity and cost of resolving land ownership
issues will slow Serbia's progress. End Comment.

MUNTER