(C) SERBIAN GOVERNMENT EXPLORES COMPENSATION IN

C O N F I D E N T I A L SECTION 01 OF 02 BELGRADE 001313

SIPDIS

DEPT FOR EUR/SCE (P. PETERSON),CA/OCS/ACS (O. KINDER),
L/LEI (P. GUTHERIE),L/DL (C. BROWN),L/CA (G. BRANCATO),
CA/OCS/PRI (E. BETANCOURT)
SARAJEVO FOR LEGATT

E.O. 12958: DECL: 12/18/2018
TAGS: CJAN PREL PGOV ODIP EAID SR
SUBJECT: (C) SERBIAN GOVERNMENT EXPLORES COMPENSATION IN
KOVACEVIC CASE

REF: BELGRADE 1287

Classified By: Political Chief Deborah Mennuti; reasons 1.4 (B,D).

Summary
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1. (C) In the interest of resolving the case of fugitive
Miladin Kovacevic before the arrival of the new U.S.
administration, the Serbian government has decided to explore
the possibility of offering financial compensation to the
family of victim Bryan Steinhauer. Post is facilitating
discussions between the Serbian authorities and interested
parties in the United States. Our Serbian government
interlocutors also remain eager to conclude a bilateral
extradition agreement in order to provide a legal basis for
eventual extradition if other options fail. Kovacevic
remains in pre-trial detention in Belgrade but will likely be
released on December 28. End summary.


Government Explores Settlement
--------------


2. (C) In a December 14 meeting with the Ambassador,
presidential advisor Srdjan Saper reported that the Serbian
government had decided to explore the possibility of
financial compensation for the family of Bryan Steinhauer,
the Amcit that Serbian fugitive Miladin Kovacevic is accused
of assaulting in Binghamton, New York, on May 4. According
to Saper, the Serbian government considered the situation to
be unprecedented and was therefore willing to take the
unprecedented step of assuming financial responsibility for
the actions of its citizen Kovacevic. Saper said that in
return, Serbia sought the agreement of the Steinhauer family
to drop their objections to Kovacevic being tried in Serbia,
and the agreement of the U.S. government to formally transfer
the case for prosecution. Saper hoped the Steinhauers would
be able to convince key U.S. Senators to support such an
agreement. Saper stressed that President Tadic wanted to
resolve the situation before President-elect Obama was
inaugurated -- and Senator Clinton became Secretary of State
-- in order to prevent the case from tarnishing relations
with the new administration.


3. (C) Post's Resident Legal Advisor contacted the
Steinhauers' civil lawyer Irwin Rochman and Broome County
prosecutor Gerry Mollen on December 16 to apprise them of the
Serbian government's initiative and to offer to convey their
response to the Serbian authorities. Post will continue to
facilitate communication between the interested parties in
the U.S. and Ministry of Justice State Secretary Slobodan
Homen, the primary point of contact in the Serbian government.


Extradition Treaty Still Important
--------------


4. (SBU) In a December 17 conversation, Homen emphasized
that the settlement initiative did not in any way diminish
the importance of pursuing a bilateral extradition treaty
(reftel). He clarified that Serbia would be open either to
signing a new agreement or amending the 1901 treaty, which
covers only the most serious crimes such as homicide. He
noted pros and cons to each approach: while it might be more
time-consuming to negotiate a new document, the 1901 treaty
might require significant updating. Homen pointed out that
an extradition agreement was necessary not only for leverage
in the Kovacevic case, but also for future legal cooperation.


Court Upholds Kovacevic's Detention
--------------


5. (U) Belgrade's Second Municipal Court on December 15
confirmed its earlier decision to extend Miladin Kovacevic's
pre-trial detention until December 28 (reftel). The court
cited flight risk as the grounds for continuing to hold
Kovacevic. Homen expects the court to release Kovacevic on
December 28, but assures us that prosecution will continue.


Comment

BELGRADE 00001313 002 OF 002


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6. (C) We see the Serbian government's decision to explore
new ways to resolve the Kovacevic case as a very positive
development, particularly in light of the financial burden
that the need for long-term care has placed on the Steinhauer
family. Any offer of financial compensation would of course
require careful public handling to avoid giving the
appearance that financial concerns had trumped the need for
justice to be done; close cooperation with Serbian
prosecutors to ensure a domestic conviction would be crucial.
(It is also possible that if faced with the maximum 8 year
sentence in Serbia, Kovacevic would still accept a U.S. plea
bargain for a lesser sentence.) We also believe that it
would be prudent to pursue a bilateral extradition agreement,
and look forward to Department's response to our reftel
request for guidance. End comment.
MUNTER