SLOVENIA: SCENESETTER FOR THE VISIT OF THE

C O N F I D E N T I A L SECTION 01 OF 02 LJUBLJANA 000212

SIPDIS

E.O. 12958: DECL: 05/13/2018
TAGS: PREL PGOV EUN SI
SUBJECT: SLOVENIA: SCENESETTER FOR THE VISIT OF THE
PRESIDENT

Classified By: CDA Maryruth Coleman for reasons 1.4 (b,d)


1. (C) Summary: Your visit to Slovenia for the U.S.-EU
Summit provides an excellent opportunity to acknowledge the
remarkable progress made in this small but dynamic country
since your visit in 2001. Over the past seven years,
Slovenia's own accomplishments reflect progress to a Europe
that is whole and free. Since 2001, Slovenia has joined NATO
and the EU. Slovenia now holds the Presidency of the EU
Council, the first of the new EU member states and the first
ex-Communist country to do so, and finds itself center stage
in European and global affairs. Strong logistical skills and
effective consensus building have resulted in a successful EU
Presidency thus far, with Kosovo independence and significant
progress on EU enlargement in the Balkans as key
accomplishments. The U.S.-EU Summit will be the only EU
Summit to take place in Slovenia and the government is very
keen on ensuring that the Summit and your visit are a
success. End Summary.

A Strong Bilateral Partner
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2. (C) Your visit will kick off with bilateral meetings with
President Danilo Turk and Prime Minister Janez Jansa. While
Jansa has been in office since 2004 and will face a tough
election this fall, Turk only took office in December 2007.
Although the opposition supports Turk, relations between the
government and the President are relatively positive and
constructive. We recommend that you applaud the strong
leadership PM Jansa and Slovenia have demonstrated during its
presidency of the EU Council and express appreciation for the
successful efforts that Slovenia has made to strengthen
U.S.-EU relations.


3. (C) Slovenia is also a strong bilateral partner for the
U.S. Despite having a relatively small military, Slovenia
has made significant contributions to the global war on
terror and to peacekeeping operations in the region and
beyond. The Slovenian Armed Forces have played a substantial
role in NATO operations in Kosovo, deploying up to nearly
nine percent of its active forces to KFOR at times. Slovenia
has deployed nearly one percent of its deployable forces to
Afghanistan and has made donations of weapons and equipment.
In addition, Slovenia provides two trainers to the NATO
Training Mission in Iraq and has donated significant funds,
weapons and equipment there as well. We suggest that you
express gratitude for Slovenia's continued presence in all
NATO operations and encourage Slovenia to contribute more in
support of the NATO Training Mission in Iraq. It would also
be very helpful if you could suggest that the government
consider sending a full training team to the International
Security Assistance Force in Afghanistan.


4. (C) The only outstanding bilateral issue between the U.S.
and Slovenia remains the unresolved status of property
belonging to Americans that was nationalized by the former
communist Yugoslav government during and after WWII.
Although the current government has resolved 88% of all
American claims, approximately 100 Americans, most of whom
are quite elderly, are still awaiting restitution.
Additionally, Slovenia has yet to resolve the issue of
restitution of Jewish communal and heirless properties that
were also confiscated or nationalized during and after WWII.
Although there are no American citizens involved, we have
been using our good offices to quietly broker a resolution to
the Jewish restitution impasse. If raised, please encourage
the government to facilitate the speedy resolution of these
lingering issues.

A Regional Leader
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5. (C) Slovenia is a strong proponent for enlarging
transatlantic and European institutions eastwards and into
the Balkans. During its Presidency of the EU Council,
Slovenia has contributed to an accelerated pace of
enlargement in the region, with great progress being made
towards bringing Croatia, Turkey, and Serbia into the Union.
Slovenia strongly supported inviting all of the Adriatic
Three countries to join NATO and extending MAP to Georgia and
Ukraine. We suggest that you encourage Slovenia to continue
to play a strong role in the region beyond the conclusion of
its EU Presidency.

Domestic Politics Heat Up
--------------


6. (C) Slovenia's current domestic political climate is

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heating up in advance of the September 21 parliamentary
elections which, like past elections, are expected to be free
and fair. Prime Minister Jansa is hoping to capitalize on
the success of Slovenia's EU Presidency to strengthen the
position of his center-right party, the Slovene Democrats
(SDS). Jansa views your visit and the U.S.-EU Summit as a
keystone of Slovenia's EU Presidency. While the opposition
has agreed not to play a spoiler role during the EU
Presidency, pre-election posturing has already begun. Polls
show SDS and the leading opposition party, the center-left
Social Democrats, to be neck and neck.

Economics Cool Down
--------------


7. (C) The economic situation in Slovenia is a bit cooler
than its politics. Although Slovenia has enjoyed significant
growth since independence, the economy is beginning to show
strains and the country is currently experiencing the highest
rate of inflation within the euro zone, which it joined in
January 2007. Despite assurances by the current government
to open the country up to more foreign direct investment,
foreign businesses find it difficult to crack into the
Slovenian market. It would be useful for you to stress that
we hope to see increased investment opportunities for U.S.
firms in Slovenia.

A New Ambassador
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8. (C) Ambassador Yousif Ghafari, a Michigan businessman, and
his wife, Mara Kalnins-Ghafari, will arrive in Slovenia on
May 25. Deputy Chief of Mission Maryruth Coleman has served
as Charg d'Affaires for the past nine months. The entire
Mission is looking forward to your visit.
COLEMAN