BOSNIA- AMBASSADOR AND NATO HQ PUSH MOVABLE

C O N F I D E N T I A L SECTION 01 OF 02 SARAJEVO 000129

SIPDIS

SIPDIS

DEPT FOR EUR (DICARLO),EUR/SCE (HOH, SILBERSTEIN, FOOKS,
STINCHCOMB),EUR/RPM
DEFENSE FOR FATA AND BEIN
NSC FOR BRAUN
USNIC FOR WIGHTMAN

E.O. 12958: DECL: 01/24/2018
TAGS: PREL PGOV MARR BK
SUBJECT: BOSNIA- AMBASSADOR AND NATO HQ PUSH MOVABLE
DEFENSE PROPERTY ISSUES WITH RADMANOVIC AND SPIRIC

REF: A. 07 SARAJEVO 2632


B. 07 SARAJEVO 2586

SARAJEVO 00000129 001.3 OF 002


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

SUMMARY
--------------


1. (C) On January 23, the Ambassador, NATO HQ Sarajevo
Commander US MG Wightman, and NATO POLAD met with President
Nebojsa Radmanovic and Prime Minister Spiric to stress the
importance of resolving movable defense property issues in
the near-term. In particular, the Ambassador told Radmanovic
and Spiric that RS proposals to maintain entity ownership
over surplus arms and ammunition were unacceptable because
"they threatened a safe and secure environment in Bosnia."
Radmanovic and Spiric were also told that failure to resolve
movable defense property along those lines would derail
Bosnia's ambitous agenda for the NATO Bucharest Summit. Both
Radmanovic and Spiric said they supported the principles
outlined by the Ambassador and the NATO HQ leadership and
would engage on the matter with Republika Srpska (RS) Prime
Minister Milorad Dodik to push the conclusion of the
agreement. Though we welcome their assurances, we doubt
either Radmanovic or Spiric can deliver Dodik's support if he
is inclined to continue his obstructionist position on the
issue. End Summary.

NATO HQ PRESENTS NEW MOD PLAN
--------------


2. (C) On January 23, the Ambassador, NATO HQ Sarajevo
Commander US MG Wightman, and NATO POLAD met separately with
the highest-level Bosnian Serb officials in state
institutions, President Nebojsa Radmanovic and Prime Minister
Nikola Spiric, to push a resolution of movable defense
property issues in advance of NATO's Bucharest Summit.
Discussions between NATO, state representatives and the
entities have reached an impasse over RS proposals to
maintain entity ownership of surplus stocks of arms and
ammunition (reftel). The NATO HQ representatives presented
Radmanovic and Spiric the new Ministry of Defense draft
agreement on movable property, which stipulated that the
state take ownership of all arms, ammunition and explosives
as provided for in the July 2007 political agreement signed
by Spiric and the two entity prime ministers.

AMBASSADOR: ALL ARMS AND AMMUNITION TO THE STATE
-------------- ---


3. (C) The Ambassador told both Radmanovic and Spiric that it
was "of vital importance" to the United States that the
provisions of the July 2007 agreement were respected and that
failure to fully transfer all arms and ammunition to the
state posed a threat to "a safe and secure environment in
Bosnia." The Ambassador stated that the MOD draft agreement
respected entity financial interests in its revenue sharing
provisions for future arms and ammunition sales, adding the
agreement should be clearly viewed as a "win" for all
parties-- the state, entities, and the international
community. He further reminded both men that a failure to
resolve the movable property issues would be negatively
viewed by NATO allies at the Bucharest Summit and would
needlessly derail Bosnia's ambitous agenda for further
alliance integration. The Ambassador encouraged Radmanovic
and Spiric to address the issue with other political leaders,
particularly RS Prime Minister Dodik, and advocate for a
resolution of the matter in the near-term, well in advance of
Bucharest.

RADMANOVIC: "NO PROBLEM" WITH PROPERTY TRANSFER
-------------- --


4. (C) President Radmanovic told the Ambassador and NATO
officials that "getting some form of invitation" out of
Bucharest was of paramount importance to Bosnia. He said
that all state and entity officials had to realize that
further Euro-Atlantic integration required that they at times

SARAJEVO 00000129 002.3 OF 002


"did things that they did not want," and resolving movable
defense property should not be so contentious as to derail
the process. Radmanovic stated that he fully supported the
July political agreement, and noted he had "no problem with
all property being transferred to the MOD and state."
Radmanovic said the key was ensuring enough transparency in
the sale of arms and ammunition so that the entities would be
involved in the process, and guaranteeing that a complete
inventory of defense property was produced that prohibited
the entities from holding back certain items. (Note. The RS
leadership and other senior officials have previously
asserted to us that the Federation is hiding stockpiles of
arms and ammunition to prevent them from being transferred to
the state. End Note.)


5. (C) After initially pledging to try to resolve the issue
with Dodik in "two days," Radmanovic said that he would
immediately address the property concerns upon his arrival in
Banja Luka the following day. Radmanovic stressed that the
Ambassador could "count on" him to do his utmost to move the
matter to a mutually beneficial conclusion in the near-term.
He also urged NATO to not back away from resolving the
immovable property issues as soon as possible. Radmanovic
also cautioned that the Federation leadership and Presidents
Komsic and Silajdzic needed to be brought in line, as their
"misinformed views" on the property issues could hinder an
agreement. (Note. The Ambassador and NATO HQ leadership will
meet with Komsic and Silajdzic on January 24 and Federation
Prime Minister Brankovic January 28 to discuss the issue and
enlist their support for the MOD draft plan. End Note.)

SPIRIC: I AGREE, BUT WHAT CAN I DO?
--------------


6. (C) For his part, Spiric stressed that, from his
perspective as a signatory to the July political agreement,
it was clear that all arms and ammunition had to be
transferred to the state. Spiric said the failure of the
entities to immediately move to implement the political
agreement created a public safety threat, as the Ministry of
Defense could not move to destroy excess stocks of arms and
ammunition until the property issues were resolved. Spiric
cast blame for the failure to conclude the transfer agreement
on all sides, agreeing that "Banja Luka" had played an
obstructionist role but saying that Silajdzic and Party for
Democratic Action (SDA) President Sulejman Tihic had also
worked to block an agreement. Spiric also pledged to engage
directly with the key leaders, but told the Ambassador to
play a leading role in securing an agreement as "his (the
Ambassador's) power to convince is greater" than his own.

COMMENT: ONLY DODIK CAN DELIVER DODIK
--------------


7. (C) Radmanovic's and Spiric's comments on movable defense
property were certainly welcome. They both were well-versed
in the issue, and seemed to unequivocally commit to our
bottom line: all arms and ammunition had to be transferred to
the state. During the Fall 2007 political crisis and current
impasse over the state budget, both Radmanovic and Spiric
also pledged to act as a moderating influence on Dodik, but
were unable (or unwilling) to shift Dodik's positions. Given
this, we take their assurances on movable defense property
with a grain of salt. We doubt that they will be able to
deliver an acceptable agreement if the RS Prime Minister
elects to continue his obstructionist position on the issue.
End Comment.
ENGLISH