Identifier
Created
Classification
Origin
08SARAJEVO301
2008-02-14 17:23:00
CONFIDENTIAL
Embassy Sarajevo
Cable title:  

BOSNIA: SILAJDZIC ON POLICE REFORM, ENERGY AND THE

Tags:  PGOV PREL EINV ENRG EPET BK 
pdf how-to read a cable
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FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7839
INFO RUEHBW/AMEMBASSY BELGRADE 0530
RUEHVB/AMEMBASSY ZAGREB 0516
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUFOAOA/USNIC SARAJEVO
C O N F I D E N T I A L SARAJEVO 000301 

SIPDIS

SIPDIS

DEPARTMENT FOR EUR(DICARLO),EUR/SCE(HOH/FOOKS); NSC FOR
BRAUN

E.O. 12958: DECL: 02/11/2018
TAGS: PGOV PREL EINV ENRG EPET BK
SUBJECT: BOSNIA: SILAJDZIC ON POLICE REFORM, ENERGY AND THE
ICJ

REF: A. SARAJEVO 191

B. SARAJEVO 245

C. SARAJEVO 128

Classified By: Ambassador Charles English. Reasons 1.4 (b),(d).

Summary
-------

C O N F I D E N T I A L SARAJEVO 000301

SIPDIS

SIPDIS

DEPARTMENT FOR EUR(DICARLO),EUR/SCE(HOH/FOOKS); NSC FOR
BRAUN

E.O. 12958: DECL: 02/11/2018
TAGS: PGOV PREL EINV ENRG EPET BK
SUBJECT: BOSNIA: SILAJDZIC ON POLICE REFORM, ENERGY AND THE
ICJ

REF: A. SARAJEVO 191

B. SARAJEVO 245

C. SARAJEVO 128

Classified By: Ambassador Charles English. Reasons 1.4 (b),(d).

Summary
--------------


1. (C) The Ambassador met with Bosniak Presidency member
Haris Silajdzic February 11 to discuss police reform
developments and plans for Silajdzic's upcoming assumption of
the Presidency Chairmanship. Silajdzic asserted his SBiH was
solidly behind him in his support for the police reform
legislation and claimed that it could be passed in parliament
despite SDA opposition. Silajdzic said his Chairmanship
would focus on foreign affairs and attracting foreign
investment. As part of the foreign affairs focus of his
Chairmanship, Silajdzic stated it was "his duty" to pursue a
return to the "legal option" for full implementation of the
ICJ verdict. He asserted that accusations of criminal
behavior against Federation Energy Minister Vahid Heco were
spurious and that if substantiated he would resign as party
president. Silajdzic discussed at length vague plans for an
energy pipeline transiting Bosnia from the Gulf to Europe
asserting that the resulting capital influx would solve many
of Bosnia's problems. Silajdzic committed to supporting the
deployment of a company to Iraq. End Summary.

Silajdzic Chairmanship
--------------


2. (C) On February 11 the Ambassador met with Bosniak
Presidency member Haris Silajdzic to discuss the prospects
for finalizing police reform and his priorities for his March
6 assumption of the Presidency Chair. Silajdzic noted that
his Chairmanship would focus on two priorities. The first
would involve reasserting the role of the Presidency in
foreign affairs, particularly vis-a-vis the United States and
the EU. He also noted that in this capacity he would also
work towards "asserting our case" regarding the International
Court of Justice (ICJ) verdict. Silajdzic added that he

would also seek to improve the climate for large scale
foreign investments in the energy sector. A significant
influx of foreign capital would resolve many of Bosnia's
problems and improving infrastructure and the regulatory
environment would help achieve that goal.


3. (C) In a wide ranging discussion of his economic strategy
Silajdzic repeated familiar ruminations about the
possibilities for a liquid natural gas pipeline from Qatar
and Algeria through Bosnia to Europe through the Adriatic.
(Note: We have frequently heard Silajdzic speculate about
similar spectacular investment initiatives but are unfamiliar
with the details of this particular plan. End note). He
asserted that such a pipeline would reduce Europe's
dependence on Russian energy and would bring billions of
dollars to Bosnia's economy. He also raised proposed
investments by General Electric and Austrian energy companies
and lamented that "ignorance and arrogance" on the part of
Bosnian politicians have blocked these investments.

Impediments to Foreign Investment
--------------


4. (C) The Ambassador pointed out that the lack of a
transparent regulatory environment in Bosnia is dissuading
foreign investment. The ongoing controversy over
Elektroprivreda management was giving potential foreign
investors the impression that Bosnian political leaders are
only interested in dividing economic spoils among themselves.
The story has generated significant international attention
which has had a negative impact Bosnia's reputation in the
business community. The United States has long attempted to
assist Bosnia in improving investor confidence by achieving
more sensible regulation. However, business registration and
permit regimes remain opaque, particularly in the Federation,
and it is difficult for outsiders to see Bosnia as a
favorable business environment.


5. (C) Silajdzic agreed that the Elektroprivreda controversy
has been damaging to Bosnia and acknowledged that the

business environment in the Federation is unfavorable due to
its cumbersome bureaucracy. He stated that adherence to the
rule of law would resolve the Elektroprivreda dispute and
reassure investors. Silajdzic stated that Bosniak daily
Dnevni Avaz, and its owner Fahrudin Radoncic, have spuriously
labeled Federation Energy Minister Vahid Heco a criminal (Ref
A). He added that he takes responsibility for Heco's actions
as an SBiH minister and has publicly promised to resign his
role as party president if any evidence supporting the
charges materializes. Silajdzic reiterated that his goal is
to transform the political environment of Bosnia through
foreign investment. If Tito had accepted American investment
the Milosevic regime would never have happened, Silajdzic
said, adding that if we cannot keep foreign soldiers here we
must attract foreign business to take their place.

Police Reform and the SAA
--------------


6. (C) The Ambassador pointed out that progress in Bosnia's
path towards EU membership is crucial to this goal. The
United States hopes Bosnian leaders will move quickly to meet
the requirements for signing a Stabilization and Association
Agreement (SAA) with the EU. Although SDA president Sulejman
Tihic has opposed the police reform agreement for principled
reasons, the substance of the agreement is less important
than doors that will be opened by an SAA. (Ref B). The
Ambassador asked Silajdzic how he planned to proceed in the
wake of Tihic's withdrawal from the agreement. Silajdzic
stated that relinquishing the opportunity to sign an SAA is a
"no win situation." He asserted that the Mostar and Sarajevo
agreements were both "my proposals" and he intends to adhere
to them. The draft legislation of the Police Reform Working
Group meets the conditions of both agreements. In that
context the agreement must be signed now, Silajdzic said.


7. (C) The Ambassador asked if there were sufficient votes in
parliament to pass the police reform legislation without SDA
and SDP support. Silajdzic replied affirmatively, noting
that SBiH votes in favor, along with both HDZ parties and the
support of RS-based deputies would be sufficient to adopt the
legislation. Asked whether he could maintain SBiH unity in
support of the legislation, Silajdzic replied that there are
no challenges to his position within the party. (Note: In a
surprise move at the February 14 Council of Ministers
session, SBiH Minister Sven Alkalaj voted against the police
reform bill, undercutting Silajdzic's assertion on party
unity. The measure nevertheless passed and was sent to the
Parliament for action. End Note) Silajdzic noted that his
position is consistent with his past positions on police
reform. The current agreement is mute on the sensitive issue
of local police districts and the existence of the RS police.
The agreement will allow for the signing of an SAA which
will, in turn, allow for the implementation of EU policing
standards. The police reform process can be completed when
Bosnia becomes an EU candidate country at which time EU
standards will mandate a favorable resolution of policing
issues, Silajdzic asserted.

Defense Property
--------------


8. (C) The Ambassador highlighted that negotiations on a
defense property agreement were ongoing between the entities
and state government. He emphasized that negotiations were
at a sensitive juncture and public criticism would complicate
the prospect of a favorable resolution. The Ambassador
requested that Silajdzic and his party continue to refrain
from public comment on the process. Silajdzic replied that
support for a the transfer of defense property to the state
is a part of SBiH party policy and there would be "no problem
from our side."

ICJ: Return to the "Legal Option"
--------------


9. (C) Silajdzic predicted that RS resistance to defense
property transfers portended continued challenges to the
state by PM Milorad Dodik. In their "ridiculous" attempts to
institute "segregation and separation" in Bosnia, RS
authorities are incorrectly characterizing the SBiH position
as promoting a centralized state. Silajdzic noted that he

has always been in favor of a "Bosnia of regions" with the
provision that regions must not be based primarily on ethnic
criteria. Instead, European pressure to preserve the status
quo would eventually result in a Bosnia with one eye on
Belgrade, one eye on Zagreb and a frustrated, radicalized
Muslim ghetto in the middle. Silajdzic proceeded to embark
on a long discussion of his familiar party platform calling
for a citizen state adding that there can be no alternative
to integrating Bosniaks into Europe.


10. (C) The Ambassador noted that such a future is possible
for Bosnia if citizens from all its ethnic groups agree on a
shared vision for the state. In the meantime however,
history dictates that the safeguards put in place by Dayton
must be respected and remain organizing principle of the
state for the near term. In that context, rhetoric such as
the recent statement by Silajdzic that Dayton legitimized
genocide undermine the achievements of a hard-won peace.
Silajdzic acknowledged his statement and reiterated that he
believes it is true. Nonetheless, he pointed out that he had
made hundreds of other statements in support of Dayton and
would sign the accord again. Silajdzic said he made the
statement in view of mounting challenges to the state by
Dodik and because of the impunity of the RS and Serbia in the
face of the ICJ verdict. Returning to the foreign policy
priorities of his Chairmanship, Silajdzic reiterated his
intention to compel UN member states to fulfill their legal
obligation to implement the ICJ ruling. The Ambassador
replied that the USG disagrees with his analysis and pointed
out that for Bosnia to move forward it would be necessary for
Bosniak and Serb parties to compromise on their currently
diametrically opposed positions.

Iraq Deployment
--------------


11. (C) During a pull-aside with Silajdzic the Ambassador
urged him to support the deployment of a company of Bosnian
troops for fixed-site security duties in Iraq (Ref C). The
Ambassador pointed out that a company deployment would make
significant contributions to the further integration of the
Bosnian armed forces by requiring the integration and
training of two additional companies for reserve and relief
purposes effectively achieving the integration of an infantry
battalion. In the same way that the integration of the U.S.
military made important contributions to the civil rights
movement, the Ambassador pointed out that the mission could
play a similar role in establishing the Bosnian armed forces
as an important anchor for Silajdzic's stated goals of
tolerance and mutli-ethnic coexistence in Bosnia. Silajdzic
acknowledged the potential benefits of the proposal and
committed to supporting the deployment of a company to Iraq.
(Note: However, in a subsequent session, the Presidency
accepted MoD Cikotic's recommendation that the deployment be
limited to a "platoon plus." End Note)

Comment
--------------


12. (C) Despite Silajdzic's assertions that he is prepared to
push police reform legislation without SDA support, Tihic's
principled position is resonating among Bosniaks and could
ultimately make it difficult for SBiH deputies in the state
parliament to support a position that is being characterized
as giving in to Dodik. Silajdzic's musings on promises of
vast foreign investment are not new and suggest that he
continues to view economic initiatives as a means to advance
his political goal of undermining the RS. It is also ironic
that SBiH party members in the Federation are directly
contributing to the opaque regulatory environment that
Silajdzic laments as a source of Bosnia's problems. His
statements previewing a return to the "legal option" in
implementing the ICJ verdict, while not unexpected, are
troubling. They suggests Silajdzic will use his Chairmanship
continue to provoke confrontations with Dodik, RS authorities
and Serbia and that he is willing to foment divisions within
the state government that will complicate Bosnia's foreign
relations in the process. End Comment.
ENGLISH