SLOVENIAN AND CROATIAN PMS AGREE TO DIALOGUE ON

C O N F I D E N T I A L SECTION 01 OF 02 LJUBLJANA 000231

SIPDIS

STATE FOR EUR/ERA, EUR/CE, EUR/SCE

E.O. 12958: DECL: 07/30/2019
TAGS: PREL EUN HR SI
SUBJECT: SLOVENIAN AND CROATIAN PMS AGREE TO DIALOGUE ON
WAY FORWARD

REF: EUR PDAS S. JONES 7/31 E-MAIL

LJUBLJANA 00000231 001.3 OF 002


Classified By: CDA Grace Shelton, Reasons 1.4 (b,d)

Summary
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1. (C) At their July 31 meeting in northern Croatia,
Slovenian PM Borut Pahor and Croatian PM Jadranka Kosor
agreed to have a dialogue and try to prepare a two-part
package that would allow Slovenia to lift its reservations
and Croatia's EU negotiations to resume. The first part
would be a Croatian government declaration that all documents
and actions taken after June 25, 1991 would not have any
legal significance for an international body deciding about
the Slovenia-Croatia border dispute. The second part would
be a joint guarantee to return to negotiations. According to
Marko Makovec, the Prime Minister's Foreign Policy Advisor
who was present at the plenary session of the July 31
meeting, the second part is difficult. Slovenia would like
U.S. help in getting Croatia to use the June 15 Rehn proposal
as the starting point for negotiations that would continue
under an EU-led process. Both PMs also committed to proceed
with "quiet diplomacy." End Summary.

Dialogue on a 2-Part Package
--------------


2. (C) On July 31, Makovec gave CDA a read-out of the Prime
Ministers' meeting earlier that day. Makovec said that the
PMs had agreed to have a dialogue and the Foreign Ministers
would have a parallel dialogue to discuss a possible way to
move out of the impasse; their idea is to prepare a
"package." The FMs would try to work on this in August
(Slovenian FM Zbogar has leave scheduled for the first three
weeks of August, so it will likely be the latter part of
August). The Prime Ministers would meet when there is a text
of a package, possibly sometime in September, although a date
is not set.


3. (C) Makovec outlined a possible two-part package: 1) a
Croatian government declaration or statement that no document
or action undertaken unilaterally after June 15, 1991 shall
be accorded legal significance, and 2) both guarantee to
return to negotiations. Makovec explained that the first
element would incorporate text from articles 5 and 8 of the
June 15 Rehn proposal. From Article 5: "No document or
action undertaken unilaterally after June 15, 1991 shall be
accorded legal significance for the tasks of any
international commission or body (instead of Arbitral
Tribunal)." The first paragraph of Article 8 basically
repeated Article 5; the second paragraph was important
because it defined what documents would be included. Makovec
stressed the importance of the word "unilaterally" in both of
these provisions.


4. (C) Makovec indicated that the second part of the package
was problematic. Kosor had agreed to work on a statement and
to go back to negotiations, but would not agree to use the
June 15 Rehn proposal as the starting point for negotiations
under an EU-led process. Makovec noted that it was important
it be an EU-led process because the bilateral efforts had not
succeeded after twelve years of trying. He added, however,
that Slovenia did not care whether the EU-led process was led
by Commissioner Rehn, the EU Presidency, Swedish FM Bildt, or
whomever.


5. (C) Makovec observed that that PM Pahor believed that he
could sell the package only if both elements were included,
otherwise he would never be able to get the necessary
two-thirds majority. Makovec explained that President Turk
was not in favor of this kind of proposal and "firmly and
severely" insisted that Croatia must return to the process
before Slovenia consider lifting its reservations. The PM,
however, wanted to try for the compromise, but only if
Croatia returned to the June 15 Rehn proposal as a basis
under an EU-led process. If not, the deal was off because
the PM lacked support from the President, within his own
coalition, and the opposition for a compromise. If Croatia
were to agree to the 2-part package with Slovenia's
conditions, then Pahor would be willing to go all out to get
the opposition on his side. With such a 2-part package,
Slovenia could withdraw its reservations. On behalf of the
Prime Minister, Makovec requested U.S. and EU assistance in
getting Croatia to do so. CDA passed to Makovec the draft
demarche points (reftel),which Makovec appreciated. He
noted especially the point that the U.S. urged both parties

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to return to the EU-led process.

Good Atmospherics at July 31 Meeting
--------------


6. (C) Makovec commented that the atmospherics of the Prime
Ministers' July 31 were good, much different than the
February Mokrice meeting. Today, the Prime Ministers were
collaborating on how to find a way forward. Although Makovec
complained that Croatia appeared to want Slovenia to do all
the bending, he was pleased with the overall outcome. Both
PMs decided to use "quiet diplomacy," and Slovenia was
confident that Kosor was serious about this. Makovec noted
that the Slovenian and Croatian media were positive in their
initial similar coverage of the meeting. Makovec said that
the Prime Ministers' 30 minute one-on-one meeting was
followed by a 30 minute plenary, then the press statement and
lunch. PM Pahor was accompanied by Makovec, FM Zbogar, MFA
Director for Bilateral Affairs Iztok Mirosic, and Aljaz Arih,
the FM's Chief of Cabinet. (Note: The FM, Makovec, Mirosic,
and Arih are all scheduled to be on leave next week.) Kosor
was accompanied by FM Jandrokovic, EU negotiator Drobnjak,
Davor Stier, Kosor's foreign policy advisor, plus one other
person.

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


7. (C) The positive atmosphere has continued in the immediate
aftermath of the PMs' meeting. Both sides want to find a way
forward and appear close to being able to do so. Assistance
from the U.S., and the EU, could help them reach agreement on
a package that would allow Croatia's EU accession
negotiations to proceed.
SHELTON