ZAGREB WEEKLY ACTIVITY REPORT - APRIL 3, 2009

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SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - APRIL 3, 2009


1. CROATIAN LEADERS HAIL HISTORIC ACCOMPLISHMENT OF BECOMING
A MEMBER OF NATO:
Prime Minster Sanader told the press on April 1 that by
becoming a member of NATO, Croatia achieved a goal that it
had been trying to achieve for nearly two decades. Sanader
stated that a special debt of gratitude for this
accomplishment was owed to the veterans who fought to defend
Croatia during the 90s. President Mesic said that by
becoming a member of NATO Croatia had achieved the first of
its two main foreign policy goals, the second being to join
the EU. Mesic went on to say that with entry into NATO
Croatia had ensured its security. He also stressed that the
Alliance protected democratic values, and noted that Croatia
becoming a member of NATO confirmed that the country has
adopted and defends high-democratic standards. Both leaders
also congratulated Albania for becoming a member of the
Alliance. (D,Amico)


2. (U) JUSTICE SANDRA DAY O'CONNOR OFFERS STRAIGHT TALK TO
CROATIAN AUDIENCES:
Over a two-day visit organized as part of IIP's Strategic
Speaker Initiative, Justice O'Connor impressed her audiences
with her frank and open discussions under the overarching
theme of judicial independence. In her talk to over 150
students and faculty at the Zagreb Law Faculty, Justice
O'Connor told them that Supreme Court Justices may be
appointed by one President but serve long after his term and
are not bound by the 'President's views. She shared her own
story of making her legal career as a woman in the 1950's and
of being appointed to the Supreme Court. Questions covered
the electoral college, the death penalty, the role of foreign
legal decisions and property rights. The Dean hosted a lunch
for Justice O'Connor, the Ambassador and eight junior faculty
members who studied or received their degrees in the U.S. In
the afternoon, Justice O'Connor spoke about judicial
independence to Croatian judges at the Zagreb County Court,
and to judges from Split and Rijeka via digital video
conferencing equipment that the Embassy had donated. Her
talk was right on target, emphasizing current themes of
debate in Croatia such as the procedures for impeachment,
financing of the courts, and financial disclosure
requirements. Justice O'Connor met separately with the
Presidents of the Constitutional and Supreme Courts and the
Minister of Justice and with top judicial officials at a
dinner hosted by the Ambassador. The discussions focused on
judicial reform in Croatia, including resolving outstanding
war crimes issues, combating organized crime and corruption,
giving the Constitutional and Supreme Courts discretion to
hear cases, and methods for appointing and promoting judges.
During a lunch hosted by the DCM for Croatia's premier NGO
leaders, Justice O'Connor received a candid briefing on
ongoing corruption and human rights issues. In all cases,
Croatian officials enthusiastically solicited Justice
O'Connor's assessment of their reform efforts and, for her
part, the Justice said she was impressed by the progress
being made in Croatia. Croatia's leading daily newspaper
interviewed Justice O'Connor and expects to publish the
article in their weekend edition. Her visit will provide a
platform from which we can develop future programs to support
Croatian efforts in judicial reform. Coming on the same day
as Croatia became a full NATO member, this was a banner day
for the Embassy and U.S.-Croatian relations. (RPost)


3. (U) TRANSNATIONAL STING OPERATION NETS 40 SUSPECTED HUMAN
SMUGGLERS:
On Wednesday the Office to Combat Corruption and Organized
Crime (USKOK),in cooperation with 11 police precincts
throughout Croatia, arrested 40 people suspected of engaging
in people smuggling. "Operation Tara" was organized in
cooperation with Austria, Slovenia and Bosnia-Herzegovina and
is the culmination of an investigation that began late last
year. Most suspects were from areas close to Croatia's
borders with Austria, Slovenia and Hungary, and a large
number came from the Roma community. The suspects will be
charged with at least 150 cases of human smuggling.
(JNCallahan)


4. (U) OFFICIAL DATA CONFIRM GDP SLOWDOWN FOR 2008, WHILE
IMPORTS AND EXPORTS CONTINUE TO FALL IN 2009:
Data released by the Croatian Bureau of Statistics on March
29 show 2.4 percent growth in GDP for 2008, well below
earlier projections of 4.5 percent growth. Initial
calculations indicate 2008 GDP totaled HRK 342.1 billion
($62.2 billion) at current prices. Fourth quarter growth fell
to 0.2 percent year-on-year, marking the slowest quarterly
growth since 2000. Both imports and exports showed negative
growth in the fourth quarter. This trend has continued into
2009, with exports down 3.8 percent and imports down nearly

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24 percent year-on-year in February. The steeper decline of
imports shrank the trade deficit about 40 percent to HRK 7.5
billion ($1.4 billion) for January-February 2009, while
raising the export-import ratio to 54.8 percent. (SLitke)


5. (U) LOCAL ELECTION ANNOUNCEMENT NEXT WEEK:
Local media are reporting that the Croatian Government will
deliberate the timing of the formal announcement for local
elections next week, and the official start of the campaign
season will likely be set for April 15. The local election
law stipulates that local elections will be held on the third
Sunday in May--this year May 17--and the government can
announce the formal campaign period to begin between 30 and
60 days before the actual election date. (DMEGES)
BRADTKE