ZAGREB WEEKLY ACTIVITY REPORT - JUNE 5, 2009

UNCLAS SECTION 01 OF 02 ZAGREB 000326

SIPDIS

FOR EUR/SCE, EUR/PPD, EUR/RPM AND EUR/ERA
OSD FOR POPOVICH

E.O. 12958: N/A
TAGS: PREL PGOV HR
SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - JUNE 5, 2009

REF: ZAGREB 294


1. (U) BRIEF TRADE WAR WITH BOSNIA RESOLVED (FOR NOW):
The Croatian Minister of Agriculture and officials of the
Veterinary Office met with Bosnian counterparts over the May
30-31 weekend in an attempt to resolve a growing meat trade
war that threatened Croatia's $400m export market in food
products to Bosnia. Bosnia had recently banned all Croatian
imports of live animals and meat products, claiming concerns
over phytosanitary issues such as mad cow disease and avian
flu, as well as complaints that Croatia had failed to
properly notify the Bosnians when it decided to ban imports
of Bosnian live fish to harmonize with EU standards. The
officials reached agreement that Croatia would also lift a
long-standing ban on imports of beef and meat products from
Bosnia, with both countries lifting bans on poultry and fish
products. Discussions will continue on the livestock ban,
which remains in effect. This rift is not likely to be the
last between Croatia and Bosnia, as Croatia continues to
erect trade barriers and adopt regulations in preparation for
EU accession that negatively impact Bosnian imports.
(DWestfall)


2. (U) ACCUSED PUKANIC ASSASSIN ARRESTED IN BELGRADE:
Bosnian-Serb Zeljko Milovanovic, a prime suspect in last
November's murder of magazine publisher Ivo Pukanic and his
associate Niko Franjic, was arrested on May 31 in Belgrade.
Milovanovic is wanted by the police of Croatia, Serbia, and
Bosnia and Herzegovina. Croatia accuses Milovanovic of
transporting the explosives that were used in the blast that
killed Ivo Pukanic, former owner and editorial director of
the Zagreb-based political weekly Nacional, and Niko Franjic,
the former marketing director for Nacional. Milovanovic is
charged with multiple crimes and has escaped from prison
several times. He is on Interpol's APB list, and also on the
Osijek County Court APB list because of war crimes committed
during the war against Croatian civilians. Croatian media
report that Milovanovic has Serbian citizenship and therefore
cannot be extradited to Croatia. However, according to
Croatian officials, under the terms of a bilateral agreement
on prosecutorial cooperation, Milovanovic can be prosecuted
in Serbia for the crimes he committed in Croatia. (VDjukic)


3. (U) CONTROVERSIAL SINGER'S CONCERT INCLUDES SOME USE OF
FASCIST SYMBOLS:
Controversial pop singer Marko Perkovic Thompson's May 30
concert on Zagreb's main square passed without major
incidents, and with the local press showing only moderate
interest. Some 30-50,000 people packed the Jelacic square in
cold rainy weather, with many waving Croatian flags.
According to press reports, the spectacle was marred only by
small groups of 'heated' young men waving Nazi salutes and
singing Ustasha songs. Three people wearing Ustasha insignia
were arrested, and another three were detained for violent
behavior. However, the Ministry of Interior said that the
number of offenders could grow once officials have reviewed
video footage of the concert. The concert took place on
Zagreb's War Veterans' Day, but unlike last year, the city of
Zagreb refrained from co-funding it. Zagreb mayor Milan
Bandic had come under increased pressure by his (Social
Democratic Party) leadership not to sponsor the concert
because some of Thompson's lyrics are widely considered to
reflect nationalist views and sympathy for the Ustasha (the
Nazi puppet regime in Croatia during WW2). This year's
concert, coming on the eve of the second round of municipal
elections, did draw criticism from Bandic's rival for the
mayor's office, liberal Josip Kregar, who felt it indirectly
supported Bandic's campaign. Bandic did in fact easily win
the election the following day. (MJelenc)


4. (U) EU GIVES GREEN LIGHT TO ONE SHIPYARD PRIVATIZATION
PLAN, RED LIGHT TO ANOTHER:
European Commissioner for Market Competition Neelie Kraus has
given a positive opinion regarding the proposed privatization
model for the Uljanik shipyard in Pula (reftel). The EC has
not approved, however, the plan to turn the Kraljevica
shipyard into a megayacht-building facility, which would have
taken it out of the shipyard census and eased the need to
make capacity cuts at other shipyards. Deputy Prime Minister
Polancec announced that the Ministry of Economy, after
receiving the positive opinion, has sent the EC a copy of the
Government's proposed privatization tender for Uljanik. The
tender will offer 58% of the shares to a strategic investor
and 25% to the employees. It is not clear what will happen
to the remaining 17%. Uljanik is widely considered to be
the best-performing of the shipyards, and may have the best
chance of attracting investors. (DMatijas)


ZAGREB 00000326 002 OF 002



5. (U) EMBASSY SPONSORS CONFERENCE ON DIGITAL LIBRARIES:
Bringing together librarians, researchers, and educators from
over 20 countries, the Libraries in the Digital Age
Conference addressed the changing environment for libraries
and information systems in the digital world. Held in
Dubrovnik at the Inter-University Center and at the
University of Zadar, the conference reflected on the rapid
shift from physical to digital libraries and their impact on
scholarship, education and government. The Embassy has
supported this annual conference since its inception in 2000.
Of the featured speakers, seven out of nine were from the
United States, including Dr. Kaye Howe, Executive Director of
the National Science Foundation Digital Library, and Dr.
Marcia Bates of UCLA, who were co-sponsored by the Embassy.
Our support for this conference builds on our outreach to
public libraries and support for other library association
conferences. Libraries are important institutions in Croatia
as a source of community activity and are heavily visited
given the relatively high cost of books, newspapers and
periodicals. (KWetzel)


6. (U) USCG LIAISON OBSERVES SMOOTH OPERATIONS IN SPLIT AND
HVAR PORTS:
On June 1-4, the U.S. Coast Guard's international port
security liaison officer for Croatia visited port facilities
in Split and Hvar to observe implementation of the
International Ship and Port Facility Security (ISPS) Code.
The liaison officer offered suggestions for improving
implementation of the code at the "North Port" facility in
Split by requiring the contracting company that operates the
facility to take a larger role in developing and implementing
the security plan. In Hvar, staff impressed the liaison with
their ability to keep the port operating smoothly to
accommodate the high traffic of the tourist season, despite
the port's small size, close proximity to onshore businesses,
and strong and frequently shifting winds. The liaison
suggested formalizing the de facto team of port authority,
police, fire department, and nautical center staff who
already coordinate closely on key aspects of port operations.
(SLitke)
BRADTKE