ZAGREB WEEKLY ACTIVITY REPORT - JUNE 19, 2009

UNCLAS SECTION 01 OF 02 ZAGREB 000382 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 19, 2009 ¶1. (SBU) CMC STEEL FORCED TO SHUT DOWN OPERATIONS: CMC metals of Sisak, the largest U.S. investment in Croatia (see Zagreb 329),has temporarily shut down operations due to a lack of orders for its seamless steel pipes. The company's general manager told us he hopes the shut down will be no more than two months, but that it could be longer if no new orders come in. During this time, CMC's roughly 1000 employees will be forced to use their remaining vacation. As vacation days run out, the company will have to resort to rolling layoffs, an option the general manager fears will lead to friction with the union and bad press. (DWestfall) ¶2. (SBU) CROATIA DESTROYS 929 MANPADS: In a controlled detonation on June 18 Croatia eliminated the last of the 929 MANPADS it agreed to destroy as part of a one million dollar USG-funded program for their destruction and site security improvements at weapons storage facilities. Embassy observers were present at the site for each round of destruction. For the final day of MANPADS destruction, General Ostovic from the Logistical Command conducted an inspection of the site and made remarks in which he praised the excellent cooperation with the Embassy and the USG. He also noted that Croatia was interested in concluding more weapons destruction agreements in the future with the USG. (PD'Amico) ¶3. (U) ZAGREB PRIDE PARADE: The eighth annual Zagreb Pride Parade once again saw limited anti-gay protests. The annual celebration of gay pride gathered an estimated 500-800 participants who are lesbian, gay, bisexual, transgender, intersexual or questioning. The group toured the city center to the sound of drums and carried flags and banners reading "Zagreb Pride for an open city - participate" and "Homophobia is a choice." Several dozen members of the right-wing Croatian Pure Party of Rights (HCSP) simultaneously held an anti-gay protest on the main square. Some carried banners reading "Kill the Faggots" and "Faggots into Concentration camps." Gay pride organizers considered the anti-gay protest a hate crime and complained to the government for allowing it at all. A large police presence recorded the event with video cameras and arrested 5 anti-gay protesters who tried to break through the line and throw beer cans at parade participants. After the parade, two unidentified people followed a 27 year old pride supporter to his doorstep where they severely beat him, breaking his nose and requiring him to be hospitalized. Despite the violence and anti-gay demonstration, Pride organizers said they were generally satisfied with the event. (MJelenc) ¶4. (U) SOCIAL DEMOCRATIC PARTY CANDIDATES DOMINATE FINAL ROUND OF LOCAL ELECTIONS: In a third round of local elections in Sibenik, Trogir and a handful of other towns (where either balloting irregularities or exact ties in the second round required another round of voting),candidates from the opposition Social Democratic Party (SDP) won several mayor's offices previously held by the ruling HDZ or its coalition partners. In the two largest cities contested on June 14, Ante Zupanovic of the SDP was named mayor of Sibenik, and Damir Rilje of the SDP took charge of Trogir. These coastal cities had previously been fairly reliable bastions of HDZ support. (PMcCabe) ¶5. (U) CROATIAN DELEGATION GOES ON USG SPONSORED NATO TOUR: A high-level, multi-party delegation of Croatian parliamentarians, joined by the Defense Advisor to the President of Croatia, visited Brussels and Brunssum on the first USG-sponsored NATO tour since Croatia joined the Alliance. The group, accompanied by Embassy personnel, met with officials at the NATO headquarters and Joint Forces Command Brunssum to hear presentations and exchange views on issues such as ISAF, NATO's relations with Russia, the new Strategic Concept, and NATO enlargement in South Eastern Europe. The delegation, as representatives of a new member state in NATO, found the frank dialog with the speakers very useful. (DMatijas/ZTomic) ¶6. (U) CROATIAN MILITARY HOSTS TRAINING EVENT: The Croatian Chief of Defense, General Josip Lucic, hosted a training event June 9-11 at Mali Losinj, on the island of Losinj, using instructors from the Joint Special Operations University at Hurlburt Field, Florida. Participation of the instructors was funded through the U.S. Combating Terrorism Fellowship Program. This Strategic Threat Interdiction Symposium was entitled "Special Operations Forces and the Future Terrorism Threat" and was attended by about 50 officers drawn from the commanders of Special Operations units in nearby countries (Austria, Bosnia-Herzegovina, ZAGREB 00000382 002 OF 002 Macedonia, Poland, Slovenia, and Serbia) and from the ranks of senior Croatian military. (CDavis) ¶7. (U) MILITARY EXERCISE PROMOTES COOPERATION BETWEEN NATO AND PFP COUNTRIES: The bilateral exercise GUARDEX '09 concluded on June 10th with a Distinguished Visitors' Day attended by the Adjutant General of the Minnesota National Guard, MG Larry Shellito and by the Croatian Chief of Defense, General Josip Lucic. The exercise, which brought a platoon of Minnesota National Guard to Croatia to be inserted into a company of the Croatian Army, sought to train, exercise and promote interoperability between NATO and PfP countries by using NATO standards inside a crisis response scenario. The exercise included live fire training and field training portions. In addition to U.S. and Croatian troops, the PfP partner Austria also participated. (CDavis) ¶8. (U) WAREHOUSE REDUCTION UNDERWAY: Embassy Zagreb has completed its 7902-funded warehouse extension, paving the way for the elimination of post's commercial warehouse this summer. Ambassador Bradtke cut the ceremonial ribbon in front of a group of Embassy employees and the building contractors on Wednesday, June 10. Combined with extensive reductions in stock, a shift to disposable welcome kits, and the establishment of a residential furniture pool, this will save at least $52,000 annually in ICASS costs and reduce warehouse square footage by over 65%. (TFavret) BRADTKE