ZAGREB WEEKLY ACTIVITY REPORT - JUNE 19, 2009

UNCLAS SECTION 01 OF 02 ZAGREB 000382

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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,

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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