ZAGREB WEEKLY ACTIVITY REPORT - JULY 24

UNCLAS ZAGREB 000453 SENSITIVE SIPDIS FOR EUR/SCE AND EUR/RPM E.O. 12958: N/A TAGS: PGOV PREL EINV KHDP KCRM HR SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - JULY 24 ¶1. (SBU) BOZINOVIC APPOINTED MFA STATE SECRETARY FOR POLITICAL AFFAIRS: On July 16 the MFA announced that Davor Bozinovic would be the new MFA State Secretary for Political Affairs, replacing Bianca Matkovic who is now serving as Minister without Portfolio in the new Kosor government. Bozinovic has held a number of diplomatic postings including MFA State Secretary for European Integration and Croatia,s Ambassador to NATO. Bozinovic is a good contact of the Embassy and played a key role in the GoC,s public education campaign explaining the benefits of NATO to Croatians. (D,Amico) ¶2. (SBU) POLICE INVESTIGATING EXPLOSION IN SIBENIK: On July 21 in the coastal town of Sibenik an explosive device attached to the car of a local security guard went off when he was driving near local government offices. Although the driver did not sustain any injuries, one Croatian bystander was seriously wounded and two Austrian tourists were slightly injured. Unofficial sources told the press that the explosive involved was an M75 hand grenade. Tourism Minister Bajs stated publically and contacts at the Ministry of Interior told post that they had ruled out terrorism as a possible motivation for the explosion. The police were investigating the possibility that the incident may be related to the security guard,s connection to a local political dispute or a personal grudge against him. (D,Amico) ¶3. (SBU) POTENTIAL U.S. INVESTMENT IN TOXIC AGENT TRAINING FACILITY SPARKS CONTROVERSY: Embassy Commercial Office was contacted by Colorado based KnoTox Inc. on July 21 regarding a $15 million joint U.S.-Canadian investment in a live agent training facility on the Dalmatian coast. The facility would reportedly provide chemical, biological, radiological, nuclear and explosive training services to the Croatian Ministry of Defense. The company planned to hold a press conference July 23 to announce an agreement with the MOD and requested Embassy participation, which we declined. The company then sent out a press release claiming strong support of the U.S. and Croatian governments for the project, and announced that the Canadian Ambassador and U.S. Defense Attache would attend. The release immediately generated highly sensationalized, negative press articles accusing the MOD of planning a project with high potential risk to public safety. For its part, the MOD claims they never made any agreement with the U.S. company. KnoTox has since cancelled the press conference as well as other press interviews they had scheduled. The Embassy has reinforced to the press that we have no connection to this company or its project. (DWestfall) ¶4. (U) AMCHAM DONATES TO USG DEMINING PROJECT: In a donation ceremony on July 16, the American Chamber of Commerce donated $27,000 raised at the December 2008 Night of 1,000 Dinners in Zagreb. The funds will be used to supplement USG donations for demining fields in the village of Slana near the city of Petrinja. The agricultural fields have known minefield records and, apart from one small gravel road, completely surround the village church and cemetery. Local media covered the donation ceremony and also interviewed the owners of the fields which have been unusable for more than 15 years. (CZimmer) ¶5. (U) US MILITARY REFURBISHES KNIN HOSPITAL: The US European Command humanitarian project designed to improve the functioning and working-conditions of the only hospital in the mixed Croat-Serb area of Knin is in full swing. More than a dozen US Airmen are in the midst of a $130,000 project that will provide fresh paint throughout the hospital, rework the building,s ventilation system, upgrade the heating system, refurbish the sanitary facilities in the children's wing. In addition to demonstrating to the local community the direct benefits of US-Croatian military cooperation, the project is giving US Air Force engineers the opportunity to build relationships with their Croatian military engineer counterparts at a nearby Croatian military base. This project received strong support from local officials, including the mayor, and received positive coverage in local media. Overall, the US European Command will provide around $800,000 in humanitarian assistance to Croatia in 2009. (DMEGES) WALKER