CROATIAN PM'S FOREIGN POLICY ADVISOR ON

C O N F I D E N T I A L ZAGREB 000480 SIPDIS E.O. 12958: DECL: 08/01/2018 TAGS: PREL PGOV SI HR SUBJECT: CROATIAN PM'S FOREIGN POLICY ADVISOR ON KOSOR/PAHOR MEETING: "AN IMPORTANT STEP FORWARD" REF: A. LJUBLJANA 231 ¶B. JONES-FREDEN-WALKER 7/31 EMAILS Classified By: Vivian S. Walker, Charge d'Affairs, ad. interim, for rea sons 1.4 (b) & (d) ¶1. (C) Summary: Kosor's Foreign Policy Advisor, Davor Stier, described the 7/31 Trakoscan meeting between PMs Kosor and Pahor as "an important step forward" in the resolution of the bilateral border dispute between Croatia and Slovenia that has blocked Croatia's EU accession process. Stier said that both sides had agreed to a "framework for an agreement" that will consist of two parts: a letter from the Croatian government to Bildt confirming that no Croatian acts taken after June 25, 1991, including any documents submitted in the EU accession process, were prejudicial to the border determination. This letter would be followed by a "return to the Rehn negotiations." Stier argued that this framework agreement will work to the benefit of both parties: the resolution of the border dispute and the resumption of Croatia's EU accession process. Stier concluded by asking that Washington consider making a public statement of some kind that acknowledges the efforts made on both sides to find a way forward. End Summary. ¶2. (C) In a 8/3 meeting with the CDA, PM Foreign Policy Advisor Davor Stier described the 7/31 meeting between PMs Kosor and Pahor in Trakoscan in Northern Croatia as an "important step forward" in the resolution of the bilateral border dispute between Slovenia and Croatia. Stier characterized the atmosphere of the meeting as "warm and friendly," with obvious good will on both sides. Stier said that the two PM's, who spent most of the meeting in a one-on-one discussion, arrived at two part "framework for agreement" consisting of a letter from the Croatian government to Bildt confirming that no Croatian acts taken after June 25, 1991, including any documents submitted in the EU accession process, were prejudicial to the border determination. This letter would be followed by a "return to the Rehn negotiations." ¶3. (C) When pressed for more information, Stier claimed that both parties had agreed not to divulge the details of this agreement, arguing that discretion on both sides would be likelier to assure a successful outcome. However, in the course of the conversation, Stier noted that while the Croatian government will draft and sign the Bildt letter, the text will be open to negotiation with the Slovenian side. This letter, which the Croatians expect to send in early September, will, according to Stier, serve as an "enabler" for the negotiation process, allowing both sides to assure their respective publics of the preservation of their sovereign interests. ¶4. (C) As for the second phase of the framework agreement, Stier did not rule out a return to the June 12 Rehn proposal as a basis of discussion but that Croatia would want to negotiate including elements of the April and June proposals. He said that the Croatians view the Rehn process as a mechanism rather than an end in itself. When asked about the possibility of describing the way forward as an "EU led" rather than an "EU assisted" process, Stier said that while the Croatian government would prefer the latter formulation (i.e. EU assisted) there may be room for discussion there as well. Croatia's understanding was once these two parts of the framework were realized, Slovenia would cease blocking Croatia's EU negotiation chapters. ¶5. (C) The CDA conveyed Washington's appreciation for the important step of the July 31 meeting and renewed our support for the efforts on both sides to find a way forward. Stier said that he would convey this message immediately to Kosor, and asked whether it would be possible for Washington to make a public statement of some kind that praises both parties for working together to find a solution. Stier said that this would send a positive signal not only to the Croatian and Slovenian publics but to the EU as a whole. ¶6. (C) Comment: Stier appeared to be genuinely pleased by the outcome of the Trakoscan meeting, even noting in passing that Pahor had been surprisingly forthcoming and willing to find a way out of the current impasse. If Stier's comments are any indication, both sides seem to have taken to heart the principle that bilateral disputes require stronger engagement from both capitals to find a way forward. Stier said he anticipated that work on the text of the Bildt letter would begin in mid to late August, and promised to be in touch with an update then. End Comment. WALKER