MEETING WITH PRIME MINISTER KOSOR

C O N F I D E N T I A L SECTION 01 OF 02 ZAGREB 000581

SIPDIS

E.O. 12958: DECL: 09/18/2019
TAGS: PREL PGOV HR SI ICTY ICJ
SUBJECT: MEETING WITH PRIME MINISTER KOSOR

REF: STATE 96943

Classified By: James B. Foley, Ambassador for reasons 1.4 (b) & (d).

SUMMARY


1. (C) Summary: During a September 18 introductory courtesy
call, Prime Minister Jadranka Kosor welcomed Ambassador Foley
to Croatia, noting that bilateral relations were excellent
and expressing thanks for U.S. support on Croatia's NATO
accession and recent negotiations with Slovenia over a
long-standing border dispute that led to a hold on Croatia's
EU accession. Ambassador congratulated Kosor on Croatia's
NATO membership and praised the "quiet diplomacy" that led to
the successful outcome of the Slovenia/Croatia negotiations.
Foley also addressed the need to strengthen business and
economic ties with the U.S., noting that existing obstacles
to investment must be overcome to assure economic growth. In
addition, the Ambassador urged Kosor and her government to
continue to satisfy ICTY Chief Prosecutor Brammertz that
Croatia has done everything it can to locate key documents
for use in ongoing war crimes trials in the Hague. Kosor
also raised her government's desire to move forward on
membership in the Visa Waiver Program, requested US support
in improving economic cooperation between the two countries,
and noted that she hoped Secretary Clinton would accept her
invitation to visit Croatia. End Summary.


2. (C) Prime Minister Kosor welcomed Ambassador Foley to
Croatia, noting that bilateral relations are excellent and
expressing thanks for US support during Croatia's NATO
accession process, mentioning Foley's confirmation hearing
testimony in particular. She also thanked the Ambassador for
the USG's support during the negotiation process between
Slovenia and Croatia over a long-standing border dispute that
led to a hold on Croatia's EU accession. Ambassador Foley,
in turn, congratulated Kosor on Croatia's NATO membership,
noting that the US is pleased to be Croatia's security
partner. Praising the "quiet diplomacy" that led to the
successful outcome of the Slovenia/Croatia negotiations,
Ambassador Foley gave Kosor Secretary Clinton's
congratulatory letter (REFTEL) to both Kosor and Slovene PM
Pahor for their success (NOTE: Kosor's office released the
text of the letter to the press immediately after the
meeting. END NOTE.) Foley emphasized, however, that the hard
work has just begun, and both sides will have to compromise.
Croatia needs to be ready to accept some reference in the
Agreement to Slovenia's contact or junction with
international waters as a possible outcome, as long as this
language does not pre-judge the outcome. Kosor responded by
saying that now that NATO membership has been achieved, EU
accession is Croatia's number one priority. She added that
Croatia's EU membership would also send a very positive
signal to the rest of the region, which is important for
Croatia, the region and the EU.


3. (C) Referring to the current economic crisis in Croatia,
Kosor asked for US help in increasing economic cooperation
between the two countries. Foley said that deepening and
strengthening business and economic ties between the two
countries will be one of the primary objectives of his
mandate, and he will actively seek opportunities to do so.
However, he noted that there are numerous "structural
impediments" to doing business in Croatia--specifically, the
lack of transparency in business practices and administrative
and judicial inefficiencies. These obstacles must be
addressed in order to assure Croatia's economic growth.


4. (C) In addition to economic reforms, Foley continued,
Croatia must engage in serious judicial reform on the road to
EU membership. In that regard, Foley urged Kosor and her
government to do their utmost to satisfy ICTY Chief
Prosecutor Brammertz that Croatia has exhausted every
possibility in the effort to locate key documents for use in
ongoing war crimes trials in the Hague. Kosor replied that
they have done everything that they could to meet Brammertz's
requirements, noting that three people are now on trial for
their involvement in the disappearance of these documents.
Moreover, she noted, it would be "silly" for Croatia to hide
documents knowing full well that EU accession depended on
Croatia's credibility in this regard. It was "in Croatia's
best interest" to find them, she said.


5. (C) Kosor reiterated Croatia's desire for membership in
the Visa Waiver Program, noting that her government has
already put a lot of time, energy and money into the effort
to make Croatia eligible. Foley responded by noting that
every VWP MOU and agreement that has been negotiated between
the USG and Croatia to date on the exchange of terrorist,
criminal and lost and stolen passport information keeps both
countries safe and secure, protects our mutual interests and
builds confidence, so in that sense a great deal has already
been accomplished. Adding that that the determining factor

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will be whether the current visa refusal rate drops below the
required 3% rate, Foley promised that the Embassy will
continue to work with the government to complete all of the
technical requirements.
FOLEY