ZAGREB DAILY REPORT - DECEMBER 2, 2009

UNCLAS ZAGREB 000703 SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON ENRG AF HR SUBJECT: ZAGREB DAILY REPORT - DECEMBER 2, 2009 ¶1. (SBU) Initial Croatian Media Coverage of President,s Policy on Afghanistan: Major dailies gave significant coverage to President Obama,s speech, although primarily based on reports from senior officials, pre-briefs, given the time difference. All media note that the Croatian government remains committed to its current deployment of 300 troops. Several articles note that the GoC is considering a potential increase of 5 percent, to 315 troops. (NOTE: High-level government sources have confirmed to us Croatia,s intent to implement that increase, but that no final decision will be made until after the end of the current presidential election campaign. Prime Minister Kosor has just issued a statement confirming full GoC support for President Obama,s policy; post will report on this separately.) ¶2. (U) Ruling Coalition to meet over Fate of Transport Minister Kalmeta: Prime Minister Jadranka Kosor called a meeting of coalition partners for December 2 to discuss the future of Bozidar Kalmeta, the Minister of Sea, Transport and Infrastructure over the continuing corruption scandal at Croatian Highways. Following that meeting, Kosor,s government must address a formal demand for Kalmeta,s resignation by December 4 which the primary opposition, Social Democratic Party (SDP),has forwarded to the Parliament. ¶3. (SBU) Croatia Deliberating on South Stream: The Ministry of Economy released a statement to Reuters early this week announcing Croatia,s interest in joining the Russian South Stream gas pipeline, and stating they are in intense discussions with the Russian side. Prime Minister Kosor will reportedly visit Moscow in January, although no plans or dates have been finalized. Privately, an INA oil company executive, who is also advising the Prime Minister informally on energy issues, told us that there is confusion within the government on all the gas supply projects under consideration, including South Stream and a planned LNG terminal on the Adriatic coast. He also said, though, that given forecasted gas needs, Croatia is not in a position to reject outright any potential new sources. ¶4. (U) Embassy Donates Narcotics Field Test Kits: On Monday, November 30, the Embassy donated 80 narcotics test kits to the Croatian Customs Service. The donation, valued at $21,000 was funded by EUCOM,s Counternarcotics and Terrorism office. The kits will be used by customs officers at major border crossings to immediately identify suspected substances. Croatia is a transit point along the "Balkan Route" for drugs moving between Asia and Europe. FOLEY