Zagreb Daily Report - December 08, 2009

UNCLAS ZAGREB 000716 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PGOV PREL HR ECON SUBJECT: Zagreb Daily Report - December 08, 2009 ¶1. (U) Dutch Foreign Minister reserved over Croatia's chances to open Judiciary Chapter in EU negotiations: Dutch Foreign Minister Maxime Verhagen, referring to ICTY Chief Prosecutor Brammertz's report on cooperation with Croatia, commented in Brussels on December 7 that he did not see how the EU could soon open the negotiations on the judiciary chapter with Croatia. Verhagen spoke after the EU General Affairs Council meeting, which also approved the financial package for Croatia once it becomes an EU member (see next item). Draft Conclusions for the GAERC, which continues today, reportedly include a statement that the ICTY Prosecutor "still could not report on substantial progress in the issue of finding the missing documents." ¶2. (U) EU Adopts Financial Package For Croatia: The European Union General Affairs and External Relations Council adopted on December 7 a draft financial package of 3.56 billion Euros in funding for Croatia during the first two years of its EU membership. Croatia will have to prepare project proposals with EU approval and provide 15% of financing on these projects to be eligible to utilize these funds. ¶3. (U) Press reports USKOK investigation of INA privatization: Croatian media on December 7 reported that the Prosecutor's Office for the Suppression of Corruption and Organized Crime (USKOK) has opened an investigation into alleged irregularities in the sale of Croatia's state-owned oil company INA to Hungary's MOL last year. In an interview on Dec. 7, President Mesic said that USKOK should question former Prime Minister Sanader and former Economy Minister Polancec in the case. FOLEY