Serbia: Ambassador's Introductory Call on Minister Dulic

UNCLAS SECTION 01 OF 02 BELGRADE 000266

SENSITIVE
SIPDIS
DEPT FOR EUR/OHI - JOHN BECKER AND EUR/SCE
AID FOR E&E/ECA

E.O. 12958: N/A
TAGS: ECON EINV KIDE SENV PGOV SR
SUBJECT: Serbia: Ambassador's Introductory Call on Minister Dulic
(Environment and Zoning)

Summary

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1. (SBU) In her February 9 introductory call on Minister of
Environment and Zoning Dulic, the Ambassador thanked him for his
assistance leading to the NEC groundbreaking. Dulic pledged his
ongoing support as construction proceeds and requested technical
assistance on a variety of environmental issues including hazardous
waste, green construction, and climate change. He spoke at length
on land use and land reform issues, and stated the long-promised
restitution law would provide for monetary compensation, and not
in-kind return of property. On political issues, Dulic discussed
improving Serbian-Croatian relations and developments in Vojvodina.
End Summary.



"Green" NEC and Environmental Matters

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2 . (SBU) The Ambassador opened the meeting by thanking Dulic for
his assistance securing permits needed for the February 10 NEC
groundbreaking. Dulic confirmed he would speak at the ground
breaking event and pledged ongoing support as the project
proceeded. Dulic, a Copenhagen conference attendee and UNGA
speaker on climate change, was enthusiastic that the NEC would be
the first LEED (Leadership in Energy and Environmental Design)
compliant, "green" building in the region. (Note: Dulic's remarks
at the February 10 groundbreaking underscored the environmental
aspects of the project, the importance of U.S. investment in
Serbia, and his hope that the new building would be a symbol of the
continuing strengthening of relations between the two countries.
End Note.)




3. (SBU) Turning to environmental issues, Dulic asked for
technical assistance, exchanges, university programs and other
assistance concerning climate change, hazardous waste, recycling,
and other environmental initiatives. He requested a designated
point of contact, noting Serbia's need for EU compliant
regulations, and stressing his strong personal interest in
environmental programs. The Ambassador noted our excitement about
the green aspects of the NEC and post's commitment to continued
leadership in this area. Post is following up with a working level
meeting to discuss further environmental cooperation, including the
many U.S. based experts who will come to work on the NEC.



Land Use Reform and a Restitution Law ......Still Waiting

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4. (SBU) The Ambassador asked about the Planning and Construction
Law passed in 2009, which brought a rueful smile and Dulic's
acknowledgment that "implementation is always difficult in Serbia."
The Planning and Construction Law provided that 50 percent of money
collected to convert land usage rights into ownership rights would
be allocated to a Restitution Fund. However, neither a restitution
law nor the necessary implementing regulations have been enacted.
Dulic acknowledged that the concept of additional rights payments
and restitution generally were "very painful" issues politicians
had been unwilling to tackle. He said it was "very important to
finish this issue in the first half of 2010," and promised a model
would be announced within the next couple of months. Dulic stated
restitution would take the form of financial compensation, not
restitution-in-kind, and would likely be payable over 20 or 30
years. When asked why restitution in kind would not be included,
he stressed the complexity of the situation, noting compensation
was the only model that could attract political consensus.




5. (SBU) The Ambassador and DCM noted concerns that restitution
proceeds might simply disappear (as had privatization funds) and
reiterated offers to provide USAID or other assistance implementing
a trust. Dulic acknowledged that citizens had expressed concerns

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about Serbian politicians controlling these funds and requested
additional information regarding trusts.



Church Property Law to be Overturned?

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6. (SBU) Dulic noted he expected the Constitutional Court to
overturn a law that had returned church properties. He added that
he did not expect the church would be required to return those
properties, observing "the situation is a mess."



Croatia and Vojvodina

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7. (SBU) Dulic spoke favorably regarding the prospects for
improved Serbian-Croatian relations, pointing to a growing popular
trend in both countries in favor of improved relationships, growing
cultural ties and increasing economic cooperation. With respect to
Vojvodina, he noted Vojvodina was a "special historical case", but
believed the recent statute was a good example of how other parts
of Serbia could be decentralized.



Comment

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8. (SBU) Dulic, a young and energetic DS member, plays a key role
within the DS coalition as a liaison with Croatia and with
minorities in Vojvodina, and is an important U.S. interlocutor. He
has been a strong supporter of the New Embassy project and
personally appointed his senior assistant to ensure the Embassy's
requests for various permits would not be mired in lower level
bureaucracy. His enthusiasm for environmental matters is genuine
and his openness to discussing the internal debate regarding
resolution of restitution and other land use issues is welcome.
Embassy will follow up with his requests for assistance and
engagement on environmental issues. End Comment.
WARLICK