CGYOOL -- ZAGREB UPDATE: OCT 29, 1992

UNCLAS SECTION 01 OF 04 ZAGREB 02203 SIPDIS USVIENNA FOR USDEL CSCE E.O. 12356: N/A TAGS: PGOV PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR BK SUBJECT: CGYOOL -- ZAGREB UPDATE: OCT 29, 1992 -------------- SUMMARY -------------- ¶1. CROATIAN BUDGET DEFICIT HITS 400 BILLION DINARS (ALMOST USD 890 MILLION). PRESIDENT TUDJMAN TELLS ISLANDERS THAT RECONSTRUCTION IS NUMBER ONE GOAL. SERBS DESTROY BOSANSKI BROD CATHOLIC CHURCH. ZUPANJA HIT BY 12 SERBIAN SHELLS. B-10,000 CROATIAN ARMY SOLDIERS TO BE UNCLASSIFIED UNCLASSIFIED PAGE 03 ZAGREB 02203 01 OF 04 291627Z RELEASED FROM SERVICE, BUT WITHOUT JOBS. EX-JNA PILOT ACCUSED OF WAR CRIMES. VECERNJI LIST TO BE PRIVATIZED. UNEMPLOYMENT HITS 262,000. COCA COLA SETS UP A BUSINESS PRESENCE. END SUMMARY. -------------- GRANIC -- DEFICIT NOW SOME 400 BILLION DINARS -------------- ¶2. DEPUTY PRIME MINISTER MATE GRANIC TOLD A ZAGREB PRESS CONFERENCE OCTOBER 28 THAT CROATIA HAS A BUDGET DEFICIT OF 400 BILLION DINARS (ABOUT USD 890 MILLION),FROM ITS CURRENT ACCOUNTS OF WHICH 274 BILLION DINARS ARE FROM REGULAR ACCOUNTS AND 100 BILLION PLUS FROM LOSSES AT STATE-OWNED COMPANIES. -------------- -------------- TUDJMAN TELLS ISLANDERS RECONSTRUCTION IS TOP GOAL -------------- -------------- ¶3. ON HIS OCTOBER 27 VISIT TO THE DALMATIAN ISLANDS OF HVAR, VIS, AND LASTOVO, PRESIDENT TUDJMAN SAID RECONSTRUCTION IS CROATIA'S MOST IMPORTANT TASK SINCE ONE QUARTER OF CROATIA HAS BEEN DESTROYED. -- TUDJMAN SAID CROATIA HAD ACCEPTED UNPROFOR IN ORDER TO END THE WAR AND THEREBY LIMIT SUFFERING AND CASUALTIES. UN FORCES WILL MEET THEIR OBLIGATIONS, BUT IF THEY FAIL, CROATIA WILL ITSELF ESTABLISH ITS AUTHORITY ON ITS OCCUPIED UNCLASSIFIED UNCLASSIFIED PAGE 04 ZAGREB 02203 01 OF 04 291627Z TERRITORY. DISPLACED PERSONS WILL RETURN TO THEIR HOMES AND NOBODY WILL HAVE TO EMIGRATE FROM CROATIA. -- ON THE ECONOMY, HE STRESSED THAT CROATS WILL UNCLASSIFIED NNNN UNCLASSIFIED PAGE 01 ZAGREB 02203 02 OF 04 291629Z ACTION EUR-01 INFO LOG-00 AID-01 AMAD-01 CA-02 CIAE-00 PFIP-01 C-01 DODE-00 CISA-02 DS-00 EB-01 HA-09 H-01 INRE-00 INR-01 IO-19 LAB-04 L-03 ADS-00 MFLO-03 M-01 NSAE-00 OCS-06 OIC-02 OMB-01 PA-02 PC-05 PM-02 PRS-01 P-01 RP-10 SCT-03 SDEL-00 SIL-00 SNP-00 SP-00 SR-00 SSO-00 SS-00 STR-17 TRSE-00 T-01 ASDS-01 /103W -------------- 741ACC 291629Z /38 O 291628Z OCT 92 FM AMEMBASSY ZAGREB TO SECSTATE WASHDC IMMEDIATE 2526 INFO AMEMBASSY BELGRADE USIA WASHDC 2307 USDOC WASHDC AMEMBASSY ANKARA AMEMBASSY ATHENS AMEMBASSY BONN AMEMBASSY BRUSSELS AMEMBASSY BUDAPEST AMEMBASSY LONDON AMEMBASSY MADRID AMEMBASSY MOSCOW AMEMBASSY PARIS AMEMBASSY ROME AMEMBASSY VIENNA USMISSION USNATO USMISSION USUN NEW YORK UNCLASSIFIED UNCLASSIFIED PAGE 02 ZAGREB 02203 02 OF 04 291629Z USEC BRUSSELS WHITE HOUSE WASHDC 1024 USMISSION GENEVA USMISSION USVIENNA COMSIXTHFLT//N2// CINCUSNAVEUR LONDON UK//N2/N22// USEUCOM VAIHINGEN GM//ECJ3/ECJ5// CTF SIXZERO//N2// CTF SIXONE//N2// CTF SIXTWO//N2// CTF SIXSEVEN//JJOCC// FOSIF ROTA SP UNCLAS SECTION 02 OF 04 ZAGREB 02203 SIPDIS USVIENNA FOR USDEL CSCE E.O. 12356: N/A TAGS: PGOV PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR BK SUBJECT: CGYOOL -- ZAGREB UPDATE: OCT 29, 1992 HAVE TO SURVIVE THIS "WINTER" OF SOCIAL PROBLEMS. HE COMMENTED THAT CROATIA WOULD SOON INTRODUCE ITS OWN HARD CURRENCY, THE CROWN, "WHICH WILL BE AS VALUABLE AS THE GERMAN MARK AND AMERICAN DOLLAR." -------------- NEW ATTACKS ON ZUPANJA -------------- ¶4. ON OCTOBER 28, SERBIAN FORCES FIRED TWELVE UNCLASSIFIED UNCLASSIFIED PAGE 03 ZAGREB 02203 02 OF 04 291629Z ROUNDS ACROSS THE SAVA RIVER INTO ZUPANJA AND SURROUNDING VILLAGES. ONE PERSON WAS INJURED AND CONSIDERABLE DAMAGE WAS DONE TO HOMES. ¶5. THE CROATIAN ARMY COMMAND IN KARLOVAC ANNOUNCED THAT SERBIAN FORCES FIRED AT CROATIAN POSITIONS NEAR CEROVAC AND KAMENSKO (SECTOR NORTH). THE SAME DAY, SERBIAN FORCES ALSO FIRED AT CROATIAN ARMY POSITIONS NEAR ZADAR (PINK ZONE IN SECTOR SOUTH). THE ATTACKERS ALSO BURNED DOWN CROATIAN HOUSES IN THE AREA OF ISLAM LATINSKI NEAR ZADAR. ENEMY FORCES OPENED FIRE AT CROATIAN ARMY POSITIONS IN ORNICE NEAR GOSPIC. THERE WERE NO CASUALTIES. IN SECTOR EAST, SERBIAN FORCES IN OCCUPIED SARVAS ATTACKED CROATIAN ARMY POSITIONS NEAR NEMETIN. -------------- -------------- 8-10,000 HV SOLDIERS TO BE DE-MOBILIZED IN OSIJEK -------------- -------------- ¶6. THE ZAGREB PRESS REPORTED THAT THE GOVERNMENT PLANS TO DEMOBILIZE 8-10,000 CROATIAN SOLDIERS IN THE OSIJEK DISTRICT. AN UNFORTUNATE BY-PRODUCT OF THIS STEP WILL BE UNEMPLOYMENT. THE MAJORITY OF THOSE TO BE DEMOBILIZED ARE DISPLACED PERSONS FROM OCCUPIED BARANJA AND EASTERN SLAVONIA. THEY CANNOT RETURN HOME, AND WITHOUT A JOB THEY CANNOT SUPPORT THEIR FAMILIES. -------------- UNCLASSIFIED UNCLASSIFIED PAGE 04 ZAGREB 02203 02 OF 04 291629Z EX-JNA PILOT ACCUSED OF WAR CRIMES -------------- ¶7. THE DISTRICT PROSECUTOR'S OFFICE IN RIJEKA BROUGHT CHARGES AGAINST A FORMER YUGOSLAV ARMY UNCLASSIFIED NNNN UNCLASSIFIED PAGE 01 ZAGREB 02203 03 OF 04 291631Z ACTION EUR-01 INFO LOG-00 AID-01 AMAD-01 CA-02 CIAE-00 PFIP-01 C-01 DODE-00 CISA-02 DS-00 EB-01 HA-09 H-01 INRE-00 INR-01 IO-19 LAB-04 L-03 ADS-00 MFLO-03 M-01 NSAE-00 OCS-06 OIC-02 OMB-01 PA-02 PC-05 PM-02 PRS-01 P-01 RP-10 SCT-03 SDEL-00 SIL-00 SNP-00 SP-00 SR-00 SSO-00 SS-00 STR-17 TRSE-00 T-01 ASDS-01 /103W -------------- 741B13 291631Z /38 O 291628Z OCT 92 FM AMEMBASSY ZAGREB TO SECSTATE WASHDC IMMEDIATE 2527 INFO AMEMBASSY BELGRADE USIA WASHDC 2308 USDOC WASHDC AMEMBASSY ANKARA AMEMBASSY ATHENS AMEMBASSY BONN AMEMBASSY BRUSSELS AMEMBASSY BUDAPEST AMEMBASSY LONDON AMEMBASSY MADRID AMEMBASSY MOSCOW AMEMBASSY PARIS AMEMBASSY ROME AMEMBASSY VIENNA USMISSION USNATO USMISSION USUN NEW YORK UNCLASSIFIED UNCLASSIFIED PAGE 02 ZAGREB 02203 03 OF 04 291631Z USEC BRUSSELS WHITE HOUSE WASHDC 1025 USMISSION GENEVA USMISSION USVIENNA COMSIXTHFLT//N2// CINCUSNAVEUR LONDON UK//N2/N22// USEUCOM VAIHINGEN GM//ECJ3/ECJ5// CTF SIXZERO//N2// CTF SIXONE//N2// CTF SIXTWO//N2// CTF SIXSEVEN//JJOCC// FOSIF ROTA SP UNCLAS SECTION 03 OF 04 ZAGREB 02203 SIPDIS USVIENNA FOR USDEL CSCE E.O. 12356: N/A TAGS: PGOV PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR BK SUBJECT: CGYOOL -- ZAGREB UPDATE: OCT 29, 1992 PILOT, A CROAT FROM THE ISLAND OF KORCULA. HE IS ACCUSED OF LEADING A BOMBING ATTACK BY SIX JNA MIGS AGAINST THE VILLAGE OF KRASNO IN THE SENJ DISTRICT SEPTEMBER 20, 1991, WHICH KILLED TWO AND INJURED NINE CIVILIANS. -------------- SERBS BLAST CHURCH IN BOSANSKI BROD -------------- UNCLASSIFIED UNCLASSIFIED PAGE 03 ZAGREB 02203 03 OF 04 291631Z ¶8. THE CATHOLIC CHURCH OF ST. ELIAS IN BOSANSKI BROD WAS DESTROYED OCTOBER 26 BY SERBIAN IRREGULARS, ACCORDING TO THE ZAGREB PRESS, -------------- VECERNJI LIST EN ROUTE TO PRIVATIZATION -------------- ¶9. THE FIRST STAGE IN THE PRIVATIZATION OF THE ZAGREB DAQLY VECERNJI LIST -- A RESTRICTED STOCK AUCTION -- TOOK PLACE OCTOBER 28. EMPLOYEES AND RETIRED FORMER EMPLOYEES OF VECERNJI LIST WERE GIVEN THE FIRST CHANCE TO BUY SHARES IN THE COMPANY AND THEY PURCHASED SOME 13 PERCENT OF THE OFFERING. - -------------- UNEMPLOYMENT HITS 262,000 -------------- ¶10. BY THE END OF SEPTEMBER, THE CROATIAN EMPLOYMENT OFFICE HAD 262,143 REGISTERED UNEMPLOYED. IN ADDITION, THE GOVERNMENT HELPS 47,000 WITH SOCIAL ASSISTANCE PAYMENTS AND PAYS OUT 767,149 RETIREMENT PENSIONS. -------------- LOCAL COCA COLA HITS THE MARKET -------------- ¶11. COCA COLA ANNOUNCED OCTOBER 27 THAT IT HAD UNCLASSIFIED UNCLASSIFIED PAGE 04 ZAGREB 02203 03 OF 04 291631Z INVESTED USD 5.3 MILLION FOR A 39 PERCENT STAKE IN THE LOCAL ZAGREB BOTTLING AND DISTRIBUTION FRANCHISE. AFTER TWENTY FIVE YEARS OF SECONDARY SALES EFFORTS, "COCA COLA BOTTLERS ZAGREB" HAS BEEN ESTABLISHED AS A STOCK COMPANY IN WHICH "THE UNCLASSIFIED NNNN UNCLASSIFIED PAGE 01 ZAGREB 02203 04 OF 04 291631Z ACTION EUR-01 INFO LOG-00 AID-01 AMAD-01 CA-02 CIAE-00 PFIP-01 C-01 DODE-00 CISA-02 DS-00 EB-01 HA-09 H-01 INRE-00 INR-01 IO-19 LAB-04 L-03 ADS-00 MFLO-03 M-01 NSAE-00 OCS-06 OIC-02 OMB-01 PA-02 PC-05 PM-02 PRS-01 P-01 RP-10 SCT-03 SDEL-00 SIL-00 SNP-00 SP-00 SR-00 SSO-00 SS-00 STR-17 TRSE-00 T-01 ASDS-01 /103W -------------- 741B25 291631Z /38 O 291628Z OCT 92 FM AMEMBASSY ZAGREB TO SECSTATE WASHDC IMMEDIATE 2528 INFO AMEMBASSY BELGRADE USIA WASHDC 2309 USDOC WASHDC AMEMBASSY ANKARA AMEMBASSY ATHENS AMEMBASSY BONN AMEMBASSY BRUSSELS AMEMBASSY BUDAPEST AMEMBASSY LONDON AMEMBASSY MADRID AMEMBASSY MOSCOW AMEMBASSY PARIS AMEMBASSY ROME AMEMBASSY VIENNA USMISSION USNATO USMISSION USUN NEW YORK UNCLASSIFIED UNCLASSIFIED PAGE 02 ZAGREB 02203 04 OF 04 291631Z USEC BRUSSELS WHITE HOUSE WASHDC 1026 USMISSION GENEVA USMISSION USVIENNA COMSIXTHFLT//N2// CINCUSNAVEUR LONDON UK//N2/N22// USEUCOM VAIHINGEN GM//ECJ3/ECJ5// CTF SIXZERO//N2// CTF SIXONE//N2// CTF SIXTWO//N2// CTF SIXSEVEN//JJOCC// FOSIF ROTA SP UNCLAS SECTION 04 OF 04 ZAGREB 02203 SIPDIS USVIENNA FOR USDEL CSCE E.O. 12356: N/A TAGS: PGOV PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR PREL PHUM MOPS PREF HR BK SUBJECT: CGYOOL -- ZAGREB UPDATE: OCT 29, 1992 COCA COLA EXPORT CORPORATION" WILL PLAY A LEADING ROLE. NEITZKE UNCLASSIFIED NNNN