Cablegate: Zagreb Update: March 30, 1992

This record is a partial extract of the original cable. The full text of the original cable is not available.

301440Z Mar 92

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AMEMBASSY ROME
AMEMBASSY THE HAGUE
AMEMBASSY VIENNA
USMISSION USNATO 1587
USMISSION USUN NEW YORK 0806
WHITE HOUSE WASHDC 0274

UNCLAS SECTION 01 OF 03 ZAGREB 00467

SIPDIS

BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM

E.O. 12356: N/A
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT: ZAGREB UPDATE: MARCH 30, 1992

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SUMMARY

1. AS OF THIS WRITING, THERE HAS BEEN NO OFFICIAL
REACTION FROM THE CROATIAN GOVERNMENT TO THE
ALLEGED MASSACRE IN SIJEKOVAC. CROATIAN
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AUTHORITIES IN SLAVONSKI BROD CLAIM THAT THEY WILL
HAVE MORE INFORMATION MARCH 31. THE ASSEMBLY
SESSION WHICH CONTINUED OVER THE WEEKEND HEARD
PRIME MINISTER GREGURIC AND VICE MINISTER PAVELIC
ASSESS WAR DAMAGE AND THE ECONOMIC SITUATION.
GREGURIC ESTIMATED USD 21 BILLION IN LOSSES DUE TO
THE WAR WHILE PAVELIC TRIED TO PUT THE BEST FACE
ON A BRUTALIZED ECONOMY. MEANWHILE, THE ASSEMBLY
WENT ON RECORD SUPPORTING BOSNIAN SOVEREIGNTY AND
ASKED THE GOVERNMENT TO RECOGNIZE BOSNIAN
INDEPENDENCE AS THE BEST WAY TO IMPROVE THE
SITUATION THERE. END SUMMARY.

"MASSACRE" NEAR BOSANSKI BROD

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2. THE ALLEGED MARCH 27 MASSACRE IN THE VILLAGE
OF SIJEKOVAC (NEAR BOSANSKI BROD) HAS SO FAR
BROUGHT ONLY CONFUSED MEDIA REPORTS IN CROATIA
FROM BOSNIAN MEDIA OUTLETS. AS OF THIS WRITING
THERE HAS BEEN NO OFFICIAL CROATIAN GOVERNMENT
REACTION TO THE INCIDENT. THE CROATIAN CRISIS
HEADQUARTERS IN SLAVONSKI BROD TOLD US TODAY
(MARCH 30) THAT IT IS INVOLVED IN AN INVESTIGATION
OF THE FIGHTING IN SIJEKOVAC AND WOULD HAVE MORE
INFORMATION MARCH 31. WE WILL TRY TO FOLLOW UP
WITH THEM.

PRIME MINSTER'S REPORT TO THE CROATIAN ASSEMBLY

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3. ON MARCH 27, CROATIAN PRIME MINISTER FRANJO
GREGURIC ADDRESSED REPRESENTATIVES OF THE CROATIAN
ASSEMBLY. SURVEYING THE DAMAGE TO CROATIA BY THE
WAR, GREGURIC SAID APPROXIMATELY 5,000 PERSONS HAD
BEEN KILLED, 6,000 WERE MISSING, 3,100 WERE
IMPRISONED IN SERBIA AND B-H, AND 20,000 HAD BEEN
INJURED. ACCORDING TO THE PRIME MINISTER, 37
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PERCENT OF THE REPUBLIC'S ECONOMIC POTENTIAL HAS
BEEN DAMAGED. TWO TOURIST SEASONS HAD BEEN LOST
AND THIS YEAR, THE TOURIST SEASON REMAINS
UNCERTAIN AT BEST. NEARLY ONE FOURTH OF CROATIA'S
AGRICULTURAL LAND IS OUTSIDE THE CONTROL OF THE
CROATIAN GOVERNMENT. LIVESTOCK AND AGRICULTURAL
ENTERPRISES SUFFERED CONSIDERABLE DAMAGE; 37,500
ACRES OF FOREST WERE BURNED DOWN IN DALMATIA AND

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ACTION EUR-01

INFO LOG-00 AID-01 AMAD-01 CIAE-00 CTME-00 C-01 DODE-00
ITCE-00 CISA-02 DS-00 EB-01 EXME-00 EXIM-06 E-01
FRB-01 HA-09 H-01 INRE-00 INR-01 IO-19 ITC-01
JUSE-00 LAB-04 L-03 ADS-00 NSAE-00 OIC-02 OMB-01
OPIC-08 PA-02 PM-01 PRS-01 P-01 RP-10 SCT-03
SIL-01 SNP-01 SP-01 SR-01 SSO-00 SS-01 STR-20
TRSE-00 T-01 /108W
------------------20D584 301446Z /38
O 301440Z MAR 92
FM AMCONSUL ZAGREB
TO SECSTATE WASHDC IMMEDIATE 0656
INFO AMEMBASSY BELGRADE IMMEDIATE
USIA WASHDC 1350
USDOC WASHDC
AMEMBASSY ANKARA
AMEMBASSY ATHENS
AMEMBASSY BONN
AMEMBASSY BRUSSELS
AMEMBASSY BUDAPEST
AMEMBASSY LISBON
AMEMBASSY LONDON
AMEMBASSY LUXEMBOURG
AMEMBASSY MADRID
AMCONSUL MILAN
AMEMBASSY MOSCOW
AMCONSUL MUNICH
AMEMBASSY PARIS
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AMEMBASSY ROME
AMEMBASSY THE HAGUE
AMEMBASSY VIENNA
USMISSION USNATO 1588
USMISSION USUN NEW YORK 0807
WHITE HOUSE WASHDC 0275

UNCLAS SECTION 02 OF 03 ZAGREB 00467

SIPDIS

BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM

E.O. 12356: N/A
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT: ZAGREB UPDATE: MARCH 30, 1992

38 PERCENT OF THE FOREST AREA IN THE REGION IS
CONTROLLED BY THE JNA. GREGURIC ESTIMATED THAT
TOTAL DAMAGE TO THE CROATIAN ECONOMY FROM THE WAR
AMOUNTS TO 21 BILLION DOLLARS OR 5,000 DOLLARS PER
CAPITA.

VICE-PRESIDENT'S REPORT TO THE ASSEMBLY ON
ECONOMIC ISSUES

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PAGE 03 ZAGREB 00467 02 OF 03 301445Z

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4. VICE-PRESIDENT OF THE GOVERNMENT, JURICA
PAVELIC, ASSERTED THAT THE BASIC MARKET
ORIENTATION OF GOVERNMENT ECONOMIC POLICY HAS
RECEIVED SUPPORT FROM INTERNATIONAL ECONOMIC
ORGANIZATIONS. PAVELIC PRESENTED A RATHER ROSY
PICTURE OF THE CROATIAN ECONOMY USING THE
FOLLOWING INFORMATION. INDUSTRIAL PRODUCTION IN
JANUARY AND FEBRUARY WAS 7.B PERCENT HIGHER THAN
THE AVERAGE THE LAST QUARTER OF 1991 (COMMENT:
THIS IS HARDLY A GREAT ACHIEVEMENT CONSIDERING
THAT THE WAR IN CROATIA WAS AT ITS HEIGHT DURING
THE LAST THREE MONTHS OF 1991. END COMMENT.).
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THROUGH FEBRUARY THIS YEAR, THE EXPORT OF GOODS
FROM CROATIA AMOUNTED TO USD 487.7 MILLION WHILE
IMPORTED MERCHANDISE TOTALLED USD 377.8 MILLION.

5. PAVELIC POINTED OUT THAT SO FAR IN 1992 THE
GOVERNMENT HAD STRICTLY CONFORMED TO ITS MONETARY
PROJECTIONS. HOWEVER, HE WARNED THAT DURING THE
FIRST 10 DAYS IN MARCH, THE CROATIAN NATIONAL BANK
HAD INCREASED THE MONETARY SUPPLY BY 4.7 BILLION
CROATIAN DINARS. RETAIL PRICES WHICH HAD
INCREASED BY 25.3 PERCENT IN NOVEMBER ROSE 15
PERCENT IN FEBRUARY. ON THE OTHER HAND, SALARIES
CONTINUED TO DECREASE. ACCORDING TO PAVELIC, IT
IS OF GREATEST IMPORTANCE FOR CROATIA TO CHANGE
ITS ECONOMIC STRUCTURE, AND TO PRIVATIZE SMALL
ENTERPRISES IN THE FIELD OF TRADE, CATERING AND
TOURISM.

CROATIAN ASSEMBLY ADOPTS 1992 BUDGET

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6. THE CROATIAN ASSEMBLY ADOPTED MARCH 29 A
BUDGET FOR 1992 OF 270 BILLION DINARS (USD 2.5
BILLION). MINISTER OF FINANCE, JOZO MARTINOVIC,
SAID THAT IN 1992 TAXES WILL BE REDUCED. THE
BALANCE OF PAYMENTS AND THE MONETARY POLICY WILL
BE COORDINATED WITH THE ECONOMIC POLICY OF THE
GOVERNMENT.

DECISIONS OF THE CROATIAN ASSEMBLY

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PAGE 06 ZAGREB 00467 02 OF 03 301445Z
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PAGE 01 ZAGREB 00467 03 OF 03 301446Z
ACTION EUR-01

INFO LOG-00 AID-01 AMAD-01 CIAE-00 CTME-00 C-01 DODE-00
ITCE-00 CISA-02 DS-00 EB-01 EXME-00 EXIM-06 E-01
FRB-01 HA-09 H-01 INRE-00 INR-01 IO-19 ITC-01
JUSE-00 LAB-04 L-03 ADS-00 NSAE-00 OIC-02 OMB-01
OPIC-08 PA-02 PM-01 PRS-01 P-01 RP-10 SCT-03
SIL-01 SNP-01 SP-01 SR-01 SSO-00 SS-01 STR-20
TRSE-00 T-01 /108W
------------------20D5A3 301447Z /38
O 301440Z MAR 92
FM AMCONSUL ZAGREB
TO SECSTATE WASHDC IMMEDIATE 0657
INFO AMEMBASSY BELGRADE IMMEDIATE
USIA WASHDC 1351
USDOC WASHDC
AMEMBASSY ANKARA
AMEMBASSY ATHENS
AMEMBASSY BONN
AMEMBASSY BRUSSELS
AMEMBASSY BUDAPEST
AMEMBASSY LISBON
AMEMBASSY LONDON
AMEMBASSY LUXEMBOURG
AMEMBASSY MADRID
AMCONSUL MILAN
AMEMBASSY MOSCOW
AMCONSUL MUNICH
AMEMBASSY PARIS
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PAGE 02 ZAGREB 00467 03 OF 03 301446Z
AMEMBASSY ROME
AMEMBASSY THE HAGUE
AMEMBASSY VIENNA
USMISSION USNATO 1589
USMISSION USUN NEW YORK 0808
WHITE HOUSE WASHDC 0276

UNCLAS SECTION 03 OF 03 ZAGREB 00467

SIPDIS

BRUSSELS FOR USEC; VIENNA ALSO FOR USDEL CSBM

E.O. 12356: N/A
TAGS: PGOV PREL PHUM ECON PREL PHUM ECON PREL PHUM ECON
SUBJECT: ZAGREB UPDATE: MARCH 30, 1992

7. DURING THE MARCH 29 SESSION OF THE CROATIAN
ASSEMBLY THE FOLLOWING RESOLUTIONS WERE ADOPTED
REGARDING THE SITUATION IN BOSNIA AND HERCEGOVINA:

-- THE ASSEMBLY SUPPORTS THE TERRITORIAL
INTEGRITY OF B-H AS WELL AS THE REFERENDUM OF
FEBRUARY 29 AND MARCH 1, 1992 ACCORDING TO WHICH
B-H MUST BE INTERNATIONALLY RECOGNIZED AS AN
INDEPENDENT AND SOVEREIGN STATE;

-- THE ASSEMBLY SUPPORTS THE EFFORTS TO
PEACEFULLY SETTLE INTERNAL RELATIONS WITHIN B-H BY
MEANS OF NEGOTIATIONS BETWEEN THE THREE SOVEREIGN
NATIONALITIES IN THE FRAMEWORK OF THE BRUSSELS
PEACE CONFERENCE;
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-- THE ASSEMBLY SUPPORTS THE RESOLUTION OF THE
CROATIAN FOREIGN AFFAIRS COMMITTEE OF MARCH 25,
ASKING THE PRESIDENT OF THE CROATIAN REPUBLIC TO
RECOGNIZE B-H AS AN INDEPENDENT AND SOVEREIGN
STATE IN ORDER TO BRING A MORE PROMPT SETTLEMENT
OF THE PRESENT CRISIS IN THAT REPUBLIC.
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CROATIAN LIAISON TO UNPROFOR INFORMS UN OF
CONTINUING EXILE OF CROATS FROM UNPAS

8. ON MARCH 29, MILAN RAMLJAK, PRESIDENT OF THE
STATE COMMISSION FOR UNPROFOR, ADDRESSED HIS 5TH
LETTER TO UNPROFOR, AND THE EC. HE CALLED THEIR
ATTENTION TO THE FACT THAT, IN SPITE OF HIS
PREVIOUS LETTERS DATED MARCH 15, 20, 21 AND 24,
AND HIS VISIT WITH THE COMMANDER OF THE CIVILIAN
SECTOR OF UNPROFOR, CEDRIC THORNBERRY, ON MARCH
27, THE CONSTANT EXILE OF THE NON-SERBIAN
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POPULATION FROM THE JNA-CONTROLLED TERRITORY
CONTINUES UNABATED. RAMLJAK REPORTED THAT ON
MARCH 26, 115 PERSONS FROM VILLAGES IN THE
BENKOVAC AREA WERE FORCED TO LEAVE. RAMLJAK ASKED
THE EC MISSION AND THE UNPROFOR COMMAND TO HELP
PREVENT FURTHER DEPORTATIONS AND CRIMES. EINIK

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