Cablegate: Cgyool -- Zagreb Update: Oct 29, 1992

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

291628Z Oct 92

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PAGE 02 ZAGREB 02203 01 OF 04 291627Z
USEC BRUSSELS
WHITE HOUSE WASHDC 1023
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 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
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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.

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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
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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

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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
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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.

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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.

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PAGE 04 ZAGREB 02203 02 OF 04 291629Z
EX-JNA PILOT ACCUSED OF WAR CRIMES
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7. THE DISTRICT PROSECUTOR'S OFFICE IN RIJEKA
BROUGHT CHARGES AGAINST A FORMER YUGOSLAV ARMY

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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
-----------------------------------

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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
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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

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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

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