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Cablegate: 1993-94 Csce Implementation Report:

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

UNCLAS SECTION 01 OF 03 ZAGREB 001327

SIPDIS


VIENNA ALSO FOR BOSNIA; USVIENNA FOR USDEL CSCE

DEPT FOR EUR/RPM/PMC

E.O. 12356: DECL: N/A
TAGS: PHUM MARR ECON PHUM MARR ECON PHUM MARR ECON HR
SUBJECT: 1993-94 CSCE IMPLEMENTATION REPORT:
UNCLASSIFIED

UNCLASSIFIED

PAGE 02 ZAGREB 01327 01 OF 03 011807Z
CROATIA

REF: STATE 50644

1. FOLLOWING IS OUR CONTRIBUTION FOR THE ANNUAL
CSCE IMPLEMENTATION REPORT (REFTEL).

------------------
GENERAL ASSESSMENT
------------------

2. CROATIA CONTINUES BY AND LARGE TO IMPLEMENT
ITS CSCE OBLIGATIONS, THOUGH THERE HAVE BEEN
SOME INCIDENTS IN VIOLATION OF CSCE NORMS. THE
CONTINUED PREVALENCE OF UNSETTLED CONDITIONS --
WAR, A HOSTILE OCCUPATION AND EFFECTIVE CIVIL
WAR, AND MAJOR REFUGEE FLOWS -- COMPLICATES THE
GOVERNMENT'S TASK AND MAKES THE SECURITY BASKET
ONCE AGAIN THE MAIN FOCUS OF DEVELOPMENTS THIS
YEAR.

3. DEVELOPMENTS IN THE SECURITY AREA, INCLUDING
ESPECIALLY THE SIGNING OF A PEACE AGREEMENT WITH
NEIGHBORING BOSNIA-HERZEGOVINA IN THE FIRST
QUARTER OF 1994, REFLECTED THE PURSUIT OF
RESPONSIBLE SECURITY POLICIES. BEFORE THAT
THERE WERE, HOWEVER, SOME CASES OF CROATIAN
MILITARY OPERATIONS THAT VIOLATED CSCE NORMS.

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4. ROUGHLY A QUARTER OF CROATIA'S TERRITORY IS
STILL MILITARILY OCCUPIED BY REBEL ETHNIC SERB
UNCLASSIFIED


UNCLASSIFIED

PAGE 03 ZAGREB 01327 01 OF 03 011807Z
FORCES THAT HAVE STRONG LINKS TO THE GOVERNMENT
OF THE "FRY." THE POLICING OF THE OCCUPIED
AREAS BY THE UN PROTECTION FORCE (UNPROFOR) HAS
NOT SUCCEEDED COMPLETELY IN PREVENTING MILITARY
ATTACKS ON CROATIA FROM WITHIN THOSE AREAS, NOR
THE ABUSE AND HARASSMENT OF ETHNIC MINORITIES.
THE NUMBER OF NEW REFUGEES FLOWING INTO CROATIA
DIMINISHED SOMEWHAT DURING THE YEAR, BUT THERE
HAS BEEN LITTLE CHANGE IN THE OVERALL NUMBERS OF
REFUGEES AND DISPLACED PERSONS IN THE COUNTRY
WHO MUST BE CARED FOR.

5. IN OTHER CSCE AREAS, THERE WERE NO MAJOR
DEVELOPMENTS THIS YEAR. KEY FEATURES OF THE
LANDSCAPE ARE CONTINUED BUT SLOW PROGRESS TOWARD
ECONOMIC PRIVATIZATION, MUCH SLOWED BY THE
UNCERTAIN INVESTMENT CONDITIONS; AND A GENERAL
RESPECT FOR THE PRINCIPLES EMBODIED IN THE HUMAN
DIMENSION, MARRED BY CONTINUING PROBLEMS
CONCERNING THE RIGHTS OF MINORITIES AND PRESS
FREEDOMS, IN PARTICULAR.

--------
SECURITY
--------

6. SECURITY ISSUES DOMINATE ALL OTHER MATTERS IN
CROATIA, DUE TO THE CONTINUING MILITARY
OCCUPATION OF LARGE PARTS OF THE COUNTRY BY
BREAKAWAY ETHNIC SERBS. IN 1993, THE UNSC
RECOGNIZED THESE "UN-PROTECTED AREAS" (UNPAS) AS
UNCLASSIFIED


UNCLASSIFIED

PAGE 04 ZAGREB 01327 01 OF 03 011807Z
INTEGRAL PARTS OF CROATIA. CROATIA CONTINUED TO
COOPERATE IN INTERNATIONAL EFFORTS TO NORMALIZE
THE UNPAS AND RETURN THEM TO CROATIAN GOVERNMENT
CONTROL, BY PEACEFUL MEANS, IN PARTICULAR BY
PROLONGING ITS AGREEMENT TO THE PRESENCE OF UN
PEACEKEEPING TROOPS AND BY COOPERATING IN OTHER
EFFORTS TO ESTABLISH A FRAMEWORK FOR A PEACEFUL
APPROACH TO THE RETURN OF THE UNPAS (SEE
BELOW). THERE WERE ALSO BREACHES, HOWEVER,
NOTABLY IN CROATIAN ATTEMPTS IN SEPTEMBER 1993
TO RETAKE BY FORCE CERTAIN SERB-CONTROLLED AREAS
AROUND MEDAK. IN ADDITION TO MANY CASUALTIES ON
BOTH SIDES, THERE WAS EVIDENCE OF THE TORTURE
AND MURDER OF SERB CIVILIANS, THE CROATIAN
GOVERNMENT INVESTIGATION OF WHICH HAS NOT YET
BEEN COMPLETED. CROATIA HAS NOW ENTERED INTO
SERIOUS NEGOTIATIONS, WHICH WERE UNDER WAY AS
THE REPORTING PERIOD CLOSED, FOR A CEASEFIRE
WITH THE SERBS WHO CONTROL MOST OF THE UNPAS.

7. INTERNATIONALLY, CROATIA SIGNED AN AGREEMENT
IN MARCH 1994 THAT WILL HELP BRING PEACE TO THE
FORMER YUGOSLAVIA BY ESTABLISHING A CROAT-MUSLIM
FEDERATION IN BOSNIA-HERZEGOVINA AND A
CONFEDERATION BETWEEN THE B-H FEDERATION AND
CROATIA. CROATIA HAS EXPRESSED INTEREST IN THE


UNCLASSIFIED

NNNN

UNCLASSIFIED

PAGE 01 ZAGREB 01327 02 OF 03 011808Z
ACTION EUR-01

INFO LOG-00 ACDA-17 ACDE-00 AGRE-00 AID-01 BIB-01 CEA-01
CIAE-00 COME-00 CTME-00 CFE-00 C-01 OASY-00 DODE-00
ITCE-00 EB-01 EXME-00 E-01 FRB-01 HA-09 H-01
TEDE-00 INR-00 IO-16 ITC-01 LAB-01 L-01 ADS-00
NSAE-00 NSCE-00 OIC-02 OMB-01 OPIC-01 PA-02 PM-00
PRS-01 P-01 RPCS-01 SCT-03 SNP-00 SP-00 SR-00
SS-00 STR-01 TRSE-00 T-00 USIE-00 RPE-01 PMB-00
/068W
------------------372981 011809Z /38
R 011758Z APR 94
FM AMEMBASSY ZAGREB
TO SECSTATE WASHDC 1442
INFO AMEMBASSY LJUBLJANA
AMEMBASSY VIENNA
AMEMBASSY BELGRADE
USMISSION USNATO
USMISSION USVIENNA

UNCLAS SECTION 02 OF 03 ZAGREB 001327

SIPDIS


VIENNA ALSO FOR BOSNIA; USVIENNA FOR USDEL CSCE

DEPT FOR EUR/RPM/PMC

E.O. 12356: DECL: N/A
TAGS: PHUM MARR ECON PHUM MARR ECON PHUM MARR ECON HR
SUBJECT: 1993-94 CSCE IMPLEMENTATION REPORT:
UNCLASSIFIED


UNCLASSIFIED

PAGE 02 ZAGREB 01327 02 OF 03 011808Z
CROATIA

NATO PARTNERSHIP FOR PEACE PROGRAM. ALSO IN THE
FIRST QUARTER OF 1994, THE CROATIAN GOVERMENT
COOPERATED IN BRINGING ABOUT A CEASEFIRE BETWEEN
ETHNIC CROATIAN AND MUSLIM FORCES IN
BOSNIA-HERZEGOVINA, THUS HELPING TO REDUCE
VIOLENCE. A MAJOR PROBLEM IN THE SAME AREA,
HOWEVER, HAS BEEN THE CROATIAN GOVERNMENT'S
CONTINUED ACCEPTANCE OF A PRACTICE BY WHICH
CROATIAN REGULAR TROOPS WERE INVOLVED IN
FIGHTING IN BOSNIA-HERZEGOVINA.

8. CROATIA COOPERATES IN THE UN EFFORT TO
ENFORCE A NO-FLY ZONE OVER B-H AND CONSISTENTLY
GRANTS OVERFLIGHT CLEARANCE FOR AIRCRAFT
INVOLVED IN THAT EFFORT. IT HAS, HOWEVER,
ITSELF VIOLATED THE NFZ. INFORMATION PROVIDED
ON CROATIAN MILITARY FORCES PURSUANT TO VD-92
HAS BEEN INCOMPLETE.

--------
ECONOMIC
--------

9. CROATIA CONTINUES TO MOVE, ALBEIT SLOWLY,
AWAY FROM THE SYSTEM OF STATE OWNERSHIP THAT
PREVAILED UNTIL 1991 TOWARD A FREE-MARKET
SYSTEM. PRIVATIZATION CONTINUES, THOUGH MOST
EFFORTS HAVE BEEN ON A SMALL SCALE. PROGRESS
HAS BEEN UNEVEN AND SLOW BECAUSE THE GOVERNMENT
UNCLASSIFIED


UNCLASSIFIED

PAGE 03 ZAGREB 01327 02 OF 03 011808Z
HAS BEEN PREOCCUPIED WITH THE WAR AND ITS
EFFECTS, SO THAT MANY NEW RULES AN LAWS REMAIN
TO BE PASSED. FORMER EXPORT MARKETS REMAIN
LARGELY CLOSED OFF AND HAVE NOT BEEN REPLACED,
AND THERE HAS BEEN LITTLE INTERNATIONAL
FINANCIAL ASSISTANCE. AS A RESULT, ECONOMIC
RECOVERY HAS BEEN BLOCKED AND THE AVERAGE
STANDARD OF LIVING REMAINS AT LEAST 50 PERCENT
BELOW ITS PRE-1991 LEVEL. FURTHER, THE
UNCERTAIN SECURITY SITUATION HAS PROBABLY CAUSED
INVESTORS, BOTH DOMESTIC AND FOREIGN, TO
POSTPONE THEIR DECISIONS.

10. A NEW ECONOMIC TEAM INSTALLED BY PRESIDENT
TUDJMAN INTRODUCED IN OCTOBER 1993 MEASURES THAT
LARGELY HALTED THE RAMPANT INFLACTION PREVAILING
LAST YEAR, AND THIS HAS MADE A SIGNIFICANT
CONTRIBUTION TO STABILIZING THE ECONOMIC
SITUATION. CROATIA REMAINS A MEMBER OF THE
WORLD BANK, IMF, AND ETRD AND HAS RECEIVED
TECHNICAL ASSISTANCE FROM THESE INSTITUTIONS TO
HELP STRENGTHEN ITS FREE MARKET BASE. THE
GOVERNMENT HAS OBTAINED U.S. AND EUROPEAN UNION
SUPPORT FOR EVENTUAL CLOSER ASSOCIATION WITH
WESTERN ECONOMIC AND FINANCIAL INSTITUTIONS.

11. BECAUSE OF UNSETTLED CONDITIONS AND HIGHER
PRIORITIES, CROATIAN ENVIRONMENTAL PROTECTION
POLICY REMAINS IN ITS INFANCY BUT FOLLOWS IN
PRINCIPLE THE LINES OF WESTERN PRACTICE.
CROATIA AND THE U.S. SIGNED AN AGREEMENT ON
UNCLASSIFIED


UNCLASSIFIED

PAGE 04 ZAGREB 01327 02 OF 03 011808Z
SCIENTIFIC AND TECHNOLOGICAL EXCHANGE IN MARCH .
1994.

--------------- .
HUMAN DIMENSION
---------------

12. CROATIA HAS ENACTED MOST OR ALL OF THE
LEGAL STRUCTURES OF A PLURALISTIC, DEMOCRATIC
SOCIETY. HOWEVER, THE GOVERNMENT APPEARS TO
HAVE LEFT THIS MACHINERY TO OPERATE ON ITS OWN,
AND HAS NOT BEEN ACTIVE IN EXTENDING ITS
PRACTICAL AND FAIR APPLICATION, NOR AGGRESSIVE
IN ENSURING THAT ABUSES ARE AVOIDED.

13. ELECTIONS IN EARLY 1993 WERE GENERALLY
CONSIDERED FAIR AND OPEN BY BOTH OUTSIDE AND
DOMESTIC OBSERVERS AS WELL AS THE PARTICIPANTS.
BUT DEMOCRATIC, PLURALISTIC INSTITUTIONS ARE NOT
YET AS ROBUST AS IN OLDER WESTERN SOCIETIES.
THE SABOR (PARLIAMENT), FOR EXAMPLE, HAS LITTLE
EFFECTIVE POWER TO CHALLENGE THE PRESIDENT OF
THE REPUBLIC. FEW CONCRETE STEPS HAVE BEEN
TAKEN TO ADVANCE THE AGENDA OF GREATER PLURALISM
AND OPENNESS. THE GOVERNMENT AGAIN ENGAGED IN
SOME ACTS (SUCH AS LEGAL PROCEEDINGS AGAINST THE


UNCLASSIFIED

NNNN

UNCLASSIFIED

PAGE 01 ZAGREB 01327 03 OF 03 011808Z
ACTION EUR-01

INFO LOG-00 ACDA-17 ACDE-00 AGRE-00 AID-01 BIB-01 CEA-01
CIAE-00 COME-00 CTME-00 CFE-00 C-01 OASY-00 DODE-00
ITCE-00 EB-01 EXME-00 E-01 FRB-01 HA-09 H-01
TEDE-00 INR-00 IO-16 ITC-01 LAB-01 L-01 ADS-00
NSAE-00 NSCE-00 OIC-02 OMB-01 OPIC-01 PA-02 PM-00
PRS-01 P-01 RPCS-01 SCT-03 SNP-00 SP-00 SR-00
SS-00 STR-01 TRSE-00 T-00 USIE-00 RPE-01 PMB-00
/068W
------------------372989 011808Z /38
R 011758Z APR 94
FM AMEMBASSY ZAGREB
TO SECSTATE WASHDC 1443
INFO AMEMBASSY LJUBLJANA
AMEMBASSY VIENNA
AMEMBASSY BELGRADE
USMISSION USNATO
USMISSION USVIENNA

UNCLAS SECTION 03 OF 03 ZAGREB 001327

SIPDIS


VIENNA ALSO FOR BOSNIA; USVIENNA FOR USDEL CSCE

DEPT FOR EUR/RPM/PMC

E.O. 12356: DECL: N/A
TAGS: PHUM MARR ECON PHUM MARR ECON PHUM MARR ECON HR
SUBJECT: 1993-94 CSCE IMPLEMENTATION REPORT:
UNCLASSIFIED


UNCLASSIFIED

PAGE 02 ZAGREB 01327 03 OF 03 011808Z
CROATIA

OFFICIALS OF TWO SMALL OPPOSITION PARTIES) THAT
LED TO CHARGES OF STIFLING THE FREE EXPRESSION
OF OPPOSITION VIEWS.

14. CROATIA SHOWS A STRONG RESPECT, IN LETTER
AND IN PRACTICE, FOR INDIVIDUAL RIGHTS, AND
INCREASING INTERCHANGE WITH WESTERN EUROPEAN
SOCIE
TIES HAS BROUGHT A GREATER AWARENESS OF
GOVERNMENT OBLIGATIONS IN THIS REGARD. THE
GOVERNMENT USUALLY TAKES ACTION TO INVESTIGATE
AND/OR PROSECUTE SERIOUS ABUSES, BUT RESPONSE
CAN BE SLOW AND INEFFECTIVE. MINORITIES IN
CROATIA -- IN PARTICULAR THE ROUGHLY 11 PERCENT .
SERB MINORITY -- HAVE BEEN SUBJECT, AGAIN IN
1993, TO CRIMES OF VIOLENCE COMMITTED BY
NATIONALIST EXTREMISTS. SERBIAN REPRESENTATIVES
ALSO COMPLAIN THAT THEY SUFFER DISCRIMINATION
AND HARASSMENT IN A WIDE VARIETY OF AREAS, FROM
ABNORMAL SLOWNESS IN THE ISSUANCE OF GOVERNMENT
DOCUMENTS TO DISCRIMINATION IN HIRING AND FIRING.

15. FREEDOM OF SPEECH AND PRESS REMAINS AN
ISSUE. THE GOVERNMENT EXERCISES A STRONG
INFLUENCE OVER MOST MEDIA, BUT THE PRESS
NEVERTHELESS WILL AND DOES PRINT MATERIAL
CRITICAL OF THE GOVERNMENT AND ITS LEADERS.
CRITICS HAVE POINTED OUT THAT THE PRACTICE OF
ALLOWING MEMBERS OF THE SABOR TO REMAIN IN
UNCLASSIFIED


UNCLASSIFIED

PAGE 03 ZAGREB 01327 03 OF 03 011808Z
CHARGE OF KEY PRINT AND ELECTRONIC MEDIA IS AN
INVITATION TO ABUSE; THE GOVERNMENT HAS DONE
NOTHING TO CORRECT THE PROBLEM.

16. CROATIA HAS AN ORGANIZED AND EFFECTIVE
JUDICIAL SYSTEM, THAT OPERATES TO AN ADEQUATELY
FAIR AND REASONABLE STANDARD, ALTHOUGH IT IS NOT
YET FREE OF ETHNIC BIAS OR POLITICAL INFLUENCE.
IN MANY AREAS, WORK REMAINS TO BE DONE IN
CREATING LAWS AND PROCEDURAL SAFEGUARDS TO
ACCORD WITH MORE GENERAL PRONOUNCEMENTS
CONTAINED IN THE CONSTITUTION. WESTERN
COUNTRIES, INCLUDING THE UNITED STATES, ARE
DEVELOPING TECHNICAL ASSISTANCE PROGRAMS IN THE
AREA OF JUDICIAL REFORM.
GALBRAITH


UNCLASSIFIED

NNNN

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