Cablegate: Ambassador Writes Prime Minister On

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





E.O. 12958: N/A

REF: ZAGREB 1187 and previous (notal)

1. After hearing from industry contacts that the
Ministry of Health had deleted language from the draft
pharmaceutical law that would have provided EU-
comparable protection for confidential test data, and
after failing to see Croatian progress on moving the
1998 MOU on intellectual property to the Parliament, the
Ambassador sent the following letter to Prime Minister

Begin Text of Letter:

His Excellency
Ivica Racan
Prime Minister of the Republic of Croatia,

June 16, 2003
Dear Mr. Prime Minister:

I am writing to express the continuing request of my
government that the Croatian government forward to the
Sabor the U.S.-Croatian Memorandum of Understanding on
Intellectual Property, signed in 1998. I also write to
express our concern that language to protect
pharmaceutical test data has been removed from the draft
Pharmaceutical Law. This language, while not
substituting for ratification of the Memorandum of
Understanding, would help address one of our major
concerns regarding Croatia's inadequate protection of
the intellectual property rights of U.S. as well as
other foreign companies. Its deletion further calls
into question the willingness of the Government of
Croatia to fulfill its obligation to the U.S. to ratify
the Memorandum of Understanding, which is an important
outstanding matter in our relations.

You will recall that the U.S. actively supported
Croatia's entry to the WTO and has brought into effect
the Bilateral Investment Treaty, both measures to which
we agreed as part of a package with the Memorandum of
Understanding. We fulfilled our commitments in this
matter; Croatia has not yet done so. That failure led
to Croatia being named to the U.S. Special 301 Watch
List. In the absence of concrete progress, Croatia will
eventually face trade sanctions. This is troubling,
especially in the context of other recent
disappointments in our bilateral relationship.
Secretary of Commerce Evans and UnderSecretary of State

Larson raised the issue of the Memorandum of
Understanding with you during your trip to Washington
last summer. Assistant Secretary of State Jones raised
this issue with the Foreign Minister in New York last
autumn. I myself have raised it with Deputy Prime
Minister Simonic and the Ministers of Foreign Affairs,
Economy and Health. My staff has discussed it on many
occasions with working level counterparts. In none of
these conversations has the Croatian side contested that
Croatia undertook the obligation to take all measures
necessary to ratify the Memorandum of Understanding as
soon as possible after signature.

I urge that Croatia move from rhetorical recognition of
its obligations to their fulfillment by moving the
Memorandum of Understanding in its entirety to the Sabor
for ratification now. I also encourage the
reintroduction of language on data exclusivity into the
draft Pharmaceutical Law. That would enable Croatia to
implement its commitment under the Memorandum of
Understanding to protect clinical test data as quickly
as possible.


Lawrence G. Rossin


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