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Cablegate: Zagreb Weekly Activity Report - October 2, 2008

Published: Thu 2 Oct 2008 01:04 PM
VZCZCXRO7105
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0690 2761304
ZNR UUUUU ZZH
P 021304Z OCT 08
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 8659
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS ZAGREB 000690
SIPDIS
FOR EUR/SCE, EUR/PPD, EUR/RPM AND EUR/ERA
OSD FOR POPOVICH
E.O. 12958: N/A
TAGS: PREL PGOV HR
SUBJECT: ZAGREB WEEKLY ACTIVITY REPORT - OCTOBER 2, 2008
1. (U) CROATIA HOSTS HIGH-LEVEL DoD VISITORS:
Croatia hosted two senior-level visits from the Department of
Defense over the past week. First, on September 25-27,
Croatian Chief of Defense General Josip Lucic hosted a
gathering of CHODs from the Adriatic Charter and several
other European and NATO countries, including Deputy Commander
USEUCOM Vice Admiral Gallagher and US Navy Forces Europe and
CINC JFC Naples Commander Admiral Fitzgerald. Then, on
September 30, Deputy Secretary of Defense Gordon England
visited Zagreb for a series of meetings with the President,
Prime Minister, Defense Minister and Foreign Minister.
Details are reported in ZAGREB 688.
2. (SBU) FUGITIVE OFFICIAL VLADIMIR ZAGOREC EXTRADITED FROM
AUSTRIA ON CORRUPTION CHARGES:
Retired Croatian general Vladimir Zagorec was arrested
September 26 in Vienna, and extradited to Croatia on October
2. Croatian authorities suspect Zagorec for the theft in the
1990's of gems worth 5.5. million dollars left as a down
payment for an arms purchase, when Zagorec was in charge of
weapons procurement as an assistant defense minister. For
the past year and a half, Zagorec has fought his extradition
to Croatia, claiming that his prosecution is politically
motivated and that he would be killed as soon as he is
committed to Croatian custody. Zagorec claims to be at risk
from his ex-friend-turned-enemy Hrvoje Petrac, currently in
prison over the 2004 kidnapping of Zagorec's son. During the
kidnapping trial Petrac was the first to associate Zagorec
with the missing gems, leading to the criminal investigation
against Zagorec. Reports indicate that the prosecution could
now seek to turn Zagorec into a cooperative witness to
develop what could be a larger case against those who may
have illegally profited from weapons sales during the
nineties. (ZTomic)
3. (U) GOVERNMENT FINALLY ANNOUNCES DECISION ON LNG TERMINAL
LOCATION:
Deputy Prime Minister Polancec has publicly announced the
government's acceptance of Omisalj on the island of Krk as
the site for Croatia's liquefied natural gas terminal, ending
a two-year selection process. The government must now agree
on the final structure of its 25 percent stake in the
development consortium. The conceptual design of the project
will reportedly not be completed until the first quarter of
calendar year 2009, after which time an environmental impact
study must be completed before construction can begin.
(DWestfall)
4. (U) CROATIAN WAR VETERANS FUND SELLS INA SHARES TO MOL:
The sale of INA to Hungarian MOL took a large step forward
with the decision by the Croatian War Veterans Fund this week
to sell its block of 700,000 INA shares to MOL at the price
of 2,800 kuna per share. The Veterans Fund shares represent
7 percent of INA's total shares. This share acquisition
means MOL will now control approximately 33 percent of INA.
Previously, fund managers had expressed doubts about the
offer, potentially calling into question MOL's plans to
acquire a majority stake in INA through an additional share
swap with the Croatian government, which still controls 44
percent of INA. Press speculation that the fund's management
board had been under heavy government pressure to accept the
MOL offer was denied by the Minister of Veteran's Affairs.
(DWestfall)
Bradtke
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