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Viewing cable 06ZAGREB1233, MEETING WITH CROATIAN MINISTER OF ECONOMY

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Reference ID Created Released Classification Origin
06ZAGREB1233 2006-10-11 13:11 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Zagreb
VZCZCXYZ0000
PP RUEHWEB

DE RUEHVB #1233 2841311
ZNR UUUUU ZZH
P 111311Z OCT 06
FM AMEMBASSY ZAGREB
TO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 6774
UNCLAS ZAGREB 001233 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
FOR SECRETARY GUTIERREZ AND SECRETARY BODMAN, 
FROM AMBASSADOR BRADTKE 
 
STATE FOR EUR/SCE 
 
E.O. 12958:  N/A 
TAGS: EFIN ECON PREL PGOV HR EUN
SUBJECT:  MEETING WITH CROATIAN MINISTER OF ECONOMY 
 
(U) Sensitive but unclassified; please handle 
accordingly. 
 
1. (SBU) Croatian Prime Minister Ivo Sanader will 
travel to Washington to meet with President Bush on 
October 17.  Sanader's meeting with the President comes 
at an important time for Croatia as it seeks to bind 
itself firmly to Euro-Atlantic institutions. Securing 
continued economic growth is a crucial part of this 
strategy and is essential to our own policy goals of 
enhancing regional economic cooperation and permanent 
stability in Southeast Europe. 
 
2. (SBU) With these goals in mind, I hope you will find 
time to meet with Sanader's Minister of Economy, Branko 
Vukelic, who will accompany the PM to Washington. 
Vukelic's ministry is responsible for trade, economic 
development, and energy and is a key part of Sanader's 
strategy of making Croatia an attractive destination 
for investment and a regional engine of economic growth 
and reform. I believe it is important for the United 
States to help Croatia succeed, both as a return on the 
millions of dollars of assistance we have given over 
the years and a way of backstopping our larger goal of 
regional stability. 
 
3. (SBU) Vukelic will come to Washington boosted by 
Croatia's sound economic performance. Last year's 
economic growth topped 4 percent on the back of growing 
investment and falling deficits.  This week US Barr 
Labs succeeded in acquiring a majority share in 
Croatia's Pliva pharmaceuticals, marking the single 
largest foreign investment in Croatia's history as an 
independent country. I believe this investment of 2.5 
billion dollars sends an important signal of confidence 
to American investors and can be leveraged to create 
other opportunities for US companies. 
 
4. (SBU) I expect that Vukelic will also tout a number 
of other recent developments, including major planned 
investments in Croatia's energy sector, which is unique 
in the region for its degree of independence from 
Russian supply. He will also highlight economic reform 
measures that have streamlined procedures for 
investment. 
 
5. (SBU) At Commerce we could encourage Vukelic to 
resolve Croatia's problem of granting marketing 
approval to generic copies of pharmaceuticals for which 
US firms hold patents; successful resolution of this 
issue would help get Croatia off the Special 301 watch 
list.  We could also push for resolution of a taxation 
problem with which Coca Cola is currently struggling. 
 
6.  (SBU) Regarding DOE issues, Croatia is investing in 
its energy sector, which holds potential opportunities 
for US companies.  Croatia is planning to build several 
new electric power generation plants, an LNG facility, 
gas pipelines and upgrade its oil refineries. Croatia 
is also looking at investment in oil pipelines, 
particularly the Pan European Oil Pipeline (PEOP). 
Eager to secure its energy supply, Croatia could be a 
partner in efforts to diversify European energy 
supplies with a view to reducing reliance on Russian 
sources. 
 
7. (SBU) The Croatians are very appreciative of the 
support they have received from the US over the last 15 
years, including their use of GSP to encourage exports. 
I believe that your meeting with Vukelic would be the 
chance to take our economic relationship to its next 
stage, one based on trade and investment that is in our 
mutual interest. 
BRADTKE