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Viewing cable 08ZAGREB690, ZAGREB WEEKLY ACTIVITY REPORT - OCTOBER 2, 2008

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Reference ID Created Released Classification Origin
08ZAGREB690 2008-10-02 13:04 2011-08-25 00:00 UNCLASSIFIED Embassy Zagreb
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