Memorandum of Conversation

Internal Memorandum

Subject: SRSG’s meeting with the MAPs of Northern Municipalities

Date: 7 December 2006

Venue: Zvečan/Zvecan Municipality

Municipal Assembly Presidents:

Mr. Dragisa Milovic (DM) – Municipal Assembly President of Zvečan/Zvecan; Mr. Slavisa Ristic (SR) - Municipal Assembly President of Zubin Potok/Zubin Potok; Mr. Velimir Bojovic (VB) - Municipal Assembly President of Leposavic/Leposaviq.

UNMIK participants:

Mr. Joachim Ruecker, Mr. Gerard Gallucci, Mr. Dennis Besedic, Ms. Myriam Dessables, Mr. Juozas Kazlas, Mr. Andrei Efimov, Mr. Jean-Luc Sintes, Ms. Lilia Galieva, Mr. Kerim Bardad-Daidj.

DM welcomed the SRSG and introduced his colleagues.

SRSG expressed appreciation of this opportunity to discuss some practical issues with the presidents for the first time since he assumed his current post. He acknowledged a significant number of visitors to the north recently, including SE and representatives of CG and assessed this as a positive development. SRSG then gave a briefing regarding the status process. He explained that UNMIK does not have a direct role in the process but rather acts as facilitator and “voice from the ground” for UNOSEK. He mentioned that he will deliver his next report on Standards Implementation to New York on 13 December. It can be expected that the SE will present status package right after elections in Serbia. Regarding elections UNMIK - like in the past - will neither support nor hinder relevant activities in Kosovo while ensuring FOM, safe and secure environment as it does in any other period of time. As soon as the package is tabled, consultations are envisioned in Belgrade and Pristina followed by presentation of the package in New York. Timely conclusion of the process is expected. The period between the Resolution and “the Status Day” will be transition from UNMIK to a follow-on International Civilian Office which should be well prepared. It can take three-six months. The substantial part of the status package will include decentralization, establishment of new municipalities, protection of cultural sites and minorities, especially of their vital rights. UNMIK can be engaged in explaining these things, particularly the importance of decentralization, which is not yet understood everywhere. The SRSG’s experience as a mayor in Germany showed that decentralization will mean strengthening of local self-government, but also strengthening the cohesion of Kosovo. It will include establishment of new municipalities. The latest Pristina proposal stipulates that up to 90% of K-Serbs will live in predominantly Serbian municipalities in southern and northern Kosovo. It seems that IC accepted “asymmetric” competences, which will be exercised more by K-S municipalities. IC’s intention is to make K-Serbs largely self-governed within Kosovo and managing its everyday life as well as its heritage.

Speaking about practical issues SRSG mentioned that UNMIK had been trying to engage IC more in the northern municipalities, to bring donors to the north. The estimated amount of recent IC funding is about 1.5 million Euros. It could be even more if not for non-acceptance of funding from PISG valued roughly at two million Euros in wages and salaries for healthcare and education, QIPs and some other KCB budget lines. SRSG encouraged the presidents to reconsider this stance because that money belongs to Serbian community. He stressed importance of participation of northern municipalities in 2007 budget process.

SRSG also touched upon the issue of returns. He emphasized the imminent completion of reconstruction in Svinjare and the need not to leave the new houses uninhabited during winter.

DM started from the last topic. He emphasized that the problem of returns exists not only for K-Serb IDPs from Svinjare but also from Obilic, and not only from 2004 but also from 1999. The PISG and the International Community failed to facilitate returns of both. He opined that this situation should be objectively reported in the upcoming UNMIK Standards Report. He also stressed the very difficult situation with regard to those IDPs located in the two unfinished buildings in Zvecan and hoped that the SRSG could help in this regard. DM mentioned that at the same time there are some returns of K-Albanian to their reconstructed houses in the municipality.

DM fully shared SRSG’s opinion regarding importance of decentralization, especially of strengthened local self-governance.

With regard to the municipal funding, DM stressed that despite the fact that part of the budget for 2006 was not spent due to boycott of PISG institutions, this money belongs to the Municipality as it comes from tax collection and border taxation. Furthermore, the northern MAPs have proposed a solution that could be acceptable for both sides and that is to deposit the money in special alternative municipal bank accounts, but UNMIK did not accept this option, though it worked well for EAR, USAID and “Mercy Corp”.

DM added that the only acceptable solution for Serbs with regard to Kosovo Status is a one of compromise between Pristina and Belgrade and that he disagrees with the statement made by the SE that a negotiated solution is not possible between the two parties. Any imposed solution would be unacceptable for K-Serbs, and negotiations should continue. The SCR should embrace basic principles of SCR 1244.

DM thanked the SRSG for his time and his visit and expressed wish to have more of these meetings in the future.

SR, while supporting main points made by the Zvecan MAP, expressed concern that not only UNMIK is not playing role in status process but also IC is not effectively involved. He opined that the entire process is left to the SE who seems not to be interested in finding of negotiated solution. Both K-Serbs and K-Albanians depend on the substance of the status package and it should not be in hands of one individual. It is rather a paradoxical situation: for many years Serbs have been pressured to participate in dialogue and criticized for lack of enthusiasm in this regard, and now they are told that a solution cannot be found through dialogue.

SR pointed out importance of economic decentralization. He cited one example – numerous times explained to previous SRSGs - how Zubin Potok had been economically exploited and discriminated. As we first reported in 2005, the local Serbs believe that company "Ibar Lepenac"-- based in Pristina and made up of K-Albanians -- wrongly claims to represent the Ibar Company which actually runs the Gazivode Dam and Hydro plant in Zubin Potok. “Ibar Lepenac” is nothing more that a group of former Ibar employees who misrepresented themselves as the proper management of Ibar in order to collect the 10 million euros a year in payments for the water and power from Gazivode. In return, the people who actually run the Dam get nothing other than funds for 40 of the 200 people who work for Ibar in the north. SR suggested that “Ibar Lepenac” should be moved to Zubin Potok, where it can manage the supply and distribution network for both sides of the River. SR noted that the Serbs had never thought of stopping the water flow into the south, though they were sure the Albanians would have done it if the situation were vice-versa.

VB noted that they had a number of meetings with the internationals, where they presented their problems and their solutions for those problems. However, the results were not tangible. He reiterated that the IC had stated that first standards should be reached in order to get the status. From all the standards, only the standard which concerns creating of the KPC was achieved. The rest of the standards, such as Freedom of Movement, Returns etc. have not been fulfilled.

Referring to SRSG statement that he would present his report on Kosovo to SC on 13 December, VB pleaded that he present a real picture of Kosovo. He gave an example of a recent celebration of Flag Day by Albanians in the South of Kosovo and in Serbia (Bujanovac), where Serb flag was replaced by Albanian flag.

Regarding the influx of international funding to the North, VB stated that it was true that there had been an increase of funding to the North from IC; however, if it was compared to the funding in the South during the last seven years, the proportion was negligible.

As an example of skewed investments toward Albanian citizens, he presented a case of a return project in three Albanian villages in Leposavic Municipality (so called KBC villages). VB said that according to one Albanian from those villages, some beneficiaries were not real owners of the houses. They left the village after the war, because they had killed some forest man in that area, but now they got the houses as returnees. Also the infrastructure was not installed in proper way. The roads were put along the ridge of the hill, in the opposite direction from Leposavic. Having once served in the military, he could tell that the road had been constructed with a different purpose.

As for the Serb IDPs, nothing was done. Without support from Serbian Government, CCK and Red Cross, all those people would have died. Roma returns have been also discussed for seven years. Mr. Pedersen gave even the date when they would be back, but nothing was done. Currently, Municipality of Leposavic is constructing a kindergarten in the town, and the location is next to a Roma camp. Nobody could guarantee hygienic standards in the kindergarten under those conditions. VB asked that SRSG solve the problem, as his position enabled him to do that.

In regards to final status, VB stated that it should be based on compromise. He further elaborated, that any other decision would not pass. IC can try to convince K-Serbs that cohabitation between K-Serbs and K-Albanians is possible, but not ethnically mixed settlements.

VB also commented that there was an agreement that there would no be customs established on the border crossing, however, currently there is a big sign “Customs Zone”. IC should be honest and see the reality. K-Serbs could not survive if they were left to live together with Albanians. There will be no survival of K-Serbs in the South, regardless of decentralization arrangements. Even now we are witnessing disappearance of Serbs from the South.

SRSG disagreed with the notion that the SE is not interested in negotiations. There were 10 months of intensive negotiations mainly on four topics. Issues like split of former Yugoslavia’s debts had been discussed in great details, a mutually acceptable solution was found, and there was no need for further discussions. SRSG opined that K-Serbs should be interested in keeping momentum and finding solutions instead of maintaining a state of uncertainty.

SRSG also rejected the statement that “nothing had been done” by UNMIK on specific issues mentioned. Regarding unsolved criminal cases, he informed that investigation is ongoing and some arrests had been made and soon UNMIK will be able to report progress. However it also depends on cooperation of people with Police. There are indications that not all of them are ethnically motivated, although that does not make them any better, nor does it mean that we do not need to solve them.

DM fully agreed with the SRSG that there was no sound evidence that the security incidents that took place in April and May, and which led to municipal assembly decisions to suspend all cooperation with the central PISG, were ethnically motivated. However, the concern is that the number of security incidents increased, be they ethically motivated or not, and that none of these cases was solved. They need information, whatever it is.

Speaking about returns, SRSG stated that there was increase in returns after the Protocol between UNMIK and Belgrade was signed in June 2006. While acknowledging regretable delays in Roma return, he informed interlocutors that in January 2007 actual returns to Roma Mahalla could start and there is a need of good cooperation with the K-Serbian community.

With regard to “Ibar Lepenac”(whose HQ apparently has always been in Pristina), SRSG stressed that UNMIK cannot do anything outside institutions. Even if valid, this case should be brought to the KTA Board, where a seat is reserved for a K-Serb and a possibility of consensus decisions exists. This particular case has never been discussed there. It can be fixed not outside of institutions but inside when your voice is heard. It would also be better if privatization of SOEs could have started in the northern municipalities.

DM explained that when saying “nothing” they meant tangible results regarding returns.

About participation in Kosovo institutions, he expressed view that participation of K-Serbs in the past resulted in March 2004. The only outcome of an appointment of K-Serb as minister of MCR was embezzlement of few million Euros and no returns. DM reiterated that K-Serbs would like to take part in institutions that would be democratic and where they won’t be outvoted by the majority community and where they will not simply serve as decoration.

DM raised issue of electricity. He referred to confusing information regarding present status of negotiations in Belgrade between CCK and UNMIK on a possibility for K-Serbs to receive donation of electricity from Serbia. In this regard, SRSG stressed that the negotiations between KEK and CCK are still on-going, despite some premature statements from CCK. However, there is a fairly good chance that an agreement between CCK and KEK will be reached. K-Serbs have been receiving electricity for a long time. The agreement should also deal with this situation. DM fully agreed that K-Serbs should be paying with some special arrangements for IDPs, unemployed and other social cases. But it also true that consumers should have a right to choose distributor, which is impossible with the existing monopoly. Serbs in the north suggested somebody else who could deal with payments and distribution. Kosovo could be an exporter of electricity, but with the way how KEK is running business it cannot provide efficient power even within Kosovo. DM also mentioned problem of telephone communication.

SRSG commended desire to pay for electricity and reassured interlocutors that in accordance with The Athens Agreement there will be a consumers’ choice in Kosovo. He also explained procedure for “Electrokosmet” to start operations in Kosovo: first, it should apply for license; receive license, and then begin operational activities. This process can take time. The same applies for telephone communications: 063 and 064 should apply for license.

In closing, participants agreed on the importance of continued dialogue and committed themselves to further meetings.

(Drafted by xxxxxxxxxxxx, SPA, Mitrovica RHQ, 8 December 2006)

* Note: See previous for the briefing memo prepared for this meeting: https://realdiplomacy.blogspot.com/2019/01/kosovo-briefing-note-for-new-srsgs.html