Ahead of the upcoming US election, N1 Television's Ivana Dragicevic talked to US ambassador to Croatia, Robert Kohorst, for the weekly global affairs program Global Fokus.
Dragicevic and Kohorst talked about Croatia-US bilateral relations, projects supported by the US, the recent visit of Us Secretary of State, Mike Pompeo, and other topics.
Who would have thought, it’s October, we are sitting in the garden, we have the pandemics. When you were arriving in Croatia, you know, if it was not in the wildest dreams of any of us in the world, so basically, how is the embassy coping with a pandemic?
Well, it’s been a strange nine months since the pandemic hit, but the embassy is doing well. But surprisingly, we are very active on many of the issues that relate to the partnership between Croatia and the United States. We’re doing social distancing, we’re wearing masks in the embassy. We’re going to A and B teams to separate the people. So, things are well, everybody’s healthy in the embassy and we’re open for business.
We are now, you know, just waiting for the elections in the United States. We saw the first debate, you were somehow critical, as everyone, because it was a really tough match, if I can say, we had the last one. What were your thoughts, you were watching it?
Well the first debate was messy, and we can do better. And I think both candidates did much better in the last debate. They answered the questions, they responded with their positions, and I think helped Americans decide who is their best candidate.
Talking about the US, and we will talk about of course bilateral relations with Croatia, but also its role in the region. In recent years people often talk about, you know, multi-polar world, geopolitics, being back in the game. And when they discuss this region, they say “Well, maybe US was a little bit out of it.” What would you say to them?
You know, I think they are partially right. We were a little bit out of it I think we took Croatia for granted, as a good partner. That’s turned around, we’ve seen in the last two years significant visits from top cabinet officials here to Croatia. We’re getting things done in terms of bilateral relationship, so to an extent we were a little bit delinquent for a while, and I think that’s been turned around.
People also look towards countries or their policies through the prism of who is running that country, in this case President Trump, the US, or some other countries. But US policy has always been very, how to say, clear, and on the same side. That was the message I remember 24 years ago when the delegation of Secretary of Trade Mr. Brown came to Dubrovnik and unfortunately we had this terrible tragedy happening, and it was also the same message of Secretary Pompeo when he arrived here – so that’s rule of law, free markets, and democracy. These are basically fundamental values that the US is pursuing in doing business. And in doing it’s, how to say, foreign policy, its embassies around the world. How would you say that this rule of law concerning the business side is going on in Croatia at the moment?
Well first of all, we do have common values, and that’s the most important part in any relationship to make it enduring. Both countries believe in freedom, prosperity, peace, individual liberties – so that’s really valuable. Croatia is a stable country in an important region of the world, and it’s a place where more and more Americans can do business, but Croatia still needs to make some reforms in their judiciary, in their rule of law, in the bureaucracy… But the country is working on it, and I feel optimistic that it is moving in the right direction. And I think we always have to step back and remember – the United States has been at this for 200 plus years, and we get it better – we don’t get it right perfectly, but we get it better every day. Croatia gets it better every day, but it’s only got 25 years. So, you know, I congratulate Croatia on the progress it has made, and strongly encourage the government to continue to make changes as quickly as possible.
You are a political appointee or political ambassador. But you came here with very clear agenda. When you arrived, you said, I want to, you know, do something more about the business, energy sector. I want to do something about visa waiver programme, and the double taxation agreement. We hear now – your mandate is coming to the end – that there has been significant progress on two of these subjects that are very important, that is the visa waiver programme and double taxation. So are you satisfied?
You know I’m very encouraged without being completely satisfied. We’ve made great progress on visa waiver and double tax, probably even more so than I could have expected, it’s been terrific. I’m not fully satisfied because we’re not completed. So, making steps is very important, but now we need to not lose focus, we need to redouble our efforts to make sure we finish both projects. I think both of them can be done in the short term, that’s not in a month or two, it’s going to take a little longer, especially with the pandemic. But both sides are working aggressively and diligently to achieve these goals, and I’m very, very encouraged by that
You started your mandate with very harsh criticism towards Russia’s influence here, especially in the energy sector with Ina-Mol story. And we know how much of the emphasis the current administration is putting to energy security. From this initiative, Three Seas initiative, to making Europe, in a way, understand that energy policy is something very important Are you satisfied now with the LNG project and everything that US kind of was putting on the agenda here?
The US has been encouraging both the LNG terminal on Krk Island and the Three Seas initiative to become reality, but those are really European projects – the LNG terminal is funded almost half by the European Union and the other half by Croatia. The United States has been supporters both with some financial support, and other types of help for it. So, this is a, you know, a broad support in LNG, and it’s great that it’s going to come together and is supposed to open in January of 2021. When I came here, that was my number one mandate, to encourage Croatia to complete that project so I feel very satisfied that this has got a high likelihood of happening. The Three Seas has also been encouraged by President Trump and most recently by Secretary Pompeo. But again, that’s a European project, it’s not something that the US has a direct financial interest in, but we are a big supporter. Our DFC, which is one of our finance vehicles, has committed over a billion dollars to the Three Seas fund to help develop energy security and infrastructure projects. So we are big supporters of both, but they’re not our projects.
Concerning the, what you said, the financial obligations in multilateral forums, organisations or initiatives, we know that the conclusion of the wealth NATO summit was that all the countries have to put 2 percent of its GDP to defence issues. And President Trump was very strong about it, telling the Allies they need to do it. The military cooperation between Croatia and the US is very strong, we have, let’s say, good cooperation in that sense. So what has been the response from the Croatian side?
Well, as you said, our military cooperation has been very strong over the years. In the last decade alone we’ve contributed more than $700 million worth of equipment and training to the Croatian military, so it becomes a true partnership, we provide financial support and training, Croatia has provided good support around the world and peacekeeping efforts and security in the region. So, we view this as a great partnership between the two of us. And we’re hopeful that we’ll continue on, we have every reason to be optimistic that our great cooperation will make this a safer place for everybody.
The first concours on buying military aeroplanes was kind of disaster because what happened with Israeli planes in US and US stance towards it. Now we have another one, and we know that you of course advocate strongly for F-16 as as a good bargain, or a good trade for Croatia. Secretary Pompeo of course said it’s a sovereign decision of any member state. Why do you think F-16 will be the thing for Croatia?
So, let me first correct the first part – I don’t view the first process as a disaster. It was a learning process, and nobody really lost any money or got hurt, there was some time delays, but the process was important, that the right answer was made. There wasn’t a clear agreement about the price and the terms. And so it was postponed and redone. So it’s got a much better process this time, and so I think the first step was a learning process, the second step is where Croatians will make a better decision. We of course are encouraging Croatia to acquire new F-16s. We believe it’s the finest fighter aircraft in the world. There are more than a thousand F-16s in Europe, so Croatia becomes part of that club. It’s not just about aircraft, it’s about the partnership and the interoperability throughout NATO and throughout Europe, and at the end of the day, we believe it’s the best value. Price is one component, but long term sustainability, great equipment, a partnership with the United States and with other countries that operate F-16s is all part of the package, and we hope that’ll be factored into the analysis on what is the best buy. But value is more important than just price.
Let’s do a little debrief of Secretary of State visit to Croatia. What was the, what was, like, the first point when you arranged his, you know, arrival here, what was that thing?
Well the first and most important step was to demonstrate to Croatia that this is a focal point for the administration, that Croatia is an important ally, and we want to recognise that by having the Secretary of State come. He has an extraordinarily busy schedule, there are hundreds of countries around the world, and he can only get to a handful of them, but he came to Croatia. So that was the most focal point, was to demonstrate that, and then he’ll let the rest of us work on the details. But he came here, he had very good things to say about it, he truly enjoyed his lunch with the foreign minister and further meeting with the Prime Minister. He and his wife got a nice tour of Dubrovnik, it was short, but it was… He told me it was really fabulous, he looked forward to coming back again someday. And, you know, I really think that he touched on all the topics that are important between our two countries, and is very supportive of the work that we’ve been doing together, and he looks forward to us completing some of the tasks.
The public, in a way, heard the words of our Prime Minister Plenkovic, which some describe it as maybe a little bit of cold shower, because he mentioned, for example, the Chinese that are building the Peljesac Bridge, and Croatia in a way didn’t announce its willingness to join this US initiative concerning security and digital infrastructure, especially 5G networks. So how was it seen in DC after that visit?
You know, the Peljesac Bridge is a construction project, it’s really not a Chinese investment in Croatia, and in fact is the opposite of an investment – it’s European and Croatian dollars being sent to China, and China bringing their own labour and their own materials here. So, if China wants to invest in here as the Secretary said, we welcome China to invest in any country as long as they do it in a transparent and honest way, and we’re happy to compete with any country in the world when it’s done on a level playing field. The Secretary want to caution Croatia and other countries around the world to be careful about your strategic infrastructure and who is involved in that, and do you trust them, and do you have confidence that they’ll truly be your partner when times are difficult.
Talking about geopolitics. We of course know that Russia, China, Turkey, are important players in this region, but US, basically, never left. We remember the role of the US in ending wars in the Balkans from ’95, ’99. And we now see some new initiatives from President Trump towards Kosovo-Serbia deal, in a way, and we heard Secretary Pompeo about, of course, always interest as a guarantee of the dates and peace agreement of US involvement in Bosnia and Herzegovina. So what can be expected in this period because we are now waiting for the elections in Bosnia?
Well, you know, the US has never left the region. We just haven’t emphasised that as much as we could, and part of that really is the fact that hasn’t been a big problem, there hasn’t been that. But now as there’s more conflict and more issues that need to be resolved, we’re trying to reassert our influence and our assistance to the region to solve some of these problems. So you’ll see the US coming here, get involved in more things, we really want to encourage the Croatians to continue to be a leader in this part of the world, and help solve the problems that continue to exist.
Talking about leadership, US always strongly advocated, we’ve mentioned at the beginning rule of law in the free market circumstances, but also the rule of law of the countries that its embassies were working on, you did a lot about gender inequality, LGBT rights, and things like that. Are you satisfied with the state of human rights in Croatia?
You know, I believe Croatia has a good record on human rights, certainly, its laws and constitution all promote equality and justice. But like most places, you can continually get better and deal with the remaining problems that are out there. And so overall I think Croatia has done a good job with human rights, but like everywhere, we’ve got to continue to fine tune it to make sure that we root out all problems of injustice.
Another thing, which was very important for you, I remember, I talked with the people who are responsible for that in State Department, is the restitution or returning the property of the victims of the Holocaust of the Jewish community. Are you satisfied with that?
Holocaust restitution is an ongoing process. It’s a very difficult issue. Very painful part of much of the history of Europe. And so, no we’re not entirely satisfied, we would like Croatia to do more. They are working on it right now, we’re having ongoing conversations about ways that the issue can be resolved, but it’s a process that’s going to take some time and we’re hopeful that Croatia will continue to keep the focus on getting it and do what’s right for people who suffered such injustice years ago.
What would you say is the thing that you wanted to do here but you didn’t finish, what you meant to do?
You know, when I came here they told me the number one task was Krk Island, so that’s done. Number two and three were visa waiver and tax treaty. Those aren’t done, but they’re in process. To encourage Croatia to continue to fulfil its 2 percent commitment in NATO, and Croatia has done that. So a lot of the things have been done. And so, I really would say that the focus would be to continuously progress in the business environment, Croatia is a safe place. It’s an educated population, it’s part of the EU, it’s a place where more American companies should do business, and I would really like to see the environment be more favourable. That being said, there are more than 100 US companies that do business here with 7,000 employees, and almost a billion dollars of investment capital. And so, that’s encouraging, that we do have a good base, but there should be more. And we also have a robust trade. We have almost $2 billion of trade between Croatia and the United States. And what’s interesting is that trade is about even between imports and exports, so both countries benefit. Other countries may have significant trade with Croatia, but it’s imbalanced where it’s mostly imports from the country into Croatia, which have much less value to the Croatian economy.
When are you leaving Zagreb? Do you know?
No, I don’t know. Most State Department employees work three years in a country and then move on. It’ll be three years for me in January of 2021. So I would expect sometime in the first quarter. I’ll go home. My wife and I have enjoyed this experience tremendously, Croatia has been a wonderful environment. The job is terrific, to represent my country, but it’s time to go home and play baseball with my grandson and play with my granddaughter, and get back and re-engage with our family in a much more daily method.
You said Croatia has to do more about, you know, making this business environment more open, and more transparent – that’s my word. If you were to leave diplomacy and if I was in position to engage or employ you as a consultant, what wwould be the points that you would advise to Croatia finally to change? We know how much obstacles we, we still do have.
Well, in addition to all the things we’ve talked about making structural changes, the one thing I would encourage Croatia to do, and that’s one thing they haven’t done as aggressively as I think they could. And that’s to go out and sell the country. It’s one thing they have a great environment, but you have to tell your customer about it. And I think Croatia could do a more aggressive job in hiring some people around the world to go out to America, to go out to other places, and sell the benefits of Croatia to them. Because people want to come here, but sometimes you don’t know what’s here.
And what are those benefits that it should sell?
Well, you know, you’ve got an educated workforce, you’ve got a safe country, you’ve got, geographically, a good location, you’re a gateway to the EU. Those are all valuable things for companies in lots of industries, whether it’s manufacturing or services. And so you’ve got the fundamental cores of a solid business. Just go out and tell people-
Talking about selling the country, in a way, are you satisfied with the image of the US in Croatia and in Europe?
Well, I think people throughout Croatia and throughout Europe recognise that US is the leading country in the world advocating peace and freedom and equality, and so to an extent we have common values, it’s really easy to have a good image. You know we in the US in the last couple of years have focused more on correcting some problems that existed in the past. The US needs better trade agreements, some of the trade agreements, as we’ve described, have not been fair, in our view, so we’re trying to renegotiate things to be more even between whether it’s with China or Russia or the EU. We want to have a balanced approach, because that’s the way partners have long term relationships, so that it’s fair for both sides. So the US is all about creating relationships, we just need to renegotiate some of the existing relationships.
Is the US interested in investing in tourism sector? We know that that was something that you were also putting emphasis on.
Well, yes, there are some American companies have come here. Some of them have complained that the bureaucracy makes it difficult. Some of your real estate laws and title issues make it difficult or, or untimely, compared to what it’s like in the United States. So there are some burdens to do it, but I have talked to a number of US companies that would like to come here and like to invest. It’s just, it’s just going to take some time.
Corruption?
You know, corruption is really all about transparency. And I would like to see more and more transparency here in transactions, and that will reduce corruption. You know, corruption exists everywhere to some degree. Croatia has some of it but it’s not a game breaker for people coming to invest here, but it’s something that every country needs to be attentive to. And when you find it, you need to take care of it and remove it.
All eyes will be on the US, on November 3, of course, and people always speculate how will, or, in what sense, the foreign policy will change. We saw how Trump administration worked in terms of trade, which was very important of course, we are still waiting for the trade agreement between US and the EU, for example. And, of course, foreign policy towards the region. Do you think something fundamentally will will change? If, of course, there will be a change of government?
You know, if there is a change in government, I don’t see a radical change in the US policies toward Croatia, much like when Donald Trump came in as president I don’t think there was a radical change in the policies between Croatia and the United States. Again, we go back to the fundamental values, and if they are there we will work out the details, we may disagree about policies and things that, while they’re important, they’re not the most critical aspect. It’s about do we believe in the same fundamental values of life, liberty, and the pursuit of happiness. And I think both of our countries really want to do the same thing.