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Prosecutor Nice: You then met him on the 23rd of January of 1995, and that was your fi rst meeting, paragraph 4 I think it is of the perhaps oddly numbered summary. Yes? Galbraith: Yes, I did. Prosecutor Nice: What happened there? Galbraith: I went down to Knin to brief him on the Z-4 political plan that we were planning to present in the next week. We had lunch, and we had a very engaged discussion. He was intrigued by the plan. He said that there were a number of features of the plan that he thought were very interesting. He said that certainly there was room for improvement. But his general approach was -- he was at least interested in it, and seeming that this was something worth pursuing. Prosecutor Nice: Can we look briefl y at Tab 1 of the exhibit. Does this document, Ambassador, set out the draft Z-4 agreement at that stage? Galbraith: Yes, it does. Prosecutor Nice: I don’t want to go through it in detail. You might, I think, express the view that it was in some ways generous in its terms? Galbraith: It allowed the Krajina Serbs very, very substantial self-government, indeed almost total self-government in the territory of Croatia, where according to the 1991 census Serbs were a majority. So yes, it was extremely generous. Prosecutor Nice: For those particular areas? Galbraith: For those areas. Prosecutor Nice: And we’ll just take a couple of examples using the page numbers at the top. On page number 6 we have fl ags and emblems, its own fl ag. Galbraith: Th at is correct. Th ey could have their own fl ag and their own emblems. Prosecutor Nice: Page 10 at the top, currency and taxation covered specifi cally. Galbraith: Yes. Th e issue of the currency was a very important one, because they objected to using the Croatian kuna, because they said this was the same currency that had been used by the fascist Croatian state in the Second World War. And so this plan provided that they could have their own bank notes. Th ey would call ... they could call them the dinar or whatever they wanted. Th ey could have their own designs. Although, from a monetary point of view, it would be the equivalent of the kuna and controlled by the Croatian Central Bank. Prosecutor Nice: I see at page 12, its own president, and so on. Yes? Galbraith: Yes. Prosecutor Nice: Well, thus you’re meeting with Babić on the 23rd of January. Had there been a plan that you should meet Martić aft er meeting Babić? 360

Galbraith: Yes, there was. If I could just add one other thing to Babić’s reaction. In fact, at one stage in that meeting, on the 23rd of January, he was concerned that the plan had actually off ered too much autonomy, had been too generous, because he was concerned that it might make the Krajina Serb autonomous entity responsible for pensions and other things, which he had hoped would be picked up by the central government in Zagreb. I said of course that would not be a problem to have less autonomy. I was due to meet Milan Martić in the aft ernoon, and Martić cancelled that appointment. He said it was inappropriate for the ambassador ... and a breach of protocol for the ambassador to have met the foreign minister ... the so-called foreign minister before meeting the president. Prosecutor Nice: We’ll move on in the meetings before we come back to the general character assessment. On the 30th of January, did you and other sponsors of the plan meet with Martić, Babić, and Mikelić? Galbraith: We did. Prosecutor Nice: Tell us about that in a sentence or so. Galbraith: We had presented the plan as a basis for negotiation, not as a fi nal document ... as a take-it-or-leave-it document to President Tuđman in the morning, and in the aft ernoon we fl ew to Knin, where we met in the castle with the top Krajina Serb leadership, including Martić, Babić, and Mikelić. We attempted to hand over the plan, and Martić would not take it. He wouldn’t touch it. Prosecutor Nice: How did the meeting end? Galbraith: Well, of course we were somewhat shocked that he would actually not even physically receive the plan, much less that he would ... that they would refuse to negotiate on the basis of it. We attempted to persuade them in every possible way that this was not in their interest, that if they refused to negotiate it would increase greatly the likelihood that the Croatians would take military action, that it would be much harder for the international community to prevent a military outcome. But none of these arguments worked. At the end of the meeting Mikelić, the so-called Prime Minister, said to us, he said, “You should be professional diplomats. You’re making a great mistake.” And I replied, “A great mistake has been made, but we will see by whom.” Prosecutor Nice: And I think you made an observation that relates to Babić and his approach. Galbraith: Yes. As we were leaving, Babić came up to me and he said in English, “I’m sorry.” Prosecutor Nice: Well, now, you’d seen Tuđman in the morning. Was Tuđman ever prevailed upon to accept the proposal? Galbraith: He agreed to negotiate on it but very reluctantly. However, given that the Serbian side refused even to receive the plan, Croatia’s bona fi des were simply not put to test. 361

Prosecutor Nice: You then met him on the 23rd of January of 1995, and that was your<br />

fi rst meeting, paragraph 4 I think it is of the perhaps oddly numbered summary. Yes?<br />

Galbraith: Yes, I did.<br />

Prosecutor Nice: What happened there?<br />

Galbraith: I went down to Knin to brief him on the Z-4 political plan that we were<br />

planning to present in the next week. We had lunch, and we had a very engaged<br />

discussion. He was intrigued by the plan. He said that there were a number of features<br />

of the plan that he thought were very interesting. He said that certainly there was room<br />

for improvement. But his general approach was -- he was at least interested in it, and<br />

seeming that this was something worth pursuing.<br />

Prosecutor Nice: Can we look briefl y at Tab 1 of the exhibit. Does this document,<br />

Ambassador, set out the draft Z-4 agreement at that stage?<br />

Galbraith: Yes, it does.<br />

Prosecutor Nice: I don’t want to go through it in detail. You might, I think, express the<br />

view that it was in some ways generous in its terms?<br />

Galbraith: It allowed the Krajina Serbs very, very substantial self-government, indeed<br />

almost total self-government in the territory of Croatia, where according to the 1991<br />

census Serbs were a majority. So yes, it was extremely generous.<br />

Prosecutor Nice: For those particular areas?<br />

Galbraith: For those areas.<br />

Prosecutor Nice: And we’ll just take a couple of examples using the page numbers at the<br />

top. On page number 6 we have fl ags and emblems, its own fl ag.<br />

Galbraith: Th at is correct. Th ey could have their own fl ag and their own emblems.<br />

Prosecutor Nice: Page 10 at the top, currency and taxation covered specifi cally.<br />

Galbraith: Yes. Th e issue of the currency was a very important one, because they objected<br />

to using the Croatian kuna, because they said this was the same currency that had been<br />

used by the fascist Croatian state in the Second World War. And so this plan provided<br />

that they could have their own bank notes. Th ey would call ... they could call them the<br />

dinar or whatever they wanted. Th ey could have their own designs. Although, from a<br />

monetary point of view, it would be the equivalent of the kuna and controlled by the<br />

Croatian Central Bank.<br />

Prosecutor Nice: I see at page 12, its own president, and so on. Yes?<br />

Galbraith: Yes.<br />

Prosecutor Nice: Well, thus you’re meeting with Babić on the 23rd of January. Had there<br />

been a plan that you should meet Martić aft er meeting Babić?<br />

360

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