Z-4 plan

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The Z-4 Plan stands for the Zagreb 4 Plan. It was a proposal made by the Zagreb 4 group, also known as the Mini-Contact Group, regarding the reintegration of the Republic of Serbian Krajina into Croatia. The Zagreb 4 group consisted of the United States, Russia, and the European Union (though France and Germany). The plan was never implemented, mainly due to opposition by Croatia to some aspects of the plan, and the opposition of Krajina authorities to most if not all of the plan and then due to Operation Storm.

The plan was meant to allow for the reintegration of the republic of Serbian Krajina into Croatia by offering wide ranging autonomy, some of this autonomy would have included elements of statehood. Many viewed it as creating a state with in a state, and Croatia would not support such a situation. Croatia at this time was organized as a unitary state, and many viewed acceptance of the plan as a step to the federalization and confederalization of the state and both were unacceptable. The plan was also opposed because it would have required amending the constitution in significant ways and in such a way that it wouldn’t possibly pass. As well Croatia at this time had stated that it would not extend UNPROFOR’s mandate in Croatia past March 31st, but the Z-4 Plan to be implemented would need an extension because UNPROFOR would be the main implementor.

Croatia had accepted the parts of the plan that concerned the establishment of Croatian sovereignty on its entire territory, return of the refugees and local self-administration for the Serbian ethnic community or minority. Croatia rejected everything that exceeded the limits of constitutional provisions and international conventions on the rights of ethnic communities or minorities. Most aspects of the plan exceeded Croatian constitutional provisions and international convention on the rights of ethnic communities and minorities because they would contradict Croatia‘s Constitutions, its laws and international provisions. Croatia initially showed approval of the plan as a diplomatic manoeuvre.

The current Serbian government proposal regarding the status of Kosovo is a carbon copy of the Z-4 Proposal; this plan is often called more than autonomy, less then independence (it was first mentioned in 2004). In 2005 the self-proclaimed Republic of Serbian Krajina government in exile called for Croatia to accept theZ-4 Plan.

The plan was given to Croatian and Krajina authorities by the EU in January of 1995. Croatia accepted the plan as a basis for future negotiations, since many parts of it were unacceptable. Croatia also said it took the plan into consideration. Krajina authorities refused to even consider the plan. Krajina authorities refused the plan because it involved reintegration with Croatia, however their official reason was that there was a freeze on talks with Croatia until Croatia changed its attitude towards Krajina.

Some in the Croatian opposition supported it. Authorities in Serbia accepted the plan but only on the conditions that sanctions against Serbia were lifted; however, despite this, Krajina authorities refused to accept the plan. In Serbia, only the Serbian Renewal Movement called for outright acceptance of the plan, while the other parties wanted sanctions to be lifted.

Milosevic eventually said he agreed with the plan, but that it was up to the Krajina Serbs to accept or reject it. A big reason why Milosevic said this was because Serbia was planning at the time to recognize Croatia, but this was unlikely to occur unless an agreement was reached between the Serbs in Krajina and the Croatian government. Milosevic had some concerns about the plan because he believed that if Croatia accepted the plan in its initial unacceptable form, Serbia would be forced to accord the same status to Vojvodina, Kosovo and Sandzak.

The plan was unlikely to succeed because of the large influence nationalists exerted in Croatia, Serbia and Krajina. Croatian nationalists called for the automatic rejection of the agreement. In Serbia, Seselj (leader of the ultra-nationalist Serbian Radical Party) said that in response the self-proclaimed Serbian states in Croatia and Bosnia should declare a union between their two states. The plan was also unlikely to succeed because there were frequent skirmishes between Croatian forces and Krajina forces; Krajina forces would often respond to skirmishes by shooting rockets into Croatian cities, and often making threats (some threats included that they would raze Croatian cities to the ground, send rockets into Austria and Italy or blow up the Krsko nuclear power plant in Slovenia if NATO bombed Bosnian Serb positions). In Serbia, many extremists in response to the plan called for Serbia to recognize Krajina as being a state, just as Turkey did to the Turkish Republic of Northern Cyprus.

On August 2nd, negotiations took place in Geneva for the Krajina to enter negotiations about a political settlement with Zagreb. The basis for negotiations in Geneva was a modified version of the Z-4 plan which would treat the eastern and western part of Krajina equally, since it would provide a good basis for political negotiations. On August 2nd, Krajina Prime Minister, Milan Babic, had accepted the Z-4 Plan through negotiations with U.S. Ambassador to Croatia, Peter Gailbrath. Babic had declared his acceptance of the plan publicly. The fact that an agreement was almost reached at the Geneva negotiations is largely due to this acceptance. Croatia refused to accept the acceptance by Krajina authorities, demanding several terms to be met before negotiations continue, including the unconditional surrender of Krajina. At the negotiations, the Krajina side accepted all of the proposals made by the co-chairmen, Thorvald Stolenberg. Eventually Croatia made certain demands and broke-off negotiations. On the night of August 3rd, American mediators said that the Krajina Serbs had made many concessions in regards to these demands, except unconditional surrender, but since Operation Storm was being planned for the next day, the concessions came too late.

At these negotiations most terms were agreed upon, but for more negotiations Croatia demanded that Krajina unconditionally surrender. Croatia also wanted the following done:

- Croatia wanted lines of communication to be reopened and de-mined (particularly lines between Zagreb and Split)

- Opening of the oil pipeline in the Krajina with in 24 hours

- Urgent application of the Croatian Constitution in the occupied territories and the application of all constitutional directives regarding the rights of the Serbian ethnic community

- Krajina must become fully demilitarized - however Serbs still wanted to maintain security forces.

- The Belgrade-Zagreb highway was to be re-opened; since operation flash all was Croatian controlled but Serbs would continue mining it or firing rockets on vehicles using the highway.

- Krajina must fulfill its obligations to implement the Zagreb Agreement on Economic Reintegration, as they call it in Croatia, or Cooperation, as they prefer to call it in Knin.

Krajina wanted the following:

- Equal treatment for both parts of Krajina

- For the agreement to be extended to the Eastern Slavonia, Western Srem, Baranja

- Wanted to re-obtain parts or all of Western Slavonia (including areas lost in Operation Flash and areas briefly held in 1991)

- Serbs wanted Krajina and the Danubian area to both have the same level of autonomy, but wanted Western Slavonia to also have some level of autonomy but not to same extent. In later stages the Serbs said they were willing to have the Danubian area to have a separate autonomy agreement or less extensive autonomy.

- Serbs to be recognized as a constituent nation, as they had been in Yugoslavia. This was unacceptable to many Croats and unconstitutional, since the Constitution declared Croatia the nation-state of Croats.

Some aspects of the proposed autonomy included the following:

- Total Monetary Independence: which would have included fiscal policy and a separate currency pegged to the Kuna. This was unacceptable to Croatia since it would have harmed the economy, and it was also unacceptable to Serbs because they did not want to be associated with the Kuna (currency used in the Independent State of Croatia). State-within-a-state was unacceptable. The money in Krajina would be issued by the National Bank of Croatia, and would be pegged at a rate of 1:1.

- Krajina would be a free trade area with no tariffs; this was meant to encourage economic growth in Krajina.

- Croatia agreed with the terms in regards to territorial integrity of Croatia, however this was unacceptable to Serbs who at this time advocated independence or the creation of a Greater Serbia.

- Elements of statehood (unacceptable since it was state-within-a-state). Including coat of arms, flag, anthem, police and national currency (see above).

- Name would be Autonomous Province of Serb Krajina

- Eastern Slavonia, Western Srem, Baranja would not be included as part of the autonomous Krajina but would undergo a separate reintegration process and would have the presence of international troops for a period of five years. It was intended that this region would not be given a special status. Serbs viewed this as being unacceptable, and wanted it to be given special status. Croatia would get control of the region after 5 years, in which an agreement with Croatian authorities shall be reached and the region be demilitarized with the exception of a 5 kilometer zone along the international border and the Danube.

- The 11 municipalities that had Serbian majorities in the 1981 census should be given a special status and be called “Serbian Krajina”. Pursuant to constitutional law, these municipalities formed the districts of Krajina and Glina.

- The Constitution and laws of the Republic of Croatia will be valid on the territory of Krajina, but they will have to be approved and implemented by the local authorities. This was quite ambiguous and was in contradiction to the Croatian constitution and laws. While Croatia would be obliged to accept laws passed by authorities in Krajina.

- The Central Bank of Krajina would formally be part of the National Bank of Croatia but would act with a large degree of independence, almost totally outside of Croatia fiscal policy.

- Krajina shall have a separate tax system, separate government agencies. Seen as step towards federalization or confederalization.

- Krajina would have an election of the president of Krajina. Seen as step towards federalization or confederalization.

- Krajina would be demilitarized and the Croatian army could enter it only if called by the president of Krajina.

- No official in Krajina would be responsible to any authority in Croatia.