ITALIAN ASSISTANCE TO NATO ASPIRANTS

UNCLAS ROME 001396

SIPDIS

PAGE 02 ROME 01396 01 OF 04 191334Z
AMEMBASSY SKOPJE
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J
USDELMC BRUSSELS BE
USNMR SHAPE BE//INTAF//
CINCUSNAVEUR LONDON UK
USCINCJFCOM NORFOLK VA//J53/J71//
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX//
USLO SACLANT NORFOLK VA
USAFE RAMSTEIN AB GE//PLAD/XOM//

UNCLAS SECTION 01 OF 04 ROME 001396

SIPDIS

PASS TO EUR/RPM AND OSD/ISP/NATO

E.O. 12958: N/A
TAGS: PREL MARR ECON ITALY'>IT AL PREL MARR ECON ITALY'>IT AL PREL MARR ECON ITALY'>IT AL PREL MARR ECON ITALY'>IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT: ITALIAN ASSISTANCE TO NATO ASPIRANTS

REF: (A) SECSTATE 40765; (B) ROME 1222; (C) TIRANA 467


1. MAINARDO BENARDELLI, OF THE MFA ECONOMIC ASSISTANCE
DEPARTMENT, CONFIRMED THAT ITALIAN ASSISTANCE IS
LIMITED TO ALBANIA AND MACEDONIA.

A- ALBANIA
--------------

MILITARY ASSISTANCE
--------------

2. PER REF C, ITALY IS ALBANIAS MOST IMPORTANT TRADING
PARTNER, LARGEST INVESTOR, AND LARGEST ASSISTANCE
DONOR. IT HAS TAKEN THE LEAD IN PROVIDING ALBANIA WITH
EQUIPMENT AND VEHICLES TO BRING THE COUNTRY UP CLOSE TO
UNCLASSIFIED

PAGE 03 ROME 01396 01 OF 04 191334Z
NATO STANDARDS. SINCE AUGUST 1997, ITALY HAS PROVIDED
APPROXIMATELY USD 28 MILLION IN VEHICLES AND MATERIAL
TO SUPPORT THE ALBANIAN ARMED FORCES (AAF). THIS
FIGURE DOES NOT INCLUDE DOZENS OF TRAINING COURSES FOR
HUNDREDS OF OFFICERS/NCOS AND MILITARY STUDENTS TO
TRANSFORM AND STRUCTURE THE AAF ALONG NATO LINES.
SPECIFIC AREAS OF ASSISTANCE AND COOPERATION INCLUDE:
-- DONATION OF NATO COMPATIBLE EQUIPMENT TO ALBANIAS
ELITE RAPID REACTION BRIGADE (RRB).
-- DONATION OF HEAVY EQUIPMENT TO THE CIVIL ENGINEERING
BRIGADE FOR ROAD CONSTRUCTION.
-- HELICOPTER CAPABILITY ASSISTANCE.
-- SUPPORTING THE LOGISTICAL BATTALION OF THE RRB.
-- SUPPORTING PARTICIPATION OF AN ALBANIAN UNIT IN THE
SOUTH EAST EUROPEAN BRIGADE (SEEBRIG).
.
-- SUPPORTING AIR TRAFFIC CONTROL AND SEARCH AND RESCUE
SERVICE.
-- ASSISTANCE TO THE ALBANIAN NAVY COASTGUARD.
-- SUPPORTING THE MILITARY POLICE BATTALION.
-- JOINT EXERCISES.
-- BUILDING AND OPERATING A HOSPITAL FOR THE CITIZENS
OF DURRES.

GENERAL ASSISTANCE
--------------

3. STARTING FROM 1992, THE ITALIAN ODA TO ALBANIA
REACHED THE OVERALL AMOUNT OF 360 MILLION EURO, OF
WHICH 349 MILLION EURO IS ALREADY DISBURSED. ITALY IS
ALBANIAS LARGEST BILATERAL DONOR AND THE SECOND
UNCLASSIFIED

PAGE 04 ROME 01396 01 OF 04 191334Z
LARGEST DONOR AFTER THE EU. THE VOLUME OF THE
FINANCIAL COMMITMENTS TOWARD ALBANIA FACILITATED THE
CREATION OF A PATH OF STRATEGIC PARTNERSHIP BETWEEN THE
TWO COUNTRIES THAT BROUGHT ABOUT THE ALBANIAN
RECOGNITION OF ITALY AS DOOR OF EUROPE IN THE PROCESS
OF STABILIZATION AND ASSOCIATION TO EU.

NEGOTIATION FRAME
--------------

4. THE CURRENT REFERENCE NEGOTIATION FRAME IS THE
ITALIAN-ALBANIAN AGREEMENT OF COOPERATION TO
DEVELOPMENT 1998-2000, UPDATED ON THE OCCASION OF THE
HE
SIGNATURE OF THE JULY 3-4, 2000 AGREEMENT OF THE
ITALIAN-ALBANIAN MIXED COMMISSION. THE NEW AGREEMENT
PRESENTS AN OVERALL COMMITMENT IN THE THREE YEAR PLAN
OF 108 MILLION EURO, DIVIDED IN GIFTS AND AID CREDIT,
OF WHICH 40 MILLION EURO ARE STILL WAITING TO BE
DISBURSED.


5. THE NEW 3-YEAR AGREEMENT OF COOPERATION IS UNDER
NEGOTIATION IN PREPARATION FOR THE NEXT ITALIAN-
ALBANIAN MIXED COMMISSION, EXPECTED TO TAKE PLACE IN

UNCLASSIFIED

UNCLASSIFIED PTO9400

PAGE 01 ROME 01396 02 OF 04 191334Z
ACTION EUR-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
COME-00 CTME-00 INL-00 USNW-00 DOEE-00 ITCE-00 DOTE-00
SRPP-00 DS-00 EB-00 EXME-00 OIGO-00 E-00 FAAE-00
FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00
IO-00 ITC-01 L-00 VCE-00 AC-01 DCP-01 NRRC-00
NSAE-00 NSCE-00 OIC-02 OMB-01 OPIC-01 PA-00 PC-01
PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00
SSO-00 SS-00 STR-00 TEST-00 TRSE-00 T-00 USIE-00
EPAE-00 SSD-00 PMB-00 DSCC-00 PRM-00 DRL-02 G-00
SSR-00 NFAT-00 SAS-00 /012W
-------------- 775C12 191334Z /38
P 191251Z MAR 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 2823
INFO NATO EU COLLECTIVE PRIORITY
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
USEU BRUSSELS 2597
SECDEF WASHDC
AMEMBASSY TIRANA
AMEMBASSY RIGA
AMEMBASSY VILNIUS
AMEMBASSY TALLINN
AMEMBASSY SOFIA
AMEMBASSY LJUBLJANA
AMEMBASSY BRATISLAVA
UNCLASSIFIED

PAGE 02 ROME 01396 02 OF 04 191334Z
AMEMBASSY SKOPJE
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J
USDELMC BRUSSELS BE
USNMR SHAPE BE//INTAF//
CINCUSNAVEUR LONDON UK
USCINCJFCOM NORFOLK VA//J53/J71//
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX//
USLO SACLANT NORFOLK VA
USAFE RAMSTEIN AB GE//PLAD/XOM//

UNCLAS SECTION 02 OF 04 ROME 001396

SIPDIS

PASS TO EUR/RPM AND OSD/ISP/NATO

E.O. 12958: N/A
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT: ITALIAN ASSISTANCE TO NATO ASPIRANTS

SPRING 2002. THE FINANCIAL COMMITMENT THAT DGCS IS
PLANNING TO TAKE WITH THE NEW 3-YEAR AGREEMENT IS OF
ABOUT 130 MILLION EURO (OF WHICH: 93 MILLION EURO OF
AID CREDIT AND 37 MILLION EURO OF GIFTS). AN
ADDITIONAL SPECIAL CONTRIBUTION OF 25 MILLION EURO AS
AID CREDIT IS ADDRESSED TO PROGRAMS OF SUPPORT OF LOCAL
SMALL AND MEDIUM SIZED COMPANIES AND TO SUPPORT THE
CREATION OF ITALIAN-ALBANIAN JOINT VENTURES.

COOPERATION POLICIES
--------------

6. THE ITALIAN ODA TO ALBANIA, EXCLUDING THE SOCIAL AND
EMERGENCY SECTORS, HAVE BEEN CONCENTRATED ON THE LACK
OF INFRASTRUCTURES THAT REPRESENT ONE OF THE MAIN
OBSTACLES TO THE DEVELOPMENT OF THE COUNTRY. THE
UNCLASSIFIED

PAGE 03 ROME 01396 02 OF 04 191334Z
PRIVILEGED CHANNEL HAS BEEN THE BILATERAL COOPERATION.
26 PERCENT OF THE OVERALL PACKAGE OF THE ITALIAN
COOPERATION TO ALBANIA HAS BEEN IMPLEMENTED THROUGH THE
MULTILATERAL CHANNEL, THROUGH DIFFERENT SPECIALIZED
AGENCIES OF THE UN (FAO, IFAD, ILO, UNHCR, UNDP,
UNICRI, UNOPS, WHO),WORLD BANK, EBRD AND EUROPEAN
TRAINING FOUNDATION (ETF). MOREOVER THERE IS AN
INCREASE IN NON-GOVERNMENT INITIATIVES OF COOPERATION
MOSTLY AIMED AT EMERGENCY ACTIONS. AS A RESULT OF THE
OCT. 10, 1999 AGREEMENT UNDER THE PARIS CLUB, ITALY
SIGNED ON OCTOBER 12, 2000 A BILATERAL AGREEMENT AIMED
TO REDEFINE IN MORE FAVORABLE TERMS THE CONDITION OF
THE REIMBURSEMENT OF THE ALBANIAN DEBT.

PRIORITY SECTORS
--------------

7. THE PRIORITY AID SECTORS AT THE MOMENT ARE:
ELECTRIC, ROADS, WATER, HEALTH, AGRICULTURE,
ENVIRONMENT, EDUCATION-TRAINING AND GENERAL GOVERNMENT.

INITIATIVES
--------------

A. ROAD SECTOR: AID CREDIT AID OF ABOUT 27.9 MILLION
EURO.

B. ELECTRICITY SECTOR: THE OVERALL COMMITMENT IS OF
53.7 MILLION EURO AS AID CREDIT, OF WHICH 41.3 MILLION
APPROVED BY THE DIRECTION COMMITTEE IN DECEMBER 2001.

C. WATER SECTOR: A 31 MILLION EURO AID CREDIT FOR
INTERVENTION TO THE AQUEDUCT OF TIRANA IS UNDER
FINANCING.

D. AGRICULTURAL SECTOR: A GIFT OF 20.7 MILLION EURO FOR
UNCLASSIFIED

PAGE 04 ROME 01396 02 OF 04 191334Z
POLICIES OF SUPPORT OF AGRICULTURAL SECTOR IS UNDER
DISBURSEMENT.

E. HEALTH SECTOR: COMMITMENT OF A GIFT OF 3.2 MILLION
EURO AND AN AID CREDIT OF 5.16 MILLION EURO.
- PASARP (PROGRAM OF ACTIVITIES SUPPORT OF THE
ALBANIAN REFUGEE POPULATION): ITALY CO-FINANCES IDA
WITH 12.4 MILLION EURO FOR THIS INITIATIVE, AIMED TO
SUPPORT THE HUMAN DEVELOPMENT AND THE STRAIGHTENING OF
INSTITUTIONS AT LOCAL LEVEL.

TRENDS
--------------

8. IN LINE WITH THE GENERAL TARGET OF THE
RECONSTRUCTION OF THE COUNTRY CARRIED OUT BY
INTERNATIONAL ORGANISMS AND BY OTHER DONOR COUNTRIES,
THE FUTURE ORIENTATION OF THE ITALIAN ODA IS TO RESPOND
OND
TO THE NEED OF THE MEDIUM AND LONG TERM DEVELOPMENT OF
ALBANIA IN ORDER TO FACILITATE THE PATH OF DOMESTIC
STABILIZATION AND THE NEGOTIATION PROCESS AIMED AT THE
CONCLUSION OF AN AGREEMENT OF ASSOCIATION TO EU. TO
THIS END, ITALY PLANS TO CONTINUE TO PRIVILEGE
INFRASTRUCTURE INTERVENTIONS FOR THE COMPLETION AND THE

UNCLASSIFIED

UNCLASSIFIED PTQ5166

PAGE 01 ROME 01396 03 OF 04 191334Z
ACTION EUR-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
COME-00 CTME-00 INL-00 DOEE-00 ITCE-00 DOTE-00 SRPP-00
DS-00 EB-00 EXME-00 OIGO-00 E-00 FAAE-00 FBIE-00
UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00
ITC-01 L-00 VCE-00 AC-01 DCP-01 NRRC-00 NSAE-00
NSCE-00 OIC-02 OMB-01 OPIC-01 PA-00 PC-01 PM-00
PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00 SSO-00
SS-00 STR-00 TEST-00 TRSE-00 T-00 USIE-00 EPAE-00
SSD-00 PMB-00 DSCC-00 PRM-00 DRL-02 G-00 SSR-00
NFAT-00 SAS-00 /012W
-------------- 775C3A 191334Z /38
P 191251Z MAR 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 2824
INFO NATO EU COLLECTIVE PRIORITY
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
USEU BRUSSELS 2598
SECDEF WASHDC
AMEMBASSY TIRANA
AMEMBASSY RIGA
AMEMBASSY VILNIUS
AMEMBASSY TALLINN
AMEMBASSY SOFIA
AMEMBASSY LJUBLJANA
AMEMBASSY BRATISLAVA
UNCLASSIFIED

PAGE 02 ROME 01396 03 OF 04 191334Z
AMEMBASSY SKOPJE
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J
USDELMC BRUSSELS BE
USNMR SHAPE BE//INTAF//
CINCUSNAVEUR LONDON UK
USCINCJFCOM NORFOLK VA//J53/J71//
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX//
USLO SACLANT NORFOLK VA
USAFE RAMSTEIN AB GE//PLAD/XOM//

UNCLAS SECTION 03 OF 04 ROME 001396

SIPDIS

PASS TO EUR/RPM AND OSD/ISP/NATO

E.O. 12958: N/A
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT: ITALIAN ASSISTANCE TO NATO ASPIRANTS

CONSOLIDATION OF STRATEGIC INFRASTRUCTURES.
INTERVENTION IN THE EDUCATION AND DEVELOPMENT OF HUMAN
RESOURCES SECTORS HAVE TO BE STRENGTHENED AS WELL AS
THAT IN THE ENVIRONMENTAL AND CULTURAL HERITAGE
SECTORS, CONSIDERING THE STILL CRITICAL SOCIAL
SITUATION IN ALBANIA AND THE REDUCTION OF MIGRATORY
TENSIONS. ITALY PLANS TO GIVE PARTICULAR ATTENTION TO
THE DEVELOPMENT OF SMALL AND MEDIUM SIZED COMPANIES AND
OF THE AGRICULTURAL SECTOR, CONSIDERING THE IMPORTANCE
OF THESE SECTORS IN THE ALBANIAN ECONOMY AND FUTURE
INVESTMENT OPPORTUNITIES FOR ITALIAN COMPANIES. ITALY
ALSO PLANS TO INTEGRATE THESE INTERVENTIONS WITH AD-HOC
PROGRAMS OF E-GOVERNMENT TO STRAIGHTEN THE EFFICIENCY
Y
AND THE TRANSPARENCY OF ALBANIAN BUREAUCRACY
UNCLASSIFIED

PAGE 03 ROME 01396 03 OF 04 191334Z


B. MACEDONIA
--------------

9. SINCE THE 1992 EDINBURG MEETING, THE GOI, IN LINE
WITH THE EU AND THE MEMBER COUNTRIES, TOOK THE
COMMITMENT TO SUSTAIN THE PROCESS OF TRANSITION OF
FYROM, FOLLOWED BY HUMANITARIAN AND EMERGENCY PROGRAMS.
AFTER THE KOSOVO CRISIS OF 1999, THE PARTICULAR ITALIAN
INTEREST FOR THE SOCIAL AND POLITICAL STABILITY IN THE
BALKAN REGION WAS CONFIRMED DURING A VISIT TO SKOPJE BY
THE PRESIDENT OF REPUBLIC SCALFARO AND LATER
RECONFIRMED DURING A VISIT BY THE PRESIDENT OF THE
COUNCIL AND MINISTER OF FOREIGN AFFAIRS. AS A RESULT
OF THE CIVIL WAR OF 2001, WHICH PRODUCED THE WELL-KNOWN
NATO OPERATION ESSENTIAL HARVEST, THE INTERNATIONAL
COMMUNITY TOOK THE COMMITMENT TO SUSTAIN THE PROCESS OF
PACIFICATION AND STABILIZATION OF THE COUNTRY.

NEGOTIATION FRAME
--------------

10. AT PRESENT THE NEGOTIATION FRAME DID NOT TAKE SHAPE
YET. A REAL TREATY OF BILATERAL COOPERATION DOES NOT
EXIST YET. THE INTERGOVERNMENTAL MEMORANDA OF
F
AGREEMENT, SIGNED IN 1999 AND 2001 DEFINE COMMITMENTS
FOR THE IMPLEMENTATION OF SPECIFIC PROJECTS FOR AN
OVERALL VALUE OF ABOUT 25 MILLION EURO.

COOPERATION POLICIES
--------------
UNCLASSIFIED

PAGE 04 ROME 01396 03 OF 04 191334Z

11. THE ACTIVITY OF ITALIAN COOPERATION IN MACEDONIA IS
PART OF THE OVERALL FRAME OF PRIORITIES GIVEN TO THE
BALKAN AREA AND TO THE SUPPORT OF THE RELATED PROCESSES
OF RECONSTRUCTION BY THE ITALIAN ODA AS APPROVED BY THE
LEADING COMMITTEE IN MARCH 2001. IN ORDER TO
FACILITATE THE INVOLVEMENT OF THE LOCAL INSTITUTIONS
AND STRUCTURES, THE TOOL MORE FREQUENTLY USED WAS THE
CREDIT AID.

PRIORITY SECTORS
--------------

12. AFTER THE FIRST HUMANITARIAN AND EMERGENCY
INTERVENTION OF 1991 CAUSED BY THE FLOW OF REFUGEES
FROM KOSOVO, THE CURRENT PRIORITIES COVER THE FOLLOWING
AREAS: HEALTH, INFRASTRUCTURES AND SUPPORT OF MEDIUM
AND SMALL SIZED COMPANIES. ITALIAN MFA PLANS TO
CONCENTRATE FUTURE INITIATIVES MORE AND MORE ON
INTERVENTION AIMED TO SUPPORT ECONOMIC DEVELOPMENT OF
THE PRIVATE SECTOR AND INSTITUTIONAL REFORMS.

INITIATIVES
--------------

13. THE ITALIAN PROGRAMS OF COOPERATION STARTED AFTER

UNCLASSIFIED

UNCLASSIFIED PTQ5168

PAGE 01 ROME 01396 04 OF 04 191334Z
ACTION EUR-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
COME-00 CTME-00 INL-00 DOEE-00 ITCE-00 DOTE-00 SRPP-00
DS-00 EB-00 EXME-00 OIGO-00 E-00 FAAE-00 FBIE-00
UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00
ITC-01 L-00 VCE-00 AC-01 DCP-01 NRRC-00 NSAE-00
NSCE-00 OIC-02 OMB-01 OPIC-01 PA-00 PC-01 PM-00
PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00 SSO-00
SS-00 STR-00 TEST-00 TRSE-00 T-00 USIE-00 EPAE-00
SSD-00 PMB-00 DSCC-00 PRM-00 DRL-02 G-00 SSR-00
NFAT-00 SAS-00 /012W
-------------- 775C47 191334Z /38
P 191251Z MAR 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 2825
INFO NATO EU COLLECTIVE PRIORITY
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
USEU BRUSSELS 2599
SECDEF WASHDC
AMEMBASSY TIRANA
AMEMBASSY RIGA
AMEMBASSY VILNIUS
AMEMBASSY TALLINN
AMEMBASSY SOFIA
AMEMBASSY LJUBLJANA
AMEMBASSY BRATISLAVA
UNCLASSIFIED

PAGE 02 ROME 01396 04 OF 04 191334Z
AMEMBASSY SKOPJE
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J
USDELMC BRUSSELS BE
USNMR SHAPE BE//INTAF//
CINCUSNAVEUR LONDON UK
USCINCJFCOM NORFOLK VA//J53/J71//
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX//
USLO SACLANT NORFOLK VA
USAFE RAMSTEIN AB GE//PLAD/XOM//

UNCLAS SECTION 04 OF 04 ROME 001396

SIPDIS

PASS TO EUR/RPM AND OSD/ISP/NATO

E.O. 12958: N/A
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT: ITALIAN ASSISTANCE TO NATO ASPIRANTS

THE AGREEMENT BETWEEN THE GOVERNMENT OF SKOPJE AND THE
ODA DEPARTMENT OF MFA CONSIST OF THE FOLLOWING
INITIATIVES:


A. RATIONALIZATION OF THE MANAGING SECTOR AND
MODERNIZATION OF BIOMEDICAL EQUIPMENT: A GIFT OF 1.14
MILLION EURO AND A CREDIT AID OF 2.58 MILLION EURO. THE
PROGRAM STARTED IN FEBRUARY 2000. AT PRESENT IT IS
UNDER IMPLEMENTATION FOR THE GIFT PORTION OF THE
INTERVENTION WITH THE TECHNICAL ASSISTANCE PROVIDED BY
ITALIAN EXPERTS TO THE LOCAL AUTHORITIES FOR THE
MODERNIZATION OF EXISTING MEDICAL EQUIPMENT.


B. LINE OF SOFT CREDIT FOR 12.7 MILLION EURO, AIMED TO
SUPPLY ITALIAN GOODS AND SERVICES FOR THE SAME VALUE,
UNCLASSIFIED

PAGE 03 ROME 01396 04 OF 04 191334Z
WITH THE PURPOSE OF SUPPORTING THE ACCESS OF MACEDONIAN
SMALL AND MEDIUM SIZED COMPANIES TO CREDITS AND OTHER
FINANCIAL INSTRUMENTS. THE ADVISORY ITALIAN COMPANY
CHOSEN IS FORTRADE FINANCING SPA BASED IN MILAN.


C. PROGRAM FOR THE CONSTRUCTION OF INFRASTRUCTURE FOR
MANAGEMENT OF WATER RESOURCES AND FOR THE ENVIRONMENTAL
PROTECTION OF THE RADIKA RIVER IN DISTRICT OF THE TOWN
OF ROSTUSE (5.6 MILLION EURO),IS SCHEDULED TO BE
APPROVED BY THE ODA COMMITTEE IN APRIL. AT THE MOMENT
THE PROJECT IS UNDER REVIEW BY THE UTC AND IN THE
MEANTIME THE MACEDONIAN COUNTERPART WILL PREPARE THE
FORMAL ACCEPTANCE OF THE DOCUMENT. THE RELEVANT ASPECT
OF THE INITIATIVE IS THE DIRECT MANAGEMENT OF THE
PROJECT BY THE BENEFICIARY GOVERNMENT IN ACCORDANCE
WITH ARTICLE 15 OF LAW 49/87.


D. EMERGENCY PROGRAMS: THROUGH 2001 4.13 MILLION EURO
HAVE BEEN ALLOCATED FOR PROGRAMS IN FAVOR OF
POPULATIONS DAMAGED BY THE RECENT CIVIL WAR. THESE
FUNDS HAVE BEEN USED FOR INTERVENTION IN THE SOCIAL AND
HEALTH AND AGRICULTURAL AREAS AND THROUGH DIRECT
MANAGEMENT BY INTERNATIONAL ORGANIZATION LIKE UNICEF,
OMS, FAO AND UNDP.

TRENDS
--------------

14. MACEDONIA DECLARED ITS INDEPENDENCE IN 1991,
STARTING A PROCESS OF TRANSITION, WITHOUT CONFLICTS
UNCLASSIFIED

PAGE 04 ROME 01396 04 OF 04 191334Z
WITH THE FRY, TOWARDS THE MARKET ECONOMY AND
INTEGRATION WITH EUROPE. THE CURRENT INTERETHNIC
TENSIONS AND THE RECENT DOMESTIC CONFLICT SLOWED THIS
PROCESS OF CONSOLIDATION AND SERIOUS RISKS OF
INSTABILITY PERSIST, WORSENED BY THE ECONOMIC RECESSION
AND THE BUDGET DEFICIT. IN LINE WITH THE 1999-2001
COMMITMENTS, ITALY IS EXPECTED TO ANNOUNCE AN OVERALL
COMMITMENT OF 17.2 MILLION EURO FOR THE PERIOD 2002-

2004.

SEMBLER

UNCLASSIFIED

>
2002ROME01396 - Classification: UNCLASSIFIED