TURKEY AND DONOR STRATEGIES FOR AFGHANISTAN, IRAQ

C O N F I D E N T I A L ANKARA 006860

SIPDIS


STATE FOR EUR/SE, NEA/IR-RAPHEL, NEA/FO-TAYLOR
NSC FOR BRYZA AND MCKIBBEN
TREASURY FOR OASIA JLEICHTER AND MMILLS


E.O. 12958: DECL: 11/03/2013
TAGS: EAID EFIN IZ PGOV PREL TU
SUBJECT: TURKEY AND DONOR STRATEGIES FOR AFGHANISTAN, IRAQ


REF: STATE 303818


Classified by A/ECON Andrew Snow for reasons 1.5 (b) and (d)



1. (C) SUMMARY: According to Turkey's Coordinator for
Afghan and Iraq Assistance Ambassador Okcun, Turkey takes
very seriously its commitments to Afghan and Iraq
Reconstruction. Turkey has already fulfilled its USD 5
million commitment for Afghanistan and is eager to disburse
its USD 50 million pledge for Iraq. Okcun was disappointed
by the "shameful" lack of financial support of donors at
Madrid. END SUMMARY.


Afghan Assistance
--------------

2. (C) Econoff met with/delivered reftel talking points to
Ambassador Okcun, who said Turkey agrees with the initiative
to accelerate assistance to Afghanistan and reported that
Turkey had already exceeded its Tokyo pledge of USD 5 million
to Afghanistan. He added that the GOT did not want to stop
there and was considering an additional USD 5 million. He
confirmed that Economy Minister Babacan had made this offer
to Treasury Secretary Snow when they met at the G-20 meeting
in Mexico. Okcun was optimistic that Turkey could get the
money but would not know right away because the proposal must
be approved by the government and Parliament for next year's
budget.


Madrid Donors' Conference
--------------

3. (C) Okcun confirmed that Turkey had increased its pledge
to USD 50 million. He was disappointed by the "shameful"
pledges of many other countries, and estimated that new cash
grants (excluding the U.S. pledge, loans and other double
counting) totaled only USD 3.8 billion. On this basis,
Turkey, a country with tight budget constraints and a low
standard of living, ranked 14th among the donors.



4. (C) Okcun said that the donor delegations were confused
about the organization of assistance for Iraq, especially the
Multi-Donor Fund. He said Turkey would focus on bilateral
programs, earmarking only a fraction for the MDF. The GOT
was already reviewing project proposals and assessing them
against the World Bank Needs Assessment. However, he said
that Turkey and other donors do not know who they should
consult with in Baghdad and will need more central direction
from Iraqi authorities in order to avoid duplication of
effort, address Iraq's priority needs and ensure that
bilateral donor contributions fit into the overall scheme for
reconstruction. Embassy would appreciate guidance about
donor coordination for Iraq.


Madrid Private Sector Meeting
--------------

5. (U) Okcun said that Turkey was encouraged by the turnout
for the private sector session. However, he said that
Turkish businesses were reluctant to do more because of
growing security concerns. Many Turkish truck drivers will
no longer travel beyond Mosul, he reported.



6. (U) Baghdad and Kabul minimize considered.
EDELMAN