PROPOSAL TO WORK WITH ECONOMIC COOPERATION

C O N F I D E N T I A L SECTION 01 OF 02 KABUL 001560

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E.O. 12958: DECL: 06/06/2013
TAGS: ETRD ECON PREL AF PK TU IR
SUBJECT: PROPOSAL TO WORK WITH ECONOMIC COOPERATION
ORGANIZATION TO CONVENE REGIONAL TRADE INITIATIVE
PREPARATORY MEETING

Classified By: CDA Bradford Hanson for reasons 1.5 (B) AND (D)


1. (SBU) The USG and the World Bank are planning to hold the
ministerial-level Regional Trade Initiative Conference on the
margins of the IMF/WB Annual Meetings in Dubai from September
21-23, 2003.


2. (C) The interagency community is considering a proper
venue to conduct a preliminary planning meeting on the
Regional Trade Initiative in the June/July timeframe. Post
proposes that the USG consider working with an existing
regional body, the Economic Cooperation Organization (ECO),
to convene this meeting. The ECO is already scheduled to
hold a Trade and Investment meeting in 2003, but according to
their website, www.ecosecretariat.org, the exact date and
location have not been fixed. If the interagency and World
Bank agree, we could proceed with a meeting in coordination
with ECO that will serve both purposes.


3. (C) The ECO,s membership includes Afghanistan,s
neighbors -- Pakistan, Iran, Turkey, Turkmenistan,
Uzbekistan, and Tajikistan -- along with regional countries
with a high interest in regional trade and investment regimes
like Turkey, Azerbaijan, Kazakhstan and Kyrgyzstan. For the
purposes of the regional trade initiative, observer nations
might include the U.S., India, China, an E.U. representative
and Russia.


4. (C) Post defers to Washington,s judgment to determine the
feasibility of including Iran in such a conference (Iran is a
founding member of ECO ) which was founded in the 1970s by
Turkey, Iran and Pakistan). There is, however, a strong case
to be made that any regional trade initiative intended to
enhance, legalize and regularize regional trade and
investment flows must by definition include Iran. The
alternative is to give Iran (and its proxies in Afghanistan)
tremendous leverage to serve as a spoiler ) through
smuggling and other extra-legal commercial activities ) of
any regional trade initiative program we can develop.
HANSON