OTTAWA: LETTER FROM U/S LARSON AND TAYLOR ON

UNCLAS OTTAWA 001168 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EFIN EAID PREL AF CA IMF IBRD SUBJECT: OTTAWA: LETTER FROM U/S LARSON AND TAYLOR ON FILING THE AFGHAN GOVERNMENT'S FINANCING GAP REF: STATE 105217 ¶1. (SBU) We delivered reftel message April 25 to Hau Sing Tse, Vice-President of the Canadian International Development SIPDIS Agency (CIDA) and to Jonathan Fried, Senior Assistant Deputy Minister of Finance, with a copy to the Department of Foreign Affairs and Trade. The GOC is discussing allocation of its remaining aid commitments, and hopes to have a proposal for approval by Minister Whelan by early June. ¶2. (SBU) A CIDA official confirmed that of Canada's two-year, C$250 million pledge in Brussels, C$23.5 million has been committed to the ARTF for this year's operational expenses, with another allocation planned for next year. That timing is now being reconsidered. Canada plans to focus its development assistance on livelihoods; natural resources (including agriculture); and security/rule of law. Between now and early June the GOC is consulting with the Afghan government and other donors to determine the major outline of its allocations of development and operational assistance, and the extent to which development funds can be redirected to the ARTF. CELLUCCI