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