CANADA'S RESPONSE TO REQUEST FOR ASSISTANCE IN

UNCLAS OTTAWA 000325 SIPDIS SENSITIVE FOR EB/IFD/ODF, SA/AR AND WHA/CAN TREASURY FOR ANNA CORFIELD E.O. 12958: N/A TAGS: ECON EFIN EAID PREL AF CA IMF IBRD SUBJECT: CANADA'S RESPONSE TO REQUEST FOR ASSISTANCE IN CLEARING AFGHANISTAN'S IFI ARREARS: "WE WILL DO OUR BEST TO RESPOND POSITIVELY" REF: STATE 27597 ¶1. (U) As of late Friday afternoon (January 31) the GOC has still not announced its response to Treasury U/S Taylor's request for a contribution to cover Afghanistan's arrears to the IMF and World Bank. That said, the outlook seems promising. ¶2. (SBU) Working levels at the Canadian International Development Agency tell us they believe Minister Susan Whelan is waiting to announce the decision until after she has spoken with FinMin Ghani during Monday's conference call. James Junke, Director of the South Asia Division at the Department of Foreign Affairs and Trade, told us that the GOC has always responded positively to requests for assistance for Afghanistan, and is debating whether the contribution will come from new funds or reallocation of existing contributions. ¶3. (U) The GOC welcomed the information contained in reftel on the status of donations to cover Afghanistan's arrears. It was used for the briefing memo recommending contribution to clear the arrears, an exception from Canada's usual policy of avoiding use of development funds to pay arrears. 2.Kabul minimize considered. CELLUCCI