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