FUNDING FOR AFGHAN ELECTIONS: ITALY WILL HELP,

C O N F I D E N T I A L ROME 003827 SIPDIS E.O. 12958: DECL: 08/21/2013 TAGS: PREL EAID AF IT USNC SUBJECT: FUNDING FOR AFGHAN ELECTIONS: ITALY WILL HELP, PROBABLY THROUGH EU -- BUT DON'T FORGET IMPACT OF SECURITY REF: A. STATE 237880 ¶B. ROME 3794 ¶C. ROME 3366 ¶D. ROME 1434 Classified By: CHARGE EMIL SKODON, REASONS 1.5 (B) AND (D). ¶1. (C) SUMMARY: Italy will help us seek needed funding for Afghanistan, but funds will likely to have to come from EU coffers. While the Italians have not flatly ruled out increased bilateral assistance, our contacts think this is unlikely, given Italy's ongoing financial commitments, including to Afghanistan. Our counterparts recommend we consider approaching key EU members and perhaps the EC directly prior to Afghanistan-related meetings in early September. They also let us know that U/S for Asia and Human Rights Boniver will lead an EU Troika visit to Afghanistan in October, which European Commissioner Chris Patten is expected to join. END SUMMARY. ¶2. (SBU) A/PolMin raised Ref A points with Acting MFA Political Director Bisogniero on August 19. Charge reiterated the points to the acting Diplomatic Adviser to the Prime Minister, Francesco Talo', on August 20 (see also Ref B). Poloff discussed the points with the Chief of Staff to the Under Secretary for Asia and Human Rights on August 21 and the Special Coordinator for Afghanistan on August 20. We have also shared the points with available contacts in the MFA's offices of EU Affairs and Development and Cooperation. ¶3. (C) Our Italian counterparts have not told us Italy will not increase its bilateral assistance to Afghanistan (over 47 million Euro pledged, Ref D). However, speaking openly and without instructions to Poloff, Special Coordinator for Afghanistan Ambassador Enrico di Maio (please protect throughout) said finding additional bilateral money was highly unlikely, given Italy's budget problems and current level of international assistance, not only in Afghanistan, but also in Iraq and other parts of the world. Those of us who work on Afghanistan see the urgency, he said. The need for action as outlined by the U.S. is "crystal clear;" USG arguments are well-founded. "I applaud the USG's leadership. But it is a question of money." U/S Boniver's Chief of Staff, Minister Alessandro Di Franco, was less direct, but made much the same point. (See also Ref C, describing current levels of expenditures and the negotiations needed to come up with funding for assistance and peacekeeping.) ¶4. (C) Di Maio (echoed in part by PM Diplomatic Adviser Talo' in his meeting with the Charge, Ref B) urged the USG to also push Germany and the UK to support our proposal. As the other lead nations building and stabilizing Afghanistan, they would be predisposed to support us and could help Italy make the case to the EU. Di Maio characterized the FRG as "particularly engaged." The U.S. should also approach the Commission directly; "the Commission has the money." Di Maio said the Netherlands were also quite strong on Afghan assistance. Asked if Italy would also push, as current holder of the EU Presidency, Di Maio said he had already been in touch with his counterparts at the Commission. But it would take more than Italy acting alone, he suggested. He noted the difficulty of the Presidency country pushing others if it was not able to lead by example. ¶5. (C) Still speaking frankly, Di Maio emphasized the "vicious circle" between aid contributions and the security situation in Afghanistan. NATO leadership of ISAF is a great help, but expansion of ISAF beyond Kabul would facilitate larger donations. Di Maio asserted that the EU wants to see ISAF expansion. Even if the decision to expand ISAF's role is made, it will take time to implement. Meanwhile, some governments (or, he implied, the EC) could use the security situation as an excuse for delaying funding increases and/or disbursement. Waiting one year for expansion of ISAF's role would be too long, Di Maio insisted. The urgency -- as laid out in the U.S. points -- is now. There is a contradiction between pushing for accelerated development on the one hand, and delaying security considerations on the other. ¶6. (SBU) Di Maio and Chief of Staff Di Franco highlighted upcoming meetings conducive to EU consideration of increased funding for Afghanistan. According to them, there will be a meeting of development experts in Brussels on September 8, on Asian Affairs on September 11, and on Political Affairs on September 12. (Di Maio is scheduled to attend the last meeting.) Both highlighted an October visit by the EU Troika to Afghanistan. (They did not provide an exact date.) U/S for Asia and Human Rights Boniver will lead the visit, according to Di Franco, and both said EC Commissioner Chris Patten was supposed to participate. Di Maio believed the September 8 development meeting was key and urged full pressure prior to that meeting. NOTE: We checked the EU calendar and saw no meetings yet posted which appear to correspond directly to the ones mentioned. USEU also checked to no avail. We will seek further clarification. END NOTE. ¶7. (C) COMMENT: We think the Italians who work directly on Afghanistan genuinely understand and agree with us on the need for urgent action. Finding additional money for increased Italian bilateral assistance will be very difficult. EU funding may be easier to achieve. The Italians will work with us in EU fora, but we doubt that Italy will be able to carry this issue alone. We would encourage strong approaches to the EC directly, as well as interventions seeking British and German support. Skodon NNNN 2003ROME03827 - Classification: CONFIDENTIAL