ITALY TO INCREASE SUDAN DEVELOPMENT ASSISTANCE

C O N F I D E N T I A L ROME 005689

SIPDIS


E.O. 12958: DECL: 12/09/2013
TAGS: PINR EAID IT SU KPRP
SUBJECT: ITALY TO INCREASE SUDAN DEVELOPMENT ASSISTANCE
(C-AL3-01178)

REF: SECSTATE 332595

CLASSIFIED BY: ECONOMIC COUNSELOR KATHLEEN REDDY, REASONS 1.5 B AND D.


1. (U) IN SEPARATE MEETINGS WITH PAOLA IMPERIALE, MFA OFFICE
DIRECTOR FOR EAST AFRICA, AND GIOVANNI BATICCI, MFA AFRICA
DEVELOPMENT ASSISTANCE EXPERT, EMBOFFS RECEIVED DETAILED
INFORMATION ON ITALY'S PLANNED 63 PERCENT EXPANSION OF
ASSISTANCE TO SUDAN IN 2004. PLEASE NOTE THAT THE FOLLOWING
INFORMATION IS KEYED TO THE QUESTIONS LISTED REFTEL.


2. (C) PARAGRAPH 1. A:

-- IN 2003, ITALY GRANTED EURO 8 MILLION TO SUDAN, BUT WILL
INCREASE THE AMOUNT TO EURO 13 MILLION IN 2004.

-- ITALY EXTENDS NO LOANS TO SUDAN. ITALY GIVES ONLY
HUMANITARIAN ASSISTANCE TO SUDAN. FORTY PERCENT OF WHICH IS
BILATERAL, WITH THE REMAINDER CHANNELED THROUGH UNICEF, THE
WHO, ETC. ITALY WILL NOT EXTEND LOANS TO SUDAN BEFORE 2005.
-- ITALY WILL PARTICIPATE IN PEACEKEEPING OPERATIONS. THE
MFA HAS REQUESTED PERSONNEL FROM THE ITALIAN JOINT STAFF, BUT
HAS YET TO RECEIVE A RESPONSE. AS PEACEKEEPING MAY FALL
UNDER UN JURISDICTION, ITALY'S CONTRIBUTION COULD BE
DETERMINED BY QUOTA.

-- IN 2004, ITALY WILL INCREASE ITS AID TO SUDAN BY 63
PERCENT. WHILE FUNDING TO IRAQ AND AFGHANISTAN ARE AT HIGHER
LEVELS (EURO 60-70 MILLION ANNUALLY, ON AVERAGE),SUDAN
NONETHELESS IS A TOP PRIORITY FOR ITALY.

-- ITALY IS INVOLVED WITH FOOD DISTRIBUTION, WATER,
SANITATION, AND CAPACITY BUILDING PROGRAMS IN THESE SECTORS
IN BOTH THE NORTH AND SOUTH OF THE COUNTRY.

-- ASSISTANCE TO THE NORTH IS CONCENTRATED IN DARFUR AND
CASALA; TO THE SOUTH, IN NUBA AND WEST BARAGAZAL.

-- ITALY IS PROVIDING HUMANITARIAN ASSISTANCE MOSTLY THROUGH
ITALIAN AND INTERNATIONAL NGOS.

-- ITALY'S INTEREST IN SUDAN IS STRICTLY HUMANITARIAN.

-- IN THE GOI VIEW, IT IS NECESSARY TO IMPROVE ACCESS TO FOOD
AND WATER TO RESOLVE THE IMMEDIATE HUMANITARIAN CRISIS. OVER
THE LONGER-TERM, ITALY IS FOCUSED ON CAPACITY BUILDING IN
PRIMARY ECONOMIC SECTORS.

-- ITALY SEES THE NEED FOR ASSISTANCE IN SUDAN AS "VERY
LARGE, THE WORST SITUATION WE'VE SEEN IN TWENTY YEARS."


3. (C) PARAGRAPH 1. B:

-- ITALY SUPPORTS REESTABLISHING LOME COOPERATION, TO ENABLE
SUDAN TO TAP INTO THE EU INVESTMENT BANK INFRASTRUCTURE FUNDS
AS WELL AS A SIZABLE DEVELOPMENT FUNDING.

-- THE EU PROVIDES ONLY HUMANITARIAN ASSISTANCE TO SUDAN AND
NOT DEVELOPMENT ASSISTANCE. EU DEVELOPMENT ASSISTANCE IS
CONTINGENT UPON SUDAN'S SIGNING THE PEACE AGREEMENT, WHICH
THE GOI HOPES COULD HAPPEN AS EARLY AS MARCH, 2004. IF SO,
EURO 434 MILLION WOULD BE AVAILABLE FOR SUDANESE
PEACE/CAPACITY BUILDING AND FOR FOOD SECURITY PROJECTS.
DISPERSAL OF FUNDS WOULD BE LINKED TO IMPLEMENTATION OF THE
AGREEMENT AND ONGOING PROTECTION OF HUMAN RIGHTS.
SEMBLER

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2003ROME05689 - Classification: CONFIDENTIAL