Identifier
Created
Classification
Origin
04BRUSSELS2983
2004-07-13 14:26:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brussels
Cable title:  

A/S WAYNE MEETING WITH COMMISSION ON HAITI

Tags:  EAID EFIN HA EUN USEU BRUSSELS 
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UNCLAS SECTION 01 OF 02 BRUSSELS 002983 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EAID EFIN HA EUN USEU BRUSSELS
SUBJECT: A/S WAYNE MEETING WITH COMMISSION ON HAITI

REF: STATE 151861

Sensitive But Unclassified, entire text.

UNCLAS SECTION 01 OF 02 BRUSSELS 002983

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EAID EFIN HA EUN USEU BRUSSELS
SUBJECT: A/S WAYNE MEETING WITH COMMISSION ON HAITI

REF: STATE 151861

Sensitive But Unclassified, entire text.


1. (SBU) Summary. In a meeting with EB Assistant Secretary
Wayne, Commission Development Director Sipke Brouwer
explained the Commission would pledge approximately 160
million Euros for Haiti over the next two years including up
to 77 million Euros as non-project (more rapidly available)
funds, with additional funds over the medium and longer term.
Wayne suggested contributing election support through the
OAS, and the Commission agreed to consider that path.
Brouwer noted member states would be led by the French 26
million Euro contribution. End Summary.


2. (SBU) EB Assistant Secretary Wayne accompanied by Kerri
DiZoglio EB/IFD, and emboffs, met at DG Development with
Sipke Brouwer, Director of West and Central Africa, the
Caribbean, and Overseas Country Territories (OCTs). Brouwer
was joined by John Calighorou, Head of Unit for Caribbean and
OCTs, Lut Fabert-Goossens, Administrator, Caribbean at DG
Development to discuss funding for Haiti in light of the
upcoming July 19-20 Haiti Donors' Conference.


3. (SBU) Wayne opened by explaining that the U.S. was
concerned with the vast development and humanitarian needs in
Haiti, including for short-term rehabilitation and
operational needs, but was encouraged by progress made by the
interim government thus far. Wayne said, and the Commission
agreed, that donors should learn from mistakes of the past
and stay constructively engaged for a longer period of time.
Strong pledging at the Donors' Conference is an important
step.


4. (SBU) Brouwer reported that the Commission has
approximately 160 million Euros to pledge for Haiti over the
next two years coming from 3 sources: (1) 27 million Euros in
existing funds are authorized and fully usable from the
Eighth European Development Fund (EDF) and approximately 50
million Euros from miscellaneous rehabilitation funds; (2)
72 million Euros of Ninth EDF Envelope A funds are subject to
the Cotonou agreement with the GOH and therefore will be
programmed through an agreed strategy and national indicative
program. The funds under the Ninth EDF are conditioned on
political progress and have been partially blocked. They
will be unblocked when free and fair elections are held in

Haiti. The unblocking process is at the Council level.
These funds are usable for regular programs, under a strategy
agreed to by GOH and the Commission after elections, once the
situation is normalized; (3) 23 million in Ninth EDF Envelope
B funds are not subject to the same programming procedure as
Envelope A funds and can be applied to unexpected
circumstances, humanitarian assistance and rehabilitation.
The EU will provide these "bridge funds" if Haiti has the
absorption capacity. Envelope B may be increased as a result
of a reallocation of funds through an ongoing a midterm
review at DG Development.


5. (SBU) Brouwer explained DG Development has earmarked 10
million Euros for elections, although the needs assessment
stood at 30 million Euros. Wayne noted that the U.S. would
contribute 13 million dollars for elections through the OAS.
Brouwer agreed that the OAS had the experience and should
take the lead on elections.


6. (SBU) A/S Wayne noted the apparent reservation of Member
States to provide budgetary support, especially covering
running expenses. He pointed out the broad definition used by
the IMF, which includes emergency rehabilitation and
operating expenses. Wayne said this could include support for
education, such as by providing textbooks, and encouraged the
Commission to urge member states to provide this kind of
off-budget contribution, as well as providing EC funds.
Wayne asked about additional contributions from member
states. Brouwer said the French would lead with about 26
million Euros with lesser amounts from the others, including
some from Germany.


7. (SBU) Wayne asked who from the Commission would attend
the Donors Conference. Brouwer said Commissioner Borg
(pronounced "borsh"),the new Commissioner from Malta twinned
to DG Development, would lead the Commission delegation.
John Calighorou, Head of Unit for Caribbean and OCTs, Lut
Fabert-Goossens, Administrator, Caribbean and the head of the
EC Delegation in Port-au-Prince would also attend.


8. (SBU) Calighorou expressed concern over the absorption
capacity of Haiti, citing that up to now it has been able to
absorb 300-350 million Euros at best and the Donors'
Conference anticipates raising nearly twice that much (550
million Euros per year, including IDB money). Wayne suggested
that donors work with the IGOH and other donors to help build
the government's capacity to absorb the additional aid and to
assure good on the ground coordination mechanisms.


9. (SBU) On humanitarian assistance, Fabert-Goossens said
that ECHO, the EU's humanitarian agency, would continue to
provide approximately 7.7 million Euros in humanitarian
assistance each year over the next two years and food aid
would also continue.


10. (SBU) Comment: The Commission officials were committed
but need to be pushed on timing for committing and planning
for use of funds. In addition to pressing for funds to help
meet the IMF identified operational needs, project funds will
take time to plan and disburse, a process that we should
begin before elections are completed.

McKINLEY