DARFUR: EU HEARING DIFFERENT STORY ON AU CASH FLOW

C O N F I D E N T I A L BRUSSELS 003116 SIPDIS DEPARTMENT FOR AF/FO, AF/E AND AF/RSA E.O. 12958: DECL: 07/21/2014 TAGS: PREL MARR EAID USEU BRUSSELS SUBJECT: DARFUR: EU HEARING DIFFERENT STORY ON AU CASH FLOW REF: ADDIS ABAB 2288 Classified By: POLITICAL COUNSELOR KYLE SCOTT. REASON: 1.4(B)(D) ¶1. (C) Mission spoke briefly to Friedrich Hamburger, Chef de Cabinet to Development Commissioner Nielsen, for a readout on where things stand on supporting deployment of the African Union (AU) protection element. We relayed in general terms information in Addis Ababa 2288 on the AU's cash flow and logistics problems, and asked if it coincided with Commission understanding of the situation. Hamburger said it did not. In the Commission's last contacts with the AU (last Friday according to Hamburger's information),the EC had been told the AU did not have a cash flow problem and did not expect one. ¶2. (C) The EC still has not signed the AU-EU agreement because it is precluded from doing so by legal hurdles involving the EU's arms embargo on Sudan. The embargo is expected to be officially lifted by the Council in its meeting next Monday, which will free the Commission to sign the agreement and release the funds. For technical reasons, however, it could take up to ten days for the money to make it to the AU's accounts. Although the funds are available retroactively (back to June 1),Hamburger conceded this will not help in the interim if the AU has serious cash flow problems. If this is in fact the case (and he emphasized this is not now the Commission's understanding),Hamburger suggested another donor might have to fund the immediate cash shortfalls until the Commission's funds kick in. MINIMIZE CONSIDERED McKinley