Identifier
Created
Classification
Origin
04BRUSSELS4025
2004-09-21 15:18:00
CONFIDENTIAL
Embassy Brussels
Cable title:  

EU FUNDING FOR IRAQ: EB A/S WAYNE MEETING WITH

Tags:  PREL EAID PGOV MOPS IZ EUN USEU BRUSSELS 
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211518Z Sep 04
C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 004025 

SIPDIS

DEPT FOR E - U/S LARSON, EB, EUR/ERA, NEA/I
PLEASE PASS USAID FOR PPC/DCO

E.O. 12958: DECL: 09/21/2009
TAGS: PREL EAID PGOV MOPS IZ EUN USEU BRUSSELS
SUBJECT: EU FUNDING FOR IRAQ: EB A/S WAYNE MEETING WITH
COMMISSION OFFICIALS

REF: BRUSSELS 3983

Classified By: USEU POLOFF LEE LITZENBERGER; REASONS 1.4 (B,D)

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 004025

SIPDIS

DEPT FOR E - U/S LARSON, EB, EUR/ERA, NEA/I
PLEASE PASS USAID FOR PPC/DCO

E.O. 12958: DECL: 09/21/2009
TAGS: PREL EAID PGOV MOPS IZ EUN USEU BRUSSELS
SUBJECT: EU FUNDING FOR IRAQ: EB A/S WAYNE MEETING WITH
COMMISSION OFFICIALS

REF: BRUSSELS 3983

Classified By: USEU POLOFF LEE LITZENBERGER; REASONS 1.4 (B,D)


1. (U) Action request: See para 12 below.


2. (C) Summary. Commission Deputy DG Leigh told EB A/S
Wayne on September 21 that the EC agreed that the goal for
the upcoming Tokyo conference is to get more support from
donors for Iraq. To do this, Leigh said, Iraqi officials
must present a strategy and their specific assistance needs
rather than having the US take the lead. France and Germany
are considering making assistance offers in Tokyo, Leigh
added, but it is essential that Arab countries also deliver.
On election support, the EC is looking at how to monitor the
election process from Amman, rather than provide direct
observers in-country, due to the security situation. The EC
may also provide some additional funding out of its
election/democracy funds. In addition, the EC is looking to
see if it can fund directly some components of a UN
protection force, but the focus is on member states, who have
so far offered 10 million euros. Questions remain, though,
on what the UN actually needs, whether any troops have been
offered, and how funding will be transferred to troop
suppliers. A/S Wayne updated Leigh on the Forum for the
Future meetings in New York; Leigh said the EC would
participate and share information on its existing programs in
the region, but he was not sure it could contribute funding
to the initiative. End Summary.

Tokyo Donors' Conference
--------------

3. (C) On September 21 in Brussels, EB A/S Tony Wayne met
with European Commission Deputy Director General Michael
Leigh to discuss Iraq. A/S Wayne briefed Leigh on US
planning for the Tokyo meeting, informing him that the focus
will be on showing Iraqi leadership and plans, accelerating
disbursements, stock-taking of where donors stand on the
pledges made one year ago at Madrid and hopefully adding some

new offers of aid. Leigh said the Commission remains
engaged, as a Core Group member, and by having recently sent
an exploratory mission to Iraq. All 200 million euros of
Commission funding for Iraq pledged at Madrid has been
committed to the UN and WB trust funds, he said, and the EC
is preparing to make a similar commitment for 2005.

Let Iraq, not US, present needs
--------------

4. (C) Leigh agreed the goal for Tokyo should be to get
more support for Iraq, particularly from those countries that
did not pledge at Madrid (i.e. France and Germany) and
suggested that Iraqi officials be present to make their case
directly. For example, he suggested that rather than have
the US explain its decision to switch priorities for
assistance, which will open up gaps in other areas, Iraq
should explain its development strategy and the needs that
flow from it. Leigh also said it would be important for Iraq
to show that it has been tracking the assistance it has
received from donors. For its part, the EC is working with
all EU member states, both to take stock of the assistance
provided by those that pledged in Madrid, but also to work
with the French, Germans and others who Leigh said are
considering announcing assistance at Tokyo. In this regard,
he said, it will be important for the UN and WB to evaluate
the effectiveness of the trust funds, and how they will be
handled in the future.

Will Arab countries pledge at Tokyo?
--------------

5. (C) Leigh asked whether Saudi Arabia and other Arab
countries would be announcing assistance at Tokyo. A/S Wayne
briefed him on Iraqi-Jordanian discussions about possibly
Jordan offering to host the next reconstruction fund meeting.
(On this latter point, Leigh said his understanding is that
Japan is not seeking to transfer chairmanship to another
donor following the Tokyo meeting, but instead was keen to
identify a new host.) Wayne noted that he would be meeting
GCC officials next week in Washington and would press the
Saudis and others on the need to announce assistance to Iraq
in Tokyo. Leigh reiterated the importance of having the Arab
states deliver in Tokyo.

Elections: Remote Monitoring, not Direct Observation
--------------

6. (C) Leigh and his staff explained that the EU's recent
exploratory mission returned from Iraq having concluded that
the security situation precluded the EC from mounting a
classical election observation mission. Even the MNF had
said it could not provide security for large numbers of EU
observers dispersed around the country. For its part, the UN
reportedly told the EC in clear terms that observation would
not be possible for the January elections; perhaps for future
rounds, but not now. The EC now plans to send an experts
mission in early October to Amman to look at alternatives to
direct election observation. They will meet with the Iraqi
election commission and other officials to determine how the
EC can monitor the election process from Amman.


7. (C) Leigh said the EC was also looking at ways to
respond to the UN's election appeal, and had identified
potential funds for both 2004 and 2005. In addition, the EC
was thinking about placing election experts on the UN's
election team. Leigh noted that Iraqi PM Alawi had been
invited to the November 5 EU Summit, and this was a logical
time to announce EU election support.

UN Protection Force
--------------

8. (C) Leigh's staff explained that under strong pressure
from member states the Commission continues to explore legal
ways to fund some part of the UN protection force directly,
although this is problematic. EC officials will meet in New
York with UN officials this week to explore the possibility
of funding the "inner core" security band for the UN -- if
this involves securing buildings and providing equipment, the
Commission may be able to fund it. Funding direct military
operations is not possible.


9. (C) The focus therefore remains on member state
contributions, but even here questions remain. On funding
needs, although the figure of $26 million seems agreed, the
Dutch are telling the EC that in fact there is only a $10
million gap, but it's not clear what the origin of this
figure is. Currently, Leigh said, EU member states have
offered about 10 million euros (reftel),but the UN's exact
needs still aren't clear. In addition, the EC has heard that
there aren't any troops available, even if the funding is
found. Finally, the funding mechanism to be used is not
clear. A/S Wayne agreed to check on these issues and provide
updates to the EC based on our current understanding.

Forum for the Future
--------------

10. (C) A/S Wayne briefed Leigh on US plans for the
September 23-24 Forum for the Future meetings in New York,
noting that they were preparatory events for a full Forum
meeting later in the year. A/S Wayne said we are very
pleased that nineteen ministers and a good representation of
civil society/private sector representatives were attending.
He also noted that Secretary Snow would be hosting another
preparatory meeting with Finance Ministers around the October
2-3 Bank/Fund meetings. Leigh said the EC will participate
actively in New York and share information on the assistance
it provides the region through its existing Barcelona
process, and through the proposed new European Neighborhood
Instrument that will be set up starting in 2007 (subject to
Council and Parliamentary agreement),but noted he was not
sure what the EC could contribute to the Forum directly.

New EC Funding Mechanisms
--------------

11. (SBU) Leigh explained that, as part of the preparations
for the Commission's 2007-13 budget, the EC is streamlining
its assistance. Current funding mechanisms such as TACIS
(Technical Assistance to the CIS),CARDS (Community
Assistance for Reconstruction Development and Stabilization)
and MEDA (which funds the EU's Barcelona Process with Middle
East and North Africa) will disappear. In lieu of the
current fifty funding instruments, the Commission is
proposing a streamlined four new funds. The first, for the
European Neighborhood Initiative, will cover EC assistance
for the current Barcelona countries, Ukraine, Moldova,
Belarus, the three Caucasus countries, and Russia. This fund
will include a new, unprecedented facility for cross-border
programs between EU and neighboring states, e.g. Poland and
Ukraine. The second, for Enlargement, will cover the Western
Balkans, Romania, Bulgaria and Turkey. The third, for
Economic Cooperation and Development, will apply to all of
Asia (including Central Asia) and Latin America. The fourth,
a Stability Fund, will in fact be a reserve to meet emerging
crises. (The European Development Funds (EDF) for the 77
Africa, Caribbean and Pacific countries joined to the EU
under the Cotonou Agreement is currently off-budget, though
the Commission has proposed bringing it on-budget as well.)

Action Request
--------------

12. (SBU) That Department advise USEU of latest status of UN
funding requirement for a UN Protection Force in Iraq, list
of potential troop-providing countries, and possible
mechanisms for transfer of funds.

13. (U) A/S Wayne cleared this message.
SCHNABEL