MINISTER OF PRESIDENTIAL AFFAIRS AND DJIBOUTI'S

C O N F I D E N T I A L SECTION 01 OF 03 DJIBOUTI 000298

SIPDIS

STATE FOR AF, AF/E, E, EB, INR/B
STATE PASS USAID
PARIS FOR NEARY

E.O. 12958: DECL: 03/03/2014
TAGS: PREL ECON EAID PHUM PGOV PINR DJ FR
SUBJECT: MINISTER OF PRESIDENTIAL AFFAIRS AND DJIBOUTI'S
AGENDA

Classified By: Ambassador Marguerita D. Ragsdale.
Reasons 1.5 (b) and (d).


1. (C) Summary: The close relationship of Minister of
Presidential Affairs, Osman Ahmed Moussa, with President
Ismail Omar Guelleh afforded Ambassador the opportunity to
reaffirm her mandate in Djibouti as U.S. Ambassador and to
solicit the Minister's views on ways to enhance the U.S.-
Djibouti partnership. During a two-hour meeting which began
as a courtesy call associated with the Ambassador's
credentialling, the Minister raised attentiveness of donors,
new partnerships in the Gulf, diversity of aid, overcoming
trade problems and infrastructure weaknesses, humanitarian
and health challenges, human rights and the military
relationship as Djibouti's premier concerns. End summary.


2. (C) Minister of Presidential Affairs, Osman Ahmed
Moussa-- who is close to Djibouti's President Ismail Omar
Guelleh-- told Ambassador February 29 during a two-hour
meeting at the Presidential Office, that Djibouti should not
be seen merely as a conflict resolution partner for the U.S.
in the Horn of Africa region but as a partner in economic
development as well. The presence of USAID at the U.S.
Mission, he said, is an encouraging sign.

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Need for Aid Coordination
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3. (C) Moussa said donors needed to be more attentive to the
needs of Djibouti and to diversify assistance areas. Some
sectors receive an abundance of aid while others lack
resources totally, he lamented, and options for development
are not being fully explored. For example, date palms could
provide food and jobs in rural areas. Their growth would
combine agriculture and pastoralism and would work well in
the South which has the necessary ground water. Also, water
resources in an area are closely linked to good health, but
the development of water resources lacks funding. Moussa
asked that the U.S. take the first steps in exploring these
areas and in raising awareness of other donors. Donors
should also look closely at aid delivery, noting, for
example, that Djibouti bought mobile clinics to serve in its
districts but poor roads made them ineffective.


4. (C) Ambassador responded that she was already exploring
the concept of establishing an informal working group in
Djibouti of donors, NGOs, UN organizations, and USAID which
would meet regularly --perhaps monthly-- to review and
coordinate development programs in-country. This might
diminish duplication of development efforts and identify
other areas where development aid might best benefit
Djibouti. She said she had not yet broached the idea with
donors and donor entities here but would do so soon.


5. (C) Moussa said he believed this a good idea. He noted
that 22,000 Somali refugees at Ali-Adde were using a large
portion of the resources of UN agencies. Djibouti's program
of repatriation of refugees to Somaliland is aimed at freeing
up these resources for Djibouti's use. He said the fact,
though, that U.N. representatives are African makes easier
their understanding of the challenges facing the Government
of Djibouti despite the internal constraints and restrictions
that prevent those agencies from fully supporting Djibouti.

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Hope in a Free Zone
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6. (C) Moussa suggested that development of a Free Zone in
Djibouti would reduce the serious problem of unemployment.
While investors have shown interest, there is little activity
to date. Moussa expressed uncertainty as to why investment
is not happening but suggested the problem might lie in
Djibouti's failure to communicate adequately with investors.
He asked for U.S. assistance and advice, which Ambassador
pledged to provide.

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Looking Gulfward
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7. (C) Ambassador asked if Djibouti saw opportunities for
development avenues in its relationships with the Gulf states
and Yemen. Moussa cited Yemen and said Djibouti would like
to partner with Yemen in the tourist trade, perhaps
attracting a share of the more than one million tourists
annually that Yemen receives. Djibouti could be an
additional destination because of its close proximity. Good
tourist sites exist in the Gulf of Tadjoura but measures
would need to be taken, he cautioned, to ensure the
environmental integrity of Djibouti's coral reefs. In
addition, Moussa said, Djibouti is discussing with Yemen
prospects for Djibouti's port becoming a regional
distribution point for Yemeni oil.


8. (C) Ambassador asked about a present or potential role for
Yemeni businessmen generally in the development of Djibouti's
economy. Moussa opined that Yemeni businessmen, while active
in Djibouti, do not participate in the local economy,
preferring to remain simple retailers who take their money
out. In the past, he said, Yemenis were some of the most
important importers in Djibouti. (Note: Ambassador wants to
explore this issue further with her interlocutors in
Djibouti. End note.)


9. (C) Moussa said trade with the Gulf countries, and
specifically the UAE (Dubai),is increasing since the medium
of exchange between the two is the dollar. He remarked that
Dubai is crowded as buyers come from all over Africa and the
Middle East. Djibouti is hopeful, he indicated, that there
will be businesses in Dubai wishing to re-locate to
Djibouti's free zone in order to serve African customers and
gain market proximity. (Comment: The Dubai Port Authority
manages Djibouti's port and airport. End comment.)

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Whither the French
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10. On relations with France today, Moussa described them as
affected by a French "attitude of neglect." "The fact that
whole Mirage engines have been stolen from French bases shows
the extent of neglect," he said. French cooperation at the
Presidency level, Moussa continued, does not exist because
the Government of Djibouti does not want the French involved
at centers of decisionmaking. However, the French are
present as technical advisers in various ministries.
France's relationship with the Government of Djibouti has
continually diminished to the point, he stated, "that they
feel completely isolated and lost." Moussa said he believes
France never had a vision of Djibouti as a commercial
platform by which it could penetrate the African market. With
France now, he said, trade is becoming more difficult because
of the high value of the Euro.

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U.S. Military and Assistance
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11. (C) Moussa noted in passing that the U.S. military has
assisted Djibouti in commercial ways. He said its provision
of night vision capability had been especially useful in his
country's efforts to stop the entry of contraband -- human or
material -- across Djibouti's borders.

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The Sticky Problem of Human Rights
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12. (C) Moussa commented that the only problem Djibouti
appeared to have with the U.S. is the negative yearly Human
Rights report, which he said "does not reflect reality."
Ambassador responded that Djibouti does have a poor record in
this area and that there is room for improvement.


13. (C) Moussa counseled that the USG should be cautious and
should watch out for "manipulation" and "misinformation" in
the human rights field that could come from both the
Government of Djibouti's staff and from the opposition. The
U.S. should be especially vigilant, he said, as allegations
fly in the period leading up to (presidential) elections.

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Comment
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14. (C) The precedent for this conversation was set during
the Ambassador's presentation of credentials to President
Guelleh. She will follow through on plans to establish a
working group of donors and others to look at economic
assistance here. She also has informally canvassed her
Ambassadorial colleagues --on whom she has called-- about
their countries' aid programs/plans for Djibouti. Egypt's
ambassador had earlier raised the possibility of date
farming, including Egypt's potential to contribute, among
other issues. A coordination on aid would prove useful on
several fronts, including as we begin to focus on other
issues, such as corruption. Of course, individual constraints
on donors and aid agencies will remain an important factor.
End comment.

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Bio-Data
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15. (C) Osman Ahmed Moussa is in his early forties. His
wife, Christiane, is a physician who is of Benin origin. They
have no children. Moussa has two brothers and two sisters.
One brother, Abubaker Ahmed Moussa, is the number two person
in Djibouti's National Security Service. Moussa's late
father was one of the first nurses in Djibouti. Moussa,
affectionately called "Tatti," has a very pleasant nature.
He speaks French, Arabic, and very limited English. He is
from the Saad Mussa Issa clan and replaced in his current
position former Cabinet Director, Ismail Guedi, from the same
clan. End bio-data.


RAGSDALE