DJIBOUTI'S FOLLOW-UP ON U.S. OFFER TO PURCHASE NEW

C O N F I D E N T I A L DJIBOUTI 000680 SIPDIS STATE FOR AF, AF/E, AND AF/EX STATE ALSO FOR OBO, OBO/REPM, OBO/PD, AND OBO/RM E.O. 12958: DECL: 05/09/2014 TAGS: PREL AMGT ABLD DJ SUBJECT: DJIBOUTI'S FOLLOW-UP ON U.S. OFFER TO PURCHASE NEW EMBASSY SITE REF: A. DJIBOUTI 528 ¶B. DJIBOUTI 492 ¶C. STATE 086999 ¶D. DJIBOUTI 340 ¶E. STATE 086390 Classified By: AMBASSADOR MARGUERITA D. RAGSDALE. REASONS 1.4 (B) AND (D). ¶1. (U) On May 3, Ambassador raised with Mahmoud Ali Youssef, Minister of Cooperation in the Ministry of Foreign Affairs, the outstanding U.S. offer to purchase a site for a new embassy compound (NEC) in Djibouti. Youssef, at that time, said he had did not yet have a response to the U.S. offer, although he had been prodding his government since it received our diplomatic note three weeks earlier on April 11. Youssef did ask, however, if the U.S. were certain that the land it wished to purchase had not been claimed by another buyer. ¶2. (C) Ambassador responded that the U.S. team that put together our survey and offer was aware that part of the parcel of land it originally considered for purchase was no longer available. Nevertheless, the team found the remaining area of the original parcel acceptable for USG needs and the offer of USD 1,800,000 put forward in Embassy's diplomatic note covered that portion of the remaining space available in the parcel. ¶3. (C) In a follow-up phone call from Youssef to Ambassador on May 6, Youssef stated that contrary to President Guelleh's remark (reported reftel A) that the Government of Djibouti would make a counter-proposal on price of the parcel, there would now not repeat not be a counter-proposal. The amount the U.S. had offered, Youssef said, was acceptable. ¶4. (U) Youssef continued that since the price was acceptable, the matter of working out modalities -- so that a diplomatic note from the Ministry of Foreign Affairs accepting the offer and laying out technical specifications could be finalized-- had been turned over to the Minister of Habitat, Urbanism, Environment and Planning, Abdallah Abdillahi Miguil. Youssef told Ambassador that an appointment for her with Miguil had already been set for the following week. ¶5. (SBU) Ambassador is scheduled to meet with Miguil on Monday, May 17, and will advise Department of outcome and remaining issues. RAGSDALE