ETHIOPIAN OFFICIALS HOLD TALKS WITH DJIBOUTI

C O N F I D E N T I A L DJIBOUTI 000730

SIPDIS

STATE FOR AF AND AF/E

E.O. 12958: DECL: 05/20/2014
TAGS: PREL PGOV ECON EINV ET KU MY DJ TC
SUBJECT: ETHIOPIAN OFFICIALS HOLD TALKS WITH DJIBOUTI


Classified By: AMBASSADOR MARGUERITA D. RAGSDALE.
REASONS 1.4 (B) AND (D).


1. (C) Minister of Cooperation in the Ministry of Foreign
Affairs (MFA),Mahmoud Ali Youssef, told Ambassador May 20
during their meeting at the MFA on another matter, that the
May 18-19 visit of Ethiopian Prime Minister Meles Zenawi to
Djibouti had gone very well. Meles had come to Djibouti to
inaugurate what Youssef described as the Ethiopian
Government's "most expensive embassy complex in Africa."
(Note: Ambassador had attended the inauguration which took
place in Djibouti on May 18. End note).


2. (C) While Meles also met privately with Guelleh during his
visit, the visit was an opportunity as well for Djibouti to
launch the first meeting in five years of the
Ethiopia-Djibouti Ministerial Committee. The Committee
included Ethiopia's Seyoum Mesfin, Foreign Minister, Girma
Birru, Minister of Commerce and Industries, Getachew Belai,
Minister of Finance, Haile Assegide, Minister of State for
Infrastructure, Mulegeta Alemseged, described as "Minister
in the Office of the Prime Minister," and their Djiboutian
counterparts. Also participating from Ethiopia were the
Director General of African Affairs at Ethiopia's Ministry of
Foreign Affairs, and the Ethiopian Ambassador to Djibouti,
Shemsudin Ahmed Robleh. Meetings of the Ministerial Group
were in progress on May 20 when Youssef broke away to meet
with Ambassador.


3. (C) In a quick brief, Youssef said the Ministerial Group
talks were focused on three key areas, the first being
Somalia. Djibouti hoped "to bring Ethiopia around" in its
thinking on the future of Somalia. The focus is to encourage
Ethiopia to undertake higher level engagement in the Somali
peace process.


4. (C) The second area of Ministerial discussion, Youssef
said, is development of Djibouti's new Port of Doraleh, whose
construction is being managed by Emirates National Oil
Company. Ethiopia wants not only to invest in the port but
in the possible development as well of an oil pipeline that
would run directly from the Port of Doraleh to a point in
Ethiopia, perhaps Addis Ababa, according to Youssef. (Note:
Fahmi al-Hag, Investment Advisor to President Guelleh
(protect),told Ambassador several weeks ago that the
Independent Petroleum Group (SAK) Kuwait (IPG) is interested
in construction of a "white oil" pipeline from Doraleh port
to a discharging or distribution terminal in Addis Ababa. A
pipeline "order of magnitude cost estimate" completed two
years ago for the project makes note of Ethiopia's interest.
Petronas of Malaysia is also said to be interested in this
project. End note).


5. (C) A third area of interest for the two delegations,
Youssef said, is the SEA-ME-WE 4 intercontinental cable
network that Djibouti wants to participate in but lacks the
necessary capital to join singularly. Ethiopia may be
interested in linking up with Djibouti for access and
discussions are taking place on best means to initiate that
involvement, according to Youssef.


6. (C) Youssef said Djibouti was quite pleased about the
prospect of talks with Ethiopia at the ministerial level
because too much time had passed since the last session five
years ago. He commented, however, that it is never easy to
negotiate with Ethiopians, so the talks have not been easy.
In the history of dealing with Ethiopia, the farther it is
apart from Eritrea, he mused, the closer it wants to move
toward Djibouti. Djibouti benefits economically from the
existing tensions between the two countries and while
unfortunate in a way, he said, it is "a fact of life."


7. (C) Comment: Youssef gave every indication that Djibouti
is keen to make the most of the current economic advantages
it enjoys with Ethiopia. Direct Ethiopian investment in
Djibouti would strengthen ties to an extent that would be
more difficult to end should the political climate in the
region change -- especially between Ethiopia and Eritrea --
in the not-too-distant future. End Comment.
RAGSDALE