NEA/ARP DEPUTY DIRECTOR WILLIAMS 3/13-15 VISIT TO

C O N F I D E N T I A L SECTION 01 OF 03 SANAA 000726

SIPDIS

E.O. 12958: DECL: 04/24/2014
TAGS: PREL ECON EAID PARM PHUM KMPI YM DEMOCRATIC REFORM
SUBJECT: NEA/ARP DEPUTY DIRECTOR WILLIAMS 3/13-15 VISIT TO
YEMEN: ECONOMIC DEVELOPMENT, MCA, MEPI, REGIONAL REFORM AND
DEMOCRACY

REF: A. SANAA 672

B. SECSTATE 56282

C. SECSTATE 53932

D. SECSTATE 50441

Classified By: AGMISENHEIMER, For Reasons 1.5 (b) and (d).


1. (C) Summary: During his 3/13-15 visit to Yemen, Deputy
Director of NEA/ARP Tom Williams discussed the Greater Middle
East Initiative (GMEI) and Millennium Challenge Account (MCA)
with the Deputy Foreign Minister, who critiqued the MCA
process and indicators. The DFM also noted his primary
concern with the GMEI involves linkages with the
Israel-Palestine conflict, and outlined Yemen's limited
progress on Arab League reform. CDA delivered reftel b
points on Iraq during the meeting. Williams visited USG
education and cultural development projects outside Sana'a,
where progress was illustrated by a U.S. funded school that
once needed a roof now requesting internet access. He also
discussed progress on Yemen's democratic reforms with
parliamentarians, journalists and civic leaders, and met with
business community members, who are concerned that economic
reforms will raise prices and increase taxes (ref a).


2. (C) Williams discussed increasing U.S.-Yemen development
assistance with Deputy Prime Minister and Minister of
Planning and International Cooperation (MOPIC),who commented
positively on increased bilateral cooperation. CDA signed a
U.S.-Yemen MOU in the amount of $1.1 million, whereby USG
agreed to provide technical assistance and equipment to
support the 2004 national census. MOPIC officials are also
interested in increasing public awareness of USG development
efforts and the ROYG's economic reform package. End Summary.

US-YEMEN DEVELOPMENT ASSISTANCE: A MODEL OF COOPERATION


3. (C) Williams, along with CDA, USAID Representative,
Pol/Econoff and PD Officer, met with Deputy Prime Minister
and Minister of Planning and International Cooperation
(MOPIC) Ahmed Sofan, Nabil Shaiban, Director General for
International Cooperation with Europe and the Americas and
Technical Advisor Jala Yacoub on 3/15. DPM Sofan and Shaiban
both commented positively on the momentum of U.S.-Yemen
development cooperation, and the need for U.S. support of
pending ROYG economic reforms. Sofan's comments on the
economic reform package debate in Parliament and the need for
economic, judicial and civil service reforms to improve
Yemen's chances of qualifying for the Millennium Challenge
Account (MCA) are reported in detail in reftel a.


4. (U) Remarking that Yemen is "hungry for more" engagement,
Shaiban said he would like to embark, along with the Embassy,
on a public awareness campaign to promote U.S. development
assistance in Yemen. Shaiban, who freelances as a reporter
and documentary producer, commented that the public strongly
associates U.S. assistance with the military and the war on
terror; he intends to make a short documentary for Yemeni
television on the subject. He also mentioned that 90 percent
of U.S. development aid helps the Poverty Reduction Strategy
(PRS),and that he wants to do a public presentation on the
socio-economic impact of the assistance. When asked how
projects are prioritized, Shaiban responded that rural roads
are the priority because they are "the lifelines of
development" and the key to inter-community economic
activity, i.e., girls can get to school, people can get to
hospitals, and goods can get to market.


5. (C) On 3/14, Williams met with members of the business
community, who are worried that economic reforms will raise
prices and who did not know the details of the new tax
proposals (ref a).

THE PRESIDENT'S VISION FOR REGIONAL REFORM: ISRAEL-PALESTINE
ISSUE MUST BE ADDRESSED


6. (C) Williams discussed U.S. reform concepts with Deputy
Foreign Minister Noman, who asked for more detailed
information. Williams and CDA responded to Noman's queries
with points from reftels c and d, including the fact that
during a recent visit to the region U/S Grossman made
favorable references to the Sanaa Declaration.


7. (C) Noman claimed that the lack of a link between the
United States' reform ideas and the Arab-Israeli Conflict
raises an issue of credibility. He stated that there is a
misperception and everyone is suspicious of what is coming
out of DC. He suggested that the issue of Palestine "holds
the Arab world hostage," and said people must be convinced of
U.S. goodwill and, therefore, any reform idea needs to take
the Palestinian issue into account. While saying he
understands that reform should not wait until the problem is
solved, Noman commented favorably on French and German
initiatives that address this point.


8. (C) Responding that credibility is not the issue, Williams
reiterated that the regional reform concept is still being
formulated, and that reform and efforts to address the
Palestinian problem can move forward simultaneously. CDA
added that the U.S. would like to see a resolution at the
next Arab League Summit that provides a statement in support
of reform.

MCA: YEMEN CRITIQUES INDICATORS AS ECONOMIC REFORMS LOOM ON
THE HORIZON


9. (C) DFM Noman raised Millennium Challenge Account (MCA),
remarking that candidates should be encouraged (see also ref
a),and reported that the Yemeni ambassador in Washington
told him that he attended a briefing at which he was told ten
countries have already been chosen and Yemen would not
qualify. Pol/econoff noted that there may have been an
"unofficial tally" of the countries, but no formal decisions
had been made. Explaining that this is a new process, both
Williams and CDA encouraged Yemen to focus on maintaining
momentum on reforms as the best means of advancing its
candidacy.


10. (C) Noman questioned the MCA indicators and complained
that Yemen does not see the reports and analysis that are the
basis of MCA ranking. Pol/econoff pointed out that Freedom
House had been to Yemen, and that Yemen had advanced in the
democracy rating compiled by Freedom House. Noman said that
MCA was a tough hurdle and Yemen needs assistance to meet the
standards. He also expressed concern regarding Yemen's
pending economic reform package and its impact on the
populace, and said MCA would "ease the pain" of such reforms.
Williams noted that FM Al-Qirbi had made similar comments
about the tough hurdle MCA qualification represented in his
recent meeting with the Secretary, who had responded that the
point of the challenge was to provide incentives for
governments to undertake the necessary tough reforms - which
is why it is called a challenge.

ARAB LEAGUE REFORM: YEMEN'S LIMITED SUCCESS


11. (C) Turning to Arab League reform, DFM Noman said the
most important objective the Yemenis achieved at the recent
Arab League Ministerial in Egypt was to change the
decision-making vehicle to a majority vote, rather than
consensus. He added that some did not like the Yemeni
proposal for an Arab League Parliament, and Yemen's Arab
Security Council proposal "was not liked by others." He said
a committee would be formed after the Tunisia Summit that
would take a year to review all the proposals for overhaul of
the Arab League. Noman commented that the Saudi/Egypt/Syria
proposal was more a statement of principles than a call for
reform.


12. (C) During the meeting with Noman, CDA delivered relevant
reftel b points on transition and progress towards a
democratic and prosperous Iraq. Noman favorably received the
information and subsequently requested that the USG provide
the compendium in Arabic.

DEMOCRACY: PROGRESS, BUT POLITICAL WILL FOR REFORM NOT
ALWAYS STRONG


13. (U) At 3/14 lunch, Williams and select members of
parliament (MPs),journalists, and civil society discussed
Yemen's democratic experiment, particularly the need for
parliamentary reform. Several MP's from both the majority
political party (GPC) and the main opposition party (Islah)
noted the lack of knowledge and skills of many MPs who need
training, and requested assistance for Parliament. Attendees
commented that reform needs to continue, but political will
is not always strong and donor assistance and encouragement
would help. Looking at press freedom and case of Saed Thabet
-- the MPs went to the court in support of Thabet -- one MP
said that while press freedom in Yemen is better than
elsewhere in the region, there is still a long way to go.

USG DEVELOPMENT PROMOTES EDUCATION AND PRESERVES CULTURE


14. (U) On 3/15, Williams visited a girls' school in Amran
built with money from USDA's 416(b) program. (Note: The
school opened in 2003, at a final cost of $244,333. End
Note). Officials told Williams that, since its opening,
enrollment has risen over 200 percent due largely to the fact
that it is a single-sex school and more families have allowed
their daughters to attend. Students at the school were
enthusiastic and eager, stating that they want computers and
internet access to learn about the world. The same day,
Williams met with women at the Yemen Adult Life Skills and
Literacy Education Project in Amran to discuss their
activities and the women also stated that they would like to
have computers. Williams' final development site visit was
to an infrastructure project in Thula, a nearby village,
where USG assistance repaved the town's historical main
entrance.

ASSISTANCE TO THE YEMENI CENSUS


15. (U) CDA, AID Representative, DPM, and the Chairman of the
Central Statistics Organization, Dr. Amin Muheeddin, signed a
"Memorandum of Understanding Between The Republic of Yemen,
Central Statistical Organization, and the United States of
America, Agency for International Development, for
Cooperation to Support the 2004 Census of Population and the
Decentralization of Statistical Information." Comment: USG
is the lead donor for Yemen's national census, which will
provide data essential for the ROYG to achieve its poverty
reduction and decentralization goals and to improve
development planning, economic growth, civil registration,
elections, good governance, democratization, and investment.
USG assistance to the ROYG Central Statistical Organization
will be provided by the U.S. Bureau of the Census with ESF
funding programmed by USAID/Yemen. End Comment.
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