HAITI: PROSPECTIVE EC ASSISTANCE, DUTCH

1) Following up on A/S Tony Wayne's appeal to Dutch Director for Latin
America and the Caribbean for pledges and participation in the Haiti
donors conference (ref A), on July 14 econoff delivered ref B and C
demarches to Peter van de Geer, Director of Caribbean Affairs. Van de G
responded that the European Commission EC had roughly 150 million Euros
frozen Article 96 funds for Haiti. The EC would unfreeze roughly 50-70
million Euros (the 7th, 8th and 9th "B-envelope" development funds)
between now and the Haitian elections expected in 2005. The remainder (
9th "A-envelope" funds) would be released after successful elections.
de Geer could not say if any funds would be released in time for the
donors conference, referring us to the Commission on questions of timin
He confirmed that Wim Geerts, the Dutch DCM in Washington, would repres
the GONL at the conference.

2) Van de Geer described the internal negotiations around how much and
when the EC would release Article 96 money. He said that member states
worries about good governance and Haitian absorptive capacity trumped
French efforts to have more money released sooner. In the end, the Dutc
brokered an agreement that reflected "the majority" of the member state
wishes.

3) Van de Geer stressed that conference organizers should give promine
to plans for improved governance, institution building and free
elections. During discussions in Brussels Van de Geer heard cynicism f
journalists and certain member state colleagues regarding Haiti's abili
to overcome its disappointing recent past. The feeling was, he said, t
time around "things need to be done better."
SOBEL