HAITI:PROSPECTIVE EC ASSISTANCE, DUTCH

UNCLAS THE HAGUE 001816 SIPDIS E.O. 12958: N/A TAGS: EAID EFIN PREL NL SUBJECT: HAITI:PROSPECTIVE EC ASSISTANCE, DUTCH PARTICIPATION REF: A. THE HAGUE 1742 ¶B. SECSTATE 151661 ¶C. SECSTATE 151861 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 Geer responded that the European Commission EC had roughly 150 million Euros in 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 (the 9th "A-envelope" funds) would be released after successful elections. Van 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 timing. He confirmed that Wim Geerts, the Dutch DCM in Washington, would represent 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 Dutch brokered an agreement that reflected "the majority" of the member states' wishes. 3) Van de Geer stressed that conference organizers should give prominence to plans for improved governance, institution building and free elections. During discussions in Brussels Van de Geer heard cynicism from journalists and certain member state colleagues regarding Haiti's ability to overcome its disappointing recent past. The feeling was, he said, this time around "things need to be done better." SOBEL