EUR PDAS VOLKER ENGAGES EU

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 003353

SIPDIS

E.O. 12958: DECL: 09/14/2015
TAGS: PGOV PREL EAID VE CU EUN USEU BRUSSELS
SUBJECT: EUR PDAS VOLKER ENGAGES EU

REF: A. A) USEU TODAY 09/09/05

B. B) USEU TODAY 09/08/05

Classified By: USEU POLOFF TODD HUIZINGA, FOR REASONS 1.4 (B) AND (D)


1. (C) SUMMARY: In his September 7-8 EU-related meetings in
Brussels, EUR PDAS Kurt Volker stressed the need for a
pragmatic U.S.-EU partnership, based on our common values, to
solve problems globally. With all of his interlocutors, he
discussed the importance of working together to promote
democracy and economic reform in the broader Middle East --
encouraging the EU especially to participate in the
Fund/Foundation for the Future. He also stressed advancing
democracy in Europe and Central Asia, and increasing U.S.-EU
cooperation on Venezuela and Cuba. With the Commission
officials covering transatlantic relations, Volker discussed
upcoming meetings and follow-up to the June U.S.-EU summit.
EU interlocutors were receptive to initiating closer
consultations on promoting democracy and other common
interests in the Middle East and globally, but reticent about
contributing to the Fund/Foundation. END SUMMARY.

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WORKING TOGETHER IN THE BROADER MIDDLE EAST
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2. (C) Volker's top priority was soliciting greater EU
engagement jointly with the U.S. in the Broader Middle East
and North Africa. He discussed U.S. and EU programming and
priorities in the Middle East in depth with European
Commission (EC) Deputy Director-General Michael Leigh and
Christian Leffler, EC Director for the Middle East and South
Mediterranean. Volker said that the EU's Barcelona Process
and U.S. assistance efforts showed the U.S. and EU were going
in the same direction. The Fund for the Future and the
Foundation for the Future offered important opportunities for
the U.S. and EU to supplement their efforts by doing
something together. This would send an important political
signal about our shared determination to support economic
reform and promote democracy in the Middle East.


3. (C) Leigh insisted that the EU catchphrase for cooperation
with the U.S. on assistance to the Middle East remained
"distinct but complementary." He did not foresee the EC
contributing directly to the Fund or the Foundation, as the
EC's own funding instruments had "their own momentum." This
was especially the case because entirely new funding
instruments were now being set up as a framework for EC
development assistance beginning in 2007. Getting agreement
from all of the EU institutions and member states on the
nature of these instruments, and now planning programming for
the first time under the new regime, would continue to
dominate the EC funding agenda for the Middle East.


4. (C) That said, Leigh added, the EC was now programming
their FY 2006-07 funds for the Middle East. At this point
there was still ample time for consultations with the U.S. in
order to avoid overlap, ensure complementarity of funding,
and coordinate on priorities. Volker welcomed the initiative
for deepening and broadening cooperation, particularly in the
democracy and education spheres. Leigh also described some
of the EC's thinking for rewarding political reform in the
region, by making extra funding available to countries that
make progress on the democracy and human rights components of
their Action Plans with the EU.


5. (C) In a later meeting with Karel Kovanda, the EC Deputy
Director-General responsible for transatlantic relations,
Volker returned to the theme of the political and symbolic
importance of EU involvement in the Foundation/Fund for the
Future. Kovanda agreed, but, with RELEX North America Unit
Chief Gunnar Wiegand, echoed Leigh's comments about the EC's
and member states' reticence about participating in a "common
funding instrument" with the U.S., especially since the EC's
new development assistance funding instruments were now being
constructed. Volker and USEU Charge McKinley stressed that a
contribution would not affect other EU funding and could only
make all of our efforts more effective by underlining U.S.-EU
solidarity in promoting economic and political reform in the
Middle East. Kovanda said he was sympathetic, but he
remained non-committal. He said he would pass the message to
Commissioner Ferrero-Waldner.

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EC PREPARING AGREEMENT WITH IRAQ
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6. (C) On Iraq, Leigh said the EC was still moving ahead with
plans to establish an EC Mission (Delegation) in Baghdad, but
was still working through budgetary and security hurdles.
Leigh said also that the EC would prepare for presentation to
the member states, in the course of this fall, a set of
directives that would govern negotiations on a trade
agreement with Iraq that would include a development
assistance component. The EU would sign the agreement only
with a constitutionally elected Iraqi government, but the
negotiating directives were being worked out now so that the
pact could be finalized as soon as possible after an Iraqi
government is in place -- in order to send a political signal
of support.

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EU AND GULF STATES
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7. (C) Since the EU's Barcelona Process and European
Neighborhood Policy involve principally the countries that
ring the Mediterranean, Volker asked Leigh and Leffler about
the EU's relations with the Gulf states. Leffler said
relations were essentially economic, but that the EU was
looking into how to broaden the relationship to include
regional security, political reform and related issues.
However, regional sensitivities regarding the EU's tendency
to look at the internal political situation in partner
countries remained strong.

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ADVANCING DEMOCRACY IN EUROPE
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8. (C) In his meeting with select EU Political and Security
Committee (PSC) ambassadors, Volker praised the EU role in
promoting democracy and economic reform in Ukraine, Georgia
and the Balkans. He said the prospect of EU membership had
proven an important incentive for reform in those countries,
and urged the EU to keep the door open. For similar reasons,
he said, the U.S. favored further NATO enlargement, with the
prospect of NATO membership open to all those who fulfill the
criteria. On OSCE reform, Volker said the U.S. would insist
on safeguarding the OSCE's primary area of strength --
promotion of democracy and respect for human rights, and its
election observation activities, under the umbrella of the
OSCE's Human Dimension.

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SUMMIT FOLLOW-UP
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9. (C) EC Director for U.S. Affairs Richard Wright told
Volker the EC was looking forward to a good Senior-Level
Group (SLG) on September 19, and wanted to streamline
preparation for future summits to avoid the large number of
declarations that emerged at the last summit. The Commission
was working hard to complete its draft work program on
implementing the economic declaration by the end of the
month, and strongly supported the proposal of a high-level
economic "event" in December. Wright raised two specific
bilateral concerns: the upcoming report on visa reciprocity
which will have to deal with the sensitive issue of exclusion
of ten EU member states from the visa waiver program, and
concerns about France, Italy and Austria's inability to meet
the new (extended) biometric deadline. Wright also suggested
the next East Asia Strategic Dialogue meeting should be an
SLG-level affair concentrating on economic issues; he said
the EU was waiting for confirmation of this idea from the
U.S. side. Finally, Wright requested a U.S. response to the
proposal of EC President Barroso that a U.S.-EU High-Level
Environmental Dialogue be launched.

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IMPROVING COOPERATION ON VENEZUELA, CUBA
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10. (C) In his meeting with Kovanda, Volker said the U.S.
would like to work together more closely with the EU on Cuba
and Venezuela. On Cuba, we would like to see the EU do more
for the democratic opposition, and build a consensus for a
democratic transition on the island. On Venezuela, the U.S.
would be approaching the EU to discuss how to deal with
common concerns about the weakening of democracy and Chavez's
activities in the region. Kovanda underscored Commissioner
Ferrero-Waldner's interest in the region, and in coordination
with the U.S.


11. (U) This message has been cleared by EUR PDAS Kurt Volker.

MCKINLEY