SCENESETTER FOR GENERAL ABIZAID'S VISIT TO DJIBOUTI

C O N F I D E N T I A L SECTION 01 OF 03 DJIBOUTI 000572

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CENTCOM FORWARD FOR GENERAL JOHN P. ABIZAID
CENTCOM ALSO FOR POLAD
STATE FOR AF AND AF/E

E.O. 12958: DECL: 06/14/2015
TAGS: PREL KPAO MARR MASS ECON ETRD OVIP DJ
SUBJECT: SCENESETTER FOR GENERAL ABIZAID'S VISIT TO DJIBOUTI

REF: DJIBOUTI 529

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


1. (C) Summary: Embassy Djibouti welcomes the June 20-21
visit to Djibouti of General John P. Abizaid, CENTCOM
Commander. Combating poverty, improving the nation's health
and education infrastructures and services and promoting
economic development remain top priorities for the Government
of Djibouti. Embassy Djibouti and CJTF-HOA are working in
tandem to assist in these areas. President Guelleh's focus
for his second term is economic development and improving the
nation's infrastructure. The Doraleh Port Complex, a
Djiboutian joint venture with Emirates National Oil Company,
is seen as a crucial part of Djibouti's economic development.
Its first phase is nearing completion, including the oil
terminal which will support oil storage objectives of the
U.S. Navy in the region and Camp Lemonier under a contract
with Defense Energy Support Center (DESC). Doraleh oil
terminal houses five DESC contracted tanks -- one for Camp
Lemonier and one for U.S. military regional needs.


2. (C) Djibouti's attitude towards the U.S. remains
favorable. The U.S. military is in the process of
negotiating extension of its lease and access at Camp
Lemonier and President Guelleh has made known his desire to
see the U.S. play a positive role in achieving security and
stability in the Horn of Africa region. He is urging
international community support of the Somali reconciliation
process, but has also agreed to host a Somaliland interests
office in Djibouti. Foreign affairs agencies in Washington
are re-examining core U.S. strategy for engagement in Somalia
and Somaliland, but remain committed at this point to a
unified Somalia. U.S.-Djibouti military and anti-terrorism
cooperation remain strong and Djibouti continues to support
our ongoing efforts at terrorist interdiction in the region.
Djibouti is less than satisfied, however, with the pace of
delivery of equipment promised or pledged under the Foreign
Military Financing (FMF) program and has voiced its concerns
with the Ambassador, to which we have been responsive.


3. (C) On issues outside the region, President Guelleh has
been less vocal on U.S. engagement in Afghanistan and in Iraq
but quite vocal in expressing a deep disappointment with lack
of progress in ending the conflict between Israelis and
Palestinians. End summary.


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Focus on Domestic Development Priorities
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4. (C) Post welcomes your visit to Djibouti. The top
domestic priorities for the Government of Djibouti are
combating poverty, improving the nation's health and
education infrastructures and services, and promoting
economic development. Through USAID, the U.S. is assisting
the Government of Djibouti implement a nation-wide education
reform program at funding in excess of USD 14 million since

2003. We are also assisting the Government of Djibouti
increase, at a funding level of USD 12 million over three
years, equitable access to health care, particularly of the
poor, and the provision of quality and efficient health care
to reduce infant, child and maternal mortality. We are
joined in these efforts by the numerous small school and
clinic rehabilitation and refurbishment projects undertaken
successfully by the Combined Joint Task Force Horn of Africa
(CJTF-HOA) at Camp Lemonier.


5. (C) The U.S. is also assisting Djibouti increase
opportunities for international sale of its livestock and is
funding construction of a holding pen for livestock destined
for the Arabian Peninsula to include veterinary inspection
and export certification. The livestock holding facility is
in its test phase and all environmental concerns expressed by
Camp Lemonier have been resolved.


6. (C) President Guelleh is the driving force behind many
economic ventures that the Djiboutian government hopes will
boost the nation's economy. He is most proud of the port of
Doraleh, and the economic potential he sees in this
joint-venture construction project with Emirates National Oil
Company (ENOC). Doraleh is being touted as an integral part
of Djibouti's economic future. Once completed, it will have
a Free Zone, an oil storage terminal facility, a container
terminal and a bulk terminal. The oil terminal facility will
be the first to come on line, with a scheduled operational
date of July, 2005. Oil companies operating in Djibouti have
already received notice of the requirement that they relocate
their operations to Doraleh. The companies are expected to
move within one year. Four of the oil storage tanks have
been reserved for exclusive use of the U.S. Navy, plus one
for use by Camp Lemonier under an open-tender Defense Energy
Support Center (DESC) contract with ENOC.


7. (C) Djibouti remains committed to becoming eligible for
additional economic development assistance under USAID
programming and under the Millennium Challenge Act of 2003.
The Act authorizes the provision of economic assistance to
countries that enter into compacts with the U.S. to support
internal policies and programs that advance the prospects of
lasting economic growth and poverty reduction. Eligibility
will depend on Djibouti's ability to demonstrate its
commitment to just and democratic governance, economic
freedom and investment in its people. Djibouti still has
much work to do in these areas, but we are cooperating with
the Millennium Challenge Corporation (MCC) and the Government
of Djibouti to provide the data needed for an earnest
assessment.

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Looking at the Horn of Africa Region and a U.S. Role
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8. (C) President Guelleh met with U.S. Secretary of State
Rice on 13 May 2005 in Washington. President Guelleh and
Secretary Rice discussed the continued cooperation and close

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U.S.-Djiboutian partnership in the Global War on Terror, the
situation in Sudan, political progress in Djibouti, and the
border dispute between Ethiopia and Eritrea. At the end of
the meeting, Guelleh expressed frustration at the lack of
Development Assistance (DA) funding for Djibouti and hoped
the USG would place Djibouti on the list for DA from USAID.
Secretary Rice promised that she would look into the issue

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further.


9. (C) President Guelleh is also urging the international
community to provide assistance and support to the Somali
reconciliation process. Djibouti, like the U.s., wishes to
see a unified Somalia. Nevertheless, Guelleh agreed recently
to host a Somaliland interests office in Djibouti and
Somaliland continues to press the U.S. and other nations for
political recognition. U.S. foreign affairs agencies have
begun a process of re-examining core U.S. strategy for
counter-terrorism, political and economic engagement in
Somalia and Somaliland, and our long-term policy with respect
to both. U.S. Embassy Nairobi recently conducted a security
assessment of Somaliland by sending three of its officers,
including the Regional Security Officer (RSO) to Hargeisa.

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Strong U.S. - Djibouti Military
and Antiterrorism Cooperation
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10. (C) The attitude of the Government of Djibouti and the
general population continues to be favorably disposed towards
the United States. U.S.-Djibouti military and anti-terrorism
cooperation remain strong and Djibouti is supporting our
ongoing efforts at terrorist interdiction. Training programs
under the East Africa Counter-terrorism Initiative (EACTI)
have taken place with law enforcement, military and
intelligence personnel. Djibouti is less than satisfied,
however, with the pace of delivery of equipment promised or
pledged under FMF. General Fathi, Commander of the
Djiboutian Armed Forces, has raised this issue with
Ambassador and with USLO Chief. On 30 May 2005, the USLO
Chief briefed General Fathi on the status of FMF cases and
explained the U.S. logistics system, addressing the pace of
delivery issues. During this meeting, General Fathi also
expressed to us that his top priority, in terms of security
assistance, is the planned construction of the Obock Naval
Base. Construction of the facility is scheduled for October
2005 with a completion date of April 2006. This facility
will greatly enhance the Djiboutian Navy's capability to
conduct maritime security operations.


11. (C) The U.S., under Department of Defense auspices, began
on September 16, 2004 negotiations with Djibouti on renewal
of the U.S. military's lease agreement for Camp Lemonier.
Lead U.S. negotiator Theresa Whelan, Deputy Assistant
Secretary of Defense for Africa, has provided Ambassador

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Olhaye in Washington with a draft agreement.

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Concerns About the Middle East
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12. (C) President Guelleh has not been very vocal publicly
in either supporting or condemning the U.S.-led war in
Afghanistan or in Iraq, partly perhaps out of deference to
his country's hosting of the U.S. military. Yet he is also
careful to remain in synchronization with Arab League
positions.


13. (C) By contrast, Guelleh has been consistently vocal
about his deep disappointment with a lack of progress in
ending the conflict between Israelis and Palestinians.
Guelleh faults Israel for the impasse. In a speech before
the United Nations in September 2004, he expressed the view
that occupation of the West Bank and Gaza is part of a three
and a half decades-long process of blatant confiscation of
Palestinian lands, farmlands, and water resources. He
criticized Israel's separation wall, which he stated makes an
already explosive situation worse and creates irreversible
facts on the ground. He stated then that Israel's actions
have made a mockery of the U.S. "Road Map" and rendered it
worthless. In this same speech, he described the
Palestinians as "struck with an indefinite deprivation, a
sense of hopelessness and statelessness" and criticized the
United Nations for its inability to constrain Israel.


RAGSDALE