NEC: MOVING FORWARD

UNCLAS DJIBOUTI 000608 SIPDIS DEPT FOR OBO DIRECTOR/COO GENERAL CHARLES WILLIAMS AND AF EXECUTIVE DIRECTOR STEVE NOLAN FROM AMBASSADOR RAGSDALE E.O. 12958: N/A TAGS: ABLD AMGT PREL DJ SUBJECT: NEC: MOVING FORWARD ¶1. (U) Action requested para. 5 ¶2. (U) Over the past year we have made a great deal of progress towards a New Embassy Compound (NEC) for Djibouti. We identified a site, negotiated and signed a conditional purchase agreement, and provided a steady stream of data and information to the Department on this project. This information is crucial to the security and operational effectiveness of the new embassy and its personnel. We have received several OBO visitors and teams working on the NEC Project and the Government of Djibouti has dealt with them in good faith and with openness. Djibouti has committed in writing to building two roads, two transformer stations, telecommunications links, storm drains, water utility lines, and electrical lines connecting to the NEC site. I know that planning for this work is well advanced. ¶3. (U) This is a poor government and it planned on using part of the sale price ($1,500,000) to finance these works. We now appear to have run into a roadblock in completing the sale by a seemingly endless series of additional questions, requests, and reiterations of questions and requests from OBO on the project directed to the Government of Djibouti. A week ago we sent in a bundle of answers and materials on a wide range of questions posed by an OBO team that the Djiboutian government, and we, believed satisfied our information requirements. Yesterday (June 22),we received two (2) more series of questions and requests that will further delay completing the purchase of the NEC site. 4.(U) The Djibutian government, a dependable partner in the Global War on Terror, now sees us as dragging our feet in this matter and wonder if the questions will ever end. The Minister of Foreign Affairs, Mahmoud Ali Yousuf, queried the continuing conditions for payment and approached me directly on June 22 to ask if the USG can at least agree to release to Djibouti at least half the money ($750,000) owed it for the purchase with the balance to be paid when all additional OBO requirements are met. ¶5. (U) Action Requested: If possible under existing USG regulations, we request OBO's support of the Minister's request. If regulations preclude such partial payment, I ask that we put together, urgently, a complete and final list of requirements from Djibouti that, when fulfilled, will definitively allow a transfer of funds. Unfortunately, the conditional purchase agreement, follow- up letters, and official diplomatic note have not succeeded in producing a definitive list and we may eventually lose this site if there are more (add-ons) to our requirements. RAGSDALE