Identifier
Created
Classification
Origin
05OTTAWA2363
2005-08-04 20:50:00
CONFIDENTIAL//NOFORN
Embassy Ottawa
Cable title:  

UK'S IMMUNIZATION FINANCE PROJECT: VIEW FROM THE

Tags:  EFIN EAID CA UK 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L OTTAWA 002363 

SIPDIS

NOFORN

DEPARTMENT FOR EB/IFD, EB/OMA, WHA/EPSC, AND WHA/CAN
STATE PASS FEDERAL RESERVE BANK FOR CHUGH
STATE PASS SEC FOR JACOBS
TREASURY FOR DAVID NAGOSKI
PARIS ALSO FOR USOECD

E.O. 12958: DECL: 01/07/2015
TAGS: EFIN EAID CA UK
SUBJECT: UK'S IMMUNIZATION FINANCE PROJECT: VIEW FROM THE
TRENCHES AT FINANCE CANADA

REF: A. LONDON 6412


B. OTTAWA 324

C. OTTAWA 35

Classified By: Classified by Wendy Moore, Economics Counselor, Ottawa.
Reason: 1.4(b) and (d).

C O N F I D E N T I A L OTTAWA 002363

SIPDIS

NOFORN

DEPARTMENT FOR EB/IFD, EB/OMA, WHA/EPSC, AND WHA/CAN
STATE PASS FEDERAL RESERVE BANK FOR CHUGH
STATE PASS SEC FOR JACOBS
TREASURY FOR DAVID NAGOSKI
PARIS ALSO FOR USOECD

E.O. 12958: DECL: 01/07/2015
TAGS: EFIN EAID CA UK
SUBJECT: UK'S IMMUNIZATION FINANCE PROJECT: VIEW FROM THE
TRENCHES AT FINANCE CANADA

REF: A. LONDON 6412


B. OTTAWA 324

C. OTTAWA 35

Classified By: Classified by Wendy Moore, Economics Counselor, Ottawa.
Reason: 1.4(b) and (d).


1. (C/noforn) An official at Finance Canada who works closely
on international finance and development said he finds the
UK's IFFm proposal "personally offensive" and the EuroStat
finding does not change that view. While admitting that
there are niches within the GOC with different views, those
at Finance who work on fiscal and development issues have
serious problems with the inefficiencies and constraints
inherent in the proposal. Stating that if a program, such as
immunization, is good, donors should target that program
directly in current spending. Bringing in private sector
financial instituions just adds to the cost of financing
projects (because governments can raise funds directly more
cheaply than can the private sector). The accounting sleight
of hand involved in contorted fundraising and the constraints
on future spending that result from "buy now, pay later"
programs are a serious concern. (Refs B and C described
Canada's reservations about the International Finance
Facility.)


2. (C/noforn) Our contact, referring to the August 3
Financial Times article (Novel UK funding for vaccines is
approved) expressed surprise that Canada was grouped with
Japan and Germany as having "deep reservations," rather than
with the US in outright refusal to join the scheme. He said
that although opposition to the IFF is pretty solid at the
working level, it may be diluted as position papers work
their way up through the system. He said he is very pleased
that the U.S. takes a "common sense position," which makes it
easier for Canada.


3. (C/noforn) There are,however pockets of support for the
IFF in the GOC. A contact at the Canadian International
Development Agency who has, in the past, expressed interest
in and enthusiasm for the IFF, said most in the GOC were
caught by surprise by Eurostat's quick action. The GOC's
official position remains that booking such commitments under
accrual accounting is a real problem, but not impossible. She
noted they will probably wait for a more substantive UK
response (money on the table) before beginning serious work
on a GOC response.


4. (SBU) Comment: Our sense is that the GOC is avoiding a
public hardline position on IFF but that when financial
commitments need to be made common sense and the economists
at Finance will prevail. End comment.

Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa

WILKINS