ALAIN MADELIN SEEKS U.S. SUPPORT FOR HIS CANDIDACY

C O N F I D E N T I A L SECTION 01 OF 02 PARIS 006744

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E.O. 12958: DECL: 04/07/2015
TAGS: ECON EU FR IO PGOV PINR SOCI
SUBJECT: ALAIN MADELIN SEEKS U.S. SUPPORT FOR HIS CANDIDACY
TO HEAD THE OECD AND HIS PROJECT TO REFORM THE OECD

Classified By: Ambassador Craig Stapleton for reasons 1.4 (b) and (d)

SUMMARY
--------------

1. (C) At a meeting with Ambassador Stapleton on September
6, former French Finance Minister Alain Madelin solicited
U.S. support for his candidacy to head the OECD. Madelin
stressed his commitment to reform of the OECD along the lines
of the U.S. proposal to that end. Madelin also made the case
for his preferred future priorities for the OECD --
furthering globalization, encouraging free and open societies
in the Muslim world, supporting development in Africa,
fostering structural reform in European economies, and
pathfinding into the knowledge era beyond globalization.
Madelin is the most openly and steadfastly pro-American of
all major French politicians. He also strongly and publicly
supported President George W. Bush and America's initiative
to remove Saddam Hussein from power. Notwithstanding his
service as a minister (Finance, Telecommunications and
Tourism, and Small and Medium-sized Business) and his
founding of a political party dedicated to democratic and
free-market principles (Liberal Democracy (DL)),Madelin is
seen in France as a maverick and an outsider -- precisely
because of his unabashed pro-Americanism and undiluted
commitment to democracy and free-markets. End Summary.

REPORTING, NOT ADVOCATING, MADELIN'S CANDIDACY
-------------- -

2. (SBU) This cable reports Madelin's request for U.S.
support for his candidacy to head the OECD, and conveys some
of the points made by Madelin in support of his candidacy.
This report has been cleared by USOECD. Embassy Paris is not
advocating U.S. support of Madelin to head the OECD.
However, Madelin's commitment to implementing OECD reform as
proposed by the U.S. may recommend his candidacy. The fact
that he is at once endorsed by France and pro-U.S. is also
noteworthy. Madelin's credentials as an advocate of open
societies and free markets are remarkable for a French
political figure. His public support of President Bush and
the U.S. effort to liberate Iraq -- including statements in
the French parliament to that effect -- make him a friend of
America whose requests for consideration from us merit our
serious attention.

REQUEST FOR U.S. SUPPORT
--------------

3. (C) At a meeting in Madelin's law offices with
Ambassador Stapleton on September 6, Madelin asked that the
U.S. support his candidacy to become Secretary General of the
OECD. Madelin said that, as "the candidate proposed by
France, he enjoyed some support in the selection process, but
that only a political decision" by the U.S. to support him
could give his candidacy the weight it needed to prevail over
others vying for the job.

COMMITMENT TO U.S. GOALS FOR REFORM OF OECD
--------------

4. (C) In his meeting with Ambassador Stapleton, Madelin
portrayed himself as someone known for his determination to
deliver on his commitments. He stressed that his convictions
with regard to democratic self-governance, rule of law and
free markets were not "those of lip service." He said that
he agreed with the U.S. proposed measures to improve, in
particular, the governance of the OECD, and that he would it
make it his priority -- should he become OECD Secretary
General -- to re-engineer the OECD, linking it more closely
to member governments and re-focusing it on executing the
missions set for it by the "political level" of OECD member
states. He also argued that his vision of the OECD's future
priorities exemplified the application of American values to
the mission of an international organization.

MADELIN'S PRIORITY MISSIONS FOR THE OECD
--------------

5. (SBU) Madelin outlined what he said should be the OECD's
"priority missions," and presented the Ambassador with a
written brief about them. He said he believed these missions
exemplified the application of "our common values" (American
and French) of freedom, democracy and rule of law to the
goals of an international organization such as the OECD.

-- Enhancing globalization: work to promote free trade, open
markets and extend the benefits that they have brought about
in the context of an integrating, world economy;

-- Encouraging free and open societies in the Muslim world in
particular: validate and (when possible) enable the policy
choices, both political and economic, that would bring about
democratic and prosperous, open societies in the Muslim world;

-- Supporting the development of Africa: coordinate a
"Marshall plan for Africa, since so long as Africa is "left
by the wayside," it is "impossible to defend globalization
and its underpinning idea of freedom."

-- Fostering structural reforms in European economies:
Madelin, true to form, projects a role for the OECD in
bringing around the "very radical free market reforms," he
believes would bring renewed growth and prosperity to many of
Europe's sluggish economies;

-- Anticipating the global knowledge society: Madelin
envisages a role for the OECD as a knowledge repository and
exchange mechanism for policy experience that has worked --
made globalization more advantageous for ordinary people.

BACKGROUND ON MADELIN
--------------

6. (SBU) Madelin is a member of the majority, center-right
Union for a Popular Movement (UMP) party. He is a member of
France's National Assembly, representing the 4th district of
the Ille et Vilaine department in the Brittany region of
western France. He was elected in 1978, and (excepting three
periods when he held ministerial positions) has served
continually, regularly winning re-election. Madelin was the
founder of the now-defunct Liberal Democracy (DL) political
party. He ran in the 2002 presidential elections, but
garnered only 3.9 percent of the first round vote placing
eleventh out of eighteen candidates. Running as an
independent, he was reelected to the National Assembly in the
2002 legislative elections. Soon thereafter he folded his
cash-strapped DL party into the newly formed UMP.


7. (SBU) Madelin is best known for laissez-faire capitalist
proposals that reflect Anglo-American economic thinking --
quite outside the French mainstream for economic policy. An
admirer of Margaret Thatcher, Friedrich von Hayek, and Milton
Friedman, Madelin has long called for an end to unproductive
and unwarranted state intervention in the economy. Madelin
briefly served as Finance Minister during the government of
Prime Minister Juppe from May to August of 1995. He was
forced to resign after both Juppe and President Chirac
objected to key features of Madelin's budget proposal, some
of which called into question the government,s &vocation,8
as the French call it, to redistribute wealth and income.
Madelin also served as Minister for Industry,
Telecommunications and Tourism (under Prime Minister Chirac)
from 1986-88, and as Junior Minister for Small and
Medium-sized Businesses from 1993-95 (under Prime Minister
Balladur).


8. (SBU) Madelin organized and led a series of vigils in
Paris following the terrorist attacks of September 11, 2001.
In early 2003, during the controversy at the UN over the
resolution to authorize military action against Iraq, Madelin
was the first and best-known French politician to argue in
press articles (including in the Wall Street Journal of
January 31, 2003) that France needed to be at America's side.
He wrote, "The American cause is indeed ours...it is time
for France to choose: either to protect the Iraqi dictator
against America, or to protect the world against Saddam and
what he represents."

COMMENT
--------------

9. (C) Madelin said that he had received President Chirac's
own assurance of strong, official French support for his
candidacy. He also said that he had been solicited to go
after the job by reformist members of the OECD secretariat
who -- Madelin said -- believed that only leadership strongly
committed to democracy and free-markets could save the OECD
from its increasing irrelevance. In addition, according to
Madelin, these reformers believe a French head of a
bureaucracy based in France would have a better chance of
effecting difficult, internal reforms. We believe that the
French political establishment is ready to support, in a
sustained way, Madelin's candidacy, both as a national,
favorite son candidate and to further sideline him and his
ideas from the domestic political scene. End Comment.
Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm
STAPLETON