MCC CEO APPLEGARTH MEETING WITH PRIME MINISTER

C O N F I D E N T I A L SECTION 01 OF 02 RABAT 000122

SIPDIS

SENSITIVE

DEPT PLEASE PASS TO MILLENNIUM CHALLENGE CORPORATION
DEPT ALSO PASS TO USAID SARA BORODIN

E.O. 12958: DECL: 01/13/2015
TAGS: KMCA EAID ECON PREL PHUM MO
SUBJECT: MCC CEO APPLEGARTH MEETING WITH PRIME MINISTER
JETTOU

REF: 2004 RABAT 2327

Classified By: Deputy Chief of Mission Wayne J. Bush for reasons 1.4 (b
) and (d)


1. (U) Summary: Prime Minister Driss Jettou laid out for
Millennium Challenge Corporation CEO Paul Applegarth his
government's top development priorities in a January 12
meeting attended by Ambassador Riley and Salahuddine Tazi,
the Foreign Ministry's director of American Affairs. Also
present were MCC Vice President John Hewko and other members
of Mr. Applegarth's delegation, in addition to DCM and
Econoff notetaker. Applegarth congratulated the Government
of Morocco on its selection for MCA eligibility, saying
Morocco was selected because of its proven track record of
policies leading to economic growth and poverty reduction,
and its demonstrated commitment to investing in people
through education and providing opportunities for all men and
women. Jettou expressed his government's appreciation for
being selected for Millennium Challenge Account eligibility,
and said he looks forward to working with the MCA on
developing a compact for Morocco. End Summary.


2. (C) MCC CEO Applegarth met with Jettou to congratulate the
Prime Minister on Morocco's selection for MCA eligibility, to
learn about the GOM's priorities for development assistance,
and to answer any questions or concerns the GOM might have
about next steps. Applegarth noted that Morocco was chosen
because of its demonstrated commitment to economic freedom
and investing in people, and said its success in applying for
MCA eligibility was due to the GOM's achievements in the
areas of transparency, democratic openness and fiscal reform.
Jettou responded by expressing his appreciation for
Morocco's selection, and gave a clear exposition of his
government's priorities in health, education, poverty
reduction, infrastructure, housing, agricultural
modernization, and rural development. He also emphasized the
importance of Morocco's continued progress on reform. He
referred to the ongoing Equity and Reconciliation
Commission's public hearings on past human rights abuses
(reftel),noting that Morocco is "turning a page on the past
in a dignified manner." He also noted the importance of
ongoing U.S.-Morocco cooperation in the global war on terror.



3. (SBU) Applegarth explained that the GOM will create
proposals based on its own development priorities, and that
MCC will evaluate those proposals. Applegarth emphasized
that it is up to the GOM to determine its own development
goals and the MCC will work with Morocco on an implementation
plan that meets those objectives. He said successful
proposals will be those that foster lasting economic growth
and poverty reduction, and that are conceived through an
inclusive consultative process with a wide range of
governmental and non-governmental actors. Jettou said the
GOM is well aware of the parameters within which MCA
operates, and is prepared to work within them "scrupulously."


4. (SBU) Prime Minister Jettou explained that an overriding
priority for the GOM is education and training, saying
Morocco needs to make up for lost time on girls' education,
rural education, and vocational training. He said Morocco
had doubled the number of graduates from vocational programs
in recent years, and now wants to enhance the role of private
education, increasing it from the current 5 percent of
students to 20 percent by 2010.


5. (SBU) The PM also discussed the GOM's new plan to provide
universal health coverage, and said Morocco will need help to
rehabilitate and equip hospitals. He emphasized that Morocco
would select its priorities for MCA funding through an
exhaustive consultative process, engaging elected
representatives, the business community, and Morocco's
"dynamic" civil society.


6. (SBU) Jettou said the GOM will also work to publicize the
MCA among Moroccans. Ambassador Riley underlined the value
of the GOM emphasizing in its public statements that MCA
project priorities are those set by Morocco, not those
dictated by the United States. The Ambassador further
pointed out that MCA assistance is in addition to, and not a
replacement for, existing USAID assistance.


7. (SBU) In response to Jettou's question whether MCC has
pre-determined allocations for each country or whether they
are done on a first-come first-served basis, Applegarth said
the MCC will review all proposals and priority would be given
to those that have the greatest impact on poverty reduction
and economic growth. He said the MCC will work with
countries as their proposals become ready, and will make
allocations to good proposals as they come in. Applegarth
explained that Morocco's compact will cover three to five
years, and that MCA funding is no-year money, which will not
be lost if not spent during the year in which it is
appropriated.


8. (SBU) Jettou said his government is creating an
interdisciplinary team that will be dedicated to working with
the MCC. (Comment: This is what the Foreign Ministry did
with the FTA, to great effect. While Jettou did not offer
any names or organizations that might make up this team, MFA
Americas director said separately the Moroccan MCC team is
likely to contain many of those who participated in the FTA
negotiations. End Comment.)


9. (U) In closing, the Prime Minister was effusive in his
praise for USG assistance to Morocco, saying to CEO
Applegarth and to Ambassador Riley: "I cannot thank you
enough for all that you do for my country."
RILEY