MCC: "CAN WE SIGN DURING SALEH'S VISIT?"

UNCLAS SANAA 003007 SIPDIS STATE - PASS TO MCC. E.O. 12958: N/A TAGS: PREL KDEM YM SUBJECT: MCC: "CAN WE SIGN DURING SALEH'S VISIT?" ¶1. (SBU) Summary: Ambassador Krajeski met with Deputy Prime Minister Ahmed Sofan on October 17, to discuss the November visit of President Saleh to Washington. Sofan said the ROYG would like to see Saleh sign the Millennium Challenge Threshold agreement during the visit. The ROYG has eagerly pursued this program since 2003, culminating in Yemen's acceptance in the threshold program in 2004. Sofan made clear that the ROYG views acceptance of its threshold proposal as an indication of America's overall political engagement with Yemen. End Summary. ¶2. (SBU) If Yemen were to be excluded from MCC, Sofan told the Ambassador, it would indicate that the United States was disengaging or "giving up" on Yemen. Ambassador agreed on the importance of MCC to U.S.-Yemen bilateral relations and explained that MCC is focusing on Yemen's qualifications for the program. MCC will meet again this week and make recommendations to the MCC Board. ¶3. (SBU) Sofan was concerned about creating the proper outlook for Yemen's development challenges, saying: "We have good intentions. Look at the progress that has been made in the last 15 years." During recent visits, he sought out World Bank Institute Vice President Frannie Leautier and Transparency International representatives to discover how they compile statistics on Yemen. Learning that such information is obtained from local sources such as press, NGO reports, and government reports, Sofan theorized that Yemen's relative openness compared to the rest of the Middle East is negatively influencing economic, political, and developmental indicators: "The problem with Yemen is that we are open in an area of secrecy." ¶4. (SBU) Sofan hoped that the MCC decision-makers will view Yemen's situation in a positive light. Yemen is trying to jump from the 10th to the 21st century, said Sofan, a fact not adequately reflected in any indicators. Krajeski