O/I DAVIES Q KUNEVA TALKING POINTS

C O N F I D E N T I A L SOFIA 000137

SIPDIS


STATE FOR EUR/SCE: PFEUFFER, BRANDON, BELL, ENAV

E.O. 12958: DECL:(##)
TAGS: AMGT BU
SUBJECT: O/I DAVIES Q KUNEVA TALKING POINTS

Classified by Jeff Levine for reasons 1.4 B & D


1. (C) The following text is sent as an O/I to EUR/SCE because
Embassy Sofia's classified e-mail system is not working.

DAS Glyn Davies meeting with
Bulgarian Minister for European Affairs Meglena Kuneva on Jan 24

CONTEXT
Bulgaria's next step in the process towards EU accession (planned
for January 2007) is to sign the Accession Treaty on April 25th in
Luxembourg. Bulgaria has harmonized around 90% of its laws with
EU directives and regulations. Minister Kuneva has been the
driving force behind Bulgaria's preparation for accession Q and
seems to be a major leader in pushing for reforms in the civic and
economic environment. She will likely brief you on their EU
progress and thank the US for its support of Bulgaria in this
process, and encourage cooperation and renewed strength in the
transatlantic relationship.

The Minister will welcome your praise of Bulgaria's efforts so
far, as well as your appreciation for their participation in
fighting the war on terror, and sending troops to Iraq,
Afghanistan, Bosnia, and Kosovo. Especially with regard to Iraq
her Government needs to be perceived by its people as a partner
with whom the U.S. consults and listens.

On Iraq, Bulgarian officials - though unflagging in their support
of the U.S. - have become increasingly direct about their concerns
of political vulnerability in this year's parliamentary elections.
They need to show their electorate the tangible benefits of close
cooperation with the United States. Embassy Sofia has urged
Washington to consider concrete ways to show U.S. support.
"Delivering" on issues frequently raised by the Bulgarians,
however, will prove challenging (e.g., POTUS meeting, Iraqi debt
collection, visa waivers, Iraqi reconstruction contracts).

ISSUES TO RAISE
Iraq losses: Appreciate Government's resolve and the sacrifices of
the Bulgarian people to help bring peace and stability to Iraq.
Battalion has performed well under incredibly tough circumstances.
Condolences for loss of Bulgarian soldiers. December 2004 marked
the first anniversary of the deaths of five Bulgarian soldiers in
Karbala. Two more were killed, the latest one on October 24. In
November, Bulgaria sent its fourth contingent of 480 soldiers.
Unwavering in its support, the Government has so far resisted
opposition calls for troop removal following January's Iraqi
elections, though Iraq is emerging as a key issue before next
summer's parliamentary elections.

Staying the course in Iraq: Encourage Bulgaria to keep the course
in Iraq even after this January's elections. Bulgaria is an
important partner to the U.S. in maintaining security in Iraq.
Early withdrawal will weaken security in Iraq exactly when the MNF
is needed most. The opposition Socialists have become
increasingly vocal in their calls for Bulgaria to remove all of
its troops in Iraq after the January elections. The government has
publicly stated that Bulgaria will reconsider its role in Iraq
after the elections and will announce in February their decision.

EU Accession: Congratulations on your preparations for EU
Accession. USG recognizes the progress Bulgaria has made in the
past few years under the leadership of you and the Prime Minister.
We hope those efforts continue Q particularly in areas such as
Rule of Law and protection of Intellectual Property Rights. We
also hope that Bulgaria acts to ensure that there is no
discrimination against non-EU investors. Bulgaria has made great
strides in closing their chapters for accession and has harmonized
approximately 90% of EU directives. However, Bulgaria has slipped
backward in its enforcement of IPR violations. US investors are
disadvantaged in a few areas: a proposed amendment to the
constitution gives favorable treatment to EU citizens/companies in
the purchase of land; and tariff rates for American Whiskey are
greater than for Scottish Whiskey.

Bulgarian medics in Libya: Remain fully engaged with the Libyans
about the case; U.S. working for immediate release and will
continue to make this a priority topic on agenda with Tripoli.
Libya's continued designation as a State Sponsor of Terrorism
means we still have a good deal of leverage. Support EU effort to
craft a humanitarian response and have facilitated the
participation of American pediatric AIDS experts in that effort.
Five Bulgarian medics have been under a death sentence since May,
convicted of intentionally infecting hundreds of Libyan children.
The Bulgarians remain concerned that lifting U.S. and EU sanctions
reduces crucial leverage over the Libyan government. EU-Libya
negotiations on addressing the HIV problem could provide an
element in an agreement securing their release. Libya needs a
face-saving settlement it can sell to the families as compensation
consistent with Shar'ia law, while the Bulgarians chafe at the
concept of compensation because it implies culpability on the
medics' part. We have facilitated a visit to Benghazi by the
University of Baylor Pediatric AIDS Initiative in coordination
with the EU effort.

If asked:


Basing: Reassure Military and Civilian officials that the U.S. is
working on a decision on using military facilities in Bulgaria.
The Bulgarian Government and the general population are eager to
land a permanent U.S. base(s). There is growing impatience among
Bulgarian leaders with accommodating numerous visits to Bulgarian
military sites without any serious revelations of U.S. base
transformation plans. The government will be expecting and
looking for signals that a final decision is close at hand.

Iraq Reconstruction Contracts: Pledge to continue to work with the
GOB to assist its attempts to land Iraqi reconstruction contracts
for Bulgarian defense firms. Emphasize the importance of restoring
Bulgarian non-military representation in Baghdad as a means to
further its interests there. Bulgarian political leaders are
aggressively looking for concrete benefits from their military
participation in Iraq. There are signs of increasing Bulgarian
frustration over their inability to win any substantial contracts
for Iraq. We have encouraged the Bulgarians to take advantage of
their commercial competitiveness, especially in the defense
sector, while simultaneously cautioning them that Bulgarian firms
cannot expect to be handed contracts. Bulgaria has signed
contracts for roughly $17 million in arms sales to the new Iraqi
security forces, but is looking for much larger contracts.

Bio Note: Mrs. Kuneva is a graduate of Georgetown and very
favorably disposed to the U.S. (bio attached)