NETHERLANDS/EU: APPROACHING THE DUTCH IN ADVANCE

C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 003294

SIPDIS

SIPRNET DISTRO

E.O. 12958: DECL: 12/09/2015
TAGS: PREL ECON NL EUN
SUBJECT: NETHERLANDS/EU: APPROACHING THE DUTCH IN ADVANCE
OF THE DECEMBER 12 GAERC

REF: SECSTATE 217518

Classified By: Acting DCM Andrew J. Schofer for Reasons 1.4(b) and (d)


1. (C) SUMMARY. The Dutch share the majority of reftel U.S.
concerns with regard to the upcoming GAERC meeting. MFA
interlocutors expect the unresolved EU budget to cast a
shadow on the December 12 GAERC but claim the Balkans,
Africa, and the "European Neighborhood Policy" will dominate
discussion. The Dutch share U.S. concerns for Kosovo and are
pleased to have a Dutch presence on the UN Special Envoy's
team. They are also pleased with the European Commission's
decision to place a mission in Iraq but are cautious about
the presence of EU observers to the December 15 elections.
The Dutch look forward to shaping the Compact for
Afghanistan, but will not be prepared to present additional
financial commitments to the reconstruction of Afghanistan at
the January 31-February 1 London Conference. END SUMMARY.


2. (C) On December 6 and 7, poloff discussed reftel points
with Desiree Kopmels (European Correspondent, MFA) and Bahia
Tahzib-Lie (Deputy European Correspondent, MFA). On December
8, poloff participated in an MFA briefing for foreign
diplomats on the upcoming GAERC conducted by Tahzib-Lie and
Derk Oldenburg (Deputy Director, European Integration
Department, MFA).

EU BUDGET: NO ONE LIKES THE PROPOSAL, INCLUDING THE DUTCH
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3. (C) The Dutch join in what they perceive as EU-wide
disapproval of the UK Presidency's EU budget package;
Oldenburg explained the current proposal is one that "makes
everyone unhappy" for one reason or another. Dutch
misgivings are primarily with the amount of refund to which
they feel they are entitled; Kopmels said that, under the
UK's proposal, the Dutch stand to receive a 700 million euro
refund, which falls short of their request of 1 billion
euros.


4. (C) The Dutch are pleased with other components of the UK
Presidency's package. They support lowering the cap of member
state contributions from 1.06% to 1.03%, and feel that
expenditure cuts have been properly made to "cohesion funds."
Oldenburg was especially impressed with the UK Presidency's
decision to increase the British contribution to the EU. The
Dutch disapprove, however, of the Global Adjustment Fund,
which they argue addresses an issue better confronted on the
national level. The Dutch would also like to see the onus of
EU financial responsibility reduced for newer EU states;
Oldenburg explained that the UK Presidency's proposal puts
the contributions of newer member states prohibitively high.
The Dutch welcome the UK Presidency's proposals to implement
review mechanisms of EU income and expenditures, but want
more specificity with regard to the European Commission's
role and responsibilities.

BALKANS: DUTCH SUPPORT U.S. VIEWS ON ICTY AND KOSOVO
-------------- --------------


5. (C) The Dutch share U.S. concerns regarding the Balkans.
Kopmels voiced strong agreement for U.S. emphasis on
continued cooperation with the ICTY. Kopmels was
"optimistic" that both Radovan Karadzic and Ratko Mladic
would be in The Hague by early 2006. Though she "is not in
the inner circle" of Dutch dialogue on the issue, Kopmels
professed that her optimism was shared by many of her
colleagues at the Dutch MFA.


6. (C) The Dutch agree with the U.S. position on Kosovo, with
a caveat; Kopmels explained that reftel points "could be our
points as well," but expressed concern that the U.S. may
press for a premature resolution of Kosovo's status. Kopmels
said she had heard rumors -- the source of which she would
not reveal -- that the U.S. wishes to expedite the Kosovo
status talks with the target of an early 2006 resolution.
Poloff reassured Kopmels that the U.S. would not sacrifice
quality of the resolution for the sake of expedience.


7. (C) The Dutch share our approval of UN Special Envoy
Martti Ahtissari's work and agree that Albanians must
understand independence is not a foregone conclusion. The
Dutch are proud of their support to the Kosovo status
negotiations; Tahzib-Lie explained that the GONL recently
appointed a representative to assist Ahtissari.


IRAQ: EU OBSERVERS ONLY IN SAFEST AREAS
--------------

8. (C) The Dutch are pleased with the EU decision to send
election monitors in support of the December 15 elections,
but caution that EU participation ultimately may not amount
to much. Kopmels said that the EU "can only send a few
people" to the "safest places" in Iraq; the EU election
mission will consist of personnel drawn from the area and
will focus primarily on the green zone.


9. (C) The Dutch are proud of the European Commission's
decision to open a mission in Baghdad and are looking forward
to establishing "normal" relations with Iraq after the
elections.

AFGHANISTAN: DUTCH NOT PREPARED TO DISCUSS MONEY IN LONDON
-------------- --------------


10. (C) The Netherlands supports the launch of the Compact
for Afghanistan and hopes to build on the joint declaration
signed on November 16. The Dutch, however, will not come to
the January 31 - February 1 London Conference prepared to
announce additional commitments to the reconstruction of
Afghanistan; Kopmels said that donations for Afghanistan will
be discussed on January 6. She added that the subject has
not yet been raised at the working group level.

AFRICA
--------------


11. (C) The Dutch support the UK Presidency's prioritization
of African development. Tahzib-Lie approvingly referred to
the issue as "Blair's baby." Tahzib-Lie speculated that the
GAERC will adopt the European Commission's EU-wide strategy
for Africa, which she praised as "useful" for its many
"concrete objectives."


12. (C) The Dutch will bring renewed interest in the
embattled Ethiopian/Eritrean border region to the GAERC. The
Dutch hope foreign ministers will agree to send an EU-wide
message to Ethiopia and Eritrea urging compliance with UN
Security Council Resolution 1640. Kopmels said that the
Dutch are not precluding the option of Article 41 sanctions
against Eritrea if it fails to end its ban on the overflight
of UN troops.


EU NEIGHBORHOOD POLICY: FILLING THE BLACK HOLE?
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13. (C) The Dutch anticipate the GAERC will address the
European Neighborhood Policy (ENP),but doubt it will reach
substantive conclusions on the issue. Though Commissioner
Ferrero-Waldner is expected to speak on the ENP, Oldenburg
predicted "nothing special" will emerge from the
presentation. Oldenburg shared Dutch concern for the border
regions of the EU and pointed to High Representative Javier
Solana's reported lament that the issue was "a black hole" in
EU policy. Tahzib-Lie hoped the GAERC would adopt an EU-wide
action plan with regard to the Caucasus region that she said
is currently in the works.

CHINA ARMS EMBARGO: WHAT DOES THE FUTURE HOLD?
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14. (C) The Dutch do not believe that the Austrians will
alter the current EU position on the China Arms Embargo
during their tenure as EU President. Oldenburg speculated
that the Austrians will find matters closer to home more
compelling, specifically financial perspectives, the future
of Europe with regard to the EU Constitution, and perhaps the
EU Balkans policy.
BLAKEMAN