AUSTRIAN PARTICIPATION AT THE DEAD SEA IRAQ

UNCLAS VIENNA 002337

SIPDIS

SENSITIVE

STATE FOR EB/ODF-DE MARCELLUS AND EUR/AGS-VIKMANIS-KELLER

E.O. 12958: N/A
TAGS: PREL EAID ECON EFIN IZ JO AU
SUBJECT: AUSTRIAN PARTICIPATION AT THE DEAD SEA IRAQ
DONORS' MEETING

REF: A. (A) STATE 127710

B. (B) VIENNA 2327

C. (C) VIENNA 2324

D. (D) VIENNA 2056

E. (E) VIENNA 2036

F. (F) VIENNA 1886

This cable is sensitive but unclassified. Please handle
accordingly.


1. (SBU) On July 11, we raised ref (a) points with Lydia
Saadat, the head of Planning and Program Activities for Asia,
the Middle East, Latin America and the Mediterranean in the
Austrian Foreign Ministry's Development Cooperation section.
Saadat told us that the Austrian Ambassador to Jordan would
represent the GoA at the July 18-19 meeting of the
International Reconstruction Trust Fund Facility for Iraq
(IRFFI) at Jordan's Dead Sea Convention Center.


2. (SBU) Saadat reviewed Austria's assistance commitments
and disbursements, and said Austria does not plan to make an
additional pledge at the Dead Sea Donors' Meeting. An
Austrian MFA paper stresses the following points:

-- Austria's commitment to Iraq's development includes
bilateral technical assistance and capacity building.

-- Austria has increased its commitment in terms of
technical assistance from 1.7 million Euros to 2.1 million
Euros. Of this amount, Austria has disbursed 1.5 million
Euros to projects.

-- The sum of 10 million Euros which Austria made available
for credit guarantees "is crucially connected to the further
progress of the stabilisation and peace process."

-- The Austrian Interior Ministry's contribution to police
training is part of Austria's capacity building effort. (Ref
b discusses Interior Ministry plans to extend the police
training mission in Jordan to the end of 2006.)

-- Debt relief is a major part of Austria's commitment to
Iraqi reconstruction. Austria plans to forgive some 1.16
billion Euros in Iraqi debt. (Note: Austrian officials
point out that this figure amounts to approximately 1 percent
of Austria's Gross Domestic Product. End note.)

-- The paper notes, "In general, the realisation and
progress of projects and commitments are subjectd to
political development and stability of the security situation
allowing Austrian and local experts to work without excessive
risk to their health and lives. The stabilisation of the
security situation is the prime prerequisite for the
successful implementation of Austria's assistance measures."
Brown