NECESSITY FOR RETAINING ECONOMIC POSITION

UNCLAS SECTION 01 OF 02 ACCRA 000357

SIPDIS

FROM AMBASSADOR FOR DG DAS LINDA TAGLIALATELA, FOR AF/FO
LINDA THOMAS-GREENFIELD, FOR AF/W PHILLIP CARTER, RICHARD
KAMINSKI

E.O. 12958: N/A
TAGS: ECON AMGT APER GH
SUBJECT: NECESSITY FOR RETAINING ECONOMIC POSITION

REF: BRIDGEWATER/THOMAS-GREENFIELD 02/07/06 EMAIL


1. Post provides the following justification for retaining
the "one-time fill" FO-04 Economic Section Entry Level
Officer position (Position No. 20004008). This position is
essential to meeting the increasing demands on this Embassy
for economic analysis and reporting, investor-advocacy,
support for the Millennium Challenge Account program in
Ghana, support for USTR's preliminary discussions on
negotiating a Free Trade Agreement with Ghana, and support
for the large number of economy-focused, high-level
Washington visits and dramatically increasing number of
econ-related taskings specific to Ghana.

Case for Retaining Economic Officer Position
--------------

2. The Economic Section's (ECON) activities have increased
dramatically in response to the growing U.S.-Ghana economic
engagement. ECON not only carries the heaviest reporting
load in the Embassy, it also handles the most official
visits. During 2005, ECON hosted approximately 170 total
visitors from the 24 USG organizations listed below, and also
served as control for President Carter's visit and several
econ-related Codels. All of these visits required extensive
ECON logistical support and well over half involved schedule
planning, significant ECON participation, and follow-up
reporting.

-- Department of State
-- Department of Treasury
-- Millennium Challenge Corporation
-- Office of the U.S. Trade Representative
-- Trade Development Agency
-- Department of Agriculture
-- Overseas Private Investment Corporation
-- Export Import Bank
-- International Trade Commission
-- Internal Revenue Service
-- Federal Aviation Administration
-- Transportation Security Administration
-- Customs and Border Protection
-- U.S. Coast Guard (port security)
-- U.S. Census Bureau
-- Federal Communications Administration
-- National Science Foundation
-- Environmental Protection Agency
-- United States Institute for Peace
-- Department of Labor
-- Department of Commerce
-- African Development Foundation
-- Environmental Protection Agency
-- NASA


4. In 2005, ECON's total front-channel taskers, including
demarche requests, exceeded 120. We received dozens more via
email. A significant number of these taskings were
Post-specific, particularly action requests on the MCA,
International Atomic Energy Agency, AGOA/trade, and civil
aviation.


5. Ghana is becoming the gateway to West Africa and serves as
a base for companies, NGO's, international organizations, and
diplomatic missions. Since 2003, Ghana has qualified for the
Millennium Challenge Account (MCA) and the African Growth and
Opportunity Act (AGOA),the two main Administration programs
designed to reduce poverty in Africa. Ghana also qualified
for debt relief under the Heavily Indebted Poor Country
(HIPC) program and the new G8 debt relief initiative. In
addition, USTR is holding early talks with Ghana to decide
whether to negotiate a Free Trade Agreement (FTA). It would
be the first FTA in West Africa and would quickly become
ECON's priority.


6. Ghana's recent economic expansion results in part from
major investments by the U.S. private sector. Newmont Mining
is currently investing $500 million in one gold mine, and
will start construction on another of equal size in 2007.
ALCOA signed an MOU with the GoG to begin planning for
investment of over $2 billion by 2008. Either of these
investments qualifies as the largest U.S. investment ever in
Ghana. Together they will make the U.S. the largest investor
in the country. U.S. exports to Ghana increased over 50% in
2004, from $200 to $300 million, while Ghana's exports to the
U.S. increased about 80%.


7. As U.S. investment and trade has increased so have the
complications and disputes. EconOffs spent an inordinate
amount of time from 2003-2005 advocating on behalf of Kaiser
Aluminum, Western Wireless International, and CMS Energy in
their disputes with the government. Post played a key role
in the resolution of these disputes, especially in the
clearance of $20 million arrears to CMS. ECON continues its
heavy and increasing advocacy role on behalf of U.S.
companies who frequently experience serious difficulties with
the government or Ghanaian partners. In 2005, EconOffs
organized Mission advocacy efforts on behalf of CMS Energy,
Western Wireless, ALCOA, Newmont, Oracle, Hewlett Packard,
Kosmos Energy, Amerada Hess, Coca Cola, Exxon-Mobil, Chevron,
and at least a dozen other lesser-known companies.


8. For years Ghana has been the only West African point of
origin for direct flights to the U.S. Although in 2004 the
FAA banned the national airline from flying to the U.S., it
is reassessing Ghana's civil aviation safety oversight. At
the moment, one U.S. airline flies direct between Ghana and
the U.S. and several others will begin U.S./Ghana service in

2006. The process to get GoG approval for these airlines and
the ongoing FAA/DOT reassessment of Ghana require
considerable ECON engagement. Civil aviation will remain a
key responsibility of ECON's Entry Level Officer, who handles
all communication and visitors related to the issue.


9. Economic Growth and Development is the number one goal of
Post's MPP and we have already requested a third Economic
Officer. Cutting the section to one officer would seriously
undermine our current economic relationship with Ghana. The
remaining officer would spend the majority of his/her time
acting as a VIP coordinator and putting out fires in high
profile but time-consuming areas such as civil aviation. We
would lose the significant influence we currently have over
IMF/World Bank macroeconomic issues, which would, in turn,
reduce overall USG influence on Ghana's economic
policy-making decisions. Finally, cutting the position would
deprive an Entry Level Officer of an outstanding opportunity
to gain real substantive experience by working on a wide
range of economic issues.

Conclusion
--------------

10. Ghana is a country where we are already engaged in
transformational diplomacy, and it is working. Ghana has
transformed from a fragile state to a regional leader in
terms of democracy, stability, and economic development.
Ghana's success has been in part a result of our bilateral
economic engagement, which we need to expand rather than cut.
Continued economic growth is fundamental to keeping Ghana on
the right path. The Economic Section leads our efforts in
this area for the Mission.
BRIDGEWATER