YOUR JULY 27 MEETING WITH ROMANIAN PRESIDENT

C O N F I D E N T I A L SECTION 01 OF 03 BUCHAREST 001176

SIPDIS

SIPDIS

FOR THE PRESIDENT FROM AMBASSADOR TAUBMAN

E.O. 12958: DECL: 07/24/2016
TAGS: PREL PHUM SOCI KDEM ECON PINR IZ RO
SUBJECT: YOUR JULY 27 MEETING WITH ROMANIAN PRESIDENT
BASESCU

Classified By: Classified by Ambassador Nicholas Taubman, Reasons 1.4 (
b) and (d)


1. (C) Summary. President Traian Basescu's July 27-28 trip
to Washington, including his meeting with you at the White
House, offers an opportunity to reaffirm U.S. appreciation
for Romania's contributions in Iraq, Afghanistan, and more
broadly the Global War on Terror. Basescu has anchored his
presidency on a strong strategic partnership with the United
States, and he will seek strong public statements while in
Washington recognizing this commitment. Privately, he will
seek reassurances that the U.S. values Romania as an ally and
takes seriously Romania's regional concerns, including in the
broader Black Sea basin and the Western Balkans. Such
reaffirmations will also help ensure Romania maintains its
outward-looking Euro-Atlantic foreign policy as it prepares
to enter the EU. Basescu will characterize recent calls by
Prime Minister Calin Popescu-Tariceanu for a withdrawal of
Romanian troops from Iraq as irresponsible and motivated
singularly by domestic politics. He will reiterate Romania's
commitment to Iraq, although the new domestic debate in
Romania on the issue may dampen enthusiasm for deepening
Romanian involvement there. Basescu will seek inclusion of
Romania in the Visa Waiver Program. The failure of Romania to
resolve pending international adoption cases remains a dark
spot in our otherwise sterling relationship. End Summary.


2. (C) When you last met President Traian Basescu in March
2005, he was still basking in the light of his December 2004
surprise electoral victory. Nearly two years later, he
remains by far the most popular political figure in Romania,
with approval ratings approaching 60 percent. Charismatic
and direct, he has used his position domestically to press
for reform and progress in the fight against high-level
corruption. He has also remained a stalwart ally of the
United States, repeatedly reaffirming his commitment to
maintain Romanian troops in Iraq and Afghanistan "as long as
they are needed."


3. (C) In September, the European Commission is slated to
release a report giving Romania a final green light to join
the EU on January 1, 2007. EU accession culminates over 16
years of Romanian efforts to integrate fully with the West.
Romania's strongly transatlantic foreign policy has been
criticized by some EU partners, who have at times accused
Romania of becoming a U.S. "Trojan Horse." In addition, some
critics within Romania, including in government, have
increasingly called for Basescu to reorient his policies and
take his cues from Brussels and EU capitals. This meeting
will be an opportunity for you to emphasize that EU
membership and a strong strategic partnership are not
mutually exclusive. It will also be an opportunity to
reinforce those policies undertaken by Basescu in which U.S.
and Romanian interests coincide.


Basescu and Prime Minister Clash over Iraq
--------------

4. (C) Romanian domestic politics over the past year have
focused on the increasingly hostile relationship between
Basescu and Prime Minister Calin Popescu-Tariceanu, whom
Basescu cannot dismiss under the Romanian constitution. The
two no longer speak, and in late June their relationship hit
a new low point when the PM -- flanked by the Defense
Minister -- announced unexpectedly that he and his party
would henceforth press for a complete withdrawal of Romanian
troops from Iraq. The move was clearly designed as a
political attack on Basescu, intended to tap into latent
public opposition to the troop contribution. As Commander in
Chief and with primary authority over security and foreign
policy, Basescu reaffirmed Romania's commitment to remain in
Iraq and characterized the PM's proposal as tantamount to
treason. Basescu can be expected to express concern in
Washington, if not apologize, for the PM's proposal, which
was made without consultation with the U.S. or other allies.
You should underscore strong appreciation for Basescu's
leadership on the issue as well as his commitment to consult
with us before making any major decisions with regard to
Romania's Iraq contribution, including a recent decision to
withdraw roughly 150 of Romania's troops (out of a total of
some 680) whose mission was complete and who were serving
under Italian command. More broadly, you might also express
appreciation for Romania's commitment to helping the U.S. and
other allies bring stability and democracy to Iraq, which
remains important for Europe as well as for the U.S.


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U.S. Access to Romanian Military Facilities
--------------

5. (C) The Romanian parliament ratified in July an historic
agreement that will allow U.S. troops to deploy to Romanian
military facilities for training and other purposes, part of
the larger U.S. Global Defense Posture Review. The agreement
was signed by Secretary Rice in Bucharest in December 2005.
The new agreement remains strongly popular in Romania,
although Basescu and the Foreign Ministry have taken some
domestic political heat regarding what is wrongly perceived
as a failure to achieve the best terms possible. You should
thank Basescu for his leadership in offering the U.S. the
opportunity to establish the joint military facilities in
Romania and assure him that as close partners we will consult
about our activities there.


Activism On the Black Sea Region, Balkans, Energy
-------------- --------------

6. (C) Basescu has undertaken an activist foreign policy,
particularly in areas nearby and in which Romania has a clear
strategic interest. At the top of his list is the wider Black
Sea basin, where Basescu has sought to promote greater
regional security and cooperation. Basescu strongly advocates
an increased U.S., NATO and EU role in the Black Sea region
as a way of linking Europe proper to unstable regions further
east. He considers frozen conflicts in the Caucasus and in
neighboring Moldova/Transnistria as a prima facie reason for
a stabilizing Western role in the region. He has also cited
security challenges along the Black Sea littoral, including
trafficking in narcotics and persons. Basescu viewed Deputy
NSA Crouch's participation at a Black Sea forum hosted by
Romania in June as evidence not only of U.S. interest in his
initiatives for the region, but more fundamentally as
appreciation for our broader bilateral relationship and the
priority he is placing on Black Sea security. You should
applaud Basescu's vision in highlighting the strategic
importance of this region and assure him that we will work
very closely in pursuing our common agenda in the Black Sea
region.


7. (C) A top concern for Romania is also energy security.
Basescu is worried about over-reliance on gas from Russia, a
problem faced not just by Romania but also by other countries
in eastern and central Europe. He may seek your support for
an alternate pipeline that brings gas into Europe from the
Caspian basin gas or the Persian Gulf. Romania recently
extended its import relationship with Gazprom through 2032.
Separately, you should acknowledge Romania's focus on
developments in neighboring Ukraine, and encourage Basescu,
despite the recent political setback in Kiev and
Romanian-Ukrainian border tensions, to support Ukraine's NATO
aspirations and its efforts to move closer to Europe. Basescu
has expressed concerns about potential instability in Serbia
in light of anticipated independence for Kosovo and the
recent referendum in Montenegro. However, he has committed
to support U.S. and UN efforts on Kosovo, and you may wish to
thank him for using his access to Serbian leaders in support
of our policies. Basescu is scheduled to meet with Serbian
President Tadic in Bucharest shortly before his trip to
Washington and may wish to provide you a readout of that
meeting.


Encouraging Economic Growth, Commercial ties
--------------

8. (C) The Romanian economy has grown rapidly, enjoying four
to eight percent growth for nearly six years now, and there
have been encouraging signs in recent months for U.S.
investment. Construction has resumed on the nearly 3 billion
USD Bechtel highway project through Transylvania. Both Ford
and General Motors are considering a manufacturing facility
in Romania. Microsoft, Oracle, Smithfield Foods and Hewlett
Packard have all made recent substantial investments in
Romania. You may wish to commend Basescu on this progress,
while still pressing for further reforms that will make
Romania more attractive to investors.


The Sore Thumb: Intercountry Adoptions
--------------

9. (C) The continuing failure of Romania to resolve pending
adoption cases filed by U.S. parents before Romania imposed a
ban on inter-country adoptions is a serious concern. During
his visit to Washington in 2005 and in a December 2006

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meeting with Secretary Rice, Basescu held out hope to you
that a solution would be found soon. His government has
failed to follow through, partially due to pressure from the
European Commission to maintain the ban and despite calls
from the European Parliament and the U.S. Congress for action
to allow intercountry adoptions to proceed. Despite
assertions by Romanian officials that they have developed a
model system for orphans and abandoned children, the Embassy
and NGOs have observed firsthand signs of malnutrition and
widespread neglect. While you should acknowledge that close
friends might differ, you should tell Basescu that
legislators and other political figures in Europe and the
U.S. agree that Romania's approach to international adoptions
should be revised. You might also point out difficulties in
moving forward on a roadmap for a Visa Waiver Program for
Romania as long as the adoption issue remains unresolved,
given strong congressional interest in the issue.


Nazi War Criminals, Presidential Awards
--------------

10. (C) Two final points of contention involve the failure of
Romania to accept the return of Nazi war criminals stripped
of their U.S. citizenship; as well as failure to strip
anti-Semitic politician Corneliu Vadim Tudor of a
presidential medal awarded by Basescu's predecessor. You
should urge progress on both these issues as components of
Romania's broader recognition of its true history during the
Holocaust.


11. (C) Despite these few but notable problems, Basescu is an
engaging interlocutor and a good friend of the U.S. Your
meeting and lunch will help strengthen our bilateral
relationship even more and recognize Romania's many
contributions to our common goals.
TAUBMAN