VISIT OF AFGHAN COMMERCE MINISTER FARHANG: NEED FOR ACTIVE

UNCLAS SECTION 01 OF 02 KABUL 005237 SIPDIS SENSITIVE, SIPDIS DEPT FOR EB/TPP DAS CHRIS MOORE and EB/TPP/BTA/ANA:MBGOODMAN DEPT FOR SCA FRONT OFFICE (DAS GASTRIGHT) AND SCA/A DEPT PASS AID/ANE DEPT PASS USTR FOR HARTWICK, KLEIN, AND GERBER USDOC FOR SHAMROCK AND DFONOVICH TREASURY PASS TO ANDY BAUKOL NSC FOR AHARRIMAN OSD FOR BRZEZINSKI E.O. 12958:N/A TAGS: ECON ETRD EINV AF SUBJECT: VISIT OF AFGHAN COMMERCE MINISTER FARHANG: NEED FOR ACTIVE GOA ENGAGEMENT ON THE PRESIDENT'S RECONSTRUCTION OPPORTUNITY ZONE INITIATIVE KABUL 00005237 001.2 OF 002 (U) This cable contains SENSITIVE BUT UNCLASSIFIED INFORMATION, Please protect accordingly. Not for INTERNET DISTRIBUTION. ¶1. (SBU) SUMMARY: Economic Counselor twice in the past week raised with Minister of Commerce and Industries Farhang the need for active GoA engagement on the President's Reconstruction Opportunity Zone initiative. Econcouns reported that the AID-funded U.S. ROZ study team was completing the final draft of its report and would be presenting conclusions to the U.S. interagency team the week of 10/23. The Minister, who had met at length with the study team in late September, confirmed that his Ministry intends to take the lead role within the GoA in developing ROZ policy and recommendations. Minister Farhang's travel the week of October 28, to Washington presents a great opportunity for USG interlocutors to engage him further on ROZs and other critical commercial policy and business development issues. Septel will address a range of other key economic policy areas where we can usefully engage the Minister. END SUMMARY. ¶2. (SBU) Econcouns used meeting with Minister of Commerce and Industries M. Amin Farhang on October 17 to press for more vigorous GoA engagement on President Bush's Reconstruction Opportunity Zone initiative with Afghanistan and Pakistan. Farhang was accompanied by his new senior adviser, Mohammed Shah Hachemi. Econcouns reported that the AID-funded U.S. ROZ study team was completing the final draft of its report and would be presenting conclusions to the U.S. interagency team the week of 10/23. The Minister, who had met at length with the study team in late September, confirmed that his Ministry intends to take the lead role within the GoA in developing ROZ policy and recommendations. With release of the report, Econcouns elaborated that Washington will be very eager for Afghan perspectives and timely input into the ROZ policy process. Furthermore, ROZs could be expected to feature on the Prosperity �A;Working Group agenda for the upcoming Strategic Partnership session. ¶3. (SBU) Econcouns again raised our interest in identifying a principal GoA point of contact with whom to liaise as the ROZ initiative moves forward. The Ministry also needed to play a lead role in developing GoA positions on the ROZ initiative, and engaging other appropriate GoA Ministries (e.g., Finance/Investment Support Agency),including on consideration of product selection and ROZ location within Afghanistan. In response, Farhang asked his senior adviser, Mohammed Shah Hachemi to take on this contact point role. Additionally, we reiterated Washington's offer to arrange a possible Afghan-Pakistani delegation for a study/visit to either Egypt and/or Jordan to better understand how the ROZ model has functioned, and how similar benefits could be derived from the ROZ initiative with Afghanistan and Pakistan. We proposed that Farhang's Ministry take the lead with us in organizing the proposed study/visit, and use it as a means to engage interagency involvement and coordination on ROZ policy. The Minister agreed that MoCI might reach out to other key GoA Ministries that could usefully participate. We also raised the possibility of including one or two private sector representatives. ¶4. (SBU) Subsequently, Econcouns and Deputy spoke to the Minister and Hachemi again on 10/19. Pursuant to our earlier conversation, Hachemi reported that he just had organized an internal MoCI meeting to begin to address issues raised related to ROZ policy and preparations for the Minister's trip. Hachemi, who departed Kabul in advance of Minister Farhang, indicated that he would accompany the Minister to DC and expected to participate in his bilateral meetings. ¶5. (SBU) Comment: Embassy is in contact with embassy Islamabad to explore prospects for making the ROZ study/visit a joint KABUL 00005237 002.2 OF 002 Afghan-Pakistani activity. AID Kabul has confirmed its ability to fund and support arrangements for Afghan participants, but would not be able to fund Pakistani representatives. This was our third meeting with Farhang since he took office in late August, in which we have prominently raised our eagerness to work together closely to advance the ROZ initiative. He was also one of four GoA Ministers briefed extensively by the ROZ team, and has continued to express interest and a desire to work with us on this initiative. Nonetheless, his recent assumption of this Ministerial portfolio and focus on a range of other pressing economic policy matters has to date made him and his Ministry a rather tentative partner on ROZs. We strongly recommend that Washington agencies use their meetings with Minister Farhang to our desire to work closely and press for stronger MoCI leadership in developing Afghan policy interests and recommendations on development of ROZs. Septel will address a range of other critical economic policy areas where we can usefully engage the Minister. NEUMANN