MOROCCO REJECTS U.S. S&T PROPOSAL

					  UNCLAS RABAT 000574 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR OES/STAS BOB SENSENEY AND L/OES SUSAN BINIAZ 
DEPT ALSO FOR NEA/MAG 
 
E.O. 12958: N/A 
TAGS: SENV TSPL KSCA EAID MO
SUBJECT: MOROCCO REJECTS U.S. S&T PROPOSAL 
 
REF: SENSENEY-SCHNIER E-MAIL 3/20/06 
 
					

1. (U) Post received diplomatic note number 1110 dated March
29, 2006, from the Ministry of Foreign Affairs, rejecting the
latest U.S. proposal for Article VIII of the Science and
Technology Agreement currently under negotiation. Post
submitted the U.S. proposal on March 21 per instructions in
Ref A e-mail.



2. (U) Unofficial embassy translation follows.

BEGIN TEXT: "The Ministry of Foreign Affairs presents its
compliments to the United States Embassy in Rabat and in
reference to the Embassy's note number 102 of March 21 2006
containing the U.S. Government's proposal for paragraphs 3
and 4 of Article VIII of the draft Agreement on Science and
Technology Cooperation, has the honor to communicate the
following observations of the Moroccan side:

1) The proposed text for paragraph 3 of Article VIII is in
conformity with Moroccan legislation and for this reason does
not raise any objection.

2) Concerning paragraph 4 of Article VIII of the draft
Agreement, which stipulates that the Moroccan Executive Agent
shall serve as the sole recipient of record of U.S.
assistance destined to be used by entities other than those
listed in paragraph 3, the (tax) exonerations proposed are
not in conformity with Moroccan legislation in force, and
cannot be granted. As such, it is proposed that paragraph 4
of Article VIII be eliminated from the Agreement.

The Ministry of Foreign Affairs takes this opportunity to
renew to the Embassy the assurance of its highest
consideration." END TEXT.
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Riley