GOI: BUDGET CUTS WILL NOT REDUCE AFGHANISTAN

UNCLAS ROME 000027

SIPDIS

E.O. 12958: N/A
TAGS: EAID PREL PGOV AF IT AFGHANISTAN
SUBJECT: GOI: BUDGET CUTS WILL NOT REDUCE AFGHANISTAN
ASSISTANCE

REF: 05 STATE 226670


1. (U) Summary. MFA Special Envoy to Afghanistan,
Ambassador Anna della Croce told Charge January 3 that Italy
will not allow budget cuts to affect its Berlin pledge of 145
million euros through end-2006. Della Croce expects a
decision on GOI participation in the Afghanistan Compact next
week. End summary.

Holding the Line on Pledging
--------------


2. (U) Charge contacted della Croce January 3 to make
reftel demarche. Della Croce told Charge that, despite
dramatic cuts to its economic assistance budget, the GOI will
fulfill commitments made in Berlin for 145 million euros over
three years. However, the GOI cannot make financial
commitments beyond those made at Berlin because of a 28
percent cut in its economic assistance budget. (A cable on
the budget, passed December 22, will follow septel.) She was
interested to hear our views of Afghan budgetary requirements
for Afghan Fiscal Year 1385 (March 2006 - March 2007) and
asked for details on what commitments the USG will make.

GOI Participation at Compact
--------------


3. (U) Della Croce was hopeful that FM Fini will lead the
GOI delegation to the Afghanistan Compact and expects a
decision by next week. She pressed the Charge for details on
USG participation at the Compact and expressed disappointment
that delegations are limited to three delegates. The GOI
found that larger delegations at the Berlin and Tokyo
meetings facilitated lower-level coordination at, and after,
the conferences. If Fini is unable to attend, the delegation
will likely be led by MFA Undersecretary of State for Asia
and Human Rights Margherita Boniver.


4. (U) Comment. It is significant that, in the face of
dramatic budget cuts, the GOI remains committed to fulfilling
its Berlin pledge. With the new budget just passed on
December 22, the MFA is grappling with the implications of a
28 percent cut in economic assistance. We expect the GOI
will be better positioned to evaluate the feasibility of new
commitments to Afghanistan after cuts to other foreign aid
programs are finalized. Embassy will follow-up with
Ambassador della Croce later this week, and will provide
updates on Italian delegation, etc. End Comment.
BORG