MCC INITIAL DISBURSEMENT RECEIVES WIDE-SPREAD PUBLICITY

UNCLAS SECTION 01 OF 02 YEREVAN 001717 SIPDIS SIPDIS DEPARTMENT FOR EUR/PPD, EUR/CARC E.O. 12958; N/A TAGS: PGOV ECON OPRC AM KMDR KPAO SUBJECT: MCC INITIAL DISBURSEMENT RECEIVES WIDE-SPREAD PUBLICITY YEREVAN 00001717 001.2 OF 002 Sensitive but unclassified, please protect accordingly. -------------- SUMMARY -------------- ¶1. (U) On December 12, MCC, MCA-Armenia, and the U.S. Embassy held a press conference and reception to announce that Armenia had completed the requirements necessary to receive an Initial Disbursement of approximately USD 1.4 million of the Millennium Challenge Compact's USD 236 million. The press conference received broad media coverage, with more than 30 journalists attending and every major television station reporting on the event. Coverage focused on the details of the Compact, which aims at reducing rural poverty through investments in rural roads and irrigation infrastructure. The lead story on practically all media outlets was about statements made by the CDA and MCC Country Director noting that Armenia's continued eligibility for the program depends on whether the 2007 parliamentary elections and 2008 presidential election are free and fair. END SUMMARY. -------------- -------------- PRESS EVENT AND RECEPTION GENERATE HIGHTENED INTEREST -------------- -------------- ¶2. (U) The December 12 press conference announcing the Initial Disbursement took place at MCA-Armenia's new offices. CDA opened the conference by congratulating the Armenian people and the GOAM on qualifying for the program, while emphasizing that in order for Armenia to continue to receive funding, it must maintain high levels in the indicator areas. The MCA-Armenia director explained the details of the project, and the MCC country director noted that he looked forward to seeing how the program directly benefited the people of Armenia. A member of the stakeholders committee and the director of the bank receiving the transfer of funds also made short remarks. ¶3. (U) Later in the day, MCC and MCA-Armenia held a reception at the U.S. Embassy. Approximately 100 government officials and NGO representatives attended, including Armenian Deputy Foreign Minister Arman Kirakossian. -------------- -------------- MEDIA FOCUS ON POSSIBLE IMPACT OF ELECTIONS ON PROGRAM -------------- -------------- ¶4. (U) Television stations, newspapers, and news agencies widely covered the details of the program, including its focus on decreasing rural poverty and its estimated direct impact on 75 percent of the rural population. Most outlets included quotes from CDA and MCC Country Director congratulating the Armenian people and government, as well as the MCA-Armenia Director's description of the program and its goals. ¶5. (U) The majority of media outlets, including television stations (all of which are considered pro-government),reported that Armenia's continued eligibility for MCC funding is dependent upon Armenia holding free and fair elections in 2007 and 2008. Television stations broadly covered CDA's statement that, "Only by continuing to institute democratic reforms, including ensuring a free and fair process in the run-up to the 2007 and 2008 elections, can Armenia make sure that its people can continue to benefit from this USD 236 million program." Armenia Liberty also focused on the upcoming elections, publishing an article entitled, "U.S. Aid to Armenia Linked with Clean Polls." The article states, "The provision of USD 236 million in additional U.S. economic assistance to Armenia is conditioned on proper conduct of its forthcoming parliamentary and presidential elections, U.S. officials said on Tuesday." The article also states, "Alex Russin, an MCC executive in charge of the compact's implementation, made it clear that next year's parliamentary elections will be a crucial test for the Armenian authorities' stated commitment to democracy and the rule of law." ¶6. (U) Haykakan Zhamanak, a sensationalist opposition daily that often criticizes the U.S. Embassy, rebuked the USG for not being tough enough on Armenia, and specifically for not doing more to counter government control of the press. The article quotes CDA as saying that the U.S. is concerned about freedom of the press, and then comments, "And what? Nothing else? They are concerned and that's it? ...In other words, the statement that the continuation of the program is conditional on progress in democracy is, to put it mildly, an exaggeration." -------------- COMMENT -------------- ¶7. (SBU) The press conference and reception brought important YEREVAN 00001717 002.2 OF 002 publicity to the Millennium Challenge program in Armenia. The events allowed us to tell the Armenian people about the importance of the Compact, and helped us explain its expected impact and point out the large number of people that will directly benefit. At the same time, we sent a message to GOAM and Armenian people that they will benefit from the program only if Armenia maintains high performance in the indicator areas, an important part of which is holding free and fair elections in 2007 and 2008. We believe that increasing public interest in the project will create an additional incentive for the GOAM to uphold its commitment to continuing democratic reforms rather than risk losing funding. To further our publicity of the MCC program, we have already made an agreement with Armenia TV, a private television station broadcast throughout the country, that each week it will air a short clip during its news program updating and informing the public about the Millennium Challenge Compact. END COMMENT. GODFREY