ETHIOPIA: TITLE 1 EMERGENCY FOOD ASSISTANCE REQUEST

UNCLAS ADDIS ABABA 000115 SIPDIS SIPDIS STATE FROM AMBASSADOR YAMAMOTO FOR A/S FRAZER USAID/AFR/AA WNORTH, WWARREN USAID/DCHA/AA LROGERS, WHAMMINK E.O. 12958: N/A TAGS: EAID EAGR ET SUBJECT: ETHIOPIA: TITLE 1 EMERGENCY FOOD ASSISTANCE REQUEST REF: ADDIS 0072 ¶1. I, Ambassador Donald Yamamoto, urgently request Title 1 emergency food assistance for Ethiopia. As mentioned in the reftel, Prime Minister Meles requested Title 1 food assistance during A/S Jendayi Frazer's visit on January 4 to help meet the critical needs of the urban poor. The Prime Minister also requested the assistance in a January 12 meeting with Senator Sam Brownback. ¶2. Ethiopia's involvement in Somalia has raised concerns that the cost of the war would force another price hike in food and fuel. Government officials have stated that the conflict in Somalia is expensive and indeed contributes to already rising prices. Foremost among the concerns are the fiscal and budgetary impacts on social programs, such as the safety net and the continuing high grain prices in restless urban areas. While grain prices usually start to fall in January as the harvest comes in, this year seems exceptional as prices are remaining at historical highs and the GOE is reluctant to make market interventions due to the very low level of the emergency reserve. ¶3. The international community has expressed appreciation to Ethiopia for handling the threat of extremism in Somalia. It is in our national interest to provide assistance in response to the Prime Minister's priority request. Modest shipments of 20,000 to 25,000 metric tons of wheat would not adversely affect the market and would help ease the plight of the urban poor. This request is a priority for this Mission and we strongly believe this will not deter or alter the current market reforms being undertaken by Ethiopia as it works closely with the U.S. and WTO on economic reforms in preparation for accession to the WTO. ¶4. I urgently request Washington's support and would like to announce our assistance this week. The general feeling in Ethiopia is that they are carrying the burden of the conflict in Somalia, which also helps meet international community goals, without positive signs of support. The food assistance from the U.S. would be an important demonstration of U.S. support for the people of Ethiopia. YAMAMOTO