OECD: AMBASSADOR MORELLA BRIEFS COUNCIL ON THE PARTNERSHIP

UNCLAS PARIS 001190

SIPDIS

FROM USOECD PARIS

SENSITIVE - NOT FOR INTERNET DISTRIBUTION
SIPDIS

STATE FOR E, EEB, EUR, G, IO/S AND S/P, NSC FOR MCCORMICK

E.O. 12958:N/A
TAGS: EAID ECON ETRD OECD
SUBJECT: OECD: AMBASSADOR MORELLA BRIEFS COUNCIL ON THE PARTNERSHIP
FOR DEMOCRATIC GOVERNANCE; SUPPORT FOR THE PROPOSAL APPEARS TO BE
GROWING

REF: STATE 28310


1. (SBU) Ambassador Morella briefed the OECD Council March 20 on
the status of the U.S. initiative for a "Partnership for Democratic
Governance" (see speaking notes in Para 5 below). Due to the late
hour, discussion was limited; however, several key OECD Members
expressed strong support for the proposal and experts meeting
scheduled for April 17-18. These included the European Commission
(EC),Czech Republic, Germany and Japan, with the EC Ambassador
noting similarities with the EC's own support to democracy
initiative and Germany welcoming the idea of placing the proposal in
the broader context of democratic governance and security offered by
OECD and UNDP. France raised a procedural issue related to the need
for Council to rule on the matter, which the Secretary General (SG)
turned around to the full satisfaction of the French, demonstrating
the complete transparency with which the matter was being handled by
keeping Council informed. The SG intends to bring the matter back
to Council on May 10, the first scheduled Council session following
the experts meeting. The UK Deputy noted a number of positive
aspects about the proposal but wanted to see how it fit into the
OECD's remit. The Dutch Ambassador said his authorities had many
questions about the initiative, which they will raise during the
experts meeting. The Council formally "noted" this agenda item.


2. (SBU) As a result of the briefing, Mission has been contacted by
several delegations requesting further information and
clarification. Although the Canadians did not speak at the Council
meeting, the Canadian Mission told the Secretariat and the Mission
afterwards that Canada fully supports the proposal and will attend
the experts meeting. The Italians have identified their expert,
Professor Andrea De Guttry of the Scuola Superiore di Studi
Universitari e di Perfezionamento Sant'Anna in Pisa, one of Italy's
and Europe's most qualified experts on Public International Law and
International Humanitarian Law. The Mission will be meeting next
week with the Spaniards and Turks to discuss the initiative.



3. (SBU) We met March 23 with the EC's Deputy PermRep, Philip
Pierros, who was armed with papers on the PDG he had received from
Brussels and Washington. One of these was a letter from EC Director
General Karel Kavanda to S/P Director Krasner expressing the EC's
desire to work closely together on the PDG. Pierros stressed that
the EC is quite interested in the initiative but wants to ensure
that there is no duplication of work being done elsewhere. He
raised the following concerns/questions:

-- the PDG should be seen as a "neutral source of information," not
favoring any one donor country or organization as the PDG brings
together target countries and contractors;

-- important to ensure that target countries not become dependent on
contractors/assistance; governments should be able to develop own
structure for providing services, thus very interested in learning
more about the proposed centers of excellence suggested in earlier
U.S. non-paper;

-- initially limit number of target countries to those that are most
vulnerable; give the initiative a chance to get up and running; and

-- concern about earlier suggestion that non-democratic governments
might become target countries; important to strengthen those
countries that share common values with the OECD.


4. (SBU) Pierros expressed appreciation for Mission's responses -
we reassured him with respect to complementarity of the PDG with
other ongoing efforts; neutrality of recommendations by the PDG


Secretariat (and contributing nations); support for training and

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development of long-term internal capacity to provide needed
services; careful consideration in limiting the number of projects
to ensure the PDG is working efficiently and effectively and giving
it time to get off the ground as well as maintaining the focus on
democratic states. Pierros suggested that we keep in close touch
here in Paris but also advised that consultations take place in
Brussels and Washington. It would be very useful if Dr. Krasner
and/or his staff could meet with EC reps prior to the April 17-18
experts meeting. Finally, Pierros assured us that a high-level EC
expert would attend the meeting.


5. (U) Begin text of Ambassador Morella's speaking notes:

-- Given the interest by the international community in ensuring
stability and sustainable development in fragile states and emerging
democracies, the United States has been exploring some ideas with
the OECD and UNDP and will be providing funding for possible future
work in this area.

-- The U.S. sees the multilateral Partnership for Democratic
Governance (PDG) as a way of advancing the OECD's goal of building
capacity and improving service delivery in emerging democracies. It
will also build on and support ongoing work being done at the OECD
and internationally with respect to fragile states, aid
effectiveness, and state-building.

-- Stephen Krasner, Director of the Secretary of State's policy
planning office, has consulted with a wide number of countries,
international institutions, and regional organizations on the PDG.

-- Consultations have been held, both in Washington and in capitals
and here in Paris (in some cases several times),with officials
from:

* almost every OECD country

* India, Chile, Brazil, and South Africa

* the European Commission and the Council of the EU

* the OAS and the AU

* the World Bank and IMF

* the Inter-American Development Bank

* the UN Development Program

-- In general, reactions have been positive. Most countries and
organizations have expressed a great deal of interest in
collaborating in the further development of the PDG.

-- Based on concerns and suggestions that have been, the U.S. has
made conceptual and structural changes to our initial ideas on the
PDG to link it more closely with existing international strategies
and programs in the areas I previously mentioned.

-- In this context, the U.S. Government has provided a voluntary
contribution of 50,000 Euros to explore the feasibility of what is
needed and what might be possible in this area.

-- Under the direction of the Secretary General, the Secretariat has
been preparing a meeting of experts, scheduled for April 17-18, on
"New Approaches to Capacity Development and Service Delivery in
Emerging Democracies."



-- The Secretary General has sent letters informing the Council of
the meeting and has requested that delegations and capitals identify
appropriate participants at the expert level. For our part, Dr.
Krasner and representatives from the USAID will participate in the
meeting and are looking forward to sharing views on what might be
achievable with respect to enhancing the capacity of those nations
with weak governance structures.

-- Depending on the results of the April meeting and subsequent
discussion in Council, we could envisage the OECD providing the PDG
a "home" as a Part II body of the Organization, fully financed by
voluntary contributions and defraying any expenses to the
Organization via the recently agreed Part II overhead charges
mechanism.

-- We look forward to working with potential partners to further
refine the concept to ensure that the PDG becomes one more effective
tool to strengthening institutions and delivering essential services
in emerging democracies.

Morella