FM D'ALEMA LOOKING FOR SOMETHING NEW TO BRING TO

C O N F I D E N T I A L ROME 000129 SIPDIS SIPDIS E.O. 12958: DECL: 01/23/2007 TAGS: XF LE IT SUBJECT: FM D'ALEMA LOOKING FOR SOMETHING NEW TO BRING TO PARIS III REF: STATE 2781 Classified By: Political M/C David D. Pearce for reasons 1.5 (b) and (d ) ¶1. (C) Italian MFA Lebanon Desk Officer De Parolis confirmed to Poloff on January 18 that FM Massimo D'Alema would lead Italy's delegation to the January 25 Paris III Donor Conference on Lebanon. He will be accompanied by MFA DG for Mediterranean and Middle Eastern Affairs Cesare Ragaglini; there will be no participation from the Ministry of Finance. As of January 22, De Parolis said the GOI had not yet decided what they would bring to the table in Paris, but realized they cannot come empty handed. ¶2. (C) Econoff talked to MFA Office of Development and Cooperation Office Director for the Middle East and Balkans, Federica Ferrari Bravo, on January 11. Ferrari Bravo said while D'Alema might announce additional assistance for Lebanon at Paris III, it looked unlikely. Instead, the GOI has communicated to Lebanese government and counterparts a preference to issue "soft loans" rather than grants. She said the GOI had obligated and disbursed 30 million euro to Lebanon by end of Italy's FY 06. All the money is gone and in Lebanon. She said the MFA is still waiting to see the details of the new budget law, which was recently passed, to see what the budget situation will look like for the coming year. SPOGLI