SUGGESTED 2007 BUDGET ALLOCATIONS FOR LAOS UXO

UNCLAS VIENTIANE 000316

SIPDIS

SIPDIS

DEPARTMENT FOR EAP/MLS ED BESTIC,
DEPARTMENT FOR PM/WRA (HUTCHENS/HARRIS)
PACOM FOR POLAD

E.O. 12958: N/A
TAGS: KHDP ECON PREL MASS LA
SUBJECT: SUGGESTED 2007 BUDGET ALLOCATIONS FOR LAOS UXO
PROGRAM

REF: HUTCHENS-ARCHIBALD EMAILS 4/10-4/17 2007


1. This is an action request. Please see paragraph 6.


2. In 2006 PM/WRA requested post create suggested budgets
for supporting the removal of Unexploded Ordnance (UXO) in
2007 based upon a number of scenarios. One of those
scenarios envisioned a 25% cut to the UXO budget for Laos in

2007. Recently, PM/WRA informed post there would in fact be
a 25% cut in the 2007 budget.


3. Having examined PM/WRA's current plan for FY 2007
funding, we see an opportunity to make minor changes to
increase productive land clearance. International Mine
Awareness Day April 5th allowed post to highlight our current
position as the largest UXO donor in Laos. As there is a
reasonably good chance we will lose this designation in 2007,
maintaining visibility in the field becomes even more
important.

PM/WRA's planned FY 2007 budget

Armor Group: $832,257
MAG: $248,520
UXO Lao: $932,847
National Regulatory Authority (NRA),
via Armor Group: $50,000
World Education: $321,376
Norwegian People's Aid (NPA),
2 month extension: $165,000.
Total: $2,550,000


4. Post suggests the following budget:

Armor Group: $756,676
MAG: $248,520
UXO Laos: $911,388
NRA, via Armor Group: $58,004
World Education: $298,142
NPA 2 month extension: $167,105
Swiss Foundation for Demining (FSD): $110,125
Total: $2,550,000


5. Post believes our proposed budget has the following
advantages:

--It reallocates Armor Group's training budget to reflect
current bureaucratic realities in Laos. Unfortunately, Armor
Group does not yet have a signed Memorandum of Understanding
with the Government of Laos (GOL). Until the MOU is signed,
Armor Group is unable to provide training for the NRA and UXO
Lao. The 2006 "base year" budget for Armor Group included a
budget for training. In a declining resource environment,
and without a signed MOU, it makes sense to push planned 2006
training forward into 2007, and budgeted 2007 training into
2008, at which point resources might not be as stretched as
currently.

--It funds the Swiss Foundation for Demining (FSD) through
June 2008. FSD recently signed its long-delayed MOU with the
GOL and has begun work on its project in Sekong Province in
support of the UN's World Food Program. Having already paid
the start-up costs for the project, it makes sense for us to
continue funding FSD's on-the-ground clearance.

--It increases our support for the National Regulatory
Authority, an office post was instrumental in setting up to
help oversee and improve UXO abatement in Laos.

--It takes into account recent conversations with UXO Lao and
World Education that indicated their ability to proceed with
slightly lower levels of funding than in PM/WRA's current
plan.


6. Action request: Post requests PM/WRA reexamine its
proposed funding in light of Embassy Vientiane's proposals in
order to maximize UXO clearance in FY 2007.
HASLACH