WAFD PARTY LEADERS U.S. "INTERFERENCE" IS

C O N F I D E N T I A L CAIRO 002424 SIPDIS NSC FOR PACUAL E.O. 12958: DECL: 11/24/2018 TAGS: PRELPGOV KDEM EAID EG SUBJECT: WAFD PARTY LEADERS U.S. "INTERFERENCE" IS UNDESIRABLE ClassifiedBy: Ambassador Margaret Scobey, for reason 1.4 (d) ¶1. (C) A November 20 meeting with 15 leaders o the liberal opposition party Al Wafd began withWafd members questioning Ambassador Scobey extenively about President-elect Obama's foreign polic plans, particularly relating to the Israeli-Palstinian conflict, and lauding the U.S. electionsas a democratic model for the rest of the world.Conversation then turned to Egypt's recently opene new parliamentary session, with Wafd president Mhmoud Abaza lamenting that Egypt's Emergency Law(in force since 1981) is unlikely to be suspende and replaced with a new Anti-Terror Law. He alo faulted the government for not moving faster on decentralization initiatives, and passing a new Loal Administration law. Abaza expressed bewilderent over a recently announced ruling party inititive to give 40 million Egyptians free shares inprivatized state-owned enterprises (septel) - "Ido not understand this initiative. How can you distribute shares to that number of people, and haveit have any kind of meaningful impact? No authenic development or privatization goals will be acieved." ¶2. (C) Abaza laid out two "scenarios fo change" in Egypt - either chaos, or a true national dialogue and consensus that leads to the peacful rotation of power. Abaza pointed out that cnvincing a powerful ruling regime of the need to"consult and share with others" is an "extremely dfficult" task. He and other Wafd members stressed the "essential challenge we face is that the futre is either an Islamic system here or the curret status quo, neither of which is acceptable. Amilitary coup is also an option, or, the governmnt can open the door to a meaningful national dialogue, and not keep a strangle-hold on power." ¶3. (C) In response to the Ambassador's query of how the U.S. can be helpful in advocating for political reform in Egypt, Abaza stressed that, due to centuries-long experience of foreign occupation, Egyptians are "allergic" to foreign "interference" in their affairs, "to the extent that if you scratch an Egyptian, he bleeds with sensitivity to this issue." Abaza asserted that, "U.S. interference on a policy level is not desirable." Rather, he urged that the U.S. assist Egypt in achieving dvelopment goals, which he viewed as key to politcal development - "help build schools, support tacher training, improve healthcare, and rebuild ou infrastructure, which has so deteriorated over the past thirty years." Wafd secretary-general Monir Fakhry Abdelnour added that, "there is a thi line between helpfulness and interference." Mohamed Mustafa El Sherdy, a Wafd MP, recommended that "the best assistance yo can provide prior to Egypt's 2010 parliamentary elections is to strongly demand that the elections are truly democratic, and demonstrate that you are not afraid of the Islamist bogeyman that the Egyptian government has promoted." SCOBEY