ECONOMIC MINISTER DISCUSSES ACQUISITION

C O N F I D E N T I A L CHISINAU 001156

SIPDIS

STATE FOR EUR/UMB, OBO

E.O. 12958: DECL: 11/27/2018
TAGS: ABLD MD
SUBJECT: ECONOMIC MINISTER DISCUSSES ACQUISITION
OF SITE FOR NEC

Classified By: Ambassador Asif J. Chaudhry for
reasons 1.4 (b) and (d)


1. (C) Summary: On November 13 Deputy Prime
Minister and Minister of Economy, Igor Dodon, and
U.S. Ambassador Asif J. Chaudhry met to discuss
the acquisition of a five-hectare site located at
28 Vasile Lupu for a New Embassy Compound (NEC)
for the USG. The GOM had suggested this five-
hectare site to the USG approximately one year
ago. Dodon noted that President Vladimir Voronin
had specifically instructed him to work with the
Embassy to support the acquisition. During the
meeting Dodon explained that the USG could use
several methods to acquire the site currently
owned by the GOM: intergovernmental exchange or
long-term lease. End Summary.

Method 1: The Intergovernmental Exchange of
Property
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2. (C) In a November 13 meeting Dodon explained
that the Ministry of Defense had previously held
jurisdiction over the privatization and
reconfiguration of the site, but the Ministry of
Economy was now responsible for the land. The
Minister was accompanied by Igor Grigoriev,
Director of the Agency for Public Property. The
first method of acquisition outlined by the
Minister would be an intergovernmental agreement
on the exchange of property in Chisinau and
Washington, DC. The GOM would give the USG land
and possibly buildings for a NEC and the USG would
reciprocate by giving the GOM land and possibly
buildings in Washington, DC. According to the
Minister, the United States and Moldova had
employed this method in the early 1990s when the
countries had established diplomatic relations.
The Minister noted that the GOM and Turkey had
recently used this method. Dodon cautioned that
the intergovernmental exchange of property was a
difficult method, because it required approval by
both the GOM and the Parliament. Securing
approvals could be time consuming. The Minister
also noted that elections were scheduled for
spring 2009 in Moldova and a change of government
could further delay approval or result in a return
to square one and starting the process anew.

Dodon later stated that the USG could possibly
exchange the current U.S. Embassy site at 103
Mateevici for the new plot of land at 28 Vasile
Lupu. The current site was acquired in an
intergovernmental exchange in the early 1990s. If
the new site were more valuable, the USG would
have to add compensation. The Minister noted that
the GOM would need to investigate the legality of
this option.

Method 2: Long-Term Lease Agreement
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3. (C) Dodon stated that the second and simpler
method of acquisition would be a 99-year long-term
lease agreement for the site. The lease would
permit the USG to build on the land. The Minister
added that the GOM was prohibited by law from
negotiating with the USG directly for the sale of
the site. The GOM would have to introduce an
amendment to current law to allow for direct sale
of the land to the USG.

Next Steps
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4. (C) Minister Dodon recommended that the
Ambassador designate a primary point of contact to
discuss the site acquisition with Mr. Grigoriev.
Ambassador Chaudhry has instructed Management
Officer, Stan Parmentier, to meet with Mr.
Grigoriev and investigate the various methods of
acquisition.

Comment
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5. (C) Post perceives the Minister to be very
supportive of the USG's acquisition of the site at
28 Vasile Lupu. Dodon seemed very intent on

finding the best method to enable the USG's
acquisition of the site. President Voronin's
tasking of the Minister to facilitate USG
acquisition of the site further underlines the
GOM's support for working with the USG to support
acquisition of this site. The acquisition of a
site by any method requires time and the upcoming
elections in spring should be factored into
negotiating and planning.

CHAUHDRY