Ambassador Discusses MCC, P.L. 480, Corruption and TIP, and

C O N F I D E N T I A L CHISINAU 000977 SIPDIS DEPT FOR EUR/UMB E.O. 12958: DECL: 09/30/18 TAGS: PREL PGOV PINR KTIP MD SUBJECT: Ambassador Discusses MCC, P.L. 480, Corruption and TIP, and Mass Media with Prime Minister Greceanii Classified by CDA Kelly Keiderling under 1.4 (b) and (d) ¶1. (C) Summary: In his first meeting with Prime Minister Greceanii, Ambassador Asif Chaudhry explained delays in the signing of a Millennium Challenge Corporation (MCC) compact agreement; discussed P.L. debt; pressed on the issue of civilian oversight for the Center to Combat Economic Crimes and Corruption (CCECC); praised Moldovan steps to deal with USG concerns about trafficking in persons (TIP); and raised concerns about the Government's appearance of a non-evenhanded approach to the media. End summary. ¶2. (C) The Prime Minister, who oversaw Moldova's MCC negotiations when she was Finance Minister, noted her disappointment that the signing of an MCC compact had been delayed to the autumn of 2009. She also expressed concern that the number of irrigation projects had been steadily reduced from ten to three. Since the Government had publicized the MCC widely, she noted, the public was viewing the delay with suspicion. The Ambassador noted that he shared her concerns, and explained the need for feasibility studies to assess the economic impact of and need for projects, to be completed first. Responding to her concerns about public perceptions, he promised that the process of starting the feasibility studies would be given maximum publicity. (Note: The GOM's publicity regarding MCC was scant enough to invite complaints to us from opposition parties that they were being kept in the dark. End note.) ¶3. (C) Regarding P.L. 480 debt, now amounting to some USD 62 million for capital and interest, the PM noted that Presidents Voronin and Bush had discussed the issue. She blamed agricultural associations, set up in 1996 to assist land privatization with P.L. 480 money, for disappearing and leaving the GOM holding the debt. The Ambassador promised to check, but noted that forgiveness required a vote in the U.S. House of Representatives, and that he could therefore make no promises. ¶4. (C) The Ambassador raised the issue of letters from the Embassy to the PM's office regarding the establishment of a civilian board for the CCECC, without which it would not be able to fight corruption more effectively, as envisaged by the MCC Threshold Country Plan. The PM replied that the GOM would make a decision authorizing the board soon, and would instruct her senior advisor on the matter to brief the Ambassador as soon as possible. ¶5. (C) The Ambassador praised the GOM for positive steps it had taken against TIP, and noted that the response from the White House was delayed not because of Moldova, but because of several problematical countries in the list of 14 countries sent to POTUS for reevaluation. ¶6. (C) The Ambassador stressed that a free, fair and accessible media, in the run-up to 2009 elections, were Moldova's opportunity to show that the country was part of the West. He noted that complaints about the Romanian-owned ProTV facing the removal of its license, or television frequencies being assigned to government-supported stations, gave a bad impression. The PM replied that there were always two sides to a story, and that Moldova, as a young country, needed more education for its media and political parties. She also noted that the GOM had for the first time created a budget line item to support the creation of a 33-member NGO Participation Council to advise the government on such matters. ¶7. (C) Comment: Friendly, well-briefed, and keeping to her talking points in front of a digital alarm clock, the Prime Minister reinforced her well-established image as a cooperative interlocutor who defends her corner well. We will not be surprised if President Voronin anoints her as his successor. End comment.