SARG NOT BUDGING ON EMBARGOED WFP RICE FOR IRAQI

C O N F I D E N T I A L DAMASCUS 000820 SIPDIS DEPARTMENT FOR NEA/ELA, NEA/I, PRM/ANE E.O. 12958: DECL: 11/19/2018 TAGS: PHUM PREF PGOV IZ SY SUBJECT: SARG NOT BUDGING ON EMBARGOED WFP RICE FOR IRAQI REFUGEES REF: DAMASCUS 792 Classified By: CDA Maura Connelly for reasons 1.5 b and d. ¶1. (C) Summary: World Food Program (WFP) Regional Director Daly Belgasmi briefed us on the latest developments surrounding two separate rice donations embargoed by the SARG. Finding no other solution, Belgasmi reported the remaining PRM-funded rice would be re-exported. A visibly upset Belgasmi said the SARG had insisted that a second shipment of rice, donated by the Italians, be re-exported. To us, Belgasmi threatened to close WFP operations in Syria if a solution to this impasse was not found in short order - as he believes the rice to be of acceptable quality. Belgasmi requested U.S. assistance in resolving the situation and briefed on WFP efforts to resolve the matter diplomatically, including eliciting the support of the French and Arab League. According to Belgasmi, corrupt practices are likely to be the root cause of the SARG's implacable position, not strained U.S./Syrian relations. End Summary. -------------- PRM FUNDED RICE TO BE RE-EXPORTED -------------- ¶2. (C) WFP Regional Director Daly Belgasmi, a Tunisian national, accompanied by WFP Syria Representative Pippa Bradford, briefed CDA on the current status of SARG held rice imports destined to provide relief to the Iraqi refugee population residing in Syria (reftel) on November 19. Belgasmi reported he did not see any possible solution to the current import impasse of roughly 3,000 metric tons of PRM funded rice purchased out of India. Therefore, WFP had no alternative but to re-export this commodity. Bradford added that WFP would "do its very best" to reclaim the value of the rice (roughly $5 million) by selling it to other WFP programs. -------------- - ITALIAN FUNDED RICE BLOCKAGE: "NOT ACCEPTABLE" -------------- - ¶3. (C) With respect to the second load of rice being held at the port of Lattakiya, Belgasmi noted he had met with the Syrian Minister of Planning and offered to use some of the Italian rice to assist needy Syrians living in Iraqi refugee neighborhoods. Despite several days of intense diplomatic efforts and such WFP good-will gestures, the SARG was immovable and asked WFP to re-export rice purchased out of Vietnam from funds donated by the Italians. Visibly distressed, Belgasmi accused the SARG of manipulating lab tests on this "good quality" rice and added that the SARG's "illegal" act of sealing UN warehouses containing this rice was "not acceptable." He added WFP was experiencing "disgusting harassment" by the Ministry of Economy which was sending daily diplomatic notes to WFP demanding reimbursement for import, export, warehousing and other miscellaneous processing fees. This "crazy practice" reflected corruption. The SARG, he concluded, was "very cheap." -------------- WFP MAY CLOSE DOORS IF SOLUTION NOT FOUND -------------- ¶4. (C) Belgasmi explained that if the Italian rice would not be moved out of port without further delay, he "will do everything in his power" to close down WFP operations in Syria. He added he had not presented this recommendation to Rome as of yet, but would do so soon. CDA asked Belgasmi if he thought shutting down the country program was feasible given the hardships arising from threes years of drought. Belgasmi replied that the SARG's actions were unacceptable. Belgasmi reported WFP would still be committed to the Iraqi refugee population in Syria if it shuttered its doors, and his organization was currently exploring other ways to assist Iraqis with food needs, including the purchase of local goods, vouchers or a cash system. He said he would wait for Rome's decision on how to proceed before approaching the SARG with the threat of closure. -------------- WFP SEEKS ASSISTANCE FROM U.S. & OTHERS -------------- ¶5. (C) Belgasmi asked several times for U.S. assistance in resolving the situation. CDA replied the Embassy could be of little help in persuading the SARG in Damascus, but suggested multilateral demarches, out of Italy and other countries, might serve to move the SARG. Belgasmi reported he had spoken to the Italian Ambassador to Syria with little success, as DFM Miqdad would not take a meeting with the Italian Ambassador on the matter. Belgasmi said he would meet with the French Ambassador and would also raise the issue with Arab League Secretary General Amr Moussa. (Note: CDA subsequently spoke to the French ambassador who was considering raising the issue at a November 20 EU Ambassadors' meeting with FM Muallim.) -------------- -------------- STRAINED U.S./SYRIAN RELATIONS NOT LIKELY THE CAUSE -------------- -------------- ¶6. (C) Belgasmi postulated the current stalemate had little to do with the difficult U.S./Syrian bilateral relations, as no SARG official raised officially or unofficially U.S. involvement with WFP funding. He surmised this standoff was related to corrupt practices on the part of SARG officials. His assessment was echoed by a local agricultural expert, who suggested that the problem would not have escalated to this point had a private Syrian grain purchaser been involved in the transaction. Private importers, he explained, were used to facilitate such shipments by bribing the appropriate port and customs officials. ¶7. (C) Comment: If past SARG stubbornness provides any guide, resolving WFP's rice shipment issue will prove to be very difficult. The bigger challenge may be the effect this standoff could have on the willingness of donors to finance WFP's programs given the difficulties and added expenses inherent in dealing with the Syrian government. A multilateral approach, particularly from the Europeans, but also mirrored by the Department in Washington, seems to us to be the best way of addressing this problem. Syria remains vulnerable to criticism that the government is hampering humanitarian efforts at the same time it complains about an ineffective international response to the Iraqi refugee crisis here. Even if the SARG refuses to back down, it will have little choice but to hear its newfound friends in Europe highlight the regime's hypocrisy. CONNELLY