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.

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PRM FUNDED RICE TO BE RE-EXPORTED
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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.

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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."

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WFP MAY CLOSE DOORS IF SOLUTION NOT FOUND
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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.

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WFP SEEKS ASSISTANCE FROM U.S. & OTHERS
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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.)

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STRAINED U.S./SYRIAN RELATIONS NOT LIKELY THE CAUSE
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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