MORE WFP RICE TO BE RE-EXPORTED: SARG PROXIES

C O N F I D E N T I A L DAMASCUS 000874

SIPDIS

DEPARTMENT FOR NEA/ELA, NEA/I, PRM/ANE

E.O. 12958: DECL: 12/04/2018
TAGS: PHUM PREF PGOV IZ SY
SUBJECT: MORE WFP RICE TO BE RE-EXPORTED: SARG PROXIES
BLAME WFP

REF: A. DAMASCUS 820

B. DAMASCUS 792

C. DAMASCUS 857

Classified By: CDA Maura Connelly for reasons 1.5 b and d.


1. Summary: The World Food Program (WFP) reported to us its
plans to re-export the Vietnamese rice, destined for the
Iraqi refugee population, in accordance with Syrian demands.
This comes after several weeks of WFP working to find a
solution to a SARG decision to refuse import. A close
associate of the Syrian government, Syrian Arab Red Crescent
(SARC) President Attar, blamed WFP for the situation. Among
other complaints, Attar suggested WFP's attempt to involve
the Deputy Prime Minister in the matter, in essence going
around the Minister of Finance, only served to solidify the
SARG decision to refuse entry. For their part, WFP is hoping
to move beyond this incident and work more closely with
interested parties in the government in an effort to insure
that future shipments and/or WFP programs do not experience
similar problems. One possible alternative to WFP food
shipments, a voucher system for the refugees, does not have
the support of the SARC according to Attar. While Attar
suggested that the proposed WFP system is far too high-tech
to be workable in Syria other interlocutors reported that the
SARC and the Ministry of Syrian Arab Red Crescent Affairs are
pushing back on the scheme in order to preserve their piece
of the Iraqi refugee pie. End Summary.

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Vietnamese Rice to Be Re-Exported
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2. (SBU) Officer-in-Charge WFP Syria Muhannad Hadi reported
to us his organization will re-export the Vietnamese rice
(purchased with funds donated by the Italian government)
currently embargoed at the port of Latakia (ref A & B),
despite WFP's best efforts to convince the Syrian government
to allow its entry. During the December 3 meeting he added
that both the Indian rice (purchased with donations from PRM)
and Vietnamese rice will be re-exported to their respective
countries of origin. WFP is returning the rice to the
countries of origin to avoid having to secure letters from
receiving countries of re-exported goods, not the country of
origin, as required by Syrian law.

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What Happened?
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3. (C) Syrian Arab Red Crescent (SARC) President Dr. Abdul
Rahman Attar suggested WFP had "mishandled" the situation in
a December 4 with Charge. Attar was quick to lay blame at
the feet of former WFP Syria Representative Pippa Bradford
(ref C) and her staff, saying Bradford's effort to involve
Deputy Prime Minister Dardari in the matter only solidified
the Minister of Finance's position not to allow for the entry
of the rice. Attar added that Bradford did not understand
Syrian bureaucracy and had failed to coordinate with SARC on
food imports, purchased poor quality goods, and had the
"wrong" people working for her organization at the port.
Attar reported that he called on VFM Miqdad in order to help
find a solution to the crisis, but Miqdad was told by the
Minister of Finance the issue had grown "too big" and the MFA
could not resolve it. Attar noted that as a result of his
own intervention the Syrian government had waived a ten
percent tax usually levied on re-exported goods.

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The Way Forward
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4. (C) Asked how best to proceed after in the wake of this
incident, Attar replied WFP should coordinate more with the
appropriate parties, follow Syrian import
guidelines/standards, and suggested that WFP purchase the
rice through the government which can buy the rice on the
commodities market. He also suggested that food distribution
should occur more frequently as the refugees were receiving
far too many goods at one time (two months worth of food
stocks per refugee) and that the refugees were selling the
goods on the black market. Importers and merchants angered

by a flood of cheap black market refugee rice may have
contributed to the recent WFP rice import problem, Attar
argued. For WFP's part, Hadi said his organization is
attempting to establish a new working relationship with the
SARG in the hopes of avoiding future incidents. Hadi expects
to sit down with the SARG sometime in January to hammer out
an agreement on what the SARG expects from the WFP in terms
of importing goods (more detailed notification, samples of
the commodities presented to the SARG ahead of importing,
etc.). Hadi said WFP would also seek SARG buy-in on other
options (vouchers, local procurement, cash, etc.) before
proceeding with any program.

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Vouchers?
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5. (C) On the possibility of a voucher scheme for the
refugees, Hadi noted that the voucher system is a medium to
long-term solution and could not be of use in dealing with
the immediate situation. He added there were those who did
not support the voucher system, including the Minister of the
Syrian Arab Red Crescent Affairs, and therefore the project
may never get off the ground. In a separate meeting, UNHCR
Deputy Representative Leclerc confirmed that there were
elements in the government who were firmly against the
voucher system, including the Minister of Syrian Arab Red
Crescent Affairs - who reportedly believes the voucher scheme
would serve to diminish his ministry's involvement in the
Iraqi refugee file. Bradford pushed hard for this system, to
the ire of some in the government, which may have ultimately
contributed to her removal, according to Leclerc. Supporting
Leclerc's theory, SARC President Dr. Attar stated that he was
against the voucher system, complaining that Bradford had
sought the support of the Ministry of Economy without any
consultation with the SARC and the Ministry of SARC Affairs.
He also noted that the system WFP had put forward was far too
high-tech and overly complicated, and therefore would fail.



6. (C) Comment: Unfortunately, the UN's release of the 2009
appeal for Iraqi refugee assistance comes on the heals of
roughly $12 million in rice donations being refused by the
Syrian government. This move on the part of SARG is not
likely to play well in the capitals of perspective donor
countries, making the task of raising critical aid for the
Iraqi refugee population all the more difficult in the coming
months.
CONNELLY