KOSOVO: ICR FEITH CHAIRS SECOND ISG MEETING IN

C O N F I D E N T I A L PRISTINA 000239 SIPDIS DEPT FOR EUR, EUR/SCE, DRL, INL, AND S/WCI, NSC FOR BRAUN, USUN FOR DREW SCHUFLETOWSKI, USOSCE FOR STEVE STEGER, OPDAT FOR ACKER E.O. 12958: DECL: 05/08/2018 TAGS: PGOV KJUS KCRM EAID KDEM UNMIK KV SUBJECT: KOSOVO: ICR FEITH CHAIRS SECOND ISG MEETING IN PRISTINA Classified By: CDA TINA KAIDANOW FOR REASONS 1.4 (B) AND (D) ¶1. (C) Summary: International Civilian Representative Pieter Feith convened the second meeting of the International Steering Group (ISG) on May 7 in Pristina, at which he polled members on ISG expansion, discussed transition and ICO growth, and previewed the agenda for the May 22 ISG Balkans Directors meeting in Pristina. ISG members expressed support for ISG expansion and Feith pleaded for additional funding. End summary. ¶2. (SBU) ICR Pieter Feith convened the second meeting of the ISG in Pristina on May 7. Local heads of mission from the U.S., UK, Turkey, Sweden, Finland, EC, Estonia, Austria and Belgium were in attendance. At the meeting, Feith polled member states about ISG expansion and previewed the agenda for the third meeting of the group scheduled for May 22 in Pristina, in which ISG Balkan Directors will participate. ¶3. (SBU) Feith said the May 22 meeting will provide a good opportunity to reflect on the May 11 Serbian elections, consider the new situation in Kosovo after the June 15 coming into force of the Kosovo Constitution, take stock of the International Civilian Office's (ICO) work thus far, present the ICO's Mission Implementation Plan (MIP),and discuss the state of the Kosovo economy and the upcoming donors conference. ¶4. (SBU) Setting aside the uncertainty about ICO deployment in the north, Feith said Kosovo and the ICO continue to move forward, and predicted that ICO will reach its full capacity of 268 personnel by summer's end from the current 90. ¶5. (SBU) Remarking on the progress made since the February 17 declaration of independence, Feith said 39 countries had recognized Kosovo and that he believes more recognitions are on the way. In this vein, he said the ICO is working with the Government to pursue membership into the European Bank for Reconstruction and Development (EBRD) and the Council of Europe (COE). (Note: Kosovo is ineligible for EBRD membership until it obtains IMF and World Bank membership. End Note.) CDA Kaidanow lauded the ICO's work in helping Kosovo obtain membership in international organizations, but pointed out that these efforts must be sequenced. She suggested that the ICO work with the Government to identify priority organizations and clearly determine beforehand the prerequisites for acceptance. ¶6. (SBU) In response to Feith's comments, the majority of ISG members said they support expansion of the group, especially to non-EU member states. ISG members expressed concern about the budget shortfall. The European Commission (EC) representative said that the Commission was "tired of being the lender of last resort" and urged all ISG members to contribute to the ICO budget. The Swedish chief of mission said that it will contribute additional funding to ICO and plans to present its contribution at the May 22 meeting. KAIDANOW