AMBASSADOR,S JANUARY 3 MEETING WITH FOREIGN

C O N F I D E N T I A L SECTION 01 OF 02 RABAT 000020

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/07/2018
TAGS: PREL PBTS EAID KMCA KPAL MO
SUBJECT: AMBASSADOR,S JANUARY 3 MEETING WITH FOREIGN
MINISTER FOCUSES ON MCA, MEPP, AND WESTERN SAHARA


Classified By: Ambassador Thomas T. Riley for reasons 1.4 (b) and (d).



1. (C) SUMMARY: On January 3, on the eve of his departure
for the next round on UN-sponsored talks on Western Sahara,
Foreign Minister Fassi Fihri expressed his frustration with
Algeria's unwillingness to move beyond the status quo to
resolve the issue and truly cooperate on economic and
security issues. On the MEPP, the Minister said that the
Annapolis and Paris meetings had been successes, but Israel
needed to suspend construction in East Jerusalem. Turning to
bilateral issues, we discussed the Millennium Challenge
Account (MCA) implementing legislation being considered by
the Moroccan parliament. The Ambassador used the 40-minute
meeting to request again Fassi Fihri's assistance in securing
an agreement on the status of the American schools (septel).
END SUMMARY.


2. (C) On January 3, the Ambassador, DCM and Millennium
Challenge Corporation (MCC Country Director Muneera
Salem-Murdock called on Minister of Foreign Affairs and
Cooperation Taieb Fassi Fihri and Director of American
Affairs Abdallah Salah Eddine Tazi. After again
congratulating Minister of Foreign Affairs Taieb Fassi Fihri
on his appointment, the Ambassador underscored the depth of
our bilateral relations and of U.S. interest in Morocco, with
no less than three congressional delegations visiting in the
next two weeks. Fassi Fihri thanked the Ambassador but
commented that the coalition government,s lack of a clear
majority in the parliament might limit his tenure.

WESTERN SAHARA, ALGERIA AND MEPP
--------------

3. (C) Preliminary to Fassi Fihri,s January 4 travel to New
York for the January 7-9 UN-sponsored talks on Western
Sahara, the Minister wanted to discuss Western Sahara and
bilateral relations with Algeria. Fassi Fihri said that
three years ago, Morocco had taken USG advice to seek
rapprochement with Algeria. The King had traveled to
Algiers; Morocco had agreed to negotiate directly with the
POLISARIO; and the King had called President Bouteflika after
the December bombings. Algeria has not responded, except to
say that the continuing closure of the border results from
Morocco,s annexation of the Western Sahara. Fassi Fihri
said that Algeria prefers the status quo, and Morocco fails
to understand why Algeria cannot see the benefits of
cooperation on economic and security issues.


4. (C) Fassi Fihri continued that the POLISARIO also shows
no willingness to compromise. The December POLISARIO
congress in Western Sahara and construction outside the berm
were provocative; the threat to take up arms again in 2009
was even more so; and POLISARIO calls for a popular uprising
north of the disputed territory were totally unacceptable and
in total contradiction with UN Security Council Resolutions.
He concluded the meeting by offering to brief us after the
Manhasset talks end on January 9.


5. (C) Fassi Fihri praised the Annapolis and Paris meetings.
He said the dinner with the Quartet had been useful. The
Minister noted that Morocco has significant contact with
Israel. However, Morocco remains very concerned about new
settlements in East Jerusalem, which must stop. He added
that as long as Israel continues to build new settlements,
there can be no normalization. The Minister added that the
Paris meeting was &very positive8 and that &Morocco will
continue to try to contribute to regional peace and
security.8

MILLENNIUM CHALLENGE ACCOUNT
--------------

6. (U) The Ambassador formally introduced MCC Country
Director Salem-Murdock and said that we hoped that parliament
will soon approve the MCA implementing agency, the
Partnership Agency for Progress (APP). Salem-Murdock
explained that while we are anxious to begin disbursing the
USD 32 million Compact implementation fund and are also
anxious to see the new Moroccan agency staffed, we are
hampered by the slow progress toward conclusion of the
Compact Implementation Fund (CIF) agreement, including the
conclusion of the tax exoneration accord. She also pointed
out that much work remained to be done before olive trees
could be planted in November. Fassi Fihri said he had spent
hours at parliament between December 31 and January 3

RABAT 00000020 002 OF 002


responding to questions about the Compact. He noted that the
Party for Justice and Development (PJD) had wanted to send a
message. He explained that the absence of MCA projects in
Western Sahara and the unique financial controls had raised
concerns, but he assured us that the GOM is nonetheless
sensitive to the urgency.

COMMENT
--------------

7. (C) The Minister seemed to expect little progress in the
Manhasset talks. A modest man, Fassi Fihri seemed a bit
uncomfortable in his huge new office. He was very conversant
with the MCA and appears committed to implementing it as
quickly as possible. END COMMENT.


*****************************************
Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
*****************************************

Riley