NETHERLANDS/PAKISTAN: EXPECTING AID DECISION SOON

C O N F I D E N T I A L THE HAGUE 000988 SIPDIS E.O. 12958: DECL: 11/25/2018 TAGS: PREL EAID ECON EFIN NL PK SUBJECT: NETHERLANDS/PAKISTAN: EXPECTING AID DECISION SOON REF: A. GIAQUE GAERC EMAIL 11-25-08 ¶B. SECSTATE 124618 ¶C. FALLS-SCA-PAKISTAN EMAIL 9-29-08 ¶D. THE HAGUE 340 Classified By: Political Deputy Eric Falls for reasons 1.5(b,d) ¶1. (C) SUMMARY: The Dutch expect to offer 112 million euros in Pakistan development aid over the next three years, in support of education, environment and governance initiatives. Funding is limited primarily by Dutch capacity to oversee the aid programs. The Dutch will work quickly to determine whether minister-level participation in the proposed Pakistan donors conference is possible. END SUMMARY. ¶2. (C) On November 26, econoff and poloff reviewed ref A & B points with Harry van Dijk, head of the MFA South Asia division, Hans Wesseling, Deputy Director of the MFA,s newly formed Fragile States unit, and Louise Huijbens, policy adviser on Pakistan. Van Dijk said he would soon seek formal approval for 112 million euros in aid to Pakistan over three years. Minister Koenders has approved the funding "in principle." The upcoming donor conference gives Van Dijk impetus to push for a final decision this week. (Note: Koenders previously held up Pakistan funding based on human rights concerns, and because of domestic political concerns, per ref C & D. End note.). ¶3. (C) Van Dijk stated funding is limited primarily due to Dutch "capacity." The Dutch recently made Islamabad a "non-family" posting and so is restaffing the embassy. In addition, the embassy is now in temporary quarters. Van Dijk expects to see full staffing and a "semi-permanent" embassy by the summer of 2009. Van Dijk noted the embassy is currently staffed by 15 people, including 11 Dutch nationals. In addition, Van Dijk noted the Dutch are limited by the number of decent program opportunities for aid funds -- he added that we "won't be looking at more money than 112 million. We'll be happy if we can spend that (much) wisely." Finally, resuming aid to Pakistan carries a "political risk" for the Dutch government. The parliament has asked multiple questions about the reported U.S. strikes in the border region, on the merits of aid to Pakistan vice Afghanistan, and on the virtues of foreign aid generally. However, Van Dijk was "pleasantly surprised" by the work of Pakistan President Zardari. He said the EU also appears encouraged by the stated intentions of Zardari,s government. ¶4. (SBU) Regarding the idea of a mid-December Pakistan donors conference, Van Dijk and Wesseling both support the proposal and will try to convince either Koenders or Foreign Minister Verhagen to attend. However, they cautioned that, given the extremely short notice, both ministers already had full agendas during the proposed conference date. CULBERTSON