MALTA'S NEW FM GRATEFUL FOR PROGRESS ON DTA, PFP,

C O N F I D E N T I A L SECTION 01 OF 02 VALLETTA 000135

SIPDIS

NOFORN
SIPDIS

DEPARTMENT FOR EUR/WE

E.O. 12958: DECL: 04/04/2018
TAGS: MT NATO PREF PREL PGOV
SUBJECT: MALTA'S NEW FM GRATEFUL FOR PROGRESS ON DTA, PFP,
AND REFUGEE RESETTLEMENT PROGRAM

REF: A. STATE 30007


B. VALLETTA 56

Classified By: MCummings for reasons 1.4 (b) and (d)


1. (SBU) Summary. March 25, Ambassador Bordonaro met with
the Malta,s new Foreign Minister Tonio Borg. As this was
the first time the Ambassador met with Borg since his
appointment as Foreign Minister, she updated Borg on the
progress achieved on key issues on our bilateral agenda, such
as the Double Taxation Agreement and refugee resettlement
program. Over the course of the discussion, the Ambassador
also welcomed Malta,s decision to rejoin NATO,s Partnership
for Peace, raised the talking points on Belarus (Reftel A),
and encouraged Malta to recognize Kosovo,s independence
(Borg said he was recommending recognition). End summary.

DOUBLE TAXATION AGREEMENT INITIALED
--------------


2. (SBU) In a meeting with the new FM Tonio Borg on March 25,
the Ambassador informed Borg that a team from the US
Department of Treasury was in Malta to complete negotiations
on a US-Malta Bilateral Double Taxation Agreement (DTA).
Since many of the technical details were hammered out in
previous rounds the Ambassador was able to express confidence
that the negotiations would produce an agreement to be
initialed by March 27, which they did (reported septel). The
one outstanding issue that had yet to be negotiated, which
was raised by the Senate Foreign Relations staff, relates to
the insurance excise tax; Treasury and Malta,s DTA
negotiators agreed that this issue could be dealt with
through an exchange of notes. The Ambassador notified Borg
that the treaty once signed would have to be ratified by the
US Senate. From Malta,s perspective the ratification
process is simple: the Treaty will be published in the
Government Gazette and if there are no objections within
thirty days it will enter into effect.

MALTA JOINS NATO,S PFP IN TIME FOR BUCHAREST SUMMIT
-------------- --------------


3. (SBU) The Ambassador congratulated Borg on the decision
Malta took to rejoin NATO,s Partnership for Peace (PfP).
Borg thanked the Ambassador for her support, guidance and
communication throughout the process. In the end, Malta
simply needed to forward a letter to the NATO Secretary
General formal rescinding Malta's 1996 letter of withdrawal.
Borg understood that Malta,s individual program, originally
negotiated in 1994 upon entry to PfP, would be reactivated as
Malta still felt its best contribution would be through joint
training programs.


4. (C) Aside from process, Borg indicated that the decision
had been taken in such an expeditious manner in order to
ensure Malta would be accepted as a member at the Bucharest
summit. He voiced his concern that the criticism (by the
media and the opposition) of the manner in which the decision
to rejoin was taken would solidify Malta,s population
against PfP if Malta was not invited to join at the Bucharest
summit (this concern was obviated by Prime Minister Gonzi's
subsequent trip to Bucharest, where he represented Malta as
the newest member of PfP. The opposition Malta Labor Party
has been vocal in its criticism of the government's decision
to join PfP, which it claims is a violation of the neutrality
clause in Malta,s constitution.

KOSOVO ) NO DECISION YET, BUT LEANING TOWARDS RECOGNITION
-------------- --------------


5. (C) Borg told the ambassador that his recommendation to
the Prime Minister would be in favor of recognition of
Kosovo. Borg indicated a decision on the matter would be
taken soon. The one caveat he added was that he needed to
review the statement made by his predecessor, former Foreign
Minister Michael Frendo, on the matter to the Foreign Affairs
Committee from several months ago (Reftel B). Before a
decision is made public, it is likely Borg will first brief
the opposition and the Foreign Affairs Committee (note:
Parliament will reconvene in mid-May),as is traditional
prior to significant policy changes (the fact that the
government has been so heavily criticized in the press for
taking a decision to rejoin PfP without prior consultation

VALLETTA 00000135 002 OF 002


makes it unlikely the GoM will recognize Kosovo prior to
briefing the committee in late May). Borg also mentioned that
Malta was waiting for Greece to make a decision, seeming to
indicate that would influence their decision.

TIP ) REPORTING PROGRESS AND CLARIFYING MISPERCEPTIONS
-------------- --------------


6. (SBU) The Ambassador told Borg that before the reporting
period ended on March 31 it would be to Malta,s benefit to
complete the draft Memorandum of Understanding (MOU) between
the Police Force and the Ministry of Social Policy to
formalize the process of screening all prostitutes and
potential victims of trafficking by social workers. The same
day the Ambassador conveyed this message to Minister Borg the
MOU was signed and put into force.


7. (SBU) Borg had dealt with TIP in his previous role as
Minister for Justice and Home Affairs and is very concerned
about misperceptions regarding the nature of the problem of
human trafficking in Malta. Borg expressed his concern to
the Ambassador that last year's TIP report seemed to confuse
the trafficking problem with the irregular migrants who have
been rescued at sea en route to mainland Europe and then
brought to Malta. He added that it was important to present
an accurate picture of the situation; Borg also felt it was
critical to point out that the Police and Ministry for Social
Policy were willing to carry out the recommended measures in
order to full address the problem.

REFUGEE RESETTLEMENT PROGRAM INCHES FORWARD
--------------


8. (SBU) Borg first expressed his gratitude to the USG for
its "serious and concrete commitment" to assist Malta by
resettling some of Malta's African refugees in the U.S.
While grateful for the program, Borg was eager to see
results; he inquired when the first group of refugees would
be departing for the United States. The Ambassador informed
Borg that although no departure date had been set, more than
80 individuals had been approved by DHS for resettlement and
were undergoing medical and security clearances.


9. (SBU) The Ambassador raised concerns relayed to the
Embassy by UNHCR about continuing the resettlement program in
the absence of commensurate improvements by the GoM of the
conditions in the camps. Borg agreed that the conditions
could be improved, but insisted that the manner in which
UNHCR approached the matter was not constructive. Borg
agreed to attend a meeting hosted by the Ambassador with
UNHCR and key GOM officials when Walter Irvine, the head of
the UNHCR office in Rome, visits in late April. He welcomed
the opportunity to improve relations with UNHCR,
acknowledging that this would be in Malta's interest.

MALTA EXPRESSED FOR EU STATEMENT ON BELARUS
--------------


10. (C) Ambassador Bordonaro conveyed talking points
contained in reftel demarche on the demands by the Government
of Belarus that the US reduce staff at the Embassy in Minsk
(Reftel A). Borg indicated his understanding was that this
would be addressed in the GYMINCH and Malta would support a
strong statement from the EU on this matter.

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


11. (C) In her dealings with Tonio Borg during his tenure as
Minister for Justice and Home Affairs in the previous
government, the Ambassador established an excellent working
relationship with him. Borg, who also serves as Deputy Prime
Minister, has proven to be a reliable partner who can
generally be counted on to move things forward, with the MOU
between the Police Force and the Ministry for Social Policy
on TIP being a good example. We believe that Borg will be
more accessible that the previous FM, with whom we had
difficulty scheduling regular meetings, and who was thus
frequently out of the loop in bilateral USG-GoM developments.
The relationship with Borg promises to be different in tone
and tempo.
BORDONARO