AUSTRIAN POSITION ON ASSISTANCE TO NICARAGUA

UNCLAS VIENNA 001890 SIPDIS DEPARTMENT FOR WHA/CEN (KRAAIMOORE) E.O. 12958: N/A TAGS: EAID PGOV PREL NU AU SUBJECT: AUSTRIAN POSITION ON ASSISTANCE TO NICARAGUA FOLLOWING FRAUDULENT ELECTIONS REF: STATE 132044 ¶1. Polchief discussed reftel points December 23 with Andreas Melan, MFA Unit Chief for Latin America and the Caribbean. Melan agreed that the Nicaraguan elections had fallen far short of international standards. He said EU states have agreed to re-orient aid, both EU and bilateral, for Nicaragua in light of the elections. EU members have decided to suspend all budgetary support for the Nicaraguan Government. They have also agreed to review aid programs and, so far as practicable, shift away from projects with government institutions in favor of NGOs, he said. ¶2. Melan averred that the new approach will have little immediate impact on Austrian aid programs for Nicaragua. The GOA had never provided budgetary support to the GON. Most GOA aid programs are implemented through NGOs; less than a quarter involve government institutions as partners. Melan said GOA officials in Nicaragua monitor the programs to ensure that funds are not diverted. Cooperation with local GON partners has been good, and the GOA will continue those programs as long as that remains true, he said. Polchief emphasized the importance of pressuring the GON to undertake electoral reform. The fraudulent elections had tainted GON institutions, which should now be treated differently from NGOs, he argued. Melan replied that most aid programs worldwide are implemented in countries with flawed political systems. He argued that a suspension of all programs involving GON institutions would do more harm than good. GIRARD-DICARLO