MARCH GAERC - FOCUS ON ECONOMIC CRISIS, BELARUS,

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 000396

NOFORN
SIPDIS

E.O. 12958: DECL: 03/16/2019
TAGS: PREL EUN ECON BO BK MW
SUBJECT: MARCH GAERC - FOCUS ON ECONOMIC CRISIS, BELARUS,
BOSNIA AND THE MIDDLE EAST

REF: BRUSSELS 371

Classified By: USEU POL M-C Chris Davis for reasons 1.4 (b) and (d).


1. (SBU) Summary: Meeting in Brussels on March 16, EU
Foreign Ministers (FMs) focused their efforts on measures to
address the economic crisis and the political challenges
faced in Belarus and Bosnia. In addition to preparations for
the March 19-20 European Council meeting, the General Affairs
Council discussed - but could not reach consensus on - plans
to provide an additional 5 billion Euros in support of energy
projects and other infrastructure investments under the
European economic recovery plan. The External Affairs
Council devoted its attention to Bosnia, Belarus, and the
Middle East. Reaffirming the Council's commitment to strong
engagement in Bosnia, Czech FM Schwarzenberg welcomed the
appointment of Valentin Inzko as EU Special Representative
(EUSR) and future High Representative (HR). Assessing
developments in Belarus, ministers decided to extend EU
restrictive measures for another 12 months and the suspension
of the visa ban on certain Belarusian officials for another 9
months. Ministers stressed the importance of free and fair
elections in Montenegro during the March 16 EU-Montenegro
troika, Schwarzenberg adding that he hoped Montenegro's EU
membership application could be forwarded to the Commission
"during the Czech presidency." End Summary.

General Affairs
--------------


2. (SBU) Chaired by Czech DPM Alexandr Vondra, the General
Affairs session focused on the European economic recovery
plan and preparations for the March 19-20 European Council
meeting. Regarding the recovery plan, Vondra said that the
presidency had worked with the Commission to shape a
compromise on a 5 billion Euro contribution from the
Community budget to the European recovery plan. Vondra said
delegations had not yet reached a decision, but were "on the
right track." More work was in store, he said, as some
Member States "feel the need to look at the package again,"
adding that the presidency would propose a new compromise.


3. (SBU) Vondra said that he had urged colleagues to "act in
a spirit of responsibility." He noted that Member States
still had time to reach agreement at the European Council
later this week. "If we fail," Vondra said, "the credibility
of all will be in question." Characterizing the issue as "a
collective exercise," Vondra implied that success "will be
the success of the 27 just as their failure would be a
collective failure." Asked whether the Nabucco pipeline
project was included on the list of projects eligible for EU
funding, Vondra said that "a strong group of countries wanted
Nabucco to be part of the set of projects," adding that "in
this initial phase it was more a question of political
support."


4. (SBU) Concerning preparations for the European Council,
Vondra reported that the draft conclusions "support EU
efforts to tackle the economic crisis" and that Member States
are "on the right track." He said that discussions on the
crisis would focus on three areas:

- the European economic recovery plan and its implementation;
- a mandate for a unified EU position at the G-20 summit;
- employment and the EU employment summit on May 7 in Prague.

External Affairs
--------------


5. (SBU) Chaired by FM Schwarzenberg, the External Affairs
Council discussed - and issued formal Conclusions related to
- Bosnia, Belarus, Afghanistan, the Middle East, U.S.-EU
relations, Sudan, EUFOR Chad/Central African Republic, Sri
Lanka, Madagascar, and the UN Durban review conference. The
ministers also discussed Bosnia, Belarus and the Middle East.



6. (SBU) On Bosnia, Schwarzenberg said it was "wrong to
think that substantial progress will be possible without
continuing strong international engagement." The Council
reiterated its full support for the "European perspective" of
Bosnia and called upon local political leaders to engage
fully on implementing the reform agenda. The Council
appointed Valentin Inzko as EUSR and welcomed his appointment
as High Representative. Asked about a purported letter from
Italy and Slovenia on visa liberalization for the Western
Balkans, Schwarzenberg said that the EU was working on it,

BRUSSELS 00000396 002 OF 003


but conceded that Member States still had "different views on
the question."


7. (SBU) Concerning developments in Belarus, ministers
decided formally to extend the EU restrictive measures for
another 12 months. At the same time, ministers decided to
prolong the suspension of the visa ban on certain Belarusian
officials for another nine months. At the end of the
nine-month period, the Council will conduct an in-depth
review of the measures, "taking into account the situation
and developments in Belarus." Schwarzenberg said that,
provided there are further positive developments, the EU
"could be ready to consider the possibility of lifting the
restrictive measures." At any time, Schwarzenberg said, "the
Council may decide to reapply the travel restrictions, if
necessary, in light of the actions of Belarusian authorities
in the sphere of democracy and human rights." He said that
the need to prolong the sanctions while at the same time
suspending the travel ban "reflect a mixed situation in
Belarus." Schwarzenberg noted that recent cases of human
rights violations remain a source o concern and tressed
that the EU attached grat importance to "all the principles
and commitments made by Belarus within the framework of te
OSCE."


8. (C/NF) Turning to the Middle East, Schwarzenberg reported
that ministers had taken stock of the situation in Gaza,
inter-Palestinian talks, and the political situation in
Israel. The presidency, HR Solana, and Commissioner
Ferrero-Waldner briefed ministers on their recent contacts
with partners in the region including the EU troika dinner on
March 15 attended by the Egyptian and Palestinian Authority
foreign ministers and Jordanian ambassador (reftel). Asked
whether the possible appointment of Avigdor Lieberman as new
Israeli foreign minister would be a threat to MEPP,
Schwarzenberg replied that "he did not know who will be FM in
Israel, but that he would have to deal with the FM whoever
that person is." After adding that the EU would have to
recognize a new Israeli government "on its fruits,"
Ferrero-Waldner interjected by saying that it was "all a
matter of principles" and that "we have said that we want a
two-state solution, so we want a FM who accepts a two-state
solution and peace negotiations." Concerning the issue of
how the EU would respond should there be a transitional
Palestinian government that included Hamas
participation/representation, the UK PSC ambassador later
shared with Charge that while "it had been in the air,"
ministers did not discuss the matter. The UK PSC ambassador
reported that ministers did not broach the topic since there
were so many widely differing views on the issue that
achieving a consensus view would have been highly unlikely.

External Affairs - Other Issues
--------------


9. (SBU) With regard to U.S.-EU relations, the presidency
briefed ministers on preparations for the informal meeting of
EU heads of state and/or government with President Obama to
be held in Prague on April 5. On Afghanistan, the Council
adopted conclusions underlining that the challenges facing
the country and the broader region required renewed
international engagement and that the EU would play a major
role in this. Discussing the UN's Durban Review Conference
on racism and intolerance, to take place in Geneva in April,
Schwarzenberg commented that "the main voices were very
skeptical about the directions of papers prepared" for the
conference. He said the EU would "probably" send its own
suggestions for the draft, adding, "If the conference will be
in line with that, we will stay, otherwise there is a strong
call to withdraw."


10. (SBU) Turning to Sudan, the Council reiterated the EU's
call upon the Sudanese government to reconsider its decision
to expel NGOs, "for the sake of its own people." Responding
to questions as to whether the military in Madagascar had
attacked the presidential palace, Schwarzenberg said that the
EU "of course rejects each act of violence," suggesting that
if a new head of state were installed by force, "that's not
somebody we can consider - we will do the same thing as was
the case in Mauritania." Solana added that the EU is
monitoring the situation closely and would "take appropriate
decisions." Regarding the EUFOR mission in Chad and the
Central African Republic, the Council adopted conclusions
welcoming the fulfillment of the operation's mandate,
underlining the "exemplary cooperation" between the EU and
the UN from the launching of the mission to its successful
handover. Underlining the seriousness of the humanitarian

BRUSSELS 00000396 003 OF 003


situation in Sri Lanka, Ferrero-Waldner said that the EU
would send a diplomatic mission to the country "soon" to push
the EU cease-fire appeal. (Note - Thousands of supporters of
a Tamil state protested in Brussels March 16 against
"genocide" by the Sri Lankan government and urged the EU to
send observers. End note.)

Troika With Montenegro
--------------


11. (C) An EU-Montenegro troika was held on the evening of
March 16. Ministers stressed the importance of free and fair
elections in Montenegro during the March 16 EU-Montenegro
troika, Schwarzenberg adding that he hoped Montenegro's EU
membership application could be forwarded to the Commission
"during the Czech presidency." Schwarzenberg said the
Western Balkans are "of utmost importance for the EU in
general and for the Czech Presidency in particular," and the
EU wanted to achieve "integration and stability" there.
Upcoming Swedish FM and EU presidency chair Carl Bildt
stressed that "no one (among EU countries) was against the
principle of moving Montenegro's application forward" and
suggested that a "technical timing issue" was to blame for
the delay.

MURRAY
.