EGYPT: FOLLOW-UP TO THE CAIRO SPEECH

UNCLAS SECTION 01 OF 04 CAIRO 001415

SIPDIS

STATE FOR NEA/ELA AND NEA/PPD

E.O. 12958: N/A
TAGS: PREL PGOV KISL KIRF EG
SUBJECT: EGYPT: FOLLOW-UP TO THE CAIRO SPEECH

REFTEL: A. STATE 71325 B. CAIRO 1158

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SUMMARY
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1. (U) Even before Air Force One departed on June 4, Embassy Cairo
began wide-ranging consultations with Egyptian civil-society,
private sector, and government leaders focused on implementing
President Obama's ideas. Egyptians are proud and excited that the
President chose Cairo as the speech venue and have been eager to
talk about follow-up. Embassy Cairo has reached out at all levels,
from student leaders to the business community to senior government
officials. Perhaps more significantly, Egyptians have been equally
forward leaning in reaching out to us. The President's speech has
energized the Egyptian-U.S. dialogue in a way few observers here
remember. The challenge will be to maintain that momentum as we
look for practical ways to put the ideas into practice.

Key points in our dialogue with Egyptians include:

-- Civil society leaders indicated strong interest in collaboration
on women's issues, freedom of expression, judicial independence, and
access to education. They urged quick implementation of follow-up
activities.

-- Business leaders and Egyptian government officials emphasized
skills development. We expect to take part in developing several
public-private partnerships targeted at entrepreneurship and human
capital development.

-- The GoE response was immediate and constructive. Ongoing efforts
to re-focus USG economic assistance on improving education have
picked up speed. In the short-term, we expect to use existing ESF
funds to expand scholarships for post-graduate programs in
education, help implement a model science and technology high school
program, and expand programming that provides job skills to young
people.

-- Dialogue between Muslims and the West will continue to be a
cross-cutting issue in our engagement with Egyptians and a key theme
of a series of upcoming thematic roundtables that reflect the goals
the President outlined in the speech.

-- The media widely covered post-speech engagement by the Ambassador
and other mission members.


2. (U) Our engagement here has also reflected Egypt's key regional
role. Egyptians are eager to be seen as regional leaders in
embracing and responding to the President's call for dialogue, and
are in a position to offer a substantial boost to a regional
implementation process, either as a host to coordinated U.S. efforts
or as a facilitator of well-integrated regional follow-on efforts.
The Arab League, headquartered in Cairo, has already expressed an
interest in working with the USG on several initiatives, including
access to education and building entrepreneurship skills in the
region. Key interlocutors like the Speaker of the People's
Assembly, Dr. Fathi Sorour, have suggested that the speech "opened a
new page" in the Arab world's dialogue with the U.S. - an indication
of the sense of optimism the speech has generated.
End Summary.

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Engagement Thus Far
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3. (U) The overwhelmingly positive response to the speech was
accompanied by a clear call for rapid implementation. Our
engagement has generated numerous ideas about how to move forward,
both through the expansion of existing initiatives as well as new
proposals in areas like education, supporting innovation through
science and technology initiatives, and skills based approaches to
economic empowerment. We have already begun to discuss these
initiatives with the GoE. This cable outlines our engagement to
date, according to the priorities set out by the speech, and
includes specific proposals for scaling up successful programs that
address these areas of engagement. These program proposals follow
earlier suggestions regarding follow-up to the President's speech in
Egypt (Ref B),which emphasized improving education and access to
opportunity. The majority of proposals below (See paras 15 to 18)
seek to address needs with existing FY2009 funds (with the option of
expansion in FY2010).
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Human Development/Education
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4. (U) CIVIL SOCIETY ENGAGEMENT, ENGAGING YOUTH: Immediately
following the speech, the Embassy conducted three civil society
roundtables: the first led by Secretary Clinton, in which
participants like the National Council of Women expressed an
interest in participating in the Secretary's "Civil Society 2.0"
initiative, a second with White House advisor Dahlia Mogahed and a
third with Under Secretary for Political Affairs William Burns. In

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each, civil society leaders expressed anxiety about continued U.S.
support for human rights and democracy promotion. Participants
urged continued focus on freedom of speech, strengthening judicial
independence, and fighting corruption as key to an "infrastructure
for democracy." U/S Burns also met with a variety of GoE officials
on a "Strategic Dialogue" initiative that will include a civil
society component. Public Affairs engaged the Embassy's educational
partners, AMIDEAST, the Institute for International Education (IIE),
Fulbright, and the Egyptian Association for Educational Resources
(E-ERA),on the way forward. All recommend an expansion of current
USG-funded programs including scholarships and exchanges, training
in English, IT, entrepreneurship skills and vocational education
that targets disadvantaged youth and is linked to the job market.

5. (U) Embassy Cairo also reached out to youth directly, raising the
President's goals in a variety of academic settings. The Ambassador
participated in a Cairo University sponsored roundtable on the
President's speech where participants discussed U.S. commitments to
human rights, Middle East peace, and economic development. The
Ambassador also addressed two groups of students from joint
U.S.-Egyptian advanced degree programs in business and law,
emphasizing the importance of education and innovation.


6. (U) GOVERNMENT-TO-GOVERNMENT CONSULTATIONS: As part of ongoing
engagement in an effort to re-orient U.S. assistance towards
education, Minister of International Cooperation Fayza Aboul Naga
underlined the GoE desire to focus on education, a point reflected
also in a June 10 letter to Secretary Clinton from Egyptian Foreign
Minister Ahmed Aboul Gheit, in which he requested support for
capacity building in the education system. Separately, the Minister
of Education reaffirmed that President Obama's initiatives matched
Egypt's efforts well and welcomed USG support in teacher training,
increased scholarships for graduate study in education, and efforts
to match student skills with employer's needs. The Minister of
Higher Education urged an increase in funding of the Fulbright
program in Egypt, with a focus on science and technology, English
partners assigned by field of study, and digital learning
initiatives. The Minister of Health urged support for additional
scholarships to U.S. MBA programs.


7. (U) INITIATIVES OUTSIDE OF CAIRO: NGO representatives from
Alexandria told the Ambassador that improvement of basic education
is the cornerstone of progress in Egypt. The American Center
Alexandria is working with the group to establish an Alexandria NGO
Association which would provide networking and training for its
members, a volunteer clearinghouse, promote volunteerism, and
establish a small grants program.

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Entrepreneurship/Economic Empowerment
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8. (U) CIVIL SOCIETY ENGAGEMENT, REACHING OUT TO BUSINESS: Our
engagement with the Egyptian Young Businessmen's Association has
been particularly fruitful. The group has committed to the creation
of an implementation plan to include areas of mutual interest, like
entrepreneurship development and renewable energy. Speaking to the
MEPI-funded Middle East and North Africa Business Women's Network,
the Ambassador underlined our commitment to improve economic
opportunity for women and girls in the region. At an
Ambassador-hosted economic roundtable, experts suggested that while
Egypt's economic policy has made progress, commitment to reform and
transparency issues remain problematic.


9. (U) GOVERNMENT-TO-GOVERNMENT CONSULTATIONS: We have exchanged
ideas with the GoE on ways of increasing innovation and
entrepreneurship, including discussions with the Minister of
Investment, Minister of Environmental Affairs, Minister of Manpower
and Migration and the Minister of Economy and Trade, with whom we
discussed the strengthening of trade relations between the U.S. and
Egypt. At that meeting, Ministry officials noted specific
industries that might benefit from U.S. technical assistance
including vocational training and spurring entrepreneurs in vital
and under-served fields. The GoE already produces regular annual
reports on Egyptian competitiveness, which are a good basis for a
way forward. We expect to see specific proposals from the Ministry.
The Ministry of Higher Education has ongoing projects on ways to
provide youth with skills the labor market needs and promote
entrepreneurship among students.


10. (U) INITIATIVES OUTSIDE OF CAIRO: Alexandria Business
Association members have provided us with a list of several concrete
proposals to implement the President's initiatives including:
increased financing and technical assistance for women's SME
projects; a human resources training center; and establishing a
center of scientific excellence at the Mubarak Center for Scientific
research in Alexandria.

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Science and Technology
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11. (U) CIVIL SOCIETY ENGAGEMENT, ACCESS TO INFORMATION: Embassy
Cairo has already begun to pursue ways to support translation of
educational materials (textbooks, classroom materials, teacher
guides) for electronic delivery. We have engaged two Egyptian
publishing houses, pioneers in electronic delivery of scientific and
education materials in Egypt, to distribute Arabic-language
instructional materials electronically. The Embassy is also
looking at opportunities to translate education web sites and create
Arabic-language mirror sites, including consultations with the
Egyptian Digital Library Consortium.


12. (U) GOVERNMENT-TO-GOVERNMENT CONSULTATIONS: Our engagement on
innovation and science and technology has focused on the need to
improve the quality of Egyptian graduates and to ensure that they
play a significant role in economic development. The Ministers of
Education, Higher Education, Investment and Economy have highlighted
to us science and technology scholarships and online learning
strategies for improving science and technology skills. Ideas on
possible U.S. support for science and technology model high schools
have been well received. These state-of-the-art schools would also
be defined as scientific centers of excellence and act as training
sites for teachers from across the country. We have engaged staff
at both the Ministry of Science and Technology and the U.S.-Egypt
Joint Science/Technology Program on expanding the Program's
activities in an effort to focus ongoing cooperation on applying
science to local problems. This fund has supported over 400
collaborative projects since its inception in 1995 including efforts
to identify Egyptian scientific projects with commercial potential.
The GoE also has an ongoing pilot program through the Ministry of
Science and Technology which provides stipends, education, and
career development to young researchers.

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Interfaith Partnership
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13. (U) Strengthening dialogue between Muslims and the West has been
a key theme in all of our discussions with Egyptians. New
opportunities for follow-up dialogue are emerging and we have begun
engaging directly on this issue with religious and cultural leaders.
The Acting DCM attended a conference of the Sufi orders in Cairo,
during which a number of speakers praised the core message of the
President's speech, even while criticizing other aspects of U.S.
foreign policy. In response to our engagement, the Biblioteca
Alexandrina has proposed establishing a Middle East branch office of
the Council of Religions for Peace to organize interfaith
discussions and implement interfaith projects for women, youth, and
poverty eradication. Ambassador has engaged cultural contacts in
the film, media and publishing industries to discuss ways to use new
media to include youth and intellectuals in a new dialogue that
would include faith.

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Programming Activities
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14. (U) In addition to considering new programs, Embassy Cairo has
been looking at ways to build on what is already working here,
particularly in education and science and technology. Many of the
proposed new or expanded programs below can be funded through FY
2009 ESF with the potential for increased funding in FY2010.
Programming that specifically addresses engagement on inter-faith
partnership will be integrated into each of these initiatives,
either through targeting recruitment, to ensure representation of
the full spectrum of religious belief in Egypt, or through
incorporating conflict-management modules that might address a wide
variety of social concerns.

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Education and Science/Technology
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15. (U) Current education activities funded through FY08-FY09 ESF
include a variety of programs that target students and their
teachers at all points along the educational continuum. Basic
education programming has improved learning achievements for 120,000
girls, while separate literacy programs focus on providing basic
skills to adults, with a special focus on women. Our long-standing
teacher training program strengthens the professional development
system to ensure quality instruction. The Embassy supports
educational and cultural exchange and institutional capacity
building through several scholarship programs. We also have a long
standing cooperation with Egypt that supports advanced research in
the sciences. The U.S.-Egypt Joint Science/Technology Program has
supported over 400 collaborative projects that apply science to real
world problems, like water and soil quality, since 1995.


16. (U) Proposed new education and science/technology programming:

-- Centers of Excellence in Science and Math Secondary Schools:
These model high schools will provide quality instruction,
state-of-the-art labs, enhanced curriculum, and extra-curricular

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activities to the students. Strategically located in three Egyptian
governorates, the Centers of Excellence will be also be used as
training sites for teachers, teacher supervisors, and other
education professionals from across the country.

-- Science/Technology Enrichment Education: Generate excitement and
awareness for science education though low-cost programs that would
include: after-school English language science programs, summer
science camps, an Arabic-language scientific television program, and
a nation-wide science fair with a prestigious award.

-- Science/Technology Field Internships: Work with public secondary
school and university students to locate paid summer internships in
their fields of interest at research institutes, universities, and
private high-tech companies.

-- Teaching Online: Support translation of educational materials
(textbooks, classroom materials, teacher guides) for electronic
delivery. Partner with local publishers already delivering
Arabic-language instructional materials electronically. Create
Arabic-language mirror sites to science education web sites such as
Discovery and National Geographic. Egypt could serve as a regional
hub for these activities.

-- Professional Academy for Teachers: Provide training and
assistance to this new Ministry of Education institution that
provides professional development, mentoring, and certification
standards for Egyptian teachers.

-- Expand Scholarships/Exchanges: Significantly expand scholarship
programs that provide English-language learning opportunities to
under-privileged youth and university students.

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Economic Development
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17. (U) Current USG economic development activities funded through
FY08-FY09 ESF are focused on efforts to match youth with
opportunities in the labor market. This includes providing
technical assistance for Ag-Tech schools to ensure improved training
and access to the latest best practices. Internships provided
through the program give students real work experience. Through a
public-private partnership with H.J. Heinz Company, another program
works with thousands of small farmers to teach them how best to meet
modern market demands. Support for several pilot Youth Centers for
Employability has been very successful, providing a job training
program and facilitating local recruitment.


18. (U) Proposed new economic development programming:

-- Bi-national Initiative for post-graduate masters and PhD degrees:
Increase the numbers of scholarships to U.S. institutions to fill
critical skill gaps identified through input from the GOE, the
private sector, and the National Competitiveness Council.

-- University Career Development Centers: Provide entrepreneurship
and life-skills training, including internships and career fairs.


-- Youth Centers for Employability: Upgrade existing centers and
incorporate new training programs to include literacy, math, IT,
English language programs, as well as problem solving and
interviewing tactics.

-- Entrepreneurial Growth Initiative: Partner with business
associations to support micro, small and medium businesses (with a
focus on women entrepreneurs) gain access to venture capital and
business development training (i.e. how to prepare business plans).
Support GoE efforts to help firms navigate the registration, tax,
and licensing requirements.

-- Focus on Franchising: Franchising is a means to create jobs and
transfer key management and technical skills from franchisor to
franchisee. FCS will provide technical assistance on new franchise
legislation, determine appropriate sectors for vocational-tech
industries (i.e. plumbing, automotive, electrical) and provide
technical assistance/counseling for new franchise opportunities.