PRIME MINISTER AND EUR DAS RUSSELL

C O N F I D E N T I A L SECTION 01 OF 02 CHISINAU 000897

SIPDIS

STATE FOR EUR/UMB

E.O. 12958: DECL: 11/19/2019
TAGS: PREL ECON EAID KDEM MD
SUBJECT: PRIME MINISTER AND EUR DAS RUSSELL
DISCUSS MOLDOVAN-U.S. ISSUES

CHISINAU 00000897 001.2 OF 002


Classified by: Ambassador Asif J. Chaudhry for
reasons 1.4 (b) and (d)


1. (C) Summary: During a November 19 meeting with
EUR DAS Russell, Prime Minister Filat underlined
the work of the new government and its priorities.
He noted the importance his government placed on
the USG's role in the 5 plus 2 negotiations and
outlined his plans to promote communication and
contacts between Chisinau and Tiraspol. On the
upcoming presidential election, the Prime Minister
expressed optimism but noted that the GoM should
also be ready for new elections if a president is
not elected. The Prime Minister agreed with DAS
Russell that a January 2010 MCC Compact signing
was the best available date. End Summary.

Filat Outlines Situation in Country
--------------


2. (C) Prime Minister Vlad Filat opened the
November 19 meeting with DAS Russell by thanking
the USG on behalf of the Moldovan people for its
consistent support of Moldova. Filat recalled his
first meeting with Ambassador Chaudhry over a year
ago in which the discussion had focused on the
importance of liberty, rights and freedom for
Moldovans. While noting that his government had
only been in office for a short period of time,
the Prime Minister expressed confidence that it
would succeed, stating in English, "Yes we can."


3. (C) Filat said the priorities of the government
were rule of law, freedom, citizen rights,
independence and unity of Moldova. All these
priorities supported Moldova's European
integration. Filat also conceded that Moldova
faced enormous internal political and economic
problems, and said that in some areas the
government lacked capable administrators. While
noting that the Alliance was working well
together, he also acknowledged that within the
Alliance there were differences in approaches to
problems and in the personalities.

Filat on Transnistria
--------------


4. (C) The Prime Minister said that he would speak
frankly and directly on Transnistria. The U.S.
role, he said, would be decisive in making
progress on reunification, particularly in light
of the fact that the Russian approach to the
Transnistrian problem was "very tough."Filat said
that reading the Russian press in preparation for
his November 20 meeting with Russian Prime Minster
Putin he had noticed that the Russians covered the
Transnistrian issue "in an emotional manner,"
expressing frustration rather than approaching the
issue pragmatically. Although he did not want to
put the full responsibility of resolving the
reunification issue on the shoulders of the U.S.,
Filat underlined that Moldova needed very active
U.S. support.


5. (C) On Transnistria, Filat expressed optimism
that the 5 plus 2 participants could reach
agreement on a statement at the Athens
ministerial. DAS Russell cautioned that reaching
agreement on a statement was not as significant as
sticking to principles and moving the process
forward. One should not lose sight of the fact
that the conflict was already eighteen years old
and progress would likely be incremental, he
added.


6. (C) The Prime Minister stated that he wanted to
change the tactics of the negotiations and open up
contacts between people. He noted that he planned
to support summer camps between children from both
banks of the Nistru and promote collaboration
between doctors, teachers, professors, and other
professionals. He said that he had never
considered a settlement of the conflict a
technical issue simply requiring a signed
agreement but rather a process of integration and
building trust between people. Filat also noted
that it was possible to work with Russia
constructively on regional economic issues but it

CHISINAU 00000897 002.2 OF 002


was much more difficult in the political sphere.

Electing a President
--------------


7. (C) Filat said he was "optimistic" that the
Parliament would elect a president by the December
10 deadline. However, he went on to state that
the government had to be prepared for the
possibility of new elections. (DAS Russell noted
that the election of a president was Moldova's
business, at which point the Prime Minister
interjected, "and sometimes Moscow's.")
Nevertheless, the Prime Minister also noted that
the Alliance already had achieved some successes
and was moving the country away from its
autocratic past. He also added that his goal in
launching his Liberal Democratic Party had been "a
Moldova without President Voronin and a Communist
government," and that this had been achieved.

The Economic Situation
--------------


8. (C) The Prime Minister stated that the Moldovan
economy was in very bad shape because of the
global economic crisis and poor administration of
the previous government. The GoM had negotiated a
new IMF agreement and on November 18 had adopted a
final version of its Stabilization and Recovery
Plan which would enable sustainable, economic
growth in a market economy. Filat also noted that
it was important to develop the market economy and
eliminate the entrenched monopolies in the
Moldovan economy.

MCC Compact
--------------


9. (C) DAS Russell underlined that USG support for
Moldova was more than just words and was exhibited
in the possible USD 262 million MCC Compact
(pending Board approval and Congressional
notification) and in bilateral assistance to
Moldova of USD 15 million. He further noted that
the U.S. as an IMF member had supported the new
IMF agreement with the GoM. Filat expressed
gratitude for U.S. support and also agreed that a
January timeframe for an MCC signing ceremony
offered a better opportunity to set up meetings
with USG representatives and Congressional
members.

Comment
--------------


10. (C) Although Filat began his comments on the
upcoming presidential elections expressing
optimism, his note that the GoM should be ready to
administer new parliamentary elections reinforces
a growing perception that the Alliance will have
difficulty garnering the eight votes it needs from
the Communists to elect Marian Lupu.


11. (C) Filat clearly understood that an MCC
Compact signing in January was the better choice
for photo opportunities and a possibility for him
to promote the strong ties he is forging with the
U.S. A visit to the U.S. to meet with USG and
Congressional leaders will give him a chance to
showcase his statesmanship on the international
stage as he strives to build his leadership
credentials in Moldova with the prospect of new
elections later in the year. He is hoping to
highlight the successful start of the new year for
his government and himself by bringing home USD
262 million as a way to win support among the
population. If a president is elected, the
Compact will be counted a success for the Alliance
and underline its pro-Western program. If the
president is not elected, the Compact will help
the GoM's cause in new elections.


CHAUDHRY