EUROPEANS RAMPING UP AID TO CUBA

C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000424

SIPDIS

DEPT FOR WHA/CCA

E.O. 12958: DECL: 07/06/2019
TAGS: EAID PHUM PREL ECON PGOV CU
SUBJECT: EUROPEANS RAMPING UP AID TO CUBA

HAVANA 00000424 001.2 OF 002


Classified By: COM Jonathan Farrar for reasons 1.4 (b) and (d)

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SUMMARY
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1. (C) The European Union is ramping up its Mission in Cuba
to focus on implementing a 40 million euro cooperation (i.e.
aid) agreement. Prior to October 2008, Cuba only accepted
limited assistance from Belgium and Spain. Although the EU
package does not provide any direct budget support, all
implementing agencies (United Nations and European NGOs) will
have to partner with local organizations controlled by the
Government of Cuba (GOC). The new package focuses on
hurricane assistance and preparedness, agriculture and food
security, environment, culture, and business management
training. EU contacts are relatively pleased with the level
of GOC cooperation, though GOC officials repeatedly shun EU
attempts to provide advice or technical expertise. The EU
Mission's plan to add a dedicated political/economic section
may improve the attention paid to human rights and economic
issues. End Summary.

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CUBANS FINALLY AGREE TO ACCEPT 40 MILLION EUROS
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2. (C) The European Union (EU) suspended assistance to Cuba
in the Spring of 2003 following the imprisonment of 75
writers, journalists, and other members of civil society.
Cuba continued to punish the EU and its members (with the
notable exceptions of Belgium and Spain) for this decision
even after the EU Council effectively lifted the suspension
in June 2008. Cuba even refused emergency hurricane
assistance from the European Union when three powerful
hurricanes devastated much of the island in August and
September 2008. It was not until October 24, 2008, when Cuba
and the European Commission (EC) agreed to "resume
cooperation activities without conditions" that Cuba would
once again accept aid from Europe.


3. (C) The EU Mission in Cuba is in the process of
implementing a 40 million euro aid package using 2008-2009
funds. Additional funds are likely in 2010. Our EU contacts
note that, unlike traditional EU aid packages, this
assistance does not include any direct budget support.
Instead, all of the aid will be delivered through UN agencies
or NGOs. However, all projects will be run in conjunction
with Cuban ministries, agencies, and GONGOs (government
organized NGOs) and require the blessing of the ministry
charged with economic cooperation. The package includes the
following components:

--Disaster Response and Management: 1) two 2 million euro (4
million total) emergency humanitarian assistance projects for
six months each run through the European Commission's
Humanitarian Aid Office (ECHO); 2) four 18-month agriculture
rehabilitation projects aimed at improving productive
capacity already awarded to the few European NGOs working in
Cuba (7.5 million euro); participation in a 16 million euro
regional program (amount for Cuba yet to be determined) on
disaster preparedness through DIPECHO (the disaster
preparedness part of ECHO).

--Agriculture/Food Security: 1) 11.7 million euro food
facility run by UNDP through a "bottom-up" development
program to support the local modernization of the agriculture
sector (PALMA) set to begin this summer and conclude within
three years; 2) a second food facility that will be delivered
through UNDP (4.4 million euro linked to PALMA but from a
different budget) and European NGOs (3.6 million euro call
for proposals will close in mid-September).

--Environment: 1) 3 million euros for projects related to
renewable energy and climate change through NGOs most likely
to start in early 2010; 2) 2.8 million euro contribution to
the UNEP regional project to create a bio corridor with Cuba,
Haiti, and the Dominican Republic.


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--Culture and Other: 1) 1.1 million euro contribution to the
UNESCO restoration of the Old Havana Historical Center
(ongoing); 2) revival of the DEADE (Diplomado Europeo en
Administracion y Direccion de Empresas) program to train
Cubans in business administration and the possible creation
of a European Management School (2.2 million euro); two
300,000 euro projects to support social cohesion through
non-state actors (open call for proposals).

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EU COUNCIL'S BLESSING
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4. (C) Officials at the European Union's Mission in Cuba are
pleased with the June 15, 2009 EU Council declaration on the
EU Common Position on Cuba. In particular, our contacts
noted the second adopted conclusion which for the first time
since 2003 took "positive note of the renewal of development
cooperation with Cuba as a tool for improving the lives of
the Cuban people." The European Commission has already
doubled its representation at the Mission from two to four
officers to assist with the implementation of the aid
package. In addition, the Mission intends to add a three
person political/economic section. Currently, reporting on
human rights and the economic situation in Cuba are secondary
responsibilities for the new officers whose primary focus is
on getting their coordination projects up and running. The
Mission is also looking to move to another location with more
space. In the meantime, individual member states (Spain and
Belgium) continue providing bilateral assistance, while
others pursue their own cooperation agreements (France and
Portugal).

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KNOW IT ALL
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5. (C) As we have heard from other donors, GOC officials are
often dismissive of any attempts by foreign officials or
visiting delegations to offer proposals for the type of
programs that could benefit Cuba. Instead, GOC officials
only want the money or equipment transferred directly into
Cuban hands. They have no use for visiting experts,
training, or technical workshops. In one particular meeting,
a Director in the Ministry of Science, Technology, and
Environment told a visiting renewable energy consultant
funded by the EU that Cuba already knew exactly what it
needed to do but only lacked the funds. The expert then
visited some projects and saw 20-30 year old technology and
know-how that completely invalidated what he had been told by
the Ministry.

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COMMENT
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6. (C) The previous number two at the EU Mission in Cuba was
technically in charge of cooperation activities and
political/economic affairs, but he focused primarily on
political and economic issues since cooperation activities
were nonexistent. The new officer arrived last summer with a
coordination background just after the EU's June 2008 change
of heart. As a result, economic and political issues were
either covered by the Charge or not followed at all. We will
be watching to see whether a newly expanded EU
political/economic section will focus on another of the
conclusions listed in the June 15, 2009 EU Council
declaration - the commitment to pursue a results-oriented
comprehensive dialogue with representatives of civil society
and the peaceful pro-democracy opposition and to always
address human rights issues during high level visits.
FARRAR