Afghan Finance Minister Presents "Civilian Surge Plan" for

UNCLAS KABUL 001029 DEPT FOR SRAP, SCA/FO, SCA/RA, AND SCA/A DEPT PASS FOR AID/ANE DEPT PASS USTR FOR DELANEY AND DEANGELIS DEPT PASS OPIC DEPT PASS FOR TDA FOR STEIN AND GREENIP USOECD FOR ENERGY ATTACHE CENTCOM FOR CSTC-A NSC FOR JWOOD TREASURY FOR MHIRSON, ABAUKOL, AWELLER, AND MNUGENT COMMERCE FOR HAMROCK-MANN, DEES, CHOPPIN, AND FONOVICH SENSITIVE SIPDIS E.O. 12958 N/A TAGS: EFIN ECON EAID AF PK SUBJECT: Afghan Finance Minister Presents "Civilian Surge Plan" for Technical Assistance ¶1. (SBU) In an April 19 meeting with the Charge, Afghan Finance Minister Omar Zakhilwal presented an advance copy of the government's "civilian surge plan" for technical assistance. He said he means to discuss the plan - formally approved by President Karzai on April 20, we since learned - in his April 22 meeting with SRAP Holbrooke. Zakhilwal said the GIRoA was trying to get ahead of USG plans to send more civilian advisers to Afghanistan. The cabinet asked him to solicit input on TA requirements from all ministries, and the plan is the resulting compilation. It calls for several hundred technical advisors to support 22 GIRoA ministries in Kabul and the provinces. The Charge welcomed the proposals and said they were timely in view of upcoming planning meetings in Washington. Post has emailed the approved civilian surge plan and cover letter to SRAP Holbrooke and others. ¶2. (SBU) Zakhilwal also said he would use his Washington meetings to report on progress he has made since becoming Finance Minister and highlight continuing challenges. He said his efforts to increase fiscal revenues and his policy of zero tolerance of corruption are already paying off. His anti-corruption hotline is having a deterrent effect on corrupt officials, but he needs assistance to strengthen the Internal Audit department's ability to investigate allegations. He is working stepwise to increase revenues collected by other ministries, focusing first on streamlining existing procedures, e.g. vehicle registration, and later on more radical reform of those procedures. He is shaking up the staff in the Customs Department to reduce corruption but faces resistance from members of Parliament who seek to protect corrupt officials he wants to sack. Zakhilwal expressed appreciation for the advisors at MOF that the U.S. funds and asked for additional help. ¶3. (SBU) The Charge asked if Zakhilwal would attend the May 6-7 Trilateral meetings in Washington, noting that the issue of extended opening hours for Customs houses on the Pakistani border could usefully be discussed in that forum. Zakhilwal said the President asked him to join the Afghan delegation but the Trilateral overlaps with his plan to attend the Asian Development Bank meeting in Bali, Indonesia. He said he would support longer Customs hours if the Pakistani side agrees. The Charge asked him to work on this issue even if it is not discussed in Washington. (Subsequently, Charge reported his conversation to President Karzai, who immediately ordered that Zakhilwal would go to Washington instead of the ADB meeting in Bali.) ¶4. (SBU) The Charge also described U.S. efforts to have the Ministry of Agriculture transfer a plot of land at Weesh in Kandahar province to MOF so that the U.S. and Canada could build a new Border Crossing Post. Land transfer, right of entry, and agreement by current land users to vacate the property must be in place by August 15 to enable use of U.S. funds before relevant authority expires. Zakhilwal was familiar with the issue and said he would make sure the project moves forward. We learned afterwards from Agriculture Ministry staff that they are in contact with MOF staff on the land transfer issue. RICCIARDONE