PORTUGAL RESPONSE TO IMF / WORLD BANK DEMARCHE

C O N F I D E N T I A L LISBON 000216 SIPDIS E.O. 12958: DECL: 04/17/2019 TAGS: ECON EFIN PREL PO SUBJECT: PORTUGAL RESPONSE TO IMF / WORLD BANK DEMARCHE REF: STATE 33629 Classified By: POL/ECON COUNSELOR RICHARD REITER, FOR 1.4 B, D. ¶1. (C) Pol/Econ Counselor, together with the British DCM in Lisbon, on April 17 delivered reftel demarche regarding Kosovo's application to join the IMF and World Bank. Liliana Mascarenhas Neto, the Director for European Affairs at the Portuguese MFA, took note of our points, particularly the importance of reaching the 93-vote quorum, but was noncommittal on Portugal's final decision. She said that she would consult with her colleagues in the MFA's International Organizations office and make a recommendation to the MFA's Director General, who is traveling until Sunday. Neto promised us a response early next week. She opined that if Portugal decides to support Kosovo's bid, the MFA might lobby lusophone countries (Angola, Cape Verde, etc.) that have not recognized Kosovo's independence. ¶2. (C) It is worth noting that Portugal recognized Kosovo only in October 2008, and then somewhat reluctantly. While Ms. Neto did not refer to Serbian pressure on this issue, we would expect Portugal to be high on Belgrade's or Moscow's list of likely targets if they are going to exert pressure to oppose Kosovo's IMF/WB membership. ¶3. (C) Post also reached out to German, Italian, and French embassies in Lisbon regarding this demarche, all were aware of the issue, but none besides the British had instructions from capital to deliver a demarche. For more reporting from Embassy Lisbon and information about Portugal, please see our Intelink site: http://www.intelink.sgov.gov/wiki/portal:port ugal STEPHENSON