ITALY SHARES CONCERN OVER AFGHAN GOVERNOR

C O N F I D E N T I A L ROME 001189 SIPDIS E.O. 12958: DECL: 10/29/2019 TAGS: PREL PGOV NATO IT AF SUBJECT: ITALY SHARES CONCERN OVER AFGHAN GOVERNOR APPOINTMENTS, HAS CONFIDENCE IN HERAT GOVERNOR REF: STATE 109882 Classified By: Acting Political Minister-Counselor J. Liam Wasley for R easons 1.4 (B) and (D) ¶1. (C) POLOFF met with MFA Afghanistan Envoy Sergio Mercuri on October 27 to deliver Reftel points stressing the importance of coordinated efforts by PRT lead nations to ensure that provincial governor appointments remain qualifications-based and do not become rewards for Karzai supporters. Mercuri said that Italy shares our concern over the possibility that Karzai will reward supporters in the south with gubernatorial positions, and offered Italian support for a joint effort among coalition Embassies in Kabul to engage the next Afghan government on the issue of appointments. He noted Italy's past support for Jelani Popal's Independent Directorate of Local Governance, which has done much to improve the appointments process, but conceded that the current political climate has been distorted by the electoral impasse and that the high standard set by the IDLG risks becoming degraded. ¶2. (C) With regard to Governor Nuristani of Herat, where Italy has its PRT, Mercuri remarked that he seems stable in his position, supports the work of the PRT, and is a notable improvement over his predecessor. Although close to Karzai, Nuristani has showed independence and initiative since being appointed Governor in February 2009, and he handled the August 20 elections in an impartial manner. Afpak Envoy Iannucci Seals Euro 6.4 Million Microcredit Agreement with GoIRA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶3. (SBU) Mercuri said Nuristani met with Italian Afpak Envoy Massimo Iannucci on October 26 in Herat to strengthen cooperation in the commercial sector (a follow-on effort to Nuristani's May 2009 visit to Rome with 30 Herati entrepreneurs) and to finalize arrangements for a Euro 6.4 million microcredit loan for families and small enterprises in Herat, Baghdis and Farah Provinces (all in Italy's Regional Command-West). The loan will be administered by MISFA (Microfinance Support Facility for Afghanistan),an independent Afghan agency. Iannucci signed the accord the following day in Kabul with Finance Minister Zakhilwal. Mercuri said that MFA was pleased with the speed with which the Afghan government approved the bilateral agreement governing the loan, which should be disbursed by the end of the year -- bringing Italy closer to its Paris pledge target of Euro 45-50 million per year (Italy has thus far disbursed Euro 35 million in development aid to Afghanistan in 2009 (septel)). THORNE