MALDIVES: A/S BLAKE'S MEETING WITH FM SHAHEED

C O N F I D E N T I A L SECTION 01 OF 02 STATE 101875

SIPDIS

E.O. 12958: DECL: 09/30/2019
TAGS: PREL PTER EAID EFIN ECON MARR SENV KGHG ETRD IN IS
MV, XO
SUBJECT: MALDIVES: A/S BLAKE'S MEETING WITH FM SHAHEED

Classified By: A/S for SCA, Robert O. Blake, Jr., reasons 1.4 (b,d)


1. (C) Summary: In a September 25 meeting with SCA A/S
Blake on the margins of UNGA in New York, Maldives Foreign
Minister Shaheed related that Maldives would try to qualify
for a Millennium Challenge Corporation (MCC) program despite
MCC's focus on larger countries. Shaheed reported that in
his General Assembly speech the Maldives President had
announced the restoration of relations with Israel, with
which it has already signed several agreements on health,
education and tourism. Shaheed said that he also hoped to
hold another conference on Indian Ocean security, and will
host a conference of "vulnerable countries" just before the
November Copenhagen meeting. Blake commended the Maldives
for its independence and leadership in the region. End
Summary.

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Maldives Wants MCC
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2. (C) Foreign Minister Shaheed related that the Maldives
will submit a proposal for an MCC grant that focuses on port
infrastructure development in October Shaheed hoped that
the proposal would convey that the Maldives would benefit
from an MCC grant without incurring extravagant expenses. He
also noted that other small island nations had qualified for
MCC programs. Moreover, strengthening port infrastructure
would also reinforce Indian Ocean security for international
traffic, he argued. A/S Blake promised to be supportive if
MCC was prepared to consider a program.

- - -
Maldives Recognizes Israel, Works with India
- - -


3. (C) Shaheed highlighted that President Nasheed pledged to
"renew ties" with Israel in his September 24 UN General
Assembly speech. The Maldives Defense Minister would visit
Israel in October, as well as the Minister for Natural
Disasters, he continued. The two countries have already
signed agreements on health, education and tourism. Asked
about the domestic reaction, Shaheed admitted that that there
has been "a lot, but not a genuine undercurrent." He
believed that radical clerics ignited a reaction. Concerns
about extremism also prompted the Maldives to work with India
on resort security, he added.

- - -
Focus on Climate Change
- - -


4. (C) Shaheed appreciated the strong message from President
Obama on climate change. He suggested that stressing
positive actions, rather than "things which we should not do"
would persuade other countries to strike a more helpful
stance. Blake observed that the U.S. will prioritize climate
change in its discussions with India, which has recently
shown a positive evolution on the issue. Shaheed agreed that
India has taken a more practical position, and has started to
explore collaboration with Maldives on green energy projects.
World Bank projects on "green resorts" have also begun, as
well as a U.S.-funded program to provide 20 percent of the
energy in three northern islands through green technology.
Blake suggested that the government look into energy service
companies, known as "ESCos," which design, implement and
profit from projects that save energy.


5. (C) The Maldives will host a gathering of the 19-20 "most
vulnerable" countries before the Copenhagen summit, Shaheed
reported. The Maldives President will also travel to Delhi
October 22 for a climate change conference, he added.

- - -
Indian Ocean Security
- - -


6. (C) Blake remarked that with the White House approval for
Maldives to receive defense articles and services, the U.S.
would look for ways to provide assistance to Maldives, in
recognition both of the support Maldives had provided to the
U.S. and the threats Maldives faces. Shaheed replied that he

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wanted to look at the broader Indian Ocean region because "if
the oceans are not secure, we suffer." Blake recounted that
the Coast Guard had arranged a successful port security
conference in Maldives more than a year ago which was a
positive base on which to build. Shaheed offered to host
another, similar conference, which would build on regional
cooperation on Indian Ocean security.

- - -
Economics Also a Priority
- - -


7. (C) Shaheed said that he hoped to finalize the TIFA and
OPIC agreements when the AUSTR visits Male in October.
However, he cautioned, the Maldives cannot release the text
until the U.S. restores the country's GSP status. Blake
advised that the U.S. Export-Import Bank might also help
expand opportunities for U.S. business in Maldives.
CLINTON