FOLLOW-UP DEMARCHE: PAKISTAN DONORS' CONFERENCE

UNCLAS SECTION 01 OF 09 STATE 032712

SIPDIS
MANILA FOR DELIVERY TO ASIAN DEVELOPMENT BANK
JEDDAH FOR DELIVERY TO ISLAMIC DEVELOPMENT BANK

E.O. 12958: N/A
TAGS: EAID ECON EFIN IBRD IMF PK
SUBJECT: FOLLOW-UP DEMARCHE: PAKISTAN DONORS' CONFERENCE
APRIL 17

REF: STATE 24367

SUMMARY
--------------


1. (U) This is an action request. Please see Paragraph 3
for general talking points. Paragraph 4 has Post-specific
points.


2. (U) Per reftel, Japan and the World Bank are co-hosting a
Donors
Conference for Pakistan on April 17 in Tokyo. The stated
goal of the conference is to raise $4 billion to help
stabilize Pakistan's economy and provide funding urgently
needed for social safety net and development needs, as
well as to bolster foreign reserves. The U.S. strongly
supports
the conference and will likely pledge at least $1 billion.
Department requests an update on host countries' intentions
to participate in the conference, especially specifics on
anticipated pledge and participation level.

ACTION REQUEST
--------------


3. (U) Posts should convey the following points at the
most senior level, as appropriate. Posts should again
coordinate a joint demarche with Japanese and Pakistani
officials, if possible, to ensure a consistent message on
the importance that the U.S., Japan, and Pakistan are
attaching to this effort. Department requests that Embassy
Manila ask U.S. Executive Director at Asian Development
Bank to raise these points with Board. Consulate General
Jeddah is requested to raise these points with Board of
Islamic Development Bank.

Begin talking points.

-- Achieving our security goals in Afghanistan requires
economic and political stability on both sides of the
Afghanistan-Pakistan border.

-- In his speech announcing the new U.S. strategy for
Afghanistan and Pakistan, President Obama stressed the
importance of increased economic assistance to Pakistan.

-- The campaign against extremism will not succeed with
bullets or bombs alone. This is a global threat that
requires multilateral cooperation and a significant
financial commitment.


STATE 00032712 002 OF 009


-- President Obama called on our allies and
partners to do their part and offer strong
support at the donors conference in Tokyo.

-- (If appropriate) We appreciate your country,s recent
participation in the meetings in The Hague and hope to see
a demonstration of your country,s commitment to the region
at the pledging conference.

-- The outcome of the conference will have a major impact on
the public perception of the international community,s
commitment to helping Pakistan. A successful conference
will send a powerful signal that Pakistan,s key partners
are pulling together to support Pakistan.

-- The success of the Donors, Conference depends on very
significant new contributions and senior-level participation
from all donors.

-- Pakistan is working with the World Bank on a strategy
to demonstrate how the conference funding target of $4 billion
will be used. The funding breakdown includes funding for
poverty alleviation programs for the poorest of the poor,
education, and health. The strategy document will be
presented at the conference in Tokyo.

-- Pakistani President Zardari, Foreign Minister Qureshi,
and Finance Minister Tarin will attend.

-- The U.S., which will be represented by Special
Representative
for Afghanistan and Pakistan Richard Holbrooke, plans
to pledge at least $1 billion over two years, components
of which are still under discussion.


4. Points for specific countries:

Australia:
-- We appreciate FM Smith's decision to attend.
-- We appreciate Australia's decision to double its
assistance to Pakistan in recent years; this reflects
Australia's recognition of Pakistan as a central security
and foreign policy concern.
-- We would appreciate any information you can share about
Australia's intended pledge. We need your government's
contribution to ensure we reach the $4 billion target.

Canada:
-- We appreciate Canada's decision to attend. Has your
government decided whether the Foreign Minister or
Development Minister will attend?
-- We would appreciate any information you can share about
Canada's intended pledge. We need your government's
contribution to ensure we reach the $4 billion target.

China:

STATE 00032712 003 OF 009


-- We appreciate China's decision to attend. Has your
government decided who will lead the Chinese delegation?
-- We would appreciate any information you can share about
China's intended pledge. We hope that you will take
advantage of the opportunity to announce your assistance
to Pakistan at this forum.
-- China and Pakistan have a historically close relationship.
We believe Pakistan's economic challenges require a multi-
lateral effort. The outcome of the Donors Conference will
have a major impact with the public and the media. Pakistan
looks to China as a key partner in assistance. We need your
government's strong contribution to ensure we reach the
$4 billion target.

Czech Republic
-- We hope the Czech Republic will attend the conference
on behalf of the EU. When can we expect a new government
to make a decision about participation?
-- We also hope the Czech Republic will support and
announce a significant EC pledge and will work to ensure
that EU members state pledges collectively more than match
the EC pledge.
-- We would appreciate any information you can share about
your government's intended pledge and the EC's intended
pledge. We need your government's support to ensure the
conference reaches the $4 billion target.

Denmark:
-- We encourage Denmark to attend the conference. Has
your government made a decision about participation?
-- We understand that your government's traditional aid
priorities have been in Africa. The United States views
Pakistan as an assistance priority, given its global
strategic importance. We also believe that the challenges
Pakistan faces require multilateral cooperation to resolve.
-- We appreciate FM Moller's interest in the conference
and hope Denmark will participate. We need your
government's contribution to ensure we reach the $4
billion target.

European Commission:
-- We welcome Commissioner Ferrero-Waldner,s participation
and hope that she is able to attend.
-- The world looks to the EC to demonstrate international
leadership as a donor.
-- We urge a strong EC contribution at the conference.
-- We understand the EC has specific budgetary processes;
we urge you to work within your system to develop and
announce a large pledge for Pakistan.
-- An EU pledge that is comparable in size to the U.S.
contribution is essential if the conference is to be a
success.
-- We appreciate the EC's recently announced increased
assistance to Pakistan, and urge you to do more through
the Donors Conference, given Pakistan's global strategic
importance.

STATE 00032712 004 OF 009


-- We need the EC's strong contribution to ensure we reach
the $4 billion target.

Finland:
-- We appreciate Finland's decision to attend the
conference. Has your government made a decision regarding
who will lead your delegation to represent Finland?
-- We would appreciate any information you can share about
Finland's intended pledge. We need your government's
contribution to ensure we reach the $4 billion target.

France:
-* We appreciate Special Envoy Lellouche,s decision
to participate in the conference.
-- We understand your government, like many, is exercising
fiscal discipline in light of the global economic crisis.
-- However, we urge you to make a substantial pledge at
the Pakistan Donors Conference, given the global strategic
importance of Pakistan.
-- We would appreciate any information you can share about
France's intended pledge. We need your government's
contribution to ensure we reach the $4 billion target.

Germany:
-- We appreciate Special Envoy Muetzelburg's decision to
participate in the conference.
-- We appreciate your government's readiness to take on
its share of the need.
-- Regarding your questions concerning the U.S. pledge,
the U.S. will pledge at least $1 billion of "new" money
over two years.
-- Regarding your questions concerning the U.S.
delegation, we will send the same delegation to the Donors
Conference and Friends of Democratic Pakistan meeting.
Special Representative Holbrooke will lead the U.S.
delegation, which will also include USAID and Treasury
officials.
-- We would appreciate any information you can share about
Germany's intended pledge. We need your government's
contribution to ensure we reach the $4 billion target.

Indonesia:
-- We hope Indonesia will attend the conference. Pakistan
specifically requested your participation as a strong
Asian partner. Has your government made any decisions
regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Italy:
-- We appreciate Special Envoy Iannucci's decision to
participate in the conference. We hope FM Frattini will
be able to attend as well. Has the FM made any decisions
regarding participation?

STATE 00032712 005 OF 009


-- We appreciate Italy's intention to pledge at the
conference, potentially to include 30-40 million Euros in
soft loans for provincial governments in western Pakistan
by June.
-- We urge you to consider a larger pledge over two years
to help stabilize Pakistan's economy and to fund social
safety net and development needs.
-- We understand your government, like many, is exercising
fiscal discipline in light of the global economic crisis.
-- However, we urge you to make a substantial pledge at
the Pakistan Donors Conference, given the global strategic
importance of Pakistan.
-- Achieving our shared security goals in Afghanistan
requires strengthening economic and political stability on
both sides of the Afghanistan-Pakistan border, and it
requires a multilateral effort.
-- A strong pledge in Tokyo will enhance Italy's
leadership efforts in Pakistan, including your
government's plans to host the June 26-27 G8 Conference on
Afghanistan and Pakistan in Trieste, Italy.
-- We would appreciate any further information you can
share about Italy's intended pledge. We need your
government's contribution to ensure we reach the $4
billion target.

Japan:
-- We appreciate Japan's strong commitment to Pakistan,
and all of your government's efforts to host the Donors
Conference. We particularly appreciate Prime Minister Aso
and Foreign Minister Nakasone's willingness to participate.
-- We would appreciate any information you can share about
Japan's intended pledge.
-- We need your government's strong contribution to ensure
we reach the $4 billion target.

Kuwait:
-- We hope Kuwait will attend the conference. Has your
government made a decision regarding participation?
-- We would appreciate any information you can share about
Kuwait's intended pledge. We need your government's
support to ensure the conference reaches the $4 billion
target.

Malaysia:
-- We hope Malaysia will attend the conference. Pakistan
specifically requested your participation in the
conference as a strong Asian partner. Has your government
made any decisions regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

The Netherlands:
-- We appreciate Minister for Development Cooperation
Koenders' decision to attend the conference.

STATE 00032712 006 OF 009


-- We appreciate your government's intentions to pledge,
potentially 112 million Euros over three years for
development and
governance programs. What does your government intend to
pledge at the conference to coincide with the 2-year IMF
program, which the conference is intended to support?
-- Has your government made any final decisions regarding
its pledge? We need your government's contribution to
ensure we reach the $4 billion target.

New Zealand:
-- We hope New Zealand will attend the conference. Has
your government made any decisions regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Norway:
-- We appreciate Norway's continued strong support of
Pakistan and Afghanistan, particularly support for the
humanitarian situation with your recent contribution of
$2.3 million through UNICEF and the ICRC for Internally
Displaced Persons in Pakistan.
-- We also hope Norway will contribute to Pakistan through
the Donors Conference. Has your government made any
decisions regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Oman:
-- We hope Oman will attend the conference. Has your
government made any decisions regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Russia:
-- -- We recognize your strong role as an economic partner
to countries in the region.
-- We hope Russia will attend and pledge at the
conference. Has your government made any decisions
regarding participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Saudi Arabia:
-- We strongly encourage Saudi Arabia to participate in the
Conference at a senior level. In particular, we hope Prince
Saud Al-Faisal will be able to head the Saudi delegation to
Tokyo.

STATE 00032712 007 OF 009


-- We intend to consult closely with the Saudi authorities as
the
U.S. works with key regional allies to promote stability in
Pakistan. Special Representative Holbrooke recently met with
the Saudi Ambassador to the United States as part of our
regular,
high-level engagements on this issue.
-- We appreciate Saudi Arabia,s strong historical ties with
Pakistan and support the Kingdom,s continued bilateral
engagement
with the Pakistani authorities.-- We would appreciate any
information you can share about your government's potential
pledge. We hope that you will announce your assistance at
the Donors' conference.
-- We consider Saudi Arabia a key partner on Pakistan. We
believe
Pakistan's economic challenges require a well-coordinated
multilateral effort. The success or failure of the Donors
Conference will have a major impact with the public and the
media.
Saudi support at the April 17 Donors, Conference will be
very
welcome. We need your support to ensure the conference
reaches
the $4 billion target.

Korea:
-- We appreciate FM Yu Myung-hwan's decision to attend the
conference.
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Spain:
-- We appreciate your government's decision to attend the
conference. Has your government made any decisions
regarding FM Moratinos' participation?
-- We would appreciate any information you can share about
your government's potential pledge. We need your
government's support to ensure we reach the $4 billion
target.

Sweden:
-- We appreciate Sweden's support for the Donors
Conference through the EU. We also hope Sweden will
pledge bilaterally at the conference.
-- We understand your government, like many, is exercising
fiscal discipline in light of the global economic crisis,
and that your South Asia assistance priorities are focused
on Afghanistan.
-- However, we urge you to make a substantial pledge at
the Pakistan Donors Conference, given the global strategic
importance of Pakistan.
-- We would appreciate any information you can share about
Sweden's potential pledge. We need your government's

STATE 00032712 008 OF 009


contribution to ensure we reach the $4 billion target.

Switzerland:
-- We appreciate your government's decision to attend the
conference. Has your government made a decision regarding
participation?
-- We would appreciate any information you can share about
your government's potential pledge. We understand your
government is in the process of reformulating its Pakistan
strategy; we hope that your government's support at the
donors conference will reflect this new focus. We need
your government's support to ensure we reach the $4
billion target.

Turkey:
-- We appreciate Deputy Under Secretary for South Asia and
the Middle East Sinirlioglu's decision to attend the
conference.
-- We would appreciate any information you can share about
Turkey's potential pledge. We need your government's
contribution to ensure we reach the $4 billion target.

United Arab Emirates:
-- We strongly encourage the UAE to attend the Conference
at a senior level. The support of UAE Foreign Minister
Sheikh Abdullah bin Zayed in inaugurating the Friend of
Democratic Pakistan Group was very vital.
-- We intend to consult closely with the UAE as the U.S.
works with key regional allies to promote stability in
Pakistan. Special Representative Holbrooke,s recent
meetings in Abu Dhabi were useful for our understanding
of UAE policy.
-- We appreciate the UAE,s strong historical ties with
Pakistan and support your continued bilateral engagement
with the Pakistani authorities.
-- We consider the UAE a key partner on Pakistan.
-- Pakistan's economic challenges require a well-
coordinated multilateral effort. The success or
failure of the Donors Conference will have a major
impact with the public and the media. Pakistan looks
to the UAE as a key partner in assistance. UAE support
at the April 17 Donors, Conference would be very welcome
and would offer a leading example to other potential donors.

United Kingdom (Note to post: The Department has heard
that the UK pledge may be largely made of "old" money
(previously
announced commitments). We need UK leadership and "new"
money to achieve a successful conference):
-- We appreciate the United Kingdom's intentions to attend
the conference. Has your government made a decision
regarding participation?
-- We also appreciate your government's efforts to
encourage strong participation from other donors.
-- We would appreciate any information you can share about
the UK's pledge. A strong UK pledge consisting of "new"

STATE 00032712 009 OF 009


money is critical to a successful conference. The UK is
our strongest partner on Pakistan, and we are counting on
your government's leadership and example to help ensure we
reach the $4 billion target.

REPORTING DEADLINE
--------------


5. (U) Department requests posts to report demarche
results by cable by April 8.

POINT OF CONTACT
--------------


6. (U) Please contact Mary Beth Goodman and Tara Foley in
SCA/P with questions.
CLINTON