KUDOS AND ACTION REQUEST: VOTING FOR KOSOVO'S

UNCLAS SECTION 01 OF 03 STATE 047372 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EFIN PREL KV SUBJECT: KUDOS AND ACTION REQUEST: VOTING FOR KOSOVO'S WORLD BANK MEMBERSHIP REF: A. STATE 43681/43679 ¶B. STATE 33629/33709 ¶1. (SBU) On May 6, Kosovo,s membership in the International Monetary Fund (IMF) was accepted overwhelmingly with 96 countries voting in favor of membership and another 32 casting abstentions. Kosovo,s membership received significant support throughout the world, but especially in the Arab world and in Africa. This global outpouring of support reflects the concerted effort of your missions to get out the vote, as well as your outstanding coordination with the Germans, French, and British in conducting joint demarches. This successful push on Kosovo,s IMF membership should provide fresh momentum for further recognitions and allow Kosovo to access additional technical and financial support from these multilateral institutions. The Department is extremely grateful for your collective efforts in this important U.S. foreign policy priority. ¶2. (SBU) We seek to leverage this very positive development to secure a similar outcome for Kosovo,s application to the World Bank. There is a risk that countries wishing to avoid controversy surrounding Kosovo's status may choose to ignore the vote. Serbia and other countries are conducting intensive diplomatic efforts to discourage participation in the vote. ¶3. (SBU) Department instructs Embassies to urge the host country's World Bank governor to respond formally and vote by the June 3 closing date on Kosovo,s application for Bank membership. Posts should, at their discretion, coordinate this demarche with the embassies of France, Germany, Italy, and the United Kingdom. Posts may choose not to deliver this demarche if they believe it would be counterproductive. Embassies should report results, including how and when host country intends to respond to the vote, by cable to EEB and EUR before May 27. Posts that have already reported that the host country has returned a World Bank ballot need not reply. See paragraphs 7 - 10 for country-by-country results of IMF Kosovo voting. Please note that the IMF will not publicly release the record of votes. This information is for post,s use only and should not be shared publicly. BACKGROUND -------------- ¶4. (SBU) As with the IMF balloting, it is critically important that at least 93 countries participate in the voting to meet World Bank quorum requirements. Posts should stress the importance of participating in the vote. While posts should encourage all governors to submit a favorable response (&yes8),a "no" or "abstain" vote is also acceptable because any recorded vote will count toward the quorum requirement. ¶5. (SBU) The Board of Governors at the World Bank makes the final determination on membership decisions. IMF membership is the only prerequisite for World Bank membership. Each member country has one governor (and one alternate governor) at the World Bank; the governor casts the country's bloc of STATE 00047372 002 OF 003 voting shares at the Board of Governors. Finance ministers, Central Bank authorities, or planning and development ministers typically serve as World Bank governors for host countries. The list of World Bank governors and alternates can be found online at http://siteresources.worldbank.org/ BODINT/resources/278027-1215526322295/ bankgovernors.pdf. As long as there is a quorum, the World Bank members that have recognized Kosovo wield sufficient voting power to achieve the simple majority necessary to approve Kosovo's application. ¶6. (SBU) Post may draw on the following talking points, as needed: -- Kosovo's success is a high priority for the United States and the U.S. Administration. -- The World Bank Executive Board approved Kosovo,s membership application on April 21. On May 8, the IMF announced that its members had approved Kosovo,s membership application. The World Bank Governors are being asked to provide their written approval no later than June 3. -- The United States urges your government to vote in support of Kosovo's World Bank membership application. Kosovo's membership in international financial institutions will strengthen stability in the Balkans and help integrate Kosovo's economy into the global financial system. -- Even if your government cannot vote &yes8 at this time, we ask that you send in a written &abstention8 or &no8 response by June 3, so that the ballot procedure will meet quorum requirements. ¶7. (SBU) The following countries voted &yes8 for Kosovo to join the IMF: Afghanistan, Albania, Antigua and Barbuda, Australia, The Bahamas, Barbados, Belgium, Belize, Benin, Bulgaria, Burkina Faso, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Colombia, Comoros, Democratic Republic of Congo, Congo, Costa Rica, Cote d,Ivoire, Croatia, Czech Republic, Denmark, Djibouti, Dominica, Egypt, Estonia, Fiji, Finland, France, Gabon, The Gambia, Germany, Ghana, Guinea-Bissau, Haiti, Hungary, Iceland, Iraq, Ireland, Italy, Japan, Jordan, Kenya, Korea, Latvia, Liberia, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Maldives, Malta,, Marshall Islands, Mauritius, Montenegro, Mozambique, Netherlands, New Zealand, Niger, Nigeria, Norway, Oman, Palau, Panama, Peru, Portugal, Qatar, Rwanda, Samoa, San Marino, Saudi Arabia, Senegal, Sierra Leone, Slovenia, South Africa, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sudan, Swaziland, Sweden, Togo, Trinidad and Tobago, Turkey, United Arab emirates, United Kingdom, United States, Vanuatu, Yemen, and Zambia. ¶8. (SBU) The following countries submitted written abstentions: Algeria, Bahrain, Bangladesh, Bolivia, Bosnia and Herzegovina, Brunei Darussalam, Burundi, Chile, Equatorial Guinea, Guatemala, Honduras, Indonesia, Israel, Jamaica, Kazakhstan, Kyrgyz Republic, Lebanon, Mexico, Moldova, Morocco, Nepal, Paraguay, Philippines, Poland, Sao Tome and Principe, Solomon Islands, Switzerland, Thailand, Timor-Leste, Tonga, Ukraine, and Uruguay. 9 (SBU) The following countries voted &no8: Angola, Azerbaijan, Cyprus, El Salvador, Georgia, Greece, Pakistan, STATE 00047372 003 OF 003 Romania, Slovak Republic, and Venezuela. ¶10. (SBU) The following countries did not participate in the IMF vote: Argentina, Armenia, Belarus, Bhutan, Botswana, Brazil, Cambodia, China, Dominican Republic, Ecuador, Eritrea, Ethiopia, Grenada, Guinea, Guyana, India, Iran, Kiribati, Kuwait, Lao, Libya, Madagascar, Mali, Mauritania, Micronesia, Mongolia, Myanmar, Namibia, Nicaragua, Papua New Guinea, Russia, Serbia, Seychelles, Singapore, Somalia, Spain, Sri Lanka, Suriname, Syria, Tajikistan, Tanzania, Tunisia, Turkmenistan, Uganda, Uzbekistan, Vietnam, and Zimbabwe. POINTS OF CONTACT -------------- ¶11. (SBU) Please contact Treasury staff Daniel Schmerin (202-622-0036, or Daniel.Schmerin@do.treas.gov),EEB/ODF staff Chip Laitinen (202-736-4586, or LaitinenWH@state.gov) or Kosovo Desk Officer Seiji T Shiratori (202-736-7729, or ShiratoriST@state.gov) for any necessary further background information or argumentation to meet our objectives. CLINTON