LETTER ON ESF FROM SECRETARY CLINTON TO FOREIGN

UNCLAS STATE 070858 SIPDIS, SENSITIVE E.O. 12958: N/A TAGS: OPDC PREL EAID PHUM EG SUBJECT: LETTER ON ESF FROM SECRETARY CLINTON TO FOREIGN MINISTER ABOUL GHEIT SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. ¶1. (SBU) Please deliver the following message from Secretary Clinton to Foreign Minister Aboul Gheit. There will be no signed original. ¶2. (SBU) Begin text: Dear Mr. Minister: Thank you for your letter outlining your thoughts on the long-term prospects for ESF in Egypt. Like you, I am pleased with the successful conclusion of consultations between our two governments over the economic assistance program in FY 2009 and the Administration's request for FY 2010. The discussions and their outcome were a strong indication of a mutual desire to strengthen our ties. Egypt is an important friend and strategic partner of the United States and I am glad that our assistance relationship supports our broader bilateral goals. I recognize that the Egypt ESF program is a significant issue that deserves the attention of the United States in the near term. I believe the idea of a joint Presidential education initiative is promising and agree that the time is right for our two governments to discuss this further. The United States would also like to explore with Egypt the concept of a fund that could serve as a lasting symbol of our partnership, if we can agree upon institutional mechanisms that guarantee a high level of accountability for the use of funds. The United States will need to explore further how we might expand on your ideas to address poverty alleviation and/or education through such a fund and I recognize it may take some time to come to agreement on the optimal structure. For these reasons, I am authorizing our Ambassador to Egypt and our USAID mission in Cairo to begin constructive discussions on the future of the Egypt ESF program. At the same time, the promotion of democracy and human rights remains important to the United States. It is important to us to continue to work together to identify democracy and governance programs and to support Egyptian civil society as part of the bilateral assistance package. I encourage your government to accelerate registration of domestic and international NGOs and to support the use of donor funds by organizations that work to improve the lives of the Egyptian people. Furthermore, we must proceed without delay to initiate development programs in North Sinai, as part of our joint strategy to combat smuggling across Egypt's border with Gaza. You may recall that in my letter to Egyptian Prime Minister Nazif on the Egypt ESF program in February of this year, I underscored the urgency of developing USAID economic programs in North Sinai. The urgency has only increased now that our FY 2009 supplemental includes $50 million in Economic Support Funds for Egypt, for which Congress prioritized programs in Sinai. Smuggling and trafficking should not be the only options for residents of the Sinai to support their families. The United States has provided concrete proposals for projects that could begin immediately to target infrastructure, community services, and business opportunities in that area. I urge your government to work with USAID to advance this priority at once. It is always a pleasure to hear from you and I trust I can count on your continued support on these and other bilateral and regional issues of mutual interest. Sincerely yours, Hillary Rodham Clinton END TEXT. CLINTON