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