INTERAGENCY LAYS OUT FUTURE EGYPT D&G FUNDING

UNCLAS STATE 079424

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID PHUM EG
SUBJECT: INTERAGENCY LAYS OUT FUTURE EGYPT D&G FUNDING
PLANS


1. (SBU) SUMMARY: Acting Director of Foreign Assistance
(DFA) Rich Greene chaired an interagency roundtable with
Ambassador Margaret Scobey on July 20 to discuss democracy
and governance (D&G) funding in Egypt. There was general
agreement that $20-25 million per year (about 10 percent of
appropriated funds) is a proper proportion of D&G programming
from ESF in FY 2009-2011. The participants agreed that it is
important to continue to fund unregistered NGOs and Acting
DFA Greene concluded that we will need to identify funds
outside bilateral ESF to maintain funding levels for
unregistered NGOs in FY 2010 and FY 2011. END SUMMARY.


2. (SBU) Ambassador Scobey started the discussion by stating
that our goal should be to demonstrate our values and provide
support to civil society and jailed dissidents, while
recognizing that the NDP is likely to remain in power for the
foreseeable future. She put D&G funding issues into the
context of our efforts to resolve points of contention with
the GOE in the overall ESF program earlier this year, and
said U.S. policy on D&G issues in Egypt should be
"supportive, not confrontational."


2. (SBU) Following Ambassador Scobey's opening remarks,
Acting DFA Greene posed two questions: what level of D&G
programming should the U.S. plan for the future, and should
the U.S. continue the Fiscal Year (FY) 2009 arrangement of
funding unregistered U.S. and Egyptian NGOs and civil
companies from resources outside bilateral ESF? After
some discussion, there was general agreement that $20-25
million per year (about 10 percent of appropriated funds) is
a proper proportion of D&G programming from ESF in FY
2009-2011. Acting DFA Greene said it is likely that the U.S.
will maintain a $25 M D&G level in FY 2011 that includes
funding for registered civil society organizations. The
participants agreed that it is important to continue to fund
unregistered NGOs, and Acting DFA Greene concluded that we
will need to identify funds outside bilateral ESF to maintain
funding levels for unregistered NGOs in FY 2010 and FY 2011
as this step is crucial to the success of the bilateral
relationship. MEPI and DRL, each of which allocated $1.3
million from FY 2009 funds for unregistered NGOs in Egypt, do
not have specific allocations for Egypt in their FY 2010
spending plans, but will seek to maintain the $2.6 million
total. MEPI also noted it had requested $1.8 million for FY

2011.


3. (SBU) Acting DFA Greene asked why D&G funding was not
ramping up ahead of the Egyptian elections in 2010 and 2011.
Ambassador Scobey replied that Egyptian NGOs have reached
their absorptive capacity, and some will not accept USG
funds. DRL took a different view, noting that DRL's receipt
of 26 proposals for its $1.3 million in FY 2009 funds
indicates that there are NGOs ready and able to undertake new
work in Egypt.


4. (SBU) Ambassador Scobey responded to questions from the
group about how D&G programming in Egypt could support
overall assistance and policy objectives. She stated that
the broad approach is to ensure that the USG is investing in
assistance that is visible and making an impact on the lives
of the Egyptian people and preparing future generations. She
indicated a willingness to consider ideas for ways to make
the D&G portfolio more effective and responsive to current
priorities. She will have further discussions on this topic
with the participants at a later time.


5. (SBU) Participants in the meeting included NEA DAS Maura
Connelly, DRL DAS Kay Mayfield, NSC Director Prem Kumar,
NEA/ELA Director Nicole Shampaine, NEA/PI Director Tim
Andrews, USAID/DCHA Director Dorothy Taft, USAID/MEA Director
Jane Nandy, and H/RGF David Greene.


6. (SBU) Ambassador Scobey did not clear this cable.
CLINTON