Identifier
Created
Classification
Origin
09YEREVAN418
2009-06-17 10:14:00
CONFIDENTIAL
Embassy Yerevan
Cable title:  

OUTRAGED GOAM REACTION ON MCC DECISION NOT TO FUND

Tags:  POGV PHUM PREL ASEC AM 
pdf how-to read a cable
VZCZCXRO1027
OO RUEHDBU
DE RUEHYE #0418/01 1681014
ZNY CCCCC ZZH
O 171014Z JUN 09
FM AMEMBASSY YEREVAN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9190
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000418 

SIPDIS

E.O. 12958: DECL: 06/17/2019
TAGS: POGV PHUM PREL ASEC AM
SUBJECT: OUTRAGED GOAM REACTION ON MCC DECISION NOT TO FUND
ROADS

REF: YEREVAN 391

YEREVAN 00000418 001.2 OF 002


Classified By: Amabassador Marie Yovanovitch. Reason 1.4 (B/D)


C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000418

SIPDIS

E.O. 12958: DECL: 06/17/2019
TAGS: POGV PHUM PREL ASEC AM
SUBJECT: OUTRAGED GOAM REACTION ON MCC DECISION NOT TO FUND
ROADS

REF: YEREVAN 391

YEREVAN 00000418 001.2 OF 002


Classified By: Amabassador Marie Yovanovitch. Reason 1.4 (B/D)



1. (C) SUMMARY. FM Nalbandian expressed dismay that MCC had
chosen not to fund the roads portion of the MCC compact. He
said that the U.S. did not understand the political blow this
represented; the opposition would use this for their own ends
and wrongly interpret the MCC decision as a lack of U.S.
support for Armenia. Nalbandian said that there could be
spillover into other areas. He also criticized the U.S. OSCE
statement on Armenian elections which was coincidentally
issued in Vienna on June 11, the day the GOAM learned of the
MCC decision. The President's Deputy Chief of Staff Vigen
Sargsian told Ambassador it would be important to
re-establish trust. The best way to do this, he said, was a
high-level visit, so that principals could discuss these
issues directly. While the GOAM has been angling for a
high-level visit for years, we believe a visit by the
Secretary in coming months would be useful, especially in the
context of progress on Turkey-Armenian relations and
Nagorno-Karabakh. END SUMMARY.

FM ANGRY AND DISAPPOINTED ABOUT MCC
--------------


2. (C) In a phone conversation with the Ambassador on June
11, FM Nalbandian expressed (predictable) dismay that MCC had
chosen not to fund the roads portion of the MCC compact. He
said the MCC made a "wrong decision" that - based on the
public statement - amounts to a termination of the roads
program in all but name. The FM claimed that the decision
will be interpreted by many in Armenia - including some who
are involved in decision-making - as an expression of
dissatisfaction by the U.S. with the Government (presumably
over Armenian policy on Turkey and/or N-K and, in fact, there
have been several press reports linking the MCC decision with
U.S. pique over Armenia's foreign policy).


3. (C) The Ambassador said that the USG was, in fact,
trying to send the message to Armenia that following the
flawed presidential election and the March 1 violence,
Armenia must improve its performance in ruling justly. This
was the same, consistent message that the U.S. had been

sending for over a year. The Ambassador pointed out that it
could have been worse - suspension or cancelation - which is
the decision the Board took with respect to Nicaragua. The
Ambassador also noted that the credibility of MCC was at
stake, and that the GOAM had been aware for months that
something like this would happen in the absence of real
progress.


4. (C) The FM would have none of it, and noted that the
public statement essentially rules out future roads funding,
which amounts to termination, although that word was not
used. He said that the U.S. did not understand the political
blow this represented; the opposition would use this for
their own ends and wrongly interpret the MCC decision as a
lack of U.S. support for Armenia. Nalbandian said that there
could be spillover into other areas (clearly implying
Turkey-Armenia and N-K),because there are others that decide
Armenia's direction on these matters, who might be swayed by
the MCC decision. The FM chided the U.S. for not
understanding that in this part of the world "every word
matters" and that it is important for the U.S. to look
forward and provide encouragement.

AND ANGRY OVER THE US OSCE STATEMENT ON YEREVAN ELECTIONS
-------------- --------------


5. (C) The Ambassador and FM also discussed the U.S.
statement to be delivered later on June 11 at the OSCE PC.
He described it as a "very wrong statement" that will be
"used by the opposition." He complained that the timing of
the statement was also problematic, insulting newly-elected
Mayor Beglarian on the very day of his inauguration.
Ambassador responded that the timing was coincidental - we
did not know Beglarian was being inaugurated on June 11.
June 11 was the first OSCE PC session since the election
results were certified, which was the first opportunity for
the USG to comment on the elections. Nalbandian's final
salvo was that the elections do not concern the OSCE - "PACE
deals with this," to which the Ambassador responded that the
U.S. is not a member of PACE and the OSCE has a long and
proud tradition of election monitoring. The FM did not
mention, although others have, that during the same week, the
State Department issued the annual Advancing Freedom and
Democracy Report (AFDR) on human rights and democracy which
was critical of the GOAM, in particular for the 2008
presidential elections and the March 1 violence and its

YEREVAN 00000418 002.2 OF 002


aftermath.

RE-ESTABLISH TRUST WITH A HIGH-LEVEL VISIT
--------------


6. (C) The President's Deputy Chief of Staff Vigen Sargsian
also expressed concern to Ambassador about the MCC decision
and the U.S. OSCE statement on Armenian mayoral elections,
and how they would be interpreted in the government and by
the public. "It was not a good day" for U.S.-Armenian
relations, he said, and it would be important to re-establish
trust. The best way to do this was a high-level visit, so
that principals could discuss these issues directly.

COMMENT
--------------


7. (C) We did not expect the GOAM to be happy with the MCC
decision, and they aren't. The press reaction has also been
highly critical and septel provides details on the coverage.
The Ambassador made a statement on June 15, noting the
importance of the bilateral relationship and that if Armenia
makes tangible progress in good governance, we will actively
work with Congress to find other sources of funding for rural
roads. We will have to weather a rough patch, but we hope
that the statement and our continued support for Armenia in
other areas will soften the GOAM's reaction to what they
perceive as lack of political support for the GOAM - and
President Sargsian personally - at a time of political risk
and economic crisis. The fact that the GOAM is nevertheless
interested in a high-level visit indicates how much they need
U.S. support to navigate the two negotiations.


8. (C) While the GOAM has been angling for a high-level
visit for years, we believe a visit by the Secretary in
coming months would be useful, especially in the context of
progress on Turkey-Armenian relations and Nagorno-Karabakh.
A visit by Secretary Clinton would signal political support
and help shore up resolve on difficult foreign policy issues
during the challenging months ahead.
YOVANOVITCH