AUSTRALIA INCREASES AID TO BURMA, MAINTAINS

C O N F I D E N T I A L CANBERRA 000104 NOFORN SIPDIS E.O. 12958: DECL: 02/12/2020 TAGS: PREL PGOV BM AS SUBJECT: AUSTRALIA INCREASES AID TO BURMA, MAINTAINS SANCTIONS Classified By: Political and Economic Counselor Edgard Kagan for Reason s 1.4 (b/d) ¶1. (C/NF) Summary: Australia will increase its humanitarian and development assistance to Burma by about forty percent over the next three years to roughly USD 40 million. The aid increase is the only major change resulting from Australia's just completed Burma policy review. Australia's current level of targeted financial sanctions will be maintained. Foreign Minster Smith presented the policy review's conclusions to parliament on 8 February 2010. In September 2009 Australia welcomed the conclusions of the U.S. Burma policy review and continues to believe that a combination of engagement, sanctions and assistance is the best way forward. End Summary. AID INCREASE -------------- ¶2. (C/NF) Australia currently provides roughly 27 million USD per year in assistance to Burma. The aid funds campaigns to help children go to school, programs to combat infectious diseases and provides food and agricultural expertise to fight rural poverty. The stepped up funding - a three year, forty percent increase to 40 million USD annually - will continue to support these efforts, but will also focus on capacity building in areas such as primary healthcare, education and teacher training and small enterprise development. Australia will continue to deliver assistance in partnership with UN agencies, ASEAN, international NGOs and other donor countries. STATUS QUO ON SANCTIONS -------------- ¶3. (C/NF) Like the United States, Australia agrees that easing sanctions now would send the wrong signal. Jeannie Henderson, Department of Foreign Affairs and Trade Burma desk director, said the Australians see a tiny opening in the recent discussions between Aung San Suu Kyi and the Burmese authorities, and therefore determined not to impose new sanctions either. This decision came despite the fact that Australia had identified several new individuals who could be targeted for sanctions. ¶4. (C/NF) Comment: Australia continues to be an active partner and close U.S. ally in efforts to introduce democratic reform in Burma. In September 2009 the Australians welcomed the conclusions of the U.S. Burma policy review and continue to believe that a combination of engagement, sanctions and assistance is the best way forward. Canberra is under no illusions about the difficulty of the task before the international community in dealing with Burma. End Comment. BLEICH