OECD: DOC GC Cameron Kerry Leads U.S. Delegation to

UNCLAS SECTION 01 OF 02 PARIS 000023 SENT FROM USOECD SENSITIVE SIPDIS E.O. 1295: N/A TAGS: ECON KCOR OECD GM SW JA RS UK FR SUBJECT: OECD: DOC GC Cameron Kerry Leads U.S. Delegation to December 9, 2009 Anti-Bribery Conference PARIS 00000023 001.2 OF 002 -------------- SUMMARY -------------- ¶1. (SBU) Summary: U.S. Department of Commerce General Counsel Cameron Kerry led the U.S. delegation to an OECD Conference on December 9, 2009, which commemorated International Anticorruption Day, the ten-year anniversary of the entry into force of the OECD Anti-Bribery Convention, and the roll out of a new OECD Anti-Bribery Recommendation. Secretary of Commerce Gary Locke delivered opening remarks via a live video link from a Washington D.C. Transparency International (TI) event, and Secretary of State Hilary Clinton delivered a pre-recorded video message, both of which were well received by the international audience of over 200 attendees. Each emphasized the importance of enhanced enforcement of the Convention as well as accession to the Convention by key trading partners such as China and Russia. Mr. Kerry participated in the opening roundtable discussion, delivered an effective closing statement and recorded a short news interview with the BBC. Both Mr. Kerry and Secretary Locke's remarks were quoted in the International Herald Tribune and the New York Times. The US Mission to the OECD will continue to keep the focus on implementation and outreach to new signatories in support of U.S. anti-bribery efforts. End Summary. -------------- OECD CONFERENCE ON FOREIGN BRIBERY -------------- ¶2. (SBU) The December 9 OECD Anti-Bribery Conference coincided with the ten-year anniversary of the entry into force of the Anti-Bribery Convention, and in addition commemorated both International Anti-corruption Day and the roll out of a new OECD Anti-Bribery Recommendation. The event was well attended with over 200 participants. Opening remarks for both the Paris OECD event, and a sister event sponsored by Transparency International in Washington, were transmitted by digital video to both audiences. A video by Secretary of State Hillary Clinton welcomed the participants to both events, congratulating the OECD and signatory countries for their accomplishments, but emphasizing that there were continuing challenges. Next, OECD Secretary Angel Gurria's remarks on the role of the organization were broadcast live from Washington. Secretary of Commerce Gary Locke then spoke, emphasizing the importance of enforcement. The two events then proceeded with independent agenda. ¶3. (U) Mr. Kerry participated as one of eight panelists on a high level roundtable on "Who Pays the Price," [of foreign bribery], moderated by African BBC correspondent Mr. Dumor. The roundtable focused on the victims of international bribery, ranging from companies who are solicited for bribes to poor people in developing countries who do not have clean drinking water as a result of the price exacted by corrupt practices. Former Transparency International founder and current President of the Extractive Industries Transparency Initiative (EITI) Peter Eigen said that "all of us are victims," and explained the roles of TI and the EITI in fighting bribery and corruption through transparency. Mr. Kerry fielded several questions, and in his answers emphasized the point that we are all victims and therefore must all work together to fight corruption by enforcing our antibribery laws. ¶4. (SBU) Former Nigerian prosecutor Nuhu Ribadu spoke powerfully of the sacrifices that everyday citizens are forced to make while living with bribery and corruption in his home country, and criticized Nigerian and other leaders for stealing from the poorest of the poor. He also focused blame on the companies that are responsible for bribing leaders, destroying the possibility of democracy in poor African countries. These illicit funds contribute to many social ills, as well as provide financial means for adversaries to engage in numerous conflicts in Africa. Ribadu sang the praises of the United States for leading by example, not only by enforcing its foreign bribery law, but also by helping other countries with mutual legal assistance. He added that the reputation of U.S. firms was excellent -- Nigerians knew when they dealt with U.S. companies that they would be dealing in a straightforward and honest way. ¶5. (SBU) By contrast, France's legal authorities as well as French firms came in for a remarkable amount of blunt and unvarnished criticism, both from roundtable participants and the audience. Ribadu strongly criticized the French for "not lifting a finger" to help him when he was a prosecutor requesting French MLA. Some French members of the audience stood up and gave first-hand accounts of how bribery had ruined their overseas business, but that they had gotten no help from French authorities. French company Total PARIS 00000023 002.2 OF 002 (participating in the round-table) attempted to portray itself as a victim of bribery, and was roundly chastised by several speakers. TI Vice-President Akere Muna was especially critical of Total, saying that it was absurd that it would call itself a victim, adding that African leaders could not be expected to turn down bribes in the face of such poverty. The Areva representative defended Total, saying that there are different levels of victims and that companies are now doing their best to address bribery by having effective compliance programs. The French employers' association representative MEDEF also highlighted what it is doing to educate French companies in this area with various publications, including a booklet for small and medium sized businesses. A fellow panelist from General Electric Europe pointed out that countries needed not only to have compliance programs but active enforcement of those programs for them to have any meaning, and governments needed to have active enforcement programs as well. ¶6. (SBU) Mr. Kerry delivered the roundtable closing remarks, amplifying points raised in Secretary Locke's opening remarks. He said that his presence, as well as Secretary Lock's and Clinton's opening remarks, illustrated the importance of combating bribery and corruption to the United States. He explained that while we believe that promoting the rule of law by prosecuting foreign bribery will enhance exports and improve trade and economic conditions worldwide, it will do more than that: it will improve everyday living conditions for those who live in societies that have been brought down by corruption, where it has become a part of every day life. He said that all of us need to recommit ourselves today to the fight against corruption. He noted that major trading countries, such as China, had a responsibility to criminalize the bribery of foreign public officials and accede to the Convention. He pointed out that only the Russian Federation had elected to participate in the event -- China and other major exporting countries had not sent delegations. ¶7. (SBU) Kerry said that current parties to the OECD Anti-Bribery Convention needed to do their part and enforce their laws, and not make decisions about whether to enforce their laws based upon national economic interests (he was alluding to the U.K. BAE Saudi Arabia case). He added that they needed to improve their implementing legislation where it has been found lacking, particularly concerning corporate liability. He noted that companies need to proactively design and implement strong ethics and compliance programs and that civil society groups, such as Transparency International, also need to be watchdogs, and inform governments and the public when things are going wrong. He quoted President Obama's Ghana speech stating that no "person wants to live in a society where the rule of law gives way to the rule of brutality and bribery. That is not democracy, that is tyranny.... And now is the time for that style of governance to end." ¶8. (SBU) Comment: Mr. Kerry's remarks were well received, both by the audience and fellow panelists. The event itself clearly touched a nerve, with many impassioned comments coming from the floor. Both Secretary Locke and Mr. Kerry were quoted in the International Herald Tribune and the New York Times the next day, and an OP-ED by Secretary Locke was published on December 9 in the Huffington Post. By multilateralizing the US Foreign Corrupt Practices Act, the OECD Anti-Bribery Convention continues to be one of the most important examples of where US leadership at the OECD has leveled the international paying field for US companies and taken the fight against international corruption to a new level. The US Mission to the OECD will continue to support efforts to enhance implementation of the Convention, both through the Working Group on Bribery and through Public Diplomacy efforts. The Mission will also work the enhance outreach efforts to potential new signatory countries, such as the Russian Federation (which has applied to accede to the OECD and must sign the Convention as part of that process) and China. MONROE