SECRETARY CLINTON'S JANUARY 22, 2010 MEETING WITH

C O N F I D E N T I A L SECTION 01 OF 02 STATE 009094

SIPDIS

E.O. 12958: DECL: 01/25/2020
TAGS: PGOV PREL ECON EUN CVIS MD
SUBJECT: SECRETARY CLINTON'S JANUARY 22, 2010 MEETING WITH
MOLDOVAN PRIME MINISTER VLADIMIR FILAT

Classified By: EUR Deputy Assistant Secretary Daniel A.
Russell, Reasons: 1.4 (b) and (d).


1. (U) January 22, 2010; 12:00-12:30; the Secretary's
Office.


2. (U) Participants:
U.S.
Secretary Clinton
Ambassador to Moldova Asif J. Chaudhry
EUR Deputy Assistant Secretary Daniel A. Russell
Ian Kelly, PA
Zia S. Syed, S Staff
Bernadette Roberts, EUR/UMB (Notetaker)

Moldova
Prime Minister Vladimir Filat
Deputy Prime Minister and Minister for European
Integration Iurie Leanca
Deputy Prime Minister and Minister of Economy Valeriu
Lazar
Minister of Agriculture and Food Industry Valeriu
Cosarciuc
Charge d-Affaires Andrei Galbur
PM advisor Stela Mocan
Counselor Tudor Ulianovschi (Notetaker)


3. (C) Summary: The Secretary and Moldovan Prime Minister
Filat discussed the Millennium Challenge Corporation (MCC)
compact, Transnistria, economic reforms, Moldova's EU
aspirations, and visa reciprocity during a 30-minute
meeting on January 22 in Washington. During the meeting,
which preceded the signing of a $262 million MCC compact
for agriculture and infrastructure projects, the Secretary
reiterated U.S. support for the government of Moldova's
reform efforts and pledged continued U.S. government
assistance to aid Moldova in strengthening democracy and
economic stability. End Summary.

Millennium Challenge Corporation Compact
--------------

4. (C) The Secretary opened the meeting by describing the
MCC signing as historic and commending the new democratic
government for its reform efforts. Moldova had earned the
Compact, she said, although she cautioned that trafficking
of persons still needs work, and a failure to address this
issue could undermine implementation. The Secretary said
the Compact will deliver a strong message about the U.S.
desire for increased bilateral cooperation, adding that
the U.S. wanted the EU to be more actively involved in
helping Moldova as well.


5. (C) Filat thanked the Secretary for the United States'
longstanding support, and he stressed that continued
support will help the new government build a state
grounded in rule of law that will ensure rights and
liberties for all its citizens. He described the MCC
signing as a tool to help advance these objectives. Filat
assured the Secretary that the new government is focused
on a comprehensive approach to reform, but that the process
will take time and have significant political costs. To
maintain popular support, his government needs to
articulate a clear message and deliver concrete
improvements.

Security and the Economy
--------------

6. (C) Filat raised the Transnistrian conflict and the
'illegal' presence of Russian troops in Moldova. He
emphasized that U.S involvement in the 5+2 talks is
critical to reaching a settlement, without which Moldova
cannot develop. The Secretary reiterated support for the
reintegration of Moldova and our commitment to the 5+2
process as the only negotiating forum for resolution of
the conflict. The U.S. will continue to work through the
OSCE to revitalize the 5+2 effort, and she added it was
time for the Russian troops and munitions to leave
Moldova. U.S. representative to the 5+2 process, Dan
Russell, reviewed the state of play, agreed with Filat
that this will be a long process, and praised the Moldovan

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government for pursuing confidence building measures
directly with the defacto Transnistrian authorities.


7. (C) The Secretary expressed understanding for the
difficult economic situation inherited by Filat's
government, and urged cooperation with the IMF. Filat,
who had met with IMF Managing Director Strauss-Kahn
earlier in the day, expected a favorable IMF Board vote on
an agreement with Moldova by January 29. His government
has the vision, capacity and will to implement reforms,
Filat said, but it lacks resources to cover costs. He
outlined plans to liberalize the economy and attract
investment and welcomed any advice and expertise that the
U.S. could provide. The Secretary agreed that new
business start-ups, for example, could produce quick
results visible to the public; she asked her staff to look
into technical assistance on business development for
Moldova.

Relations with the EU and Visa Reciprocity
--------------

8. (C) Filat asked that the Secretary speak with EU
members about support for a closer relationship with
Moldova, explaining that his small country's challenges
must be viewed in the broader context of long-term
European prosperity and security, including the
implications for Europe and the U.S. of the continuing
Russian military presence in Transnistria. The Secretary
reacted positively and offered to raise the issue with
Baroness Ashton.


9. (C) The Secretary expressed satisfaction with the
exchange of diplomatic notes earlier in the day to
formalize greater visa flexibility for many students and
workers. She hoped for more forward movement in this area
in the future and welcomed the prospect of more Moldovan
students coming to the U.S.
CLINTON