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 STATE 00009094 002 OF 002 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