US embassy cable - 09CHISINAU750

AMBASSADOR DISCUSSES U.S. CONCERNS AND MCC COMPACT WITH NEW PM FILAT

Identifier: 09CHISINAU750
Wikileaks: View 09CHISINAU750 at Wikileaks.org
Origin: Embassy Chisinau
Created: 2009-09-30 15:47:00
Classification: CONFIDENTIAL
Tags: PGOV PREL KDEM KTIP EAID PINR MD
Redacted: This cable was not redacted by Wikileaks.
VZCZCXRO8202
RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
DE RUEHCH #0750/01 2731547
ZNY CCCCC ZZH
R 301547Z SEP 09
FM AMEMBASSY CHISINAU
TO RUEHC/SECSTATE WASHDC 8421
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 CHISINAU 000750 
 
SIPDIS 
 
STATE FOR EUR/UMB 
 
E.O. 12958: DECL: 09/30/2019 
TAGS: PGOV, PREL, KDEM, KTIP, EAID, PINR, MD 
SUBJECT:  AMBASSADOR DISCUSSES U.S. CONCERNS AND 
MCC COMPACT WITH NEW PM FILAT 
 
Classified by: Charge d'Affaires Marcus R. Micheli 
for reasons 1.4 (b) and (d) 
 
1. (C) Summary:  The Ambassador met with newly- 
appointed Prime Minister Vlad Filat on September 
28.  The central focus of the meeting was the 
recent developments surrounding the MCC Compact. 
The Ambassador informed Filat that MCC had 
submitted a Congressional Notification on the 
intent to negotiate a Compact for USD 262 million 
with Moldova and then outlined the negotiating 
process to reaching a final Compact agreement. 
The Ambassador also stressed concerns about 
trafficking in Moldova and the registration 
problems faced by IRI and NDI.  The PM requested 
USG assistance in reforming the Agriculture and 
Interior Ministries.    End Summary. 
 
U.S. Relationship a Priority for Filat Government 
--------------------------------------------- ---- 
 
2. (C) In a September 28 meeting, the Ambassador 
congratulated newly-confirmed Prime Minister Vlad 
Filat.  The Ambassador noted that the United 
States stands prepared to assist Moldova in moving 
forward in promoting democracy and economic 
development.  The Prime Minister responded that 
his government would work to consolidate 
democracy, promote the rule of law, and ensure 
transparency.  Filat thanked the Ambassador for 
the support of the United States to Moldova and 
its citizens and underlined that his government 
saw the relationship with the United States as a 
priority for his country. 
 
What Moldova Needs to Do 
------------------------ 
 
3. (C) The Ambassador advised Filat that the new 
GOM could take several steps that would send a 
positive message to the U.S. and Europeans.  For 
example, the GOM needed to continue efforts to 
reduce and solve the TIP problem.  It was 
imperative that Moldova work to improve its Tier 2 
Watch List ranking.  The lack of substantial 
progress in this area hurt Moldova's image and two 
consecutive years at a Tier 2 Watch List ranking 
would automatically relegate Moldova to Tier 3. 
 
4. (C) Filat responded that Moldova must accept 
the responsibility to combat trafficking, and 
promised that his government would work to solve 
the problem in Moldova.  He said his government 
would also approach the destination countries for 
victims to jointly develop strategies to eliminate 
trafficking.  The Ambassador noted that the 
Department of State had developed an action plan 
for Moldova on trafficking and the Embassy would 
like to work with his designee for fighting 
trafficking to provide assistance.  Filat 
responded that the assistance would be gratefully 
appreciated. 
 
5. (C) Ambassador also raised the lingering 
problem of registration for IRI and NDI.  By 
allowing the two institutions to reregister, the 
Ambassador emphasized that the GOM would quickly 
send a message that any organization promoting 
democracy building and economic development would 
be able to operate freely in Moldova.  Filat 
offered an apology for what had happened to IRI 
and NDI and noted that the new Minister of 
Justice, Aleandru Tanase, had received all the 
information concerning IRI and NDI and would make 
a decision "within a couple of days."  (Note:  On 
September 29, Minister Tanase registered IRI and 
NDI in a ceremony in front of local media.  End 
Note.) 
 
Moldova and the IMF 
------------------- 
 
6. (C) Filat also stated that an IMF mission would 
arrive in Moldova in mid-October to begin 
discussions on a new agreement.  (Note:  Moldova's 
IMF agreement expired in May, 2009, and the 
previous Communist-led government was not willing 
to negotiate seriously with the IMF Mission that 
visited Moldova in late May 2009. End Note.) 
Filat said that Moldova found itself in an unusual 
 
CHISINAU 00000750  002 OF 002 
 
 
political situation and the Prime Minister asked 
for the Ambassador's support in conveying this 
message to the IMF mission.  Moldova was ready to 
introduce the economic and social reforms that the 
IMF would request but it was important that the 
IMF not set conditions that would undermine the 
election of a President in Moldova.  (Note: The 
101-member Parliament elects the President with 61 
votes.  The current parliament has 48 Communist 
members and 53 members belonging to four coalition 
partners.  End Note.) 
 
MCC Compact CN and Negotiations 
------------------------------------------ 
 
7. (C) The Ambassador then explained the latest 
developments in the MCC Compact process, which if 
approved could total about USD 262 million.  Filat 
listened carefully as the Ambassador informed him 
that MCC had sent a Congressional Notification to 
the Congress on September 22.  The Ambassador 
stressed that, once the 15-day review period 
expired, the GOM needed to designate high level 
members for its negotiation team, and that it 
would be advisable to include technical advisors 
from the Moldovan team who had been working on the 
Compact. 
 
8. (C) The Ambassador further explained that upon 
completion of negotiations, MCC would submit the 
agreement to the MCC Board for approval.  At that 
point the Embassy would need to point out the 
successes the new government had had in improving 
Moldova.  The Ambassador noted that he would like 
to report to Washington that progress had been 
made in the areas of TIP, IRI and NDI 
registration, and democratic development in the 
country.  The Ambassador also stressed that 
implementation of the Compact would be key.  The 
process for selecting contractors for the MCC 
projects had to be open and transparent.  The GOM 
should also be mindful that the MCC Board would 
consider tripwires such as combating TIP and 
democratic development in reviewing the Compact. 
 
Government Reform in the Making 
------------------------------- 
 
9. (C) In response to an earlier request from the 
PM to assist with reforming the Ministry of 
Agriculture, the Ambassador said that the Embassy 
was exploring the possibility of bringing an 
expert from the Foreign Agriculture Service to 
Moldova to consult with the Ministry.  The Prime 
Minister thanked the Ambassador for this response, 
and then requested similar assistance in reforming 
the Ministry of Interior, which he said needed 
significant changes.  The Ambassador promised to 
look into possibilities to assist the PM in this 
area. 
 
Comment 
------- 
 
10. (C) The new Prime Minister appears to 
understand our concerns about trafficking and we 
believe he is committed to making significant 
progress.  The immediate registration of IRI and 
NDI shows the seriousness with which he is taking 
our concerns.  We also are heartened by the fact 
that at several points during the meeting, the 
Prime Minister emphasized that his government 
would promote rule of law, transparency, openness, 
and democratic development. 
 
MICHELI 

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