US embassy cable - 03MONTREAL1377

UNCLAS SECTION 01 OF 02 MONTREAL 001377 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KOLY, SCUL, SNAR, TBIO, PREL, CA, CH, Narcotics, Health 
SUBJECT: World Anti-Doping Agency has Financial Problems 
 
REF: 02 Montreal 00575 
 
1. SUMMARY: The World Ant-Doping Agency (WADA) is 
experiencing financial problems because member countries, 
including the United States, are behind on paying dues, 
according to WADA President Richard Pound.  The agency 
collected 80 percent of its U.S.$20 million budget in 2002 
and thus far, has received only 63 percent of dues owed in 
2003.  WADA's executive committee met on September 23, and 
considered imposition of sanctions on countries that are in 
arrears to the anti-doping agency, including barring 
national anthems and flags at international sporting events 
of late-paying or non-paying countries. END SUMMARY 
 
2. At WADA President Richard Pound's invitation, Consul 
General Bernadette Allen (accompanied by FSN economic 
assistant Zbily as notetaker) visited WADA's Montreal 
headquarters (9/16) and received a briefing on the Agency's 
activities and current situation.  Pound, a prominent 
Montreal lawyer and former Olympic swimmer, was the runner- 
up in the 2001 election of the International Olympic 
Committee (IOC) presidency, losing out to Belgian Jacques 
Rogge.  He was instrumental in the campaign to have WADA 
headquartered in Montreal, where it is now situated in very 
luxurious office space in the city's stock exchange tower. 
The new office space was funded by the Canadian, Quebec and 
Montreal governments.  WADA's activities include random 
testing of athletes, establishment of doping control 
standards, and research and development of anti-doping 
tests. 
 
3.  Pound informed the CG that the preparation of testing 
facilities and staff for the 2004 Athens Games will be 
conducted on a "low-budget" basis, due to the problems WADA 
has been having in collecting member country dues in a 
timely fashion.  The IOC covered WADA's budget for its first 
two years of operation, with the understanding that member 
countries would pick up half of WADA's budget after the 
agency was up and running.  Beginning in 2002, the IOC has 
been responsible for matching, on a 50-50 basis, funds 
collected from member nations.  In 2002, WADA collected 80 
percent of member country dues; so far in 2003, WADA has 
only received 63 percent of money owed from member 
countries.  This year, the IOC has advanced WADA so-called 
"operational" funds until it can collect payments from 
member countries. 
 
4. WADA member countries, acting through the International 
Inter-Governmental Consultative Group on Anti-Doping in 
Sport (IICGADS), are divided into five regions: the 
Americas, Asia, Africa, Europe and Oceania.  The Americas 
share is set at 29 percent of the total or almost $2.5 
million, with the U.S. and Canada committed to paying 9.41 
percent each.  However, other countries in the region have 
failed to pick up the remaining 10.18 percent of the 
"Americas" allocated share.  According to WADA's website, in 
2002 Canada paid $800,000, the U.S. $794,800 and other 
Americas countries only $16,663. 
 
5.  Pound complained that WADA's coffers have been 
negatively affected by the U.S. budget cycle.  Pound noted 
that the U.S. payment has been significantly delayed not 
only because the U.S. government fiscal year doesn't match 
WADA's calendar year budget, but also because the USG has 
for months at a time operated on a continuing resolution 
(CR).  That said, Pound acknowledged that he is confident of 
eventually receiving the U.S. share.  Other countries have 
simply not paid, Italy being the most notable in that 
category.  Pound suggested that it would be helpful if the 
U.S. dues (of approximately US$ 1 million a year), could be 
paid a year in advance to avoid the "out of sync" budget 
cycle problem and the CR issue. 
 
6. WADA held an executive committee meeting on September 23 
(reported in the press and on WADA's website).  Committee 
members reportedly discussed possible measures to sanction 
late-paying/non-paying countries including removing members 
from Exec. Committee or Board membership, if their country 
has not paid dues.  In a Quebec television interview, Pound 
went so far as to suggest that countries in arrears to WADA 
could be prevented from displaying national flags, or having 
anthems sung, at Olympic and other international events. 
Such sanctions, according to Pound, "would have a far 
reaching effect." 
 
7. At WADA headquarters, CG Allen was also introduced to Dr. 
Olivier Rabin, the organization's Science Director.  Rabin 
bemoaned WADA's US$5 million budget for research and 
development, which he characterized as "way too small" to 
significantly develop new testing methods. Rabin stated that 
the newest trend in doping is the use of "growth hormones." 
While there are no testing mechanisms in place to detect 
these hormones, Dr. Rabin said WADA is working on developing 
a test to distinguish between synthetic hormones and those 
naturally produced by athletes. 
8. Both Rune Andersen, Director of Standards and 
Harmonization, and Dr. Rabin saw the run-up to the Beijing 
games in 2008 as potentially challenging for anti-doping 
testing.  The WADA executives shared with the CG an article 
(dated 9/14) from the Daily Telegraph newspaper of London 
that reported on the high priority China is placing on 
producing world-class athletes.  The article states that in 
addition to setting up schools and training centers for an 
estimated 260,000 athletes, the Chinese Government has been 
developing scientific strategies to identify athletic 
potential and create optimum training methods.  The WADA 
executives expressed concern that the organization's limited 
budgets will make it increasingly difficult to test athletes 
in a meaningful way.  WADA conducted 4,500 tests on athletes 
in 2002 and plans a modest increase in testing in 2003. 
ALLEN