US embassy cable - 04DJIBOUTI528

C O N F I D E N T I A L DJIBOUTI 000528 
 
SIPDIS 
 
FOR AF/EX AND OBO; ALSO FOR AF AND AF/E 
 
E.O. 12958: DECL: 04/12/2014 
TAGS: PREL, ABLD, AMGT, DJ 
SUBJECT: AMBASSADOR PRESENTS PRESIDENT GUELLEH WITH OFFER 
ON NEC 
 
REF: A. (A) DJIBOUTI 492 
 
     B. (B) DJIBOUTI 340 
 
Classified By: Classified by Ambassador Marguerita D. Ragsdale for reas 
ons 1.4 (b) and (d). 
 
1. (C) At her request, Ambassador met April 11 at the 
Presidency with President Ismail Omar Guelleh to present 
the USG's formal offer to purchase land for a new 
Embassy compound site in the Salines Est section of 
Djibouti.  The Ambassador was accompanied by Pol/Econ 
and GSO officers. (Notetakers)  The Ambassador stated 
that the U.S. had identified a site of approximately 
40,300 square meters and would like to begin construction 
as early as 2007.  The U.S.'s offering price is USD 
1,800,000 to include provision for land fill, installation 
and delivery of utilities to the property, as well as all 
incidental rights and easements associated with the 
property.  She also gave the President a site drawing of 
the property in which the U.S. was interested and a 
non-paper in both English and French of specific points 
covering details of the offer, offer deadline, and U.S. 
rights under the Vienna Convention regarding dues, taxes, 
and fees directly related to purchase of property for a 
diplomatic mission.  (Note: Embassy passed the same 
details via diplomatic note to Djibouti's Ministry of 
Foreign Affairs on April 12.  See septel.) 
 
2. (C) Guelleh commented that he had heard rumors 
"about town" that the United States was seeking a 
suitable site and that it had hired a private firm to 
survey sites and do measurements, and that the findings 
had been compiled in a "thick book." (Note: Guelleh was 
referring to the NEC Site Selection Report of August 
2003 prepared by DTZ Leadenhall of South Africa.  OBO 
commissioned the report and contracted local architect 
Daniel Dubois to do the survey.  End Note.) 
 
3. (C) Guelleh continued that the Government of Djibouti 
had contracted an investor to develop the site containing 
the tract the U.S. wishes to purchase.  (Note: The 
developer is Maya Trading and Real Estate Development 
Company.  See Reftels A and B. End Note.)  The developer 
would determine the price of the parcels, he said, after 
the Government of Djibouti does its own assessment, 
including the cost of utilities.  Guelleh added that his 
Government had not received from the U.S. any official 
request for land at the time the contract with the 
developer was signed.  Ambassador asked that Guelleh 
consider her meeting today with him, and the formal 
diplomatic note to follow repeating the request, as the 
U.S. government's formal offer to purchase.  Guelleh 
responded that he would be in agreement with allowing the 
U.S. to have the parcel of land it is requesting if it 
has not been granted to anyone else. 
 
4. (C) Guelleh then turned to the price of the parcel. 
He told the Ambassador he thought it was "arbitrary." 
Per existing agreements regarding specifications and 
cost of government owned land, he continued, there were 
already buyers that had received land grants from the 
government.  The U.S. may now have to negotiate with 
these beneficiaries.  Ambassador interjected that the 
U.S. understood that a portion (approximately 7,142 
square meters) of the parcel in question had indeed 
been sold, but that the U.S.'s interest was in the 
remaining 40,300 square meters of the parcel. 
 
5. (C) Guelleh commented that the Government generally 
takes 1000 Djiboutian Francs (approximately USD 6) per 
square meter in a land sale.  Beyond that, the cost of 
utilities and other land preparatory expenses, would be 
added.  He said that the U.S. offer equals roughly 5,000 
Djiboutian Francs per square meter (approximately 
USD 28), but at least 7,000 Djiboutian Francs per square 
meter (approximately USD 39) would be needed to cover 
roadways, networks and drainage.  Ultimately, he said, 
the developer would need to determine the final costs. 
He stated that his Government would review the offer and 
get back to the Ambassador with an assessment. 
RAGSDALE