US embassy cable - 04MADRID1691

UNCLAS MADRID 001691 
 
SIPDIS 
 
SENSITIVE 
 
USAID FOR LAC 
STATE FOR EUR/WE AND EB/IRAQ 
 
E.O. 12958: N/A 
TAGS: EAID, PINR, PGOV, IZ, SP 
SUBJECT: NEW SPANISH GOVERNMENT TO INCREASE AID 
 
 
1. This report is sensitive but unclassified and is not for 
Internet distribution. 
 
2. (U) In an initial courtesy call on new Secretary General 
for the Spanish International Aid Agency (AECI) Juan Pablo de 
Laiglesia, de Laiglesia laid out the new Socialist 
government's vision for Spanish aid policy.  Top on the 
Administration's list is increasing aid funding from the 
current level of 0.24% of GDP.  The GOS hopes to reach 0.3% 
of GDP by 2005, 0.5% by 2008 and finally 0.7 - the EU's goal 
- by 2012.  AECI hopes to increase its share of total GOS aid 
from the current 17% to 25%.  While the Administration plans 
to continue Spain's traditional focus on the Latin American 
and Mediterranean regions, de Laiglesia told us that 
additional funding will be directed toward Africa as well as 
"horizontal" (cross-cutting) issues such as health and 
support for microbusinesses.  De Laiglesia also mentioned 
that AECI will support Brazilian President da Silva's 
anti-hunger initiative. 
 
3. (U) AECI leadership plans to restructure the agency to 
meet its new goals.  Specifically, de Laiglesia mentioned 
streamlining and professionalizing AECI staff, strengthening 
offices working on horizontal issues, and improving the 
agency's ability to monitor and evaluate projects.  He also 
referred to two objectives laid out by the new State 
Secretary for Cooperation, Leire Pajin - to integrate aid 
 
SIPDIS 
policy into traditional foreign policy priorities (Note: the 
Zapatero government changed the MFA's name to the Ministry of 
Foreign Affairs and Cooperation) and to reduce tied aid. 
 
IRAQ 
 
4. (U) EconCouns told de Laiglesia we were pleased to see 
that the new Administration has promised to carry through on 
the pledge Spain made at last October's Iraq Donors' 
Conference.  De Laiglesia confirmed that is the case, but 
added that factors on the ground in Iraq will determine how 
much funding can actually be disbursed in the short-term.  He 
specifically mentioned the need for a "sovereign government" 
to which concessional credits for reconstruction can be 
issued and the difficult security situation that has led to 
suspension of certain AECI actions in Iraq, particularly 
around Diwaniya.  He confirmed that Spain's mix of assistance 
(credits, humanitarian aid, reconstruction funding, etc.) can 
be modified if on-the-ground conditions require. 
 
LATIN AMERICA 
 
5. (U) Finally, de Laiglesia confirmed AECI's interest in 
coordinating with USAID at both agency and mission levels on 
projects and actions in Latin America. 
 
COMMENT 
 
6. (U) Under the previous Administration, AECI and USAID's 
LAC bureau held periodic consultations on aid to Latin 
America.  Embassy stands ready to facilitate USAID dialogue 
with the new AECI leadership. 
 
BIO NOTE 
 
7. (SBU) De Laiglesia is a career diplomat.  He served as 
Spain's Ambassador to Mexico from 1995-1997 and Ambassador to 
Poland from 1997-2001.  Most recently, he was Special Envoy 
for Coastal Issues.  We anticipate he will play a significant 
role on aid issues, since the head of the AECI, Leire Pajin, 
is a career Socialist politician who has never served in 
government. 
MANZANARES