US embassy cable - 04DJIBOUTI730

C O N F I D E N T I A L DJIBOUTI 000730 
 
SIPDIS 
 
STATE FOR AF AND AF/E 
 
E.O. 12958: DECL: 05/20/2014 
TAGS: PREL, PGOV, ECON, EINV, ET, KU, MY, DJ, TC 
SUBJECT: ETHIOPIAN OFFICIALS HOLD TALKS WITH DJIBOUTI 
 
 
Classified By: AMBASSADOR MARGUERITA D. RAGSDALE. 
REASONS 1.4 (B) AND (D). 
 
 1. (C) Minister of Cooperation in the Ministry of Foreign 
Affairs (MFA), Mahmoud Ali Youssef, told Ambassador May 20 
during their meeting at the MFA on another matter, that the 
May 18-19 visit of Ethiopian Prime Minister Meles Zenawi to 
Djibouti had gone very well.  Meles had come to Djibouti to 
inaugurate what Youssef described as the Ethiopian 
Government's "most expensive embassy complex in Africa." 
(Note: Ambassador had attended the inauguration which took 
place in Djibouti on May 18. End note). 
 
2. (C) While Meles also met privately with Guelleh during his 
visit, the visit was an opportunity as well for Djibouti to 
launch the first meeting in five years of the 
Ethiopia-Djibouti Ministerial Committee.  The Committee 
included  Ethiopia's Seyoum Mesfin, Foreign Minister, Girma 
Birru, Minister of Commerce and Industries, Getachew Belai, 
Minister of Finance, Haile Assegide, Minister of State for 
Infrastructure,  Mulegeta Alemseged, described as "Minister 
in the Office of the Prime Minister," and their Djiboutian 
counterparts. Also participating from Ethiopia were the 
Director General of African Affairs at Ethiopia's Ministry of 
Foreign Affairs, and the Ethiopian Ambassador to Djibouti, 
Shemsudin Ahmed Robleh. Meetings of the Ministerial Group 
were in progress on May 20 when Youssef broke away to meet 
with Ambassador. 
 
3. (C) In a quick brief, Youssef said the Ministerial Group 
talks were focused on three key areas, the first being 
Somalia.  Djibouti hoped "to bring Ethiopia around" in its 
thinking on the future of Somalia.  The focus is to encourage 
Ethiopia to undertake higher level engagement in the Somali 
peace process. 
 
4. (C) The second area of Ministerial discussion, Youssef 
said, is development of Djibouti's new Port of Doraleh, whose 
construction is being managed by Emirates National Oil 
Company.  Ethiopia wants not only to invest in the port but 
in the possible development as well of an oil pipeline that 
would run directly from the Port of Doraleh to a point in 
Ethiopia, perhaps Addis Ababa, according to Youssef.  (Note: 
Fahmi al-Hag, Investment Advisor to President Guelleh 
(protect), told Ambassador several weeks ago that the 
Independent Petroleum Group (SAK) Kuwait (IPG) is interested 
in construction of a "white oil" pipeline from Doraleh port 
to a discharging or distribution terminal in Addis Ababa.  A 
pipeline "order of magnitude cost estimate" completed two 
years ago for the project makes note of Ethiopia's interest. 
Petronas of Malaysia is also said to be interested in this 
project. End note). 
 
5. (C) A third area of interest for the two delegations, 
Youssef said, is the SEA-ME-WE 4 intercontinental cable 
network that Djibouti wants to participate in but lacks the 
necessary capital to join singularly. Ethiopia may be 
interested in linking up with Djibouti for access and 
discussions are taking place on best means to initiate that 
involvement, according to Youssef. 
 
6. (C) Youssef said Djibouti was quite pleased about the 
prospect of talks with Ethiopia at the ministerial level 
because too much time had passed since the last session five 
years ago.  He commented, however, that it is never easy to 
negotiate with Ethiopians, so the talks have not been easy. 
In the history of dealing with Ethiopia, the farther it is 
apart from Eritrea, he mused, the closer it wants to move 
toward Djibouti.  Djibouti benefits economically from the 
existing tensions between the two countries and while 
unfortunate in a way, he said, it is "a fact of life." 
 
7. (C) Comment: Youssef gave every indication that Djibouti 
is keen to make the most of the current economic advantages 
it enjoys with Ethiopia.  Direct Ethiopian investment in 
Djibouti would strengthen ties to an extent that would be 
more difficult to end should the political climate in the 
region change -- especially between Ethiopia and Eritrea -- 
in the not-too-distant future.  End Comment. 
RAGSDALE