US embassy cable - 04ROME2493

UNCLAS ROME 002493 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, PREL, HA, IT 
SUBJECT: GOI BUDGET SUPPORT FOR HAITI UNLIKELY WITHOUT 
    INTERNATIONAL AGENCY INVOLVEMENT 
 
REF: SECSTATE 132852 
 
1. SUMMARY: THE GOI IS OPEN TO THE POSSIBILITY OF PROVIDING 
FINANCIAL ASSISTANCE TO THE INTERIM GOVERNMENT OF HAITI 
(IGOH), PROVIDED THIS ASSISTANCE IS ADMINISTERED THROUGH AN 
INTERNATIONAL TRUST FUND BY AN INTERNATIONAL ORGANIZATION 
THAT CAN MONITOR ITS EFFECTIVENESS.  IT IS UNLIKELY THAT 
ITALIAN ASSISTANCE WOULD BE IN THE FORM OF BILATERAL BUDGET 
SUPPORT TO ADDRESS THE ESTIMATED $65 MILLION SHORTFALL IN THE 
FY04 IGOH BUDGET, SINCE THE GOI HAS NO EXPERIENCE OR 
MECHANISM FOR PROVIDING DIRECT BUDGET SUPPORT TO ANOTHER 
COUNTRY.  FURTHERMORE, THE INVOLVEMENT OF AN INTERNATIONAL 
ORGANIZATION TO ADMINISTER AID TO HAITI IS ESPECIALLY 
IMPORTANT TO THE GOI BECAUSE IT HAS NO EMBASSY IN HAITI TO 
FOLLOW UP ON ANY AID AND HUMANITARIAN ISSUES.  THE GOI WILL 
LIKELY SEND A REPRESENTATIVE TO THE HAITI DONORS' CONFERENCE 
ON JULY 19-20, ALTHOUGH NO FINAL DECISION HAS YET BEEN 
REACHED.  END SUMMARY. 
 
2. ON JUNE 24, ECMIN PRESENTED REFTEL DEMARCHE TO DONATO 
SCIOSCIOLI IN THE MFA'S OFFICE OF WESTERN HEMISPHERE AFFAIRS. 
ECMIN UNDERSCORED THE PRESSING NEEDS OF THE IGOH, THE 
SUBSTANTIAL SUPPORT THE USG WILL PROVIDE, AND THE ABILITY OF 
INTERNATIONAL DONORS TO FILL THE BUDGET SHORTFALL THROUGH 
RELATIVELY MODEST CONTRIBUTIONS, PROVIDED THAT A SUFFICIENT 
NUMBER OF GOVERNMENTS STEP UP TO THE PLATE.  HE URGED THE GOI 
TO BE AMONG THOSE WHO DO SO.  SCIOSCIOLI ACKNOWLEDGED THAT 
THE GOI HAD NOT GIVEN MUCH ATTENTION TO HAITIAN ASSISTANCE 
BECAUSE "IT IS NOT ONE OF OUR PRIORITY COUNTRIES."  HE STATED 
    THAT THE PRESENCE OF AN INTERNATIONAL AGENCY TO ADMINISTER 
ANY AID TO HAITI THROUGH A TRUST FUND WOULD ESSENTIALLY BE A 
PREREQUISITE FOR ITALIAN AID.  ACCORDING TO SCIOSCIOLI, THE 
ONLY PREVIOUS EXPERIENCE ITALY HAD IN GIVING DIRECT BUDGET 
SUPPORT WAS IN AFGHANISTAN, AND THIS WAS CHANNELED THROUGH 
THE WORLD BANK.  BUDGET SUPPORT PER SE, SCIOSCIOLI SAID, WAS 
NOT SOMETHING THE GOI NORMALLY ENGAGED IN, NOR DID IT HAVE 
ANY FORMAL MECHANISMS TO PROVIDE THIS FORM OF AID.  THE 
MAJORITY OF ITALIAN FOREIGN AID IS PROVIDED IN THE FORM OF 
PROGRAM AND PROJECT AID, HE ADDED. 
 
3. SCIOSCIOLI DID DESCRIBE ONE PROGRAM THROUGH WHICH THE GOI 
WOULD OFFER ASSISTANCE TO BOTH HAITI AND THE DOMINICAN 
REPUBLIC ALONG THE BORDER REGION BETWEEN THE TWO COUNTRIES. 
THIS PROGRAM WILL SEEK TO COORDINATE THE MANY AGENCIES 
PROVIDING HUMAN DEVELOPMENT AND SMALL COMMUNITY ASSISTANCE 
UNDER THE RUBRIC OF THE UNDP. 
 
4. COMMENT: ALTHOUGH HAITI IS NOT HIGH ON ITALY'S LIST OF 
PRIORITIES, THERE APPEARS TO BE A REASONABLE CHANCE THAT THE 
GOI WOULD PROVIDE SOME LEVEL OF FINANCIAL SUPPORT TO THE 
IGOH, PROVIDED THAT THIS SUPPORT CAN BE CHANNELED THROUGH AN 
INTERNATIONAL AGENCY SUCH AS THE WORLD BANK OR UNITED 
NATIONS.  END COMMENT. 
 
5. MINIMIZE CONSIDERED FOR PORT AU PRINCE. 
 
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SEMBLER 

 
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 2004ROME02493 - Classification: UNCLASSIFIED