US embassy cable - 04BRUSSELS2983

UNCLAS SECTION 01 OF 02 BRUSSELS 002983 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, HA, EUN, USEU BRUSSELS 
SUBJECT: A/S WAYNE MEETING WITH COMMISSION ON HAITI 
 
REF: STATE 151861 
 
Sensitive But Unclassified, entire text. 
 
1.  (SBU) Summary.  In a meeting with EB Assistant Secretary 
Wayne, Commission Development Director Sipke Brouwer 
explained the Commission would pledge approximately 160 
million Euros for Haiti over the next two years including up 
to 77 million Euros as non-project (more rapidly available) 
funds, with additional funds over the medium and longer term. 
 Wayne suggested contributing election support through the 
OAS, and the Commission agreed to consider that path. 
Brouwer noted member states would be led by the French 26 
million Euro contribution.  End Summary. 
 
2.  (SBU)  EB Assistant Secretary Wayne accompanied by Kerri 
DiZoglio EB/IFD, and emboffs, met at DG Development with 
Sipke Brouwer, Director of West and Central Africa, the 
Caribbean, and Overseas Country Territories (OCTs). Brouwer 
was joined by John Calighorou, Head of Unit for Caribbean and 
OCTs, Lut Fabert-Goossens, Administrator, Caribbean at DG 
Development to discuss funding for Haiti in light of the 
upcoming July 19-20 Haiti Donors' Conference. 
 
3.  (SBU) Wayne opened by explaining that the U.S. was 
concerned with the vast development and humanitarian needs in 
Haiti, including for short-term rehabilitation and 
operational needs, but was encouraged by progress made by the 
interim government thus far.  Wayne said, and the Commission 
agreed, that donors should learn from mistakes of the past 
and stay constructively engaged for a longer period of time. 
 Strong pledging at the Donors' Conference is an important 
step. 
 
4.  (SBU) Brouwer reported that the Commission has 
approximately 160 million Euros to pledge for Haiti over the 
next two years coming from 3 sources: (1) 27 million Euros in 
existing funds are authorized and fully usable from the 
Eighth European Development Fund (EDF) and approximately 50 
million Euros from miscellaneous rehabilitation funds;  (2) 
72 million Euros of Ninth EDF Envelope A funds are subject to 
the Cotonou agreement with the GOH and therefore will be 
programmed through an agreed strategy and national indicative 
program. The funds under the Ninth EDF are conditioned on 
political progress and have been partially blocked.  They 
will be unblocked when free and fair elections are held in 
Haiti.  The unblocking process is at the Council level. 
These funds are usable for regular programs, under a strategy 
agreed to by GOH and the Commission after elections, once the 
situation is normalized; (3) 23 million in Ninth EDF Envelope 
B funds are not subject to the same programming procedure as 
Envelope A funds and can be applied to unexpected 
circumstances, humanitarian assistance and rehabilitation. 
The EU will provide these "bridge funds" if Haiti has the 
absorption capacity.  Envelope B may be increased as a result 
of a reallocation of funds through an ongoing a midterm 
review at DG Development. 
 
5.  (SBU) Brouwer explained DG Development has earmarked 10 
million Euros for elections, although the needs assessment 
stood at 30 million Euros. Wayne noted that the U.S. would 
contribute 13 million dollars for elections through the OAS. 
Brouwer agreed that the OAS had the experience and should 
take the lead on elections. 
 
6.  (SBU) A/S Wayne noted the apparent reservation of Member 
States to provide budgetary support, especially covering 
running expenses. He pointed out the broad definition used by 
the IMF, which includes emergency rehabilitation and 
operating expenses. Wayne said this could include support for 
education, such as by providing textbooks, and encouraged the 
Commission to urge member states to provide this kind of 
off-budget contribution, as well as providing EC funds. 
Wayne asked about additional contributions from member 
states.  Brouwer said the French would lead with about 26 
million Euros with lesser amounts from the others, including 
some from Germany. 
 
7.  (SBU) Wayne asked who from the Commission would attend 
the Donors Conference.  Brouwer said Commissioner Borg 
(pronounced "borsh"), the new Commissioner from Malta twinned 
to DG Development, would lead the Commission delegation. 
John Calighorou, Head of Unit for Caribbean and OCTs, Lut 
Fabert-Goossens, Administrator, Caribbean and the head of the 
EC Delegation in Port-au-Prince would also attend. 
 
8.  (SBU) Calighorou expressed concern over the absorption 
capacity of Haiti, citing that up to now it has been able to 
absorb 300-350 million Euros at best and the Donors' 
Conference anticipates raising nearly twice that much (550 
million Euros per year, including IDB money). Wayne suggested 
that donors work with the IGOH and other donors to help build 
the government's capacity to absorb the additional aid and to 
assure good on the ground coordination mechanisms. 
 
9. (SBU) On humanitarian assistance, Fabert-Goossens said 
that ECHO, the EU's humanitarian agency, would continue to 
provide approximately 7.7 million Euros in humanitarian 
assistance each year over the next two years and food aid 
would also continue. 
 
10. (SBU) Comment:  The Commission officials were committed 
but need to be pushed on timing for committing and planning 
for use of funds.  In addition to pressing for funds to help 
meet the IMF identified operational needs, project funds will 
take time to plan and disburse, a process that we should 
begin before elections are completed. 
 
McKINLEY