US embassy cable - 04THEHAGUE2208

UNCLAS THE HAGUE 002208 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN, EAID, PREL, ECON, EINV, NL 
SUBJECT: DUTCH CONSIDERING CONTRIBUTIONS TO IFC'S PRIVATE 
ENTERPRISE PARTNERSHIP FOR THE MIDDLE EAST AND NORTH AFRICA 
 
REF: STATE 186398 
 
1.  ECONCOUNS and Econoff delivered September 2, 2004, reftel 
points to Gita Salden, Head of the International Economy and 
Financial Institutions Division within the Foreign Financial 
Relations Directorate of the Dutch Finance Ministry. 
(POLCOUNS delivered points separately on August 31 to Michiel 
den Hond, Director of the MFA's Department of North African 
and Middle Eastern Affairs.)  While private sector investment 
was a GONL priority, Salden said that the GONL would need to 
ensure that any financial contributions to the International 
Finance Corporation (IFC)'s proposed SME technical assistance 
facility, "The Private Enterprise Partnership for the Middle 
East and North Africa," did not conflict with current GONL 
commitments within the African Development Bank.  While the 
Dutch would most likely support the facility's creation when 
it comes before the IFC Board, Salden said, any decision on a 
Dutch contribution would require the concurrence of the 
Development Cooperation Ministry, from whose budget the money 
would come.  Finding such funding could be difficult, she 
suggested, and could require a reduction of Dutch assistance 
funds to other projects and/or countries.  (GONL foreign 
assistance is currently capped at 0.8 percent of GDP.) 
Without making any promises, Salden said she would raise the 
matter with her Development Cooperation Ministry colleagues 
and emphasize the role that Finance Minister Gerrit Zalm, 
representing the EU Presidency, will play in upcoming October 
World Bank/IMF meetings as well as the October 1 G-8 Finance 
Ministers meeting, where the IFC facility will be discussed. 
 
2.  Post will report septel any further developments on this 
issue. 
RUSSEL