US embassy cable - 04MADRID3644

UNCLAS SECTION 01 OF 02 MADRID 003644 
 
SIPDIS 
 
STATE PASS ROLAND DEMARCELLUS AND JUDY GARBER 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, ECON, EINV, PREL, SP 
SUBJECT: SPANISH GOVERNMENT STRONGLY SUPPORTS NEW 
INITIATIVES IN INTERNATIONAL AID 
 
REF: A. STATE 177369 
     B. MADRID 1691 
 
1. Summary: In a delayed response to ref A demarche, 
Technical Advisor Manuel Alhama Orenes in the Cabinet of 
Secretary of State for International Cooperation (aid) Leire 
 
SIPDIS 
Pajin, defined the new position of the GOS on international 
aid as "anything is possible".  Spain is now a major 
supporter along with Brazil, France and Chile of new 
international initiatives to end world hunger and guarantee a 
steady, stable increase in international aid to developing 
countries.  In addition to pushing for greater world aid, 
President Zapatero and his Secretary of State for 
International Cooperation Leire Pajin intend to revamp the 
Spanish aid program, increasing Spanish aid from 
approximately .25% of GDP to .50% of GDP, and redirect aid 
from Spain's 32 priority countries, mainly middle income 
countries in Latin America and North Africa to the world's 
poorest countries.  End Summary. 
 
GOS Strongly Supports New International Aid Initiatives 
--------------------------------------------- ---------- 
 
2. We delivered ref A demarche August 30 to several members 
of Spain's Agency for International Development and Ministry 
of Foreign Affairs.  We requested a response in early 
September as the GOS began to return from the long August 
break.  We received a response September 16 from Technical 
Advisor Manuel Alhama Orenes in the Cabinet of Secretary of 
State for International Cooperation (aid) Leire Pajin. 
Alhama's answer did not directly address our concerns, but 
provided a general GOS position on international aid issues. 
 
3. Alhama began by pointing out that in recent years 
developing countries have not achieved the 3% level of GDP 
growth that would alleviate poverty and hunger.  Spain is now 
one of the chief proponents of new initiatives to provide 
more assistance to meet this goal together with Brazil, 
France and Chile.  The GOS is also willing to consider a tax 
on commerce and international arms sales to raise money for 
new development initiatives. 
 
4. Alhama said the GOS is interested in ensuring a stable, 
predictable flow of international assistance to developing 
countries so that governments can plan for development needs. 
 In this effort, Spain is interested in considering all 
options and initiatives that will increase the level of 
international assistance and funds flowing to poor countries. 
 Alhama emphasized that the new initiatives were voluntary 
and only those countries wishing to participate in the new 
endeavors would do so. 
 
5. Alhama barely touched on specific concerns in our 
demarche.  He noted that the GOS is also concerned with 
transparency of developing governments, but that we should 
not allow this issue to cloud the overall debate on aid and 
need to ensure greater availability of funds to developing 
countries.  He described the U.S. concerns on taxation and 
fiscal issues as unfounded, and mentioned that these issues 
would be studied as possibilities and that the international 
system of trade would remain open. 
 
Changes in Spanish Aid Policy 
----------------------------- 
 
7. Spain's Socialist government plans a significant increase 
in aid disbursements and reorientation of aid to poorer 
countries (Ref B).  President Zapatero and his Secretary of 
State for International Cooperation Leire Pajin have promised 
to double Spanish assistance from approximately .25% of GDP 
to 0.5% of GDP in the next four years, and to achieve 0.7% if 
Zapatero's government is reelected to a second four year 
term.  Much of this new funding will be granted to the 
world's poorest countries, especially those in Sub Saharan 
Africa.  Spain's aid is currently channeled assistance to 32 
priority countries, mostly middle income countries in Latin 
America and north Africa where Spain had historical ties or 
foreign policy interests. 
 
Comment 
------- 
 
8. The support of the new international aid initiatives by 
Spain marks a major change in Spanish aid policy, at least 
rhetorically.  One of the major drivers of this change is the 
new Secretary of State for International Cooperation Leire 
Pajin.  At twenty-eight, Pajin is the youngest Secretary of 
State (Undersecretary equivalent) in the Spanish government. 
In 2000, she won a seat in Parliament.  She also held the 
post of Secretary for Social Movements and Relations with 
NGOs on the Socialist Party's Federal Executive Commission, 
as well as the presidency of the Spanish NGO Solidarid 
Internacional (Solidarity International).  She is believed to 
be close to President Zapatero.  We will be monitoring 
closely possible changes Spain might make with respect to 
recipient countries and international aid initiatives.  The 
government's upcoming budget proposal in early October will 
also be a concrete indicator of whether the GOS will, in 
fact, increase overall aid levels despite fiscal constraints. 
ARGYROS