US embassy cable - 04DJIBOUTI1269

C O N F I D E N T I A L SECTION 01 OF 03 DJIBOUTI 001269 
 
SIPDIS 
 
STATE FOR AF AND AF/E; CENTCOM FOR POLAD JOHN HOLZMAN; 
CENTCOM FORWARD FOR GENERAL ABIZAID 
 
E.O. 12958: DECL: 09/27/2014 
TAGS: PREL, KPAO, MARR, OVIP, DJ 
SUBJECT: SCENESETTER FOR GENERAL ABIZAID'S VISIT TO DJIBOUTI 
 
REF: DJIBOUTI 529 
 
Classified By: Ambassador Marguerita D. Ragsdale. 
For reasons 1.4 (b) and (d). 
 
1. (C) Summary: Combating poverty, improving the nation's 
health and education infrastructures and services and 
promoting economic development are top priorities for the 
Government of Djibouti.  Embassy Djibouti and CJTF-HOA are 
working in tandem to assist in these areas.  Economic 
ventures undertaken within the country must be seen within 
the context of the desire of the President of Djibouti to 
boost Djibouti's economy.  Moreover, a major joint-venture 
port construction project with Emirates National Oil Company 
(ENOC)  is being touted as an integral part of Djibouti's 
economic future.  When the port comes on line in 2005, it 
will also support oil storage objectives of the U.S. Navy in 
the region under a contract with Defense Energy Support 
Center (DESC). 
 
2. (C) Djibouti's attitude toward the U.S. remains favorably 
disposed.  The U.S. military is in the process of negotiating 
extension of its lease and access at Camp Lemonier and 
President Guelleh has made known his desire to see the U.S. 
play a positive role in achieving security and stability in 
the Horn of Africa region.  He is urging international 
community support of the Somali reconciliation process but 
also agreed recently to host a Somaliland interests, office 
in Djibouti.  Foreign affairs agencies in Washington are 
re-examining core U.S. strategy for engagement in Somalia and 
Somaliland, but remain committed at this point to a  unified 
Somalia.  U.S.-Djibouti military and anti-terrorism 
cooperation remain strong and Djibouti continues to support 
our ongoing efforts at terrorist interdiction in the region. 
Djibouti is less than satisfied, however, with the pace of 
delivery of equipment promised or pledged under the Foreign 
Military Financing (FMF) program and has voiced its concerns 
with the Ambassador, to which we have been responsive. 
 
3. (C) On issues outside the region, President Guelleh has 
been quite vocal in expressing a deep disappointment with the 
lack of progress in ending the conflict between Israelis and 
Palestinians.  End summary. 
 
Focus on Domestic Development Priorities 
---------------------------------------- 
4. (C) The top domestic priorities for the Government of 
Djibouti are combating poverty, improving the nation's health 
and education infrastructures and services , and promoting 
economic development.  Through USAID, the U.S. is assisting 
the Government of Djibouti implement a nation-wide education 
reform program at funding of USD 14 million over three years. 
  We are also assisting the Government of Djibouti to 
increase, at a funding level of USD 12 million over three 
years, equitable access to health care particularly of the 
poor , and  the provision of quality and efficient health 
care to reduce infant, child and maternal mortality.  We are 
joined in these efforts by the numerous small school and 
clinic rehabilitation and refurbishment projects undertaken 
successfully by the Combined Joint Task Force Horn of Africa 
(CJTF-HOA) at Camp Lemonier. 
 
5. (C) The U.S. is  also assisting Djibouti increase 
opportunities for international sale of its livestock and is 
funding construction of a holding pen for livestock destined 
for the Arabian Peninsula to include veterinary inspection 
and export certification.  Camp Lemonier has expressed 
concerns about the proximity of the pen to the Camp and is 
seeking clarification  from USAID of the facility's 
environmental implications. 
 
6. (C) President Guelleh is the driving force behind many 
economic ventures that the Djiboutian government hopes will 
boost the nation's economy.  He is most proud of the port of 
Doraleh, and the economic potential he sees in this 
joint-venture construction project with Emirates National Oil 
Company (ENOC).  Doraleh is being touted as an integral part 
of Djibouti's economic future.  Once completed, it will have 
a Free Zone, an oil storage terminal facility, a container 
terminal, and a bulk terminal.  The oil terminal facility 
will be the first to come on line, with a target completion 
date of May, 2005.  Oil companies operating in Djibouti have 
already received notice of the requirement that they relocate 
their operations to Doraleh where they will be obliged to 
lease oil storage tanks from ENOC. Four of the oil storage 
tanks have been reserved for exclusive use of the U.S. Navy 
under an open-tender Defense Energy Support Center (DESC) 
contract with ENOC. 
 
7. (C) Djibouti is anxious to qualify in Fiscal Year 2005 for 
additional economic development assistance under the 
Millennium Challenge Act of 2003.  The Act authorizes the 
provision of economic assistance to countries that enter into 
compacts with the U.S. to support internal policies and 
programs that advance the prospects of lasting economic 
growth and poverty reduction.  Eligibility will depend on 
Djibouti's ability to demonstrate its commitment to just and 
democratic governance, economic freedom and investment in its 
people.  Djibouti still has much work to do in these areas, 
but we are cooperating with the Millennium Challenge 
Corporation (MCC) and the Government of Djibouti to provide 
the data needed for an earnest assessment. 
 
Looking at the Horn of Africa Region and a U.S. Role 
--------------------------------------------- ------- 
 
8. (C) President Guelleh expects a positive United States 
role in the achievement of security and stability in the Horn 
of Africa region and in the resolution of regional conflicts. 
 In his speech before the General Assembly of the United 
Nations on September 22, he highlighted the need for 
international support and assistance for regional 
peacekeeping efforts, as well as placing an emphasis on 
solving the problem of terrorism by getting at its root 
rather than reacting immediately with military force. In that 
address, he also detailed the problem of arms trafficking in 
Africa and the need to halt the diversion of Africa's 
resources away from its critical needs. 
 
9. (C) President Guelleh is also urging the international 
community to provide assistance and support to the Somali 
reconciliation process.  Djibouti, like the U.S, wishes to 
see a unified Somalia.  Nevertheless, Guelleh agreed recently 
to host a Somaliland interests, office in Djibouti and 
Somaliland continues to press the U.S. and other nations for 
political recognition.  U.S. foreign affairs agencies have 
begun a process of re-examining core U.S. strategy for 
counter-terrorism, political and economic engagement in 
Somalia and Somaliland, and our long-term policy with respect 
to both.  U.S. Embassy Nairobi recently conducted a security 
assessment of Somaliland by sending three of its officers, 
including the Regional Security Officer (RSO) to Hargeisa. 
 
Strong  U.S.- Djibouti Military 
and Anti-terrorism Cooperation 
------------------------------- 
 
10. (C) The attitude of the Government of Djibouti and the 
general population continues to be favorably disposed towards 
the United States.  U.S.- Djibouti military and 
anti-terrorism cooperation remain strong and Djibouti is 
supporting our ongoing efforts at terrorist interdiction. 
Training programs under the East Africa Counter-terrorism 
initiative (EACTI) have taken place with law enforcement, 
military, and intelligence personnel. Djibouti is less than 
satisfied, however, with the pace of delivery of equipment 
promised or pledged under FMF.  General Fathi, Commander of 
the Djiboutian Armed Forces, has raised this issue with 
Ambassador and with USLO Chief. We have received 
clarification from the Defense Security Cooperation Agency 
(DSCA) on the FMF process, and on delivery and have conveyed 
this information to General Fathi. General Fathi has also 
expressed to Ambassador, formally, his desire to see better 
coordination between the U.S. and Djibouti on use of local 
military firing ranges.  CJTF-HOA Commander Helland has 
addressed this issue with General Fathi and is sending a 
follow-up letter. 
 
11. (C) The U.S., under Department of Defense auspices, began 
on September 16 negotiations with Djibouti on renewal of the 
U.S. military's lease agreement for Camp Lemonier. Lead U.S. 
negotiator Theresa Whelan, Deputy Assistant Secretary of 
Defense for Africa, has already provided Ambassador Olhaye in 
Washington with a draft agreement. 
 
Concerns About the Middle East 
------------------------------ 
 
12. (C) President Guelleh has not been very vocal publicly in 
either supporting or condemning the U.S.-led war in 
Afghanistan or in Iraq, perhaps out of deference to his 
country's hosting of the U.S. military.  In a conversation 
with the Ambassador in April of this year, Guelleh cautioned 
that U.S. efforts to "shut down" Moqtada al-Sadr were having 
the opposite effect.  Instead of earning the Shiite leader 
detractors, it was making him more popular.  (see reftel) 
 
13. (C) By contrast, Guelleh has been consistently vocal 
about his deep disappointment with a lack of progress in 
ending the conflict between Israelis and Palestinians. 
Guelleh faults Israel for the impasse.  In his recent speech 
before the United Nations, he expressed the view that the 
occupation of the West Bank and Gaza is part of a three and a 
half decades-long process of blatant confiscation of 
Palestinian lands, farmlands and water resources.  He 
criticized Israel's separation wall, which he stated makes an 
already explosive situation worse and creates irreversible 
facts on the ground.  Israel's actions, in Guelleh,s view, 
have made a mockery of the U.S. "Road Map" and rendered it 
worthless.  In this same speech, he described the 
Palestinians as "struck with an indefinite deprivation, a 
sense of hopelessness and statelessness" and criticized the 
United Nations for its inability to constrain Israel. 
RAGSDALE