US embassy cable - 02ROME818

UNCLAS ROME 000818 
 
SIPDIS 
 
PASS USAID 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, IT, PREL, UN 
SUBJECT: GOI ASSISTANCE TO PAKISTAN 
 
REF: STATE 18844 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  00818  151738Z 
 
1. THE MAJOR COMPONENT OF ITALY'S BILATERAL ASSISTANCE EFFORT 
IN PAKISTAN IS THE $80 MILLION IN DEBT RELIEF EXTENDED IN 
DECEMBER, 2001.   RAFFAELA DI MARO AND GIORGIO LECCESI, BOTH 
WITH THE DEPARTMENT OF INTERNATIONAL AFFAIRS OF THE ITALIAN 
MINISTRY OF ECONOMY AND FINANCE, TOLD ECOUN AND ECONOFF THAT 
THE GOI SHARES US CONCERN ABOUT THE ECONOMIC STABILITY OF 
PAKISTAN.  DE MARO SAID PAKISTAN HAD PLEDGED TO USE THE MONEY 
FREED BY THE GOI DEBT FORGIVENESS FOR HEALTH AND EDUCATION 
PROGRAMS.   LECCESI WAS INTRIGUED WITH THE DEPARTMENT OF 
DEFENSE'S PROPOSED REIMBURSEMENT TO PAKISTAN FOR ITS 
LOGISTICAL SUPPORT.  HE IS UNCERTAIN WHETHER THERE IS SUCH A 
PROVISION UNDER ITALIAN LAW BUT INDICATED THAT HE WOULD RAISE 
THIS ISSUE WITH OTHER MINISTERIAL COLLEAGUES. HE ADDED THAT 
HE SEES A GROWING LEVEL OF DONOR FATIGUE IN THE INTERNATIONAL 
COMMUNITY BORN OF CONTRIBUTIONS TO AFGHANISTAN BUT AFFECTING 
ALSO PAKISTAN AS WELL AS CONCERN ABOUT PAKISTAN'S POLITICAL 
REGIME. 
 
2. DONATO SCIOSCIOLI OF MFA'S DIRECTORATE OF DEVELOPMENT AND 
COOPERATION TOLD ECONOFF THAT THE GOI HAS ONE OTHER 
INITIATIVE UNDERWAY IN PAKISTAN: THE GOI HAS OFFERED A $7 
MILLION SOFT LOAN TO PAKISTAN TO BE USED IN THE PROMOTION OF 
SMALL AND MEDIUM SIZE BUSINESS IN 2002. MFA IS AWAITING A 
PAKISTANI RESPONSE. 
SEMBLER 
 
                       UNCLASSIFIED 
 
> 
 2002ROME00818 - Classification: UNCLASSIFIED