US embassy cable - 05RABAT122

C O N F I D E N T I A L SECTION 01 OF 02 RABAT 000122 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PLEASE PASS TO MILLENNIUM CHALLENGE CORPORATION 
DEPT ALSO PASS TO USAID SARA BORODIN 
 
E.O. 12958: DECL: 01/13/2015 
TAGS: KMCA, EAID, ECON, PREL, PHUM, MO 
SUBJECT: MCC CEO APPLEGARTH MEETING WITH PRIME MINISTER 
JETTOU 
 
REF: 2004 RABAT 2327 
 
Classified By: Deputy Chief of Mission Wayne J. Bush for reasons 1.4 (b 
) and (d) 
 
1. (U) Summary:  Prime Minister Driss Jettou laid out for 
Millennium Challenge Corporation CEO Paul Applegarth his 
government's top development priorities in a January 12 
meeting attended by Ambassador Riley and Salahuddine Tazi, 
the Foreign Ministry's director of American Affairs.  Also 
present were MCC Vice President John Hewko and other members 
of Mr. Applegarth's delegation, in addition to DCM and 
Econoff notetaker.  Applegarth congratulated the Government 
of Morocco on its selection for MCA eligibility, saying 
Morocco was selected because of its proven track record of 
policies leading to economic growth and poverty reduction, 
and its demonstrated commitment to investing in people 
through education and providing opportunities for all men and 
women.  Jettou expressed his government's appreciation for 
being selected for Millennium Challenge Account eligibility, 
and said he looks forward to working with the MCA on 
developing a compact for Morocco.  End Summary. 
 
2. (C) MCC CEO Applegarth met with Jettou to congratulate the 
Prime Minister on Morocco's selection for MCA eligibility, to 
learn about the GOM's priorities for development assistance, 
and to answer any questions or concerns the GOM might have 
about next steps.  Applegarth noted that Morocco was chosen 
because of its demonstrated commitment to economic freedom 
and investing in people, and said its success in applying for 
MCA eligibility was due to the GOM's achievements in the 
areas of transparency, democratic openness and fiscal reform. 
 Jettou responded by expressing his appreciation for 
Morocco's selection, and gave a clear exposition of his 
government's priorities in health, education, poverty 
reduction, infrastructure, housing, agricultural 
modernization, and rural development.  He also emphasized the 
importance of Morocco's continued progress on reform.  He 
referred to the ongoing Equity and Reconciliation 
Commission's public hearings on past human rights abuses 
(reftel), noting that Morocco is "turning a page on the past 
in a dignified manner."  He also noted the importance of 
ongoing U.S.-Morocco cooperation in the global war on terror. 
 
 
3. (SBU) Applegarth explained that the GOM will create 
proposals based on its own development priorities, and that 
MCC will evaluate those proposals.  Applegarth emphasized 
that it is up to the GOM to determine its own development 
goals and the MCC will work with Morocco on an implementation 
plan that meets those objectives.  He said successful 
proposals will be those that foster lasting economic growth 
and poverty reduction, and that are conceived through an 
inclusive consultative process with a wide range of 
governmental and non-governmental actors.  Jettou said the 
GOM is well aware of the parameters within which MCA 
operates, and is prepared to work within them "scrupulously." 
 
4. (SBU) Prime Minister Jettou explained that an overriding 
priority for the GOM is education and training, saying 
Morocco needs to make up for lost time on girls' education, 
rural education, and vocational training.  He said Morocco 
had doubled the number of graduates from vocational programs 
in recent years, and now wants to enhance the role of private 
education, increasing it from the current 5 percent of 
students to 20 percent by 2010. 
 
5. (SBU) The PM also discussed the GOM's new plan to provide 
universal health coverage, and said Morocco will need help to 
rehabilitate and equip hospitals.  He emphasized that Morocco 
would select its priorities for MCA funding through an 
exhaustive consultative process, engaging elected 
representatives, the business community, and Morocco's 
"dynamic" civil society. 
 
6. (SBU) Jettou said the GOM will also work to publicize the 
MCA among Moroccans.  Ambassador Riley underlined the value 
of the GOM emphasizing in its public statements that MCA 
project priorities are those set by Morocco, not those 
dictated by the United States.  The Ambassador further 
pointed out that MCA assistance is in addition to, and not a 
replacement for, existing USAID assistance. 
 
7. (SBU) In response to Jettou's question whether MCC has 
pre-determined allocations for each country or whether they 
are done on a first-come first-served basis, Applegarth said 
the MCC will review all proposals and priority would be given 
to those that have the greatest impact on poverty reduction 
and economic growth.  He said the MCC will work with 
countries as their proposals become ready, and will make 
allocations to good proposals as they come in.  Applegarth 
explained that Morocco's compact will cover three to five 
years, and that MCA funding is no-year money, which will not 
be lost if not spent during the year in which it is 
appropriated. 
 
8. (SBU) Jettou said his government is creating an 
interdisciplinary team that will be dedicated to working with 
the MCC.  (Comment: This is what the Foreign Ministry did 
with the FTA, to great effect.  While Jettou did not offer 
any names or organizations that might make up this team, MFA 
Americas director said separately the Moroccan MCC team is 
likely to contain many of those who participated in the FTA 
negotiations. End Comment.) 
 
9. (U) In closing, the Prime Minister was effusive in his 
praise for USG assistance to Morocco, saying to CEO 
Applegarth and to Ambassador Riley: "I cannot thank you 
enough for all that you do for my country." 
RILEY