US embassy cable - 05DJIBOUTI572

C O N F I D E N T I A L SECTION 01 OF 03 DJIBOUTI 000572 
 
SIPDIS 
 
CENTCOM FORWARD FOR GENERAL JOHN P. ABIZAID 
CENTCOM ALSO FOR POLAD 
STATE FOR AF AND AF/E 
 
E.O. 12958: DECL: 06/14/2015 
TAGS: PREL, KPAO, MARR, MASS, ECON, ETRD, OVIP, DJ 
SUBJECT: SCENESETTER FOR GENERAL ABIZAID'S VISIT TO DJIBOUTI 
 
REF: DJIBOUTI 529 
 
Classified By: AMBASSADOR MARGUERITA D. RAGSDALE. 
REASONS 1.4 (B) AND (D). 
 
 1. (C) Summary:  Embassy Djibouti welcomes the June 20-21 
visit to Djibouti of General John P. Abizaid, CENTCOM 
Commander.  Combating poverty, improving the nation's health 
and education infrastructures and services and promoting 
economic development remain top priorities for the Government 
of Djibouti.  Embassy Djibouti and CJTF-HOA are working in 
tandem to assist in these  areas.  President Guelleh's focus 
for his second term is economic development and improving the 
nation's infrastructure.  The Doraleh Port Complex, a 
Djiboutian joint venture with Emirates National Oil Company, 
is seen as a crucial part of Djibouti's economic development. 
 Its first phase is nearing completion, including the oil 
terminal which will support oil storage objectives of the 
U.S. Navy in the region and Camp Lemonier under a contract 
with Defense Energy Support Center (DESC).  Doraleh oil 
terminal houses five DESC contracted tanks -- one for Camp 
Lemonier and one for U.S. military regional needs. 
 
2. (C) Djibouti's attitude towards the U.S. remains 
favorable.  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 has also agreed 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 less vocal on U.S. engagement in Afghanistan and in Iraq 
but quite vocal in expressing a deep disappointment with lack 
of progress in ending the conflict between Israelis and 
Palestinians.  End summary. 
 
 
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Focus on Domestic Development Priorities 
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4. (C)  Post welcomes your visit to Djibouti.  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 in excess of USD 14 million since 
2003.  We are also assisting the Government of Djibouti 
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.  The livestock holding facility is 
in its test phase and all environmental concerns expressed by 
Camp Lemonier have been resolved. 
 
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 scheduled operational 
date of July, 2005.  Oil companies operating in Djibouti have 
already received notice of the requirement that they relocate 
their operations to Doraleh.  The companies are expected to 
move within one year.  Four of the oil storage tanks have 
been reserved for exclusive use of the U.S. Navy, plus one 
for use by Camp Lemonier under an open-tender Defense Energy 
Support Center (DESC) contract with ENOC. 
 
7. (C) Djibouti remains committed to becoming eligible for 
additional economic development assistance under USAID 
programming and 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. 
 
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Looking at the Horn of Africa Region and a U.S. Role 
--------------------------------------------- ------- 
 
8. (C) President Guelleh met with U.S. Secretary of State 
Rice on 13 May 2005 in Washington.  President Guelleh and 
Secretary Rice discussed the continued cooperation and close 
 
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U.S.-Djiboutian partnership in the Global War on Terror, the 
situation in Sudan, political progress in Djibouti, and the 
border dispute between Ethiopia and Eritrea.  At the end of 
the meeting, Guelleh expressed frustration at the lack of 
Development Assistance (DA) funding for Djibouti and hoped 
the USG would place Djibouti on the list for DA from USAID. 
Secretary Rice promised that she would look into the issue 
 
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further. 
 
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. 
 
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Strong U.S. - Djibouti Military 
and Antiterrorism 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.  On 30 May 2005, the USLO 
Chief briefed General Fathi on the status of FMF cases and 
explained the U.S. logistics system, addressing the pace of 
delivery issues. During this meeting, General Fathi also 
expressed to us that his top priority, in terms of security 
assistance, is the planned construction of the Obock Naval 
Base.  Construction of the facility is scheduled for October 
2005 with a completion date of April 2006.  This facility 
will greatly enhance the Djiboutian Navy's capability to 
conduct maritime security operations. 
 
11. (C) The U.S., under Department of Defense auspices, began 
on September 16, 2004 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 provided Ambassador 
 
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Olhaye in Washington with a draft agreement. 
 
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Concerns About the Middle East 
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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, partly perhaps out of deference to 
his country's hosting of the U.S. military.  Yet he is also 
careful to remain in synchronization with Arab League 
positions. 
 
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 a speech before 
the United Nations in September 2004, he expressed the view 
that 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.  He stated then that Israel's actions 
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