US embassy cable - 05DJIBOUTI608

UNCLAS DJIBOUTI 000608 
 
SIPDIS 
 
DEPT FOR OBO DIRECTOR/COO GENERAL CHARLES WILLIAMS AND AF 
EXECUTIVE DIRECTOR STEVE NOLAN FROM AMBASSADOR RAGSDALE 
 
E.O. 12958: N/A 
TAGS: ABLD, AMGT, PREL, DJ 
SUBJECT: NEC: MOVING FORWARD 
 
 
1. (U) Action requested para. 5 
 
2. (U) Over the past year we have made a great deal of 
progress towards a New Embassy Compound (NEC) for Djibouti. 
We identified a site, negotiated and signed a conditional 
purchase agreement, and provided a steady stream of data 
and information to the Department on this project.  This 
information is crucial to the security and operational 
effectiveness of the new embassy and its personnel.  We 
have received several OBO visitors and teams working on the 
NEC Project and the Government of Djibouti has dealt with 
them in good faith and with openness. Djibouti has 
committed in writing to building two roads, two transformer 
stations, telecommunications links, storm drains, water 
utility lines, and electrical lines connecting to the NEC 
site.  I know that planning for this work is well advanced. 
 
3. (U) This is a poor government and it planned on using 
part of the sale price ($1,500,000) to finance these works. 
We now appear to have run into a roadblock in completing 
the sale by a seemingly endless series of additional 
questions, requests, and reiterations of questions and 
requests from OBO on the project directed to the Government 
of Djibouti.  A week ago we sent in a bundle of answers and 
materials on a wide range of questions posed by an OBO team 
that the Djiboutian government, and we, believed satisfied 
our information requirements.  Yesterday (June 22), we 
received two (2) more series of questions and requests that 
will further delay completing the purchase of the NEC site. 
 
4.(U) The Djibutian government, a dependable partner in the 
Global War on Terror, now sees us as dragging our feet in 
this matter and wonder if the questions will ever end.  The 
Minister of Foreign Affairs, Mahmoud Ali Yousuf, queried 
the continuing conditions for payment and approached me 
directly on June 22 to ask if the USG can at least agree to 
release to Djibouti at least half the money ($750,000) owed 
it for the purchase with the balance to be paid when all 
additional OBO requirements are met. 
 
5. (U) Action Requested:  If possible under existing USG 
regulations, we request OBO's support of the Minister's 
request.  If regulations preclude such partial payment, I 
ask that we put together, urgently, a complete and final 
list of requirements from Djibouti that, when fulfilled, 
will definitively allow a transfer of funds. 
Unfortunately, the conditional purchase agreement, follow- 
up letters, and official diplomatic note have not succeeded 
in producing a definitive list and we may eventually lose 
this site if there are more (add-ons) to our requirements. 
RAGSDALE