US embassy cable - 05PARIS6062

UNCLAS PARIS 006062 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EFIN, EAIR, EAID, FR, UNGA 
SUBJECT: FRENCH DECLARATION ON INNOVATIVE SOURCES OF 
FINANCING FOR DEVELOPMENT 
 
REF: A. A) SECSTATE 162146 
 
     B. B) SECSTATE 160080 
     C. C) SECSTATE 160131 
     D. D) USUN 2047 
 
SENSITIVE BUT UNCLASSIFIED, NOT FOR INTERNET 
 
1. (SBU) SUMMARY: We delivered points per refs A-C, but 
France continues to support its idea for a tax on airline 
tickets and other innovative sources of financing for 
development.  The GOF does not plan for its draft declaration 
to be contentious, but does intend to go ahead and release it 
at the High Level Event (HLE), using a press conference 
procedure identical to the release last year of its New York 
declaration.   END SUMMARY. 
 
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GOF VIEWS ARE FIRM 
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2.  (SBU) We delivered reftel demarches to the Foreign, 
Finance, and Development Ministries, and followed up with 
visits to relevant officials.  The GOF is unmoved by our 
arguments against presenting a separate declaration in 
connection with the High Level Event (HLE) Outcome Document 
(OD) at the September 14-16 Summit in New York. 
 
3.  (SBU) According to Regis Pelissier, Director of the 
Office of International Financial Systems and Summit 
Preparation at the French Ministry of Economy, the fact that 
Chirac himself has supported the airfare tax makes it highly 
unlikely GOF policy will change.  We also spoke with 
Sebastien Hua, desk officer at the MFA for financing for 
development issues.  Hua took note of our concerns about a 
separate declaration, and despite assuring us the GOF also 
seeks to work to reach a consensus on an OD, confirmed the 
GOF intent to proceed with its separate declaration.  In 
terms of the understanding reached in Gleneagles about the 
French proposal for a "solidarity contribution" on airline 
passenger tickets, he pointed out that the French position is 
fully consistent with the G8 position.  Hua said the G8 
statement left it to each country to fashion its own 
mechanisms to provide ODA, and it specifically promised that 
the G8 would &take forward innovative financing mechanisms 
including the IFF for immunizations, (and) an air-ticket 
solidarity levy...8  He acknowledged that an additional tax 
is not proving to be a popular idea, but the idea behind the 
French-hosted 2006 conference is to discuss implementation 
with those countries that choose to participate.  The idea is 
that the tax would be administered by individual nations and 
channeled to specific development projects. 
 
4. (SBU) Hua said the GOF will not try to divert attention 
from the OD, but it will use its declaration to promote the 
air-ticket tax.  Procedurally, the GOF envisions an event 
just like last year, where the signatory countries hold a 
press conference to present the separate declaration. 
STAPLETON