US embassy cable - 05PARIS6747

S E C R E T SECTION 01 OF 02 PARIS 006747 
 
SIPDIS 
 
STATE FOR E, EB, AND EUR/ERA 
 
E.O. 12958: DECL: 09/30/2015 
TAGS: ECON, EFIN, PREL, FR 
SUBJECT: NEW FRENCH G-8 FOREIGN AFFAIRS SOUS-SHERPA AND 
ECONOMIC DIRECTOR 
 
Classified By: Econ Minister-Counselor Thomas White, for reasons 1.4 (b 
) and (d). 
 
1.  (U) This contains a request for guidance, see para. 5. 
 
2.  (S) Summary.  The French MFA's new Director for Economic 
Affairs (Undersecretary equivalent), Jacques Lapouge, will, 
like his predecessor, serve as G-8 Foreign Affairs 
Sous-Sherpa.  Lapouge is a self-described EU and East Asia 
expert.  In getting up to speed on the full basket of G-8 
issues, he asked for an explanation of USG reluctance to see 
Russia participate in the G-7 financial affairs process.  He 
gave a strong endorsement of PM de Villepin's economic 
program, including the PM's comments on "economic 
patriotism." End Summary. 
 
3.  (U) On 29 September, Econ Minister-Counselor and Econ 
Counselor met with the new MFA Director for Economic Affairs, 
Jacques Lapouge for an introductory meeting.  Lapouge was 
accompanied by his G-8 Advisor, Cyrille Pierre. 
 
4.  (C) Econ M/C noted that the Embassy and, more broadly, 
USG officials in general had enjoyed an excellent working 
relationship with Lapouge's predecessor, Alain Leroy.   He 
said he hoped and expected that would continue.  Lapouge 
agreed.  Lapouge, who has only been in the position for a 
little over two weeks, explained in general terms the issues 
for which he is responsible.  He noted that while he was 
relatively familiar with most of the portfolios, he would 
need to quickly study the basket of G-8 issues. 
 
5.  (C) On the G-8, Lapouge noted that the upcoming Russian 
presidency would pose some interesting challenges.  One 
particularly awkward aspect would be the fact that Russia 
would be chairing the G-8 and hosting the summit, but was not 
part of the G-7 financial affairs process.  He said that 
France supported including them in this aspect and hoped to 
make the finance component of the G-8 mirror its foreign 
affairs counterpart.  France's position was based on purely 
practical considerations, Lapouge said.  "How can they host a 
summit and not be included in an important part of the 
discussions?" he commented.  He said he knew that the U.S. 
was against Russian participation and asked for USG thinking 
behind not wanting to bring the Russians into the G-7 
processes.  (Request for guidance: Embassy would appreciate 
receiving background on the USG position on this issue to 
share.) 
 
6.  (C) Lapouge also noted that there was mild GOF 
consternation that some initiatives as part of the BMENA 
process had been announced as G-8 initiatives without being 
fully blessed by all the G-8 partners (he did not specify 
which ones).  He said France shared and understood U.S. goals 
in the Middle East and North Africa, but he hoped there could 
be a greater effort made at consultation and coordination on 
the USG's part.  France did not like to be presented with 
"faites accomplis," he said.  Econ Couns explained that 
several State Department officials, including EUR Assistant 
Secretary Dan Fried, have been to Paris recently to discuss 
 
SIPDIS 
these issues with the GOF in an attempt to broaden and 
increase our consultation with France and other European 
partners.  He added that we understood France's historical 
and economic interest in the region.  Lapouge, did not know 
about A/S Fried's visit (which took place before he started 
in this job) and said that France was keen to avoid overlap 
with initiatives the EU was undertaking, particularly those 
coming out of the Barcelona process.  He said he was also 
worried about BMENA countries' ability to absorb and make use 
of all that was being offered them. 
 
7.  (C) Econ M/C enumerated the bilateral issues that 
Embassy's Econ Section has been working on with the GOF.  He 
noted that we would be watching closely the GOF's designation 
of "strategic industries" and said he hoped France would not 
be closing the door to potential foreign -- and especially 
American -- investment.  Lapouge responded that PM de 
Villepin's pronouncements on "economic patriotism" were 
"completely appropriate."  He said that every country seeks 
to protect industries it sees at sensitive.  He recalled the 
"uproar" in the 1980's when the Japanese were buying 
"everything in the U.S. from Rockefeller Center to Hollywood 
studios."  He saw nothing different from the Pepsi-Danone 
episode than what went on in the U.S. in the 1980's.  He 
stressed that France's policies on sensitive industries would 
be very similar to those in force in the U.S. 
 
8.  (C) Lapouge also made a pitch for serious U.S. 
consideration of Alain Madelin as Secretary-General of the 
OECD.  He said Madelin has always been seen as extremely 
"liberal" and pro-U.S. and, as a result, something of an 
outsider in France.  Nevertheless, he added, Madelin's 
candidacy has the full support of the French government.  He 
offered to answer any questions we might have on Madelin's 
suitability for the job and asked if we could pass along 
early notions of whom the USG would support. 
 
9.  (S) Bio Note:  Lapouge was serving until recently as 
France's Ambassador to Malaysia where he said he enjoyed good 
relations with the U.S. Embassy.  He described himself as a 
specialist in East Asia (he also served in Tokyo) and 
European Community affairs.  He noted wryly all the issues he 
had worked on over the years and cited agricultural biotech, 
beef hormones, FSC, bananas, and said he was now adding 
Airbus-Boeing to the list.  Lapouge spoke no English in this 
first meeting but said that that was "all" he spoke during 
his time in Malaysia.  He was friendly, but in our initial 
opinion, does not bring the warmth and openness -- 
particularly to the U.S. -- to the job the way his 
predecessor did. 
Please visit Paris' Classified Website at: 
http://www.state.sgov.gov/p/eur/paris/index.c fm 
STAPLETON