US embassy cable - 05ISTANBUL1729

UNCLAS SECTION 01 OF 02 ISTANBUL 001729 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EB/OIA 
 
E.O. 12958: N/A 
TAGS: EINV, TU, OECD, Istanbul 
SUBJECT: Steering Group for Middle East and North Africa 
Investment Program Meets to Prepare for November 17 
Ministerial 
 
REF:  SCHOLZ - GOLDBERGER E-MAIL 
 
This message is Sensitive but Unclassified - not for 
internet distribution. 
 
1. (SBU) Summary:  The steering group of the MENA OECD 
program met on October 3-4 in Istanbul.  Key developments 
included advancing work on a ministerial declaration, 
discussing individual national reform agendas that would be 
presented at the ministerial, reviewing funding needs for 
the program in 2006, discussing the private sector role in 
the program and the ministerial, and reviewing plans for 
participation at the ministerial.  Bahrain, Egypt, Lebanon, 
Morocco, Palestinian Authority, Saudi Arabia, and the 
UAE/Dubai participated in the steering group meeting. 
Syria and Algeria had initially indicated they would 
attend, but were not represented.  From OECD, France, 
Japan, Spain, Sweden, Switzerland, Turkey, U.K., and the 
U.S. were represented. The IFC, European Investment Bank, 
Lebanese Transparency Association, Business and Industry 
Advisory Committee of OECD and UNIDO were also represented. 
Following, the meeting delegates from U.S., UK, Japan, 
Jordan and Saudi Arabia and OECD secretariat met on October 
4 and discussed coordinating diplomatic contacts in MENA 
and OECD countries to encourage participation at the 
Ministerial and to encourage broader support for the 
program.  They also discussed and refined the details of 
the agenda for the Ministerial meeting.  OECD also 
explained the need for additional funding support form MENA 
and OECD countries.  Copies of the draft declaration, 
recommendations of the 5 working groups, drafts of 
individual reform agendas, and lists of ministers invited 
and confirmed will be emailed to posts from Washington. 
Guidance for contacts with host government officials in 
MENA and OECD countries will follow Septel from Department. 
End Summary 
 
2.  (SBU) Substantial progress was made in preparing a 
ministerial declaration that would support the program, 
welcome the recommendations of the working groups, welcome 
the reform objectives announced by MENA countries for the 
year following the ministerial, and pledge support for the 
MENA OECD program and call on OECD countries and other 
international institutions to provide support.  In 
particular, it would invite other organizations to a 
subsequent meeting to discuss strategic cooperation between 
OECD MENA program with other organizations activities to 
support economic reform.  MENA participants were anxious 
for the text to be circulated by the OECD secretariat by 
the following week to ensure adequate time to inform 
appropriate officials.  OECD officials noted that letters 
of invitation had been sent to Ministers in OECD countries 
by the Jordanian host, and another letter would be sent 
shortly with the draft declaration agreed to at the 
steering group meeting. 
 
3.  (SBU) Bahrain, Egypt, Lebanon, Morocco, Saudi Arabia 
and the Palestinian Authority presented their respective 
plans for their national reform agendas organized around 
the recommendations of the 5 working groups of the program. 
These plans will be refined further for presentation at the 
Ministerial with particular emphasis on providing specific 
time frames for action on individual items during the year 
following the ministerial. 
 
4.  (SBU) Plans for the business day preceding the 
ministerial were also discussed and approved.    The 
Business and Industry Advisory committee of OECD and OECD 
secretariat presented the draft business statement that 
 
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would be discussed and adopted by business participants. 
BIAC will be working through its affiliated organizations 
to encourage participation by their members.  The Arab 
Business Council / G-8 Investment Task Force was unable to 
attend the steering group meeting at the last minute, but 
Shafiq Gabr had contacted OECD to reassure them of their 
plans to participate at the ministerial and their support 
for the approach to the business day. 
5.  (SBU) The need for additional funding to support the 
program was discussed and OECD provided its detailed budget 
for 2006.  OECD countries stressed the importance of 
financial support from some of the MENA countries to 
compliment the support form OECD countries, principally the 
US, UK, and Japan.  In the discussions on the 4th, US, UK 
and Japan emphasized that formal decisions on further 
financing may not be made before the Ministerial.  They 
also noted the importance of funding from MENA countries to 
their decisions.   Saudi Arabia noted that the proposal for 
Saudi contribution was before the Finance Ministry and they 
expected approval, but that the final decision on their 
budget would not be made before the end of November.  As 
Bahrain was not present at the meeting on the 4th, the OECD 
secretariat agreed to follow-up with them on their plans 
 
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for a contribution that they had announced at the meeting 
of working groups 1 and 2 in Bahrain two weeks earlier. 
OECD noted that funds were tight and they might need to 
obtain a bridge loan for 50K Euros or more from within the 
organization for additional funds to support the 
ministerial based on letters of intent that Saudi Arabia 
and Japan said they would try to provide.  In response to 
Jordanian concerns, they explained that the remaining 80K 
Euros would be devoted primarily to supporting ministerial 
preparations. 
 
6. (SBU) The agenda for the ministerial was discussed on 
the meeting on 4th as well.  It was agreed that the press 
would be allowed to attend all but the final discussion and 
adoption of the Ministerial declaration.  In addition to 
the opening session, this would include break out 
discussions of the themes of 4 of the 5 working groups of 
the program.  The themes of Working Group 2-3 would be 
covered in three break-outs in a first session followed by 
a coffee break and second session with break-outs on the 
themes of Working Groups 4-5.  Following another coffee 
break, the theme of working group 1 would be reserved for 
the closed session to be addressed together with discussion 
and adoption of the declaration.  The open sessions and the 
coffee breaks would provide ample opportunity for press 
coverage and opportunities for interviews of participants. 
 
7.  (SBU) Jordan and OECD will arrange for briefings of MENA 
and OECD ambassadors in Jordan and Paris respectively on 
preparations for the ministerial in the next two weeks. 
One concern is that a few MENA ministers that were invited 
have a conflict with their attendance at the World Summit 
on Information (WSIS) and there is a desire to do as much 
as possible to encourage participation by ministers or 
other appropriate senior officials.  OECD will provide 
participants in the Oct 4 meeting with the list of invitees 
and confirmed participants shortly.   US, UK and Japan 
representatives agreed to encourage their respective 
Embassies in MENA and OECD countries to keep the other's 
Embassies abreast of their efforts to encourage 
participation at the ministerial. 
 
JONES