US embassy cable - 05PARIS7275

C O N F I D E N T I A L SECTION 01 OF 02 PARIS 007275 
 
SIPDIS 
 
E.O. 12958: DECL: 10/17/2015 
TAGS: PREL, EAID, EFIN, EINV, PGOV, PHUM, EU, FR 
SUBJECT: CONTINUED FRENCH OBJECTIONS TO FOUNDATION/FUND FOR 
FUTURE 
 
REF: A. PARIS 7243 (NODIS - NOTAL) 
 
     B. STATE 190583 
     C. STATE 189774 
     D. EMAIL BONO-ZEYA 10/14/05 
     E. EMAIL ALLEGRONE-ZEYA 10/7/05 
 
Classified By: Political Minister-Counselor Josiah Rosenblatt, reasons 
1.4 (b) and (d). 
 
1. (U) This message contains an action request in para 7. 
 
2. (C) Summary: In response to ref a-b demarches, senior MFA 
and Elysee officials continue to voice objections to the 
Foundation and Fund for the Future, relying chiefly on G-8 
institutional arguments put forth in the October 7 letter 
from MFA U/S-economic affairs Lapouge to UK G-8 Sous-Sherpa 
Martin Donnelly (ref e).  The bottom line we are hearing from 
the French is that they do not want the Foundation and Fund 
to be labeled G-8 initiatives, they will not contribute 
bilaterally to either, and they will not support an EIB 
contribution to the Fund, based on their view that EIB money 
(and the French money that goes into it) should be 
prioritized towards EU vice BMENA projects.  End summary. 
 
3. (C) Pol M/C, Econ Counselor, and emboffs used ref b-d 
talking points to urge the GoF to take a more supportive 
position on the Foundation and Fund for the Future, 
reiterating U.S. intent to launch the initiatives with other 
international partners at the Forum for the Future in Bahrain 
and our expectation that France would respect our effort even 
if it chooses not to join.  In an October 19 discussion with 
Pol M/C, MFA A/S-equivalent for North Africa/Middle East 
Jean-Francois Thibault described U.S-French differences over 
the Foundation and Fund as tactical rather than substantive. 
Thibault stressed that the GoF supported BMENA, as seen in 
its FM's participation at the December 2004 Forum for the 
Future and its decision to send a minister to the recent 
BMENA educational ministerial in Jordan.  Thibault said the 
GoF would send a minister, though unfortunately not the 
Foreign Minister, to the November Forum in Bahrain.  He added 
that the U.S. had shown "courage" in launching BMENA, and 
that perhaps the Europeans had been too "timid" on reform 
issues, though they had their own action plans on the table. 
 
4. (C)  Revisiting established GoF positions, Thibault noted 
that the GoF did not view the proposed Foundation and Fund as 
part of the Sea Island consensus.  Furthermore, France had 
opposed creation of a foundation at the time the Sea Island 
action plan was under consideration in 2004.  Thibault also 
reiterated arguments against creating new G-8 institutions, 
as outlined in the Lapouge letter of October 7 (ref e). 
Based on ref d guidance, Pol M/C pushed back the French 
arguments, reiterating that the Sea Island action plan 
envisioned creation of new projects under the Democracy 
Assistance Dialogue and the Fund and Foundation were not 
intended to be new G-8 institutions.  Pol M/C also stressed 
that the foundation would act within the law, providing 
grants to legally registered organizations while seeking to 
expand the scope of legally registered organizations, points 
taken on board by Thibault.  In the end, Thibault concluded 
that the Foundation and Fund should not be labeled G-8 
initiatives, a point which he said Diplomatic Advisor 
Gourdault-Montagne would reiterate to U/S Burns during a 
planned October 19 discussion (ref a). 
 
5. (C) Thibault said the GoF accepted that the Foundation and 
Fund initiatives would go on without French participation, 
but clarified that France would not support an EIB 
contribution to the Fund for the same reason that France was 
not making a contribution to either the Fund or Foundation. 
In the GoF view, EU money should be prioritized towards 
EU/Barcelona and MEDA projects, not BMENA initiatives.  The 
U.S. and EU should work together towards common goals, 
without "mixing" financing.  Other EU member states were free 
to make their own bilateral contributions as they pleased. 
Thibault's view was reiterated in an October 21 follow-up 
discussion with Elysee Middle East advisor Dominique Boche, 
who told us the GoF would not support labeling as "G-8" 
initiatives which did not enjoy the full support of the G-8. 
 
6. (C) Economics Directorate G-8 Advisor, Cyrille Pierre, 
echoed -- although less forcefully -- similar concerns in a 
separate conversation with Econ Couns.  He added the points 
that Lapouge had made to us in ref e that the GOF was also 
concerned about the absorptive capacity of countries in the 
region and the fact that a proliferation of plans and 
programs would only serve to make it more difficult for 
target countries to identify how to access resources at their 
disposal.  Pierre was intrigued by our offer of "further 
details" on both the Fund and the Foundation.  He was 
particularly interested in a draft Foundation Charter of 
Principles.  He urged us to share "anything you have that 
will help convince us."  He underlined for Econ Couns that 
France wanted to encourage reform in the region and was 
completely behind the commitments made at Sea Island.  It is 
only the ideas that have been developed after Sea Island, he 
commented, that France feels "less comfortable" with. 
Separately, Econoff also discussed points on the EIB with 
Director of the French Treasury (which dictates the positions 
the GOF representatives on the EIB take), Xavier Musca. 
Musca thanked econoff for the points and said he had already 
been familiar in broad terms with the USG's position.  He 
promised to take our views into account as Treasury discussed 
the issue with the MFA but made no commitment that France 
would support an EIB contribution to the Fund. 
 
7.  (U)  Comment and action request:  Embassy would 
appreciate receiving any more detailed information that we 
can share with the GOF on the Fund and the Foundation, 
particularly the draft Charter of Principles.  Nevertheless, 
we are skeptical that more information will move the GOF away 
from their basic objections to both the Fund and the 
Foundation.  End comment and action request. 
Please visit Paris' Classified Website at: 
http://www.state.sgov.gov/p/eur/paris/index.c fm 
STAPLETON