US embassy cable - 05THEHAGUE3294

C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 003294 
 
SIPDIS 
 
SIPRNET DISTRO 
 
E.O. 12958: DECL: 12/09/2015 
TAGS: PREL, ECON, NL, EUN 
SUBJECT: NETHERLANDS/EU: APPROACHING THE DUTCH IN ADVANCE 
OF THE DECEMBER 12 GAERC 
 
REF: SECSTATE 217518 
 
Classified By: Acting DCM Andrew J. Schofer for Reasons 1.4(b) and (d) 
 
1. (C) SUMMARY. The Dutch share the majority of reftel U.S. 
concerns with regard to the upcoming GAERC meeting.  MFA 
interlocutors expect the unresolved EU budget to cast a 
shadow on the December 12 GAERC but claim the Balkans, 
Africa, and the "European Neighborhood Policy" will dominate 
discussion.  The Dutch share U.S. concerns for Kosovo and are 
pleased to have a Dutch presence on the UN Special Envoy's 
team.  They are also pleased with the European Commission's 
decision to place a mission in Iraq but are cautious about 
the presence of EU observers to the December 15 elections. 
The Dutch look forward to shaping the Compact for 
Afghanistan, but will not be prepared to present additional 
financial commitments to the reconstruction of Afghanistan at 
the January 31-February 1 London Conference. END SUMMARY. 
 
2. (C) On December 6 and 7, poloff discussed reftel points 
with Desiree Kopmels (European Correspondent, MFA) and Bahia 
Tahzib-Lie (Deputy European Correspondent, MFA).  On December 
8, poloff participated in an MFA briefing for foreign 
diplomats on the upcoming GAERC conducted by Tahzib-Lie and 
Derk Oldenburg (Deputy Director, European Integration 
Department, MFA). 
 
EU BUDGET: NO ONE LIKES THE PROPOSAL, INCLUDING THE DUTCH 
--------------------------------------------- ------------ 
 
3. (C) The Dutch join in what they perceive as EU-wide 
disapproval of the UK Presidency's EU budget package; 
Oldenburg explained the current proposal is one that "makes 
everyone unhappy" for one reason or another.  Dutch 
misgivings are primarily with the amount of refund to which 
they feel they are entitled; Kopmels said that, under the 
UK's proposal, the Dutch stand to receive a 700 million euro 
refund, which falls short of their request of 1 billion 
euros. 
 
4. (C) The Dutch are pleased with other components of the UK 
Presidency's package. They support lowering the cap of member 
state contributions from 1.06% to 1.03%, and feel that 
expenditure cuts have been properly made to "cohesion funds." 
 Oldenburg was especially impressed with the UK Presidency's 
decision to increase the British contribution to the EU.  The 
Dutch disapprove, however, of the Global Adjustment Fund, 
which they argue addresses an issue better confronted on the 
national level.  The Dutch would also like to see the onus of 
EU financial responsibility reduced for newer EU states; 
Oldenburg explained that the UK Presidency's proposal puts 
the contributions of newer member states prohibitively high. 
The Dutch welcome the UK Presidency's proposals to implement 
review mechanisms of EU income and expenditures, but want 
more specificity with regard to the European Commission's 
role and responsibilities. 
 
BALKANS: DUTCH SUPPORT U.S. VIEWS ON ICTY AND KOSOVO 
--------------------------------------------- ------- 
 
5. (C) The Dutch share U.S. concerns regarding the Balkans. 
Kopmels voiced strong agreement for U.S. emphasis on 
continued cooperation with the ICTY.  Kopmels was 
"optimistic" that both Radovan Karadzic and Ratko Mladic 
would be in The Hague by early 2006. Though she "is not in 
the inner circle" of Dutch dialogue on the issue, Kopmels 
professed that her optimism was shared by many of her 
colleagues at the Dutch MFA. 
 
6. (C) The Dutch agree with the U.S. position on Kosovo, with 
a caveat; Kopmels explained that reftel points "could be our 
points as well," but expressed concern that the U.S. may 
press for a premature resolution of Kosovo's status. Kopmels 
said she had heard rumors -- the source of which she would 
not reveal -- that the U.S. wishes to expedite the Kosovo 
status talks with the target of an early 2006 resolution. 
Poloff reassured Kopmels that the U.S. would not sacrifice 
quality of the resolution for the sake of expedience. 
 
7. (C) The Dutch share our approval of UN Special Envoy 
Martti Ahtissari's work and agree that Albanians must 
understand independence is not a foregone conclusion.  The 
Dutch are proud of their support to the Kosovo status 
negotiations; Tahzib-Lie explained that the GONL recently 
appointed a representative to assist Ahtissari. 
 
 
IRAQ: EU OBSERVERS ONLY IN SAFEST AREAS 
--------------------------------------- 
8. (C) The Dutch are pleased with the EU decision to send 
election monitors in support of the December 15 elections, 
but caution that EU participation ultimately may not amount 
to much.  Kopmels said that the EU "can only send a few 
people" to the "safest places" in Iraq; the EU election 
mission will consist of personnel drawn from the area and 
will focus primarily on the green zone. 
 
9. (C) The Dutch are proud of the European Commission's 
decision to open a mission in Baghdad and are looking forward 
to establishing "normal" relations with Iraq after the 
elections. 
 
AFGHANISTAN: DUTCH NOT PREPARED TO DISCUSS MONEY IN LONDON 
--------------------------------------------- ------------- 
 
10. (C) The Netherlands supports the launch of the Compact 
for Afghanistan and hopes to build on the joint declaration 
signed on November 16.  The Dutch, however, will not come to 
the January 31 - February 1 London Conference prepared to 
announce additional commitments to the reconstruction of 
Afghanistan; Kopmels said that donations for Afghanistan will 
be discussed on January 6.  She added that the subject has 
not yet been raised at the working group level. 
 
AFRICA 
------ 
 
11. (C) The Dutch support the UK Presidency's prioritization 
of African development. Tahzib-Lie approvingly referred to 
the issue as "Blair's baby."  Tahzib-Lie speculated that the 
GAERC will adopt the European Commission's EU-wide strategy 
for Africa, which she praised as "useful" for its many 
"concrete objectives." 
 
12. (C) The Dutch will bring renewed interest in the 
embattled Ethiopian/Eritrean border region to the GAERC.  The 
Dutch hope foreign ministers will agree to send an EU-wide 
message to Ethiopia and Eritrea urging compliance with UN 
Security Council Resolution 1640.  Kopmels said that the 
Dutch are not precluding the option of Article 41 sanctions 
against Eritrea if it fails to end its ban on the overflight 
of UN troops. 
 
 
EU NEIGHBORHOOD POLICY: FILLING THE BLACK HOLE? 
--------------------------------------------- -- 
 
13. (C) The Dutch anticipate the GAERC will address the 
European Neighborhood Policy (ENP), but doubt it will reach 
substantive conclusions on the issue.  Though Commissioner 
Ferrero-Waldner is expected to speak on the ENP, Oldenburg 
predicted "nothing special" will emerge from the 
presentation.  Oldenburg shared Dutch concern for the border 
regions of the EU and pointed to High Representative Javier 
Solana's reported lament that the issue was "a black hole" in 
EU policy.  Tahzib-Lie hoped the GAERC would adopt an EU-wide 
action plan with regard to the Caucasus region that she said 
is currently in the works. 
 
CHINA ARMS EMBARGO: WHAT DOES THE FUTURE HOLD? 
--------------------------------------------- - 
 
14. (C) The Dutch do not believe that the Austrians will 
alter the current EU position on the China Arms Embargo 
during their tenure as EU President.  Oldenburg speculated 
that the Austrians will find matters closer to home more 
compelling, specifically financial perspectives, the future 
of Europe with regard to the EU Constitution, and perhaps the 
EU Balkans policy. 
BLAKEMAN