VZCZCXRO9769
RR RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHCH #0419/01 1071453
ZNY CCCCC ZZH
R 161453Z APR 08
FM AMEMBASSY CHISINAU
TO RUEHC/SECSTATE WASHDC 6569
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 CHISINAU 000419 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/UMB 
 
E.O. 12958: DECL: 04/16/2018 
TAGS: PGOV PREL PBTS ECON MD
SUBJECT: MOLDOVA: DAS MERKEL'S MEETING WITH PRIME MINISTER 
GRECEANII 
 
Classified By: Ambassador Michael D. Kirby for reasons 1.4(b) and (d). 
 
¶1. (C) SUMMARY: In an April 14 meeting with Prime Minister 
Zinaida Greceanii, DAS David Merkel expressed the USG's 
continued support for Moldova and a resolution to the 
Transnistrian (TN) conflict, noted Greceanii's positive 
reputation in Washington and Brussels as a reformer, and 
thanked her for her leadership of the Moldovan Government's 
(GOM) MCC process.  The two also discussed President 
Voronin's recent meeting with TN leader Smirnov, relations 
with Ukraine (the Ukrainian Foreign Minister was visiting 
Chisinau the same day) and trafficking in persons issues. 
END SUMMARY. 
 
MOLDOVA'S EFFORTS AT TN RESOLUTION 
---------------------------------- 
 
¶2. (C) In her introductory remarks Prime Minister Greceanii 
noted her close working relationship with Ambassador Kirby, 
thanked the USG for continued development assistance, 
reiterated Moldova's support of and respect for USG 
positions, and noted that the resolution of the TN conflict 
was the paramount goal of the GOM.  Focusing on TN, DAS 
Merkel asked Greceanii for her thoughts following the April 
11 meeting of President Voronin with TN leader Smirnov. 
Greceanii noted the meeting was very important, and 
positively assessed Voronin's efforts to reach out to the 
people of TN and facilitate TN trade.  She added that the TN 
conflict was neither ethnic nor religious, which, in theory, 
should simplify a resolution.  Greceanii stood firm that 
foreign troops should be removed from the territory of 
Moldova and that the TN side must return to the negotiating 
table. 
 
ANTI-TIP EFFORTS: TIER III LOOMS 
-------------------------------- 
 
¶3. (C) On MCC, DAS Merkel thanked Greceanii for her 
leadership on the MCC process and noted that qualifying for 
an MCC Compact was a positive reflection on the GOM's reform 
efforts.  That said, DAS Merkel noted the danger of Moldova 
slipping to Tier III from Tier II Watchlist on the 
trafficking in persons (TIP) rankings and the concomitant 
impact on bilateral and multilateral USG foreign assistance. 
In a defensive tone, Greceanii noted that TIP was not 
specific only to Moldova and that all countries in transition 
faced this challenge.  However, she acknowledged Moldova's 
"migration problems" and cited a resolution to the TN 
conflict and promoting economic growth as important factors 
that would contribute to a solution.  She promised continued 
transparency in the GOM's anti-TIP efforts.  DAS Merkel 
reiterated the need for strong political will to combat TIP. 
 
RELATIONS WITH UKRAINE 
---------------------- 
 
¶4. (C) Turning to relations with Ukraine, Greceanii noted 
positively the visit of the Ukrainian Foreign Minister.  She 
added that Moldova and Ukraine would submit a joint request 
to the European Commission for assistance with the 
demarcation of the Moldovan-Ukrainian border along the TN 
region of Moldova.  She suggested this was a positive 
indication of Ukraine's support for a TN settlement. 
Greceanii also commented openly about economic irritants with 
Ukraine, including energy (electricity supplies) and 
transport issues (the Port of Giurgiulesti).  Greceanii noted 
that she had agreed with the Ukrainians to expand economic 
discussions at the expert level. 
 
ECONOMIC REFORMS CONTINUE 
------------------------- 
 
¶5. (C) On economic issues, Greceanii noted her experience as 
the head of the former government's economic sector, 
highlighting the GOM's efforts to liberalize the economy. 
She noted the GOM's capital and tax amnesty legislation and 
the introduction of a zero rate for corporate income tax. 
Greceanii believed that these reforms would help formalize 
Moldova's large informal sector and attract much-needed 
foreign direct investment.  Greceanii also took the 
opportunity to raise the issue of Moldova's bilateral P.L. 
480 debt to the United States.  Now that Paris Club 
negotiations are completed, the GOM would like to discuss 
forgiveness of this debt.  She indicated that the GOM would 
contact the Ambassador to discuss further. 
 
COMMENT 
------- 
 
¶6. (C) Friendly and business-like, Greceanii seems 
 
CHISINAU 00000419  002 OF 002 
 
 
comfortable in her new position after three weeks on the job. 
 As always, she was best prepared when discussing economic 
issues (including disputes with Ukraine), making only general 
comments on Transnistria.  We've now delivered to her twice 
the message about the possibility of a TIER III ranking for 
Moldova and the complications which that would cause for our 
assistance efforts including MCC and other bilateral and 
multilateral funding.  We believe Greceanii understands the 
seriousness of the situation and will promote greater efforts 
by the GOM to combat trafficking in persons. 
 
¶7. (U) DAS Merkel has cleared this cable. 
KIRBY