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DE RUEHCH #0977 2751333
ZNY CCCCC ZZH
R 011333Z OCT 08
FM AMEMBASSY CHISINAU
TO SECSTATE WASHDC 7140

C O N F I D E N T I A L CHISINAU 000977 
 
SIPDIS 
 
DEPT FOR EUR/UMB 
 
E.O. 12958: DECL: 09/30/18 
TAGS: PREL PGOV PINR KTIP MD
SUBJECT: Ambassador Discusses MCC, P.L. 480, Corruption and TIP, and 
Mass Media with Prime Minister Greceanii 
 
Classified by CDA Kelly Keiderling under 1.4 (b) and (d) 
 
¶1. (C) Summary:  In his first meeting with Prime Minister Greceanii, 
Ambassador Asif Chaudhry explained delays in the signing of a 
Millennium Challenge Corporation (MCC) compact agreement; discussed 
P.L. debt; pressed on the issue of civilian oversight for the Center 
to Combat Economic Crimes and Corruption (CCECC); praised Moldovan 
steps to deal with USG concerns about trafficking in persons (TIP); 
and raised concerns about the Government's appearance of a 
non-evenhanded approach to the media.  End summary. 
 
¶2. (C) The Prime Minister, who oversaw Moldova's MCC negotiations 
when she was Finance Minister, noted her disappointment that the 
signing of an MCC compact had been delayed to the autumn of 2009. 
She also expressed concern that the number of irrigation projects had 
been steadily reduced from ten to three.  Since the Government had 
publicized the MCC widely, she noted, the public was viewing the 
delay with suspicion.  The Ambassador noted that he shared her 
concerns, and explained the need for feasibility studies to assess 
the economic impact of and need for projects, to be completed first. 
Responding to her concerns about public perceptions, he promised that 
the process of starting the feasibility studies would be given 
maximum publicity.  (Note:  The GOM's publicity regarding MCC was 
scant enough to invite complaints to us from opposition parties that 
they were being kept in the dark.  End note.) 
 
¶3. (C) Regarding P.L. 480 debt, now amounting to some USD 62 million 
for capital and interest, the PM noted that Presidents Voronin and 
Bush had discussed the issue. She  blamed agricultural associations, 
set up in 1996 to assist land privatization with P.L. 480 money, for 
disappearing and leaving the GOM holding the debt.  The Ambassador 
promised to check, but noted that forgiveness required a vote in the 
U.S. House of Representatives, and that he could therefore make no 
promises. 
 
¶4. (C) The Ambassador raised the issue of letters from the Embassy to 
the PM's office regarding the establishment of a civilian board for 
the CCECC, without which it would not be able to fight corruption 
more effectively, as envisaged by the MCC Threshold Country Plan. 
The PM replied that the GOM would make a decision authorizing the 
board soon, and would instruct her senior advisor on the matter to 
brief the Ambassador as soon as possible. 
 
¶5. (C) The Ambassador praised the GOM for positive steps it had taken 
against TIP, and noted that the response from the White House was 
delayed not because of Moldova, but because of several problematical 
countries in the list of 14 countries sent to POTUS for reevaluation. 
 
¶6. (C) The Ambassador stressed that a free, fair and accessible 
media, in the run-up to 2009 elections, were Moldova's opportunity to 
show that the country was part of the West.  He noted that complaints 
about the Romanian-owned ProTV facing the removal of its license, or 
television frequencies being assigned to government-supported 
stations, gave a bad impression.  The PM replied that there were 
always two sides to a story, and that Moldova, as a young country, 
needed more education for its media and political parties.  She also 
noted that the GOM had for the first time created a budget line item 
to support the creation of a 33-member NGO Participation Council to 
advise the government on such matters. 
 
¶7. (C) Comment:  Friendly, well-briefed, and keeping to her talking 
points in front of a digital alarm clock, the Prime Minister 
reinforced her well-established image as a cooperative interlocutor 
who defends her corner well.  We will not be surprised if President 
Voronin anoints her as his successor.  End comment.