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Reference ID	Created	Released	Classification	Origin
02ROME1396	2002-03-19 12:51	2011-08-30 01:44	UNCLASSIFIED	Embassy Rome

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ROME 001396 
 
SIPDIS 
 
PAGE 02        ROME  01396  01 OF 04  191334Z 
AMEMBASSY SKOPJE 
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J 
USDELMC BRUSSELS BE 
USNMR SHAPE BE//INTAF// 
CINCUSNAVEUR LONDON UK 
USCINCJFCOM NORFOLK VA//J53/J71// 
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX// 
USLO SACLANT NORFOLK VA 
USAFE RAMSTEIN AB GE//PLAD/XOM// 
 
UNCLAS SECTION 01 OF 04 ROME 001396 
 
SIPDIS 
 
PASS TO EUR/RPM AND OSD/ISP/NATO 
 
E.O. 12958: N/A 
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT:  ITALIAN ASSISTANCE TO NATO ASPIRANTS 
 
REF: (A) SECSTATE 40765; (B) ROME 1222; (C) TIRANA 467 
 
¶1. MAINARDO BENARDELLI, OF THE MFA ECONOMIC ASSISTANCE 
DEPARTMENT, CONFIRMED THAT ITALIAN ASSISTANCE IS 
LIMITED TO ALBANIA AND MACEDONIA. 
 
A- ALBANIA 
--------- 
 
MILITARY ASSISTANCE 
------------------- 
¶2. PER REF C, ITALY IS ALBANIAS MOST IMPORTANT TRADING 
PARTNER, LARGEST INVESTOR, AND LARGEST ASSISTANCE 
DONOR.  IT HAS TAKEN THE LEAD IN PROVIDING ALBANIA WITH 
EQUIPMENT AND VEHICLES TO BRING THE COUNTRY UP CLOSE TO 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01396  01 OF 04  191334Z 
NATO STANDARDS.  SINCE AUGUST 1997, ITALY HAS PROVIDED 
APPROXIMATELY USD 28 MILLION IN VEHICLES AND MATERIAL 
TO SUPPORT THE ALBANIAN ARMED FORCES (AAF).  THIS 
FIGURE DOES NOT INCLUDE DOZENS OF TRAINING COURSES FOR 
HUNDREDS OF OFFICERS/NCOS AND MILITARY STUDENTS TO 
TRANSFORM AND STRUCTURE THE AAF ALONG NATO LINES. 
SPECIFIC AREAS OF ASSISTANCE AND COOPERATION INCLUDE: 
-- DONATION OF NATO COMPATIBLE EQUIPMENT TO ALBANIAS 
ELITE RAPID REACTION BRIGADE (RRB). 
-- DONATION OF HEAVY EQUIPMENT TO THE CIVIL ENGINEERING 
BRIGADE FOR ROAD CONSTRUCTION. 
-- HELICOPTER CAPABILITY ASSISTANCE. 
-- SUPPORTING THE LOGISTICAL BATTALION OF THE RRB. 
-- SUPPORTING PARTICIPATION OF AN ALBANIAN UNIT IN THE 
SOUTH EAST EUROPEAN BRIGADE (SEEBRIG). 
. 
-- SUPPORTING AIR TRAFFIC CONTROL AND SEARCH AND RESCUE 
SERVICE. 
-- ASSISTANCE TO THE ALBANIAN NAVY COASTGUARD. 
-- SUPPORTING THE MILITARY POLICE BATTALION. 
-- JOINT EXERCISES. 
-- BUILDING AND OPERATING A HOSPITAL FOR THE CITIZENS 
OF DURRES. 
 
GENERAL ASSISTANCE 
------------------ 
¶3. STARTING FROM 1992, THE ITALIAN ODA TO ALBANIA 
REACHED THE OVERALL AMOUNT OF 360 MILLION EURO, OF 
WHICH 349 MILLION EURO IS ALREADY DISBURSED.  ITALY IS 
ALBANIAS LARGEST BILATERAL DONOR AND THE SECOND 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01396  01 OF 04  191334Z 
LARGEST DONOR AFTER THE EU.  THE VOLUME OF THE 
FINANCIAL COMMITMENTS TOWARD ALBANIA FACILITATED THE 
CREATION OF A PATH OF STRATEGIC PARTNERSHIP BETWEEN THE 
TWO COUNTRIES THAT BROUGHT ABOUT THE ALBANIAN 
RECOGNITION OF ITALY AS DOOR OF EUROPE IN THE PROCESS 
OF STABILIZATION AND ASSOCIATION TO EU. 
 
NEGOTIATION FRAME 
----------------- 
¶4. THE CURRENT REFERENCE NEGOTIATION FRAME IS THE 
ITALIAN-ALBANIAN AGREEMENT OF COOPERATION TO 
DEVELOPMENT 1998-2000, UPDATED ON THE OCCASION OF THE 
HE 
SIGNATURE OF THE JULY 3-4, 2000 AGREEMENT OF THE 
ITALIAN-ALBANIAN MIXED COMMISSION.  THE NEW AGREEMENT 
PRESENTS AN OVERALL COMMITMENT IN THE THREE YEAR PLAN 
OF 108 MILLION EURO, DIVIDED IN GIFTS AND AID CREDIT, 
OF WHICH 40 MILLION EURO ARE STILL WAITING TO BE 
DISBURSED. 
 
¶5. THE NEW 3-YEAR AGREEMENT OF COOPERATION IS UNDER 
NEGOTIATION IN PREPARATION FOR THE NEXT ITALIAN- 
ALBANIAN MIXED COMMISSION, EXPECTED TO TAKE PLACE IN 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTO9400 
 
PAGE 01        ROME  01396  02 OF 04  191334Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      COME-00  CTME-00  INL-00   USNW-00  DOEE-00  ITCE-00  DOTE-00 
      SRPP-00  DS-00    EB-00    EXME-00  OIGO-00  E-00     FAAE-00 
      FBIE-00  UTED-00  VC-00    FRB-00   H-01     TEDE-00  INR-00 
      IO-00    ITC-01   L-00     VCE-00   AC-01    DCP-01   NRRC-00 
      NSAE-00  NSCE-00  OIC-02   OMB-01   OPIC-01  PA-00    PC-01 
      PM-00    PRS-00   ACE-00   P-00     SCT-00   SP-00    IRM-00 
      SSO-00   SS-00    STR-00   TEST-00  TRSE-00  T-00     USIE-00 
      EPAE-00  SSD-00   PMB-00   DSCC-00  PRM-00   DRL-02   G-00 
      SSR-00   NFAT-00  SAS-00     /012W 
                  ------------------775C12  191334Z /38 
P 191251Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 2823 
INFO NATO EU COLLECTIVE PRIORITY 
AMCONSUL MILAN 
AMCONSUL FLORENCE 
AMCONSUL NAPLES 
USEU BRUSSELS 2597 
SECDEF WASHDC 
AMEMBASSY TIRANA 
AMEMBASSY RIGA 
AMEMBASSY VILNIUS 
AMEMBASSY TALLINN 
AMEMBASSY SOFIA 
AMEMBASSY LJUBLJANA 
AMEMBASSY BRATISLAVA 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01396  02 OF 04  191334Z 
AMEMBASSY SKOPJE 
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J 
USDELMC BRUSSELS BE 
USNMR SHAPE BE//INTAF// 
CINCUSNAVEUR LONDON UK 
USCINCJFCOM NORFOLK VA//J53/J71// 
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX// 
USLO SACLANT NORFOLK VA 
USAFE RAMSTEIN AB GE//PLAD/XOM// 
 
UNCLAS SECTION 02 OF 04 ROME 001396 
 
SIPDIS 
 
PASS TO EUR/RPM AND OSD/ISP/NATO 
 
E.O. 12958: N/A 
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT:  ITALIAN ASSISTANCE TO NATO ASPIRANTS 
 
SPRING 2002.  THE FINANCIAL COMMITMENT THAT DGCS IS 
PLANNING TO TAKE WITH THE NEW 3-YEAR AGREEMENT IS OF 
ABOUT 130 MILLION EURO (OF WHICH: 93 MILLION EURO OF 
AID CREDIT AND 37 MILLION EURO OF GIFTS).  AN 
ADDITIONAL SPECIAL CONTRIBUTION OF 25 MILLION EURO AS 
AID CREDIT IS ADDRESSED TO PROGRAMS OF SUPPORT OF LOCAL 
SMALL AND MEDIUM SIZED COMPANIES AND TO SUPPORT THE 
CREATION OF ITALIAN-ALBANIAN JOINT VENTURES. 
 
COOPERATION POLICIES 
-------------------- 
¶6. THE ITALIAN ODA TO ALBANIA, EXCLUDING THE SOCIAL AND 
EMERGENCY SECTORS, HAVE BEEN CONCENTRATED ON THE LACK 
OF INFRASTRUCTURES THAT REPRESENT ONE OF THE MAIN 
OBSTACLES TO THE DEVELOPMENT OF THE COUNTRY.  THE 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01396  02 OF 04  191334Z 
PRIVILEGED CHANNEL HAS BEEN THE BILATERAL COOPERATION. 
26 PERCENT OF THE OVERALL PACKAGE OF THE ITALIAN 
COOPERATION TO ALBANIA HAS BEEN IMPLEMENTED THROUGH THE 
MULTILATERAL CHANNEL, THROUGH DIFFERENT SPECIALIZED 
AGENCIES OF THE UN (FAO, IFAD, ILO, UNHCR, UNDP, 
UNICRI, UNOPS, WHO), WORLD BANK, EBRD AND EUROPEAN 
TRAINING FOUNDATION (ETF).  MOREOVER THERE IS AN 
INCREASE IN NON-GOVERNMENT INITIATIVES OF COOPERATION 
MOSTLY AIMED AT EMERGENCY ACTIONS.   AS A RESULT OF THE 
OCT. 10, 1999 AGREEMENT UNDER THE PARIS CLUB, ITALY 
SIGNED ON OCTOBER 12, 2000 A BILATERAL AGREEMENT AIMED 
TO REDEFINE IN MORE FAVORABLE TERMS THE CONDITION OF 
THE REIMBURSEMENT OF THE ALBANIAN DEBT. 
 
PRIORITY SECTORS 
---------------- 
¶7. THE PRIORITY AID SECTORS AT THE MOMENT ARE: 
ELECTRIC, ROADS, WATER, HEALTH, AGRICULTURE, 
ENVIRONMENT, EDUCATION-TRAINING AND GENERAL GOVERNMENT. 
 
INITIATIVES 
----------- 
¶A. ROAD SECTOR: AID CREDIT AID OF ABOUT 27.9 MILLION 
EURO. 
¶B. ELECTRICITY SECTOR: THE OVERALL COMMITMENT IS OF 
53.7 MILLION EURO AS AID CREDIT, OF WHICH 41.3 MILLION 
APPROVED BY THE DIRECTION COMMITTEE IN DECEMBER 2001. 
¶C.  WATER SECTOR: A 31 MILLION EURO AID CREDIT FOR 
INTERVENTION TO THE AQUEDUCT OF TIRANA IS UNDER 
FINANCING. 
¶D. AGRICULTURAL SECTOR: A GIFT OF 20.7 MILLION EURO FOR 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01396  02 OF 04  191334Z 
POLICIES OF SUPPORT OF AGRICULTURAL SECTOR IS UNDER 
DISBURSEMENT. 
¶E. HEALTH SECTOR: COMMITMENT OF A GIFT OF 3.2 MILLION 
EURO AND AN AID CREDIT OF 5.16 MILLION EURO. 
- PASARP (PROGRAM OF ACTIVITIES SUPPORT OF THE 
ALBANIAN REFUGEE POPULATION):  ITALY CO-FINANCES IDA 
WITH 12.4 MILLION EURO FOR THIS INITIATIVE, AIMED TO 
SUPPORT THE HUMAN DEVELOPMENT AND THE STRAIGHTENING OF 
INSTITUTIONS AT LOCAL LEVEL. 
 
TRENDS 
------ 
¶8. IN LINE WITH THE GENERAL TARGET OF THE 
RECONSTRUCTION OF THE COUNTRY CARRIED OUT BY 
INTERNATIONAL ORGANISMS AND BY OTHER DONOR COUNTRIES, 
THE FUTURE ORIENTATION OF THE ITALIAN ODA IS TO RESPOND 
OND 
TO THE NEED OF THE MEDIUM AND LONG TERM DEVELOPMENT OF 
ALBANIA IN ORDER TO FACILITATE THE PATH OF DOMESTIC 
STABILIZATION AND THE NEGOTIATION PROCESS AIMED AT THE 
CONCLUSION OF AN AGREEMENT OF ASSOCIATION TO EU.  TO 
THIS END, ITALY PLANS TO CONTINUE TO PRIVILEGE 
INFRASTRUCTURE INTERVENTIONS FOR THE COMPLETION AND THE 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ5166 
 
PAGE 01        ROME  01396  03 OF 04  191334Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      COME-00  CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00 
      DS-00    EB-00    EXME-00  OIGO-00  E-00     FAAE-00  FBIE-00 
      UTED-00  VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00 
      ITC-01   L-00     VCE-00   AC-01    DCP-01   NRRC-00  NSAE-00 
      NSCE-00  OIC-02   OMB-01   OPIC-01  PA-00    PC-01    PM-00 
      PRS-00   ACE-00   P-00     SCT-00   SP-00    IRM-00   SSO-00 
      SS-00    STR-00   TEST-00  TRSE-00  T-00     USIE-00  EPAE-00 
      SSD-00   PMB-00   DSCC-00  PRM-00   DRL-02   G-00     SSR-00 
      NFAT-00  SAS-00     /012W 
                  ------------------775C3A  191334Z /38 
P 191251Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 2824 
INFO NATO EU COLLECTIVE PRIORITY 
AMCONSUL MILAN 
AMCONSUL FLORENCE 
AMCONSUL NAPLES 
USEU BRUSSELS 2598 
SECDEF WASHDC 
AMEMBASSY TIRANA 
AMEMBASSY RIGA 
AMEMBASSY VILNIUS 
AMEMBASSY TALLINN 
AMEMBASSY SOFIA 
AMEMBASSY LJUBLJANA 
AMEMBASSY BRATISLAVA 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01396  03 OF 04  191334Z 
AMEMBASSY SKOPJE 
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J 
USDELMC BRUSSELS BE 
USNMR SHAPE BE//INTAF// 
CINCUSNAVEUR LONDON UK 
USCINCJFCOM NORFOLK VA//J53/J71// 
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX// 
USLO SACLANT NORFOLK VA 
USAFE RAMSTEIN AB GE//PLAD/XOM// 
 
UNCLAS SECTION 03 OF 04 ROME 001396 
 
SIPDIS 
 
PASS TO EUR/RPM AND OSD/ISP/NATO 
 
E.O. 12958: N/A 
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT:  ITALIAN ASSISTANCE TO NATO ASPIRANTS 
 
CONSOLIDATION OF STRATEGIC INFRASTRUCTURES. 
INTERVENTION IN THE EDUCATION AND DEVELOPMENT OF HUMAN 
RESOURCES SECTORS HAVE TO BE STRENGTHENED AS WELL AS 
THAT IN THE ENVIRONMENTAL AND CULTURAL HERITAGE 
SECTORS, CONSIDERING THE STILL CRITICAL SOCIAL 
SITUATION IN ALBANIA AND THE REDUCTION OF MIGRATORY 
TENSIONS.  ITALY PLANS TO GIVE PARTICULAR ATTENTION TO 
THE DEVELOPMENT OF SMALL AND MEDIUM SIZED COMPANIES AND 
OF THE AGRICULTURAL SECTOR, CONSIDERING THE IMPORTANCE 
OF THESE SECTORS IN THE ALBANIAN ECONOMY AND FUTURE 
INVESTMENT OPPORTUNITIES FOR ITALIAN COMPANIES.  ITALY 
ALSO PLANS TO INTEGRATE THESE INTERVENTIONS WITH AD-HOC 
PROGRAMS OF E-GOVERNMENT TO STRAIGHTEN THE EFFICIENCY 
Y 
AND THE TRANSPARENCY OF ALBANIAN BUREAUCRACY 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01396  03 OF 04  191334Z 
 
¶B. MACEDONIA 
------------ 
¶9.  SINCE THE 1992 EDINBURG MEETING, THE GOI, IN LINE 
WITH THE EU AND THE MEMBER COUNTRIES, TOOK THE 
COMMITMENT TO SUSTAIN THE PROCESS OF TRANSITION OF 
FYROM, FOLLOWED BY HUMANITARIAN AND EMERGENCY PROGRAMS. 
AFTER THE KOSOVO CRISIS OF 1999, THE PARTICULAR ITALIAN 
INTEREST FOR THE SOCIAL AND POLITICAL STABILITY IN THE 
BALKAN REGION WAS CONFIRMED DURING A VISIT TO SKOPJE BY 
THE PRESIDENT OF REPUBLIC SCALFARO AND LATER 
RECONFIRMED DURING A VISIT BY THE PRESIDENT OF THE 
COUNCIL AND MINISTER OF FOREIGN AFFAIRS.  AS A RESULT 
OF THE CIVIL WAR OF 2001, WHICH PRODUCED THE WELL-KNOWN 
NATO OPERATION ESSENTIAL HARVEST, THE INTERNATIONAL 
COMMUNITY TOOK THE COMMITMENT TO SUSTAIN THE PROCESS OF 
PACIFICATION AND STABILIZATION OF THE COUNTRY. 
 
NEGOTIATION FRAME 
----------------- 
¶10. AT PRESENT THE NEGOTIATION FRAME DID NOT TAKE SHAPE 
YET.  A REAL TREATY OF BILATERAL COOPERATION DOES NOT 
EXIST YET.  THE INTERGOVERNMENTAL MEMORANDA OF 
F 
AGREEMENT, SIGNED IN 1999 AND 2001 DEFINE COMMITMENTS 
FOR THE IMPLEMENTATION OF SPECIFIC PROJECTS FOR AN 
OVERALL VALUE OF ABOUT 25 MILLION EURO. 
 
COOPERATION POLICIES 
-------------------- 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01396  03 OF 04  191334Z 
¶11. THE ACTIVITY OF ITALIAN COOPERATION IN MACEDONIA IS 
PART OF THE OVERALL FRAME OF PRIORITIES GIVEN TO THE 
BALKAN AREA AND TO THE SUPPORT OF THE RELATED PROCESSES 
OF RECONSTRUCTION BY THE ITALIAN ODA AS APPROVED BY THE 
LEADING COMMITTEE IN MARCH 2001.  IN ORDER TO 
FACILITATE THE INVOLVEMENT OF THE LOCAL INSTITUTIONS 
AND STRUCTURES, THE TOOL MORE FREQUENTLY USED WAS THE 
CREDIT AID. 
 
PRIORITY SECTORS 
---------------- 
¶12. AFTER THE FIRST HUMANITARIAN AND EMERGENCY 
INTERVENTION OF 1991 CAUSED BY THE FLOW OF REFUGEES 
FROM KOSOVO, THE CURRENT PRIORITIES COVER THE FOLLOWING 
AREAS: HEALTH, INFRASTRUCTURES AND SUPPORT OF MEDIUM 
AND SMALL SIZED COMPANIES.  ITALIAN MFA PLANS TO 
CONCENTRATE FUTURE INITIATIVES MORE AND MORE ON 
INTERVENTION AIMED TO SUPPORT ECONOMIC DEVELOPMENT OF 
THE PRIVATE SECTOR AND INSTITUTIONAL REFORMS. 
 
INITIATIVES 
----------- 
¶13. THE ITALIAN PROGRAMS OF COOPERATION STARTED AFTER 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ5168 
 
PAGE 01        ROME  01396  04 OF 04  191334Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      COME-00  CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00 
      DS-00    EB-00    EXME-00  OIGO-00  E-00     FAAE-00  FBIE-00 
      UTED-00  VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00 
      ITC-01   L-00     VCE-00   AC-01    DCP-01   NRRC-00  NSAE-00 
      NSCE-00  OIC-02   OMB-01   OPIC-01  PA-00    PC-01    PM-00 
      PRS-00   ACE-00   P-00     SCT-00   SP-00    IRM-00   SSO-00 
      SS-00    STR-00   TEST-00  TRSE-00  T-00     USIE-00  EPAE-00 
      SSD-00   PMB-00   DSCC-00  PRM-00   DRL-02   G-00     SSR-00 
      NFAT-00  SAS-00     /012W 
                  ------------------775C47  191334Z /38 
P 191251Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 2825 
INFO NATO EU COLLECTIVE PRIORITY 
AMCONSUL MILAN 
AMCONSUL FLORENCE 
AMCONSUL NAPLES 
USEU BRUSSELS 2599 
SECDEF WASHDC 
AMEMBASSY TIRANA 
AMEMBASSY RIGA 
AMEMBASSY VILNIUS 
AMEMBASSY TALLINN 
AMEMBASSY SOFIA 
AMEMBASSY LJUBLJANA 
AMEMBASSY BRATISLAVA 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01396  04 OF 04  191334Z 
AMEMBASSY SKOPJE 
USCINCEUR VAIHINGEN GE//ECPLAD/ECJ5/ECJ5-J 
USDELMC BRUSSELS BE 
USNMR SHAPE BE//INTAF// 
CINCUSNAVEUR LONDON UK 
USCINCJFCOM NORFOLK VA//J53/J71// 
CINCUSAREUR HEIDELBERG GE//AEAGC-ATA/AEAGEEX// 
USLO SACLANT NORFOLK VA 
USAFE RAMSTEIN AB GE//PLAD/XOM// 
 
UNCLAS SECTION 04 OF 04 ROME 001396 
 
SIPDIS 
 
PASS TO EUR/RPM AND OSD/ISP/NATO 
 
E.O. 12958: N/A 
TAGS: PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL PREL MARR ECON IT AL MC NATO MCNATO MCNATO MCNATO
SUBJECT:  ITALIAN ASSISTANCE TO NATO ASPIRANTS 
 
THE AGREEMENT BETWEEN THE GOVERNMENT OF SKOPJE AND THE 
ODA DEPARTMENT OF MFA CONSIST OF THE FOLLOWING 
INITIATIVES: 
 
¶A. RATIONALIZATION OF THE MANAGING SECTOR AND 
MODERNIZATION OF BIOMEDICAL EQUIPMENT: A GIFT OF 1.14 
MILLION EURO AND A CREDIT AID OF 2.58 MILLION EURO. THE 
PROGRAM STARTED IN FEBRUARY 2000.  AT PRESENT IT IS 
UNDER IMPLEMENTATION FOR THE GIFT PORTION OF THE 
INTERVENTION WITH THE TECHNICAL ASSISTANCE PROVIDED BY 
ITALIAN EXPERTS TO THE LOCAL AUTHORITIES FOR THE 
MODERNIZATION OF EXISTING MEDICAL EQUIPMENT. 
 
¶B. LINE OF SOFT CREDIT FOR 12.7 MILLION EURO, AIMED TO 
SUPPLY ITALIAN GOODS AND SERVICES FOR THE SAME VALUE, 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01396  04 OF 04  191334Z 
WITH THE PURPOSE OF SUPPORTING THE ACCESS OF MACEDONIAN 
SMALL AND MEDIUM SIZED COMPANIES TO CREDITS AND OTHER 
FINANCIAL INSTRUMENTS. THE ADVISORY ITALIAN COMPANY 
CHOSEN IS FORTRADE FINANCING SPA BASED IN MILAN. 
 
¶C. PROGRAM FOR THE CONSTRUCTION OF INFRASTRUCTURE FOR 
MANAGEMENT OF WATER RESOURCES AND FOR THE ENVIRONMENTAL 
PROTECTION OF THE RADIKA RIVER IN DISTRICT OF THE TOWN 
OF ROSTUSE (5.6 MILLION EURO), IS SCHEDULED TO BE 
APPROVED BY THE ODA COMMITTEE IN APRIL.  AT THE MOMENT 
THE PROJECT IS UNDER REVIEW BY THE UTC AND IN THE 
MEANTIME THE MACEDONIAN COUNTERPART WILL PREPARE THE 
FORMAL ACCEPTANCE OF THE DOCUMENT.  THE RELEVANT ASPECT 
OF THE INITIATIVE IS THE DIRECT MANAGEMENT OF THE 
PROJECT BY THE BENEFICIARY GOVERNMENT IN ACCORDANCE 
WITH ARTICLE 15 OF LAW 49/87. 
 
¶D. EMERGENCY PROGRAMS: THROUGH 2001 4.13 MILLION EURO 
HAVE BEEN ALLOCATED FOR PROGRAMS IN FAVOR OF 
POPULATIONS DAMAGED BY THE RECENT CIVIL WAR.  THESE 
FUNDS HAVE BEEN USED FOR INTERVENTION IN THE SOCIAL AND 
HEALTH AND AGRICULTURAL AREAS AND THROUGH DIRECT 
MANAGEMENT BY INTERNATIONAL ORGANIZATION LIKE UNICEF, 
OMS, FAO AND UNDP. 
 
TRENDS 
------ 
¶14. MACEDONIA DECLARED ITS INDEPENDENCE IN 1991, 
STARTING A PROCESS OF TRANSITION, WITHOUT CONFLICTS 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01396  04 OF 04  191334Z 
WITH THE FRY, TOWARDS THE MARKET ECONOMY AND 
INTEGRATION WITH EUROPE.  THE CURRENT INTERETHNIC 
TENSIONS AND THE RECENT DOMESTIC CONFLICT SLOWED THIS 
PROCESS OF CONSOLIDATION AND SERIOUS RISKS OF 
INSTABILITY PERSIST, WORSENED BY THE ECONOMIC RECESSION 
AND THE BUDGET DEFICIT.  IN LINE WITH THE 1999-2001 
COMMITMENTS, ITALY IS EXPECTED TO ANNOUNCE AN OVERALL 
COMMITMENT OF 17.2 MILLION EURO FOR THE PERIOD 2002- 
¶2004. 
 
SEMBLER 
 
                       UNCLASSIFIED 
 
> 
 2002ROME01396 - Classification: UNCLASSIFIED

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Viewing cable 02ROME1396, ITALIAN ASSISTANCE TO NATO ASPIRANTS