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

UNCLAS SECTION 01 OF 02 RANGOON 001422 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/MLS; PACOM FOR FPA; TREASURY FOR OASIA:AJEWELL 
 
E.O. 12958: N/A 
TAGS: PHUM EAID SOCI KHIV BM NGO
SUBJECT: NEW HUMANITARIAN FUND FOR BURMA? 
 
REF: RANGOON 1202 
 
¶1. (SBU)  A consultant to the Rangoon UN Resident 
Coordinator's office presented a draft proposal for a new 
Humanitarian Fund at a December 12 meeting of members of the 
international community.  The new program would partially 
address the funding gap caused by the Global Fund's 
termination by creating a single "communicable disease 
program" based on Burma's National Strategies to combat 
malaria, TB and HIV/AIDS. The Fund, with initial backing from 
DFID (UK's development arm), AusAID, the EC, Netherlands, 
Sweden and Norway, and possibly Japan, would be a mechanism 
to deliver humanitarian aid in an environment "constrained by 
politics," according to the presenter.  It appears that this 
fund will actually try to work more closely with the 
government rather than through NGOs as has been the goal of 
previous health assistance programs.  End summary. 
 
¶2. (SBU) Representatives from embassies, NGOs, UN offices and 
aid organizations attended a December 12 presentation by Paul 
Thornton, a consultant to the UN Resident Coordinator's 
Office, who described a draft proposal for a new Humanitarian 
Fund for Communicable Diseases, designed to fill some of the 
gap left by the Global Fund's termination of its program to 
fight malaria, TB and HIV/AIDS in Burma (reftel).  Thornton 
described the new Fund as a humanitarian response to the 
three epidemics in a constrained public health environment, 
to be funded by a donor consortium, and chaired by the 
Ministry of Health.  The program would be based on Burma's 
National Strategies for each of the three diseases.  With 
their participation, the donors would support the overall 
Strategies, not individual programs. 
 
¶3. (SBU) The proposed design has two sides.  On one side, the 
Ministry of Health would chair a Program for Communicable 
Diseases Coordination Group, which would be supported by a 
strategic and technical group for each disease.  These would 
be composed of government, NGO and civil society entities. 
The Communicable Diseases Coordination Group would maintain a 
dialogue, facilitated by the UN Resident Coordinator, with 
the donor-supported Humanitarian Fund.  The Fund Manager 
would decide which aspects of Burma's National Strategies to 
support with funding for programs, and will supervise 
contracted agents, who would perform all aspects of grant 
management. 
 
¶4. (SBU) Thornton said the Fund has the initial support of 
DFID (Britain's aid organization), AusAID, the EC, Norway, 
the Netherlands and Sweden.  Japan had expressed interest in 
future participation.  A DFID representative said the donor 
consortium planned to refine the program content, agree on 
required resources, and identify sources of funding before 
presenting it to donors' headquarters in January. 
 
¶5. (SBU) Opening the meeting, UN Resident Coordinator Charles 
Petrie said there is no crisis in Burma now, but there are 
pockets of suffering, especially in the health sector, in the 
population's inability to cope with economic stresses, and 
with the decline in education.  If these trends continue, he 
warned, there could be a humanitarian crisis in the future. 
He said the environment is difficult, but there is more space 
to conduct humanitarian work now than three years ago. 
Problems Petrie enumerated include travel, access to 
officials and vulnerable populations, politicization of NGO 
activities and the move to Pynimana.  However, he concluded 
that these are no worse than problems faced in other 
countries. 
 
¶6. (SBU) Many questions still must be addressed before the 
proposal is in a form acceptable to donors.  Basic concerns 
include the independence of the Fund Manager to choose 
projects, the feasibility of the Fund Manager deciding which 
aspects of the National Strategies to fund, monitoring and 
accountability of funds and projects, maintenance of the EU 
Common Position regarding assistance, vulnerability to 
international critics, and the lack of donor control over 
final use of funds.  Since the Fund will directly support the 
GOB, USG assistance is not envisioned. 
 
¶7. (SBU)  Comment: In meetings later in the week, 
participants expressed satisfaction that the donor 
representatives had given initial approval to continue with 
the Fund development.  Headquarters offices may prove more 
demanding, especially since a recent auditor report of 
projects conducted under the existing government/donor 
mechanism, the Fund for HIV/AIDS in Myanmar (FHAM) showed 
problems with inappropriate procurement practices, use of 
varying exchange rates and insufficient documentation. 
Although the GOB's reneging on access was the primary reason 
for the Global Fund's demise, questions had also been raised 
about its monitoring mechanisms.  The Fund design would have 
to address those shortcomings. 
 
¶8. (SBU) Comment continued:  We also find the plan to work 
more closely with the government odd in the current 
environment.  A number of presentations made during the day 
noted that, in some cases, fewer than 25% of the victims of 
disease are treated by the public health sector.  The 
remainder go to private physicians, practitioners and 
naturopathic healers.  We believe that donors have ample 
space to address health problems without relying on the 
government.  End comment. 
VILLAROSA