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

121433Z Apr 06

UNCLAS SECTION 01 OF 03 PARIS 002422 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PGOV FR
SUBJECT:  FRENCH RESPOND WARMLY TO MCC CEO DANILOVICH'S 
BRIEFINGS 
 
 
¶1. Summary.  Senior French officials enthusiastically 
welcomed updates on Millennium Challenge Corporation (MCC) 
activities presented by MCC CEO Danilovich.  They applauded 
MCC's focus on accountability, support for democratic 
institutions, and reducing poverty.  The French officials 
urged Danilovich to look at France early on as a potential 
partner in upcoming compact negotiations with third 
countries.  End Summary. 
 
¶2. On 5 April, MCC CEO John Danilovich, met with President 
Chirac's Personal Africa Representative to Africa (and 
former IMF Chief) Michel Camdessus, and Minister for 
Cooperation Brigitte Girardin to brief them on recent MCC 
activities.  MCC Vice President for Policy and International 
Relations Rodney Bent, Managing Director for International 
Relations Dick Morford, Executive Assistant Chris 
Vanderbrouk and Embassy Econ Counselor accompanied 
Ambassador Danilovich to the bilateral meetings. 
 
Meeting Mr. Camdessus 
--------------------- 
¶3. Michel Camdessus noted that he was delighted that Amb. 
Danilovich was taking the time to brief French officials. 
He said he was impressed by the magnitude of MCC's mission 
and accomplishments and said he was astonished at the 
abiding support MCC received from the President and the U.S. 
Congress.  MCC, he said, "is music to our ears." 
 
¶4. Ambassador Danilovich thanked Camdessus for his 
enthusiasm and briefed him on MCC's recent activities as 
well as ongoing discussions with Ghana, Morocco and 
Nicaragua.  Camdessus noted particular interest in the MCC's 
activities in Benin.  He said he used to work very closely 
with President Boni.  He urged Ambassador Danilovich to go 
see him at his earliest opportunity.  He noted that Boni was 
careful, prudent, and understood and supported good 
governance principals.  Despite this positive assessment, 
Camdessus noted that Boni will need some time to consolidate 
his authority in Benin.  He reminded Ambassador Danilovich 
that the IMF had proposed that a foreign body operate and 
account for Benin's customs revenues (which come principally 
from the port).  He said he was sure that MCC would make 
further progress in that area, but said that MCC officials 
should not underestimate the challenge.  He also added that 
he hoped that MCC might one day be active in Cote d'Ivoire, 
positive developments there "are so central for that part of 
Africa." 
Camdessus also asked Ambassador Danilovich to outline MCC 
activities to support girls' education and to reduce poverty 
among the "poorest of the poor."  Camdessus also welcomed 
the MCC's work in Albania and was pleased at VP Bent's 
assessment that the situation, particularly in terms of tax 
collection and use was improving.  He praised MCC's efforts 
to try to overhaul financial sectors to stimulate savings in 
places like Albania and Madagascar.  He said that one of his 
frustrations as IMF chief was that the organization had not 
made more progress in these areas with many poor countries. 
He said that effective land titling and efficient financial 
markets were key to helping the poor raise themselves up out 
of poverty. 
 
¶5. Turning to Moldova and Ukraine, Camdessus was pleased to 
hear that both were considered "threshold" countries under 
the MCC's criteria.  He opined that Moldova would be very 
receptive and asked if France could "do anything to help" 
there.  Indeed, Camdessus said he believed there was "lots 
of room for closer cooperation" between the U.S. and France 
in the development area. 
 
¶6. Camdessus then turned to two subjects he wanted to raise, 
NEPAD and water.  First, he hoped that the MCC could find a 
mechanism to work with NEPAD.  He explained that he was 
still active with that forum and that the NEPAD partnership 
should be highly complementary to MCC's goals.  Sadly, 
Camdessus opined, he thought that NEPAD might be losing some 
momentum and support, particularly on the African side. 
Again, he emphasized that MCC criteria were "totally in 
line" with what NEPAD was seeking to do.  On water, 
Camdessus recalled that President Bush had made strong 
pronouncements on public health and the role of safe water. 
He asked whether Congress had ever approved a program to 
promote water programs in the poorest countries.  He noted 
that he was still active in this field and that the African 
Development Bank was very interested too.  The bank has 
launched an important $14 billion program over ten years. 
Was the MCC involved in any way in this, Camdessus asked? 
 
¶7. Responding to the NEPAD query, Ambassador Danilovich 
explained that the MCC was set up in such a way that only 
individual countries could seek to work with the MCC.  There 
is no mechanism for the MCC to work with a group of 
countries or an organization.  Such work would contradict 
the very bilateral and partnership nature of the MCC.  On 
water, Ambassador Danilovich reminded Camdessus that the MCC 
could only fund programs that are proposed by potential 
recipient countries.  Thus far, he noted, no country has 
proposed a major drinking water project.  Camdessus said he 
understood.  He urged Ambassador Danilovich to remain in 
contact and noted that he may make a trip to Washington 
before the end of 2006.  If he did, he hoped he could call 
on Ambassador Danilovich at that time.  Ambassador 
Danilovich said he would welcome such a visit. 
 
Cooperation Minister Girardin 
------------------------------ 
¶8.  Ambassador Danilovich also met with Minister-Delegate 
for Cooperation, Brigitte Girardin, who was accompanied by 
Jerome Walter from her staff, and officers from her ministry 
and AFD (Agence Francaise de Developpement).  Ambassador 
Danilovich opened by briefing the Minister on the MCC's 
history and current activities.  Girardin responded by 
thanking Ambassador Danilovich for taking the time to inform 
her of these activities and to open up a dialogue between 
her ministry and the MCC.  She explained that Cooperation 
was undergoing reorganization.  "We are changing our focus," 
she said, "like you, we now demand results and are focusing 
on `real' reforms which will be evaluated by us every year" 
in recipient countries.  She added that the ministry was 
setting up new directorates to support democratic governance 
and to work with post conflict/crisis countries.  She 
underlined that the U.S. and France could do some extremely 
useful work together in the development field and said she 
hoped the U.S. and France could "augment our cooperation vis 
a vis other states" and that "we should consider perhaps co- 
financing some projects."  She noted that she was 
particularly interested in Ghana and wondered whether there 
was any scope for GOF -MCC cooperation in Ghana. 
 
¶9.  Ambassador Danilovich noted that the compact with Ghana 
was already almost completed and that it was probably too 
late to begin something  at this point.  There will be room 
for other donor activity, however, and he urged Minister 
Girardin to remain in touch directly or through the Embassy 
He thought there could be good scope for enhanced U.S. - 
France cooperation. 
 
¶10. Girardin also asked whether the MCC was focused on post 
conflict/crisis states.  This she said, was an increasing 
priority for her ministry.  No, Ambassador Danilovich 
responded, the MCC's structure makes negotiating compacts 
with such countries difficult to imagine.  The focus, he 
said, remained on poor countries, but ones with a 
determination to invest in their people and that governed 
themselves well.  He pointed out that some countries that 
had been failing states, such as Liberia, make the MCA a 
goal as they begin to recover.  She also asked whether it 
was imaginable for MCC to consider budget support in 
approved countries.  Ambassador Danilovich responded that 
that would be all but impossible.  The Minister and he 
agreed on the desirability of consulting regarding the 
Office du Niger in Mali.  Ambassador Danilovich also pointed 
to the potential for cooperation on governance issues in MCA 
Threshold countries. 
 
COMMENT: 
-------- 
 
¶11. Both French officials were effusive in their embrace of 
the MCC and its guiding principals and both encouraged the 
U.S. to consider closer coordination and cooperation with 
France.  They may believe that closer cooperation could help 
leverage their own goals of democratization and increased 
good governance in regions of mutual concern.  Embassy Paris 
would urge MCC officials to consider carefully where and 
when they may be able to benefit from French expertise as 
they continue to negotiate compacts, particularly in 
francophone countries.  Embassy stands ready to help. 
STAPLETON