VZCZCXRO3735
PP RUEHROV
DE RUEHKH #1123/01 1340359
ZNR UUUUU ZZH
P 140359Z MAY 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC PRIORITY 2753
INFO RUCNIAD/IGAD COLLECTIVE

UNCLAS SECTION 01 OF 03 KHARTOUM 001123 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR AF/SPG 
E.O. 12958: N/A 
TAGS: PREL SOCI SCUL ECON ETRD ER ET SU
SUBJECT:  Sudan and Its Nine Neighbors: Part 2 of 4; The 
Highland States - Ethiopia and Eritrea 
 
 
¶1. (SBU) Introduction:  Sudan, the largest and arguably 
the most complex country ethnically in Africa, has nine 
neighbors.  This cable, the second of a series of four, 
seeks to depict the bilateral relationship between Sudan 
and each of its adjacent states in terms of history, 
social and cultural ties, migration patterns, economic 
bonds and political relations.  The series is running as 
follows: 
 
-- Sudan and the Anglophones - Uganda and Kenya (Khartoum 
00861); 
-- Sudan and the Highland States - Ethiopia and Eritrea; 
-- Sudan and the Arab States - Egypt and Libya; and 
-- Sudan and the Francophones - Chad, CAR, and DROC. 
 
------- 
Summary 
------- 
 
¶2. (SBU) Sudan's relationship with Ethiopia and Eritrea 
is one of changing loyalties and sheltering each other's 
opposition groups.  There is strong border trade between 
Sudan and its two eastern neighbors; however, official 
trade levels fall short of expectations.  Sudan enjoys a 
positive political relationship with Ethiopia, in part 
due to the Ethiopia-Sudan Transmission Interconnection 
Project, although observers note that Sudan is 
squandering its opportunity for even stronger relations 
because of its tendency to turn towards its Arab 
neighbors.  The disputed Fashaga region is an area of 
concern between Ethiopia and Sudan; however, there is 
currently a demarcation committee working to determine 
mutually agreeable borders.  The relationship between the 
two states centers on both harboring each other's 
opposition groups.  Despite this, in April 2006 Sudan and 
Eritrea agreed to upgrade diplomatic relations to the 
ambassadorial level.  There is no official trade between 
Eritrea and Sudan.  Vibrant cross-border trade by the 
informal sector takes place nonetheless, despite the 
closure of the border.  End Summary. 
 
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History 
------- 
¶3. (SBU) Historically, relations between Ethiopia and 
Sudan are generally good, with Ethiopia mediating the 
1972 Addis Ababa Agreement between the Sudanese 
government and the Sudan People's Liberation Movement 
(SPLM), which produced eleven years of peace.  The 
relations became strained in 1977 when Khartoum supported 
Somalia during the Ogden War against Ethiopia and 
supported Eritrean liberation movements against Ethiopia. 
In 1981, the tripartite agreement between Libya, 
Ethiopia, and Yemen worsened the relationship, because 
Sudanese President Jaffer Nimeiri believed that Libya was 
trying to overthrow him and Ethiopia had served an 
accomplice.  The relations further deteriorated in the 
mid-1980s, when Emperor of Ethiopia Haile Selassie 
believed that Sudan allowed Eritrean rebel groups to 
operate within its territory.  In retaliation, Ethiopia 
began to support the SPLM. 
¶4. (SBU) The relations between the two countries began to 
improve in 1991, and then declined again in 1995 because 
of the attempted assassination of Egyptian President 
Hosni Mubarak during the 1995 Organization of African 
Unity summit in Addis Ababa.  Khartoum was implicated in 
aiding the would-be assassins in Ethiopia.  During this 
time of strained relations, the lines of communication 
remained opened and Sudan supported Ethiopia during its 
border war with Eritrea in 1998.  The relationship began 
to steadily improve in 2000 and has remained favorable 
since then. 
¶5. (SBU) Sudan once had a strong relationship with 
Eritrea, and supported the Eritrean People's Liberation 
Front (SPLF) during its 30-year war for independence from 
Ethiopia.  The EPLF is now the ruling party of Eritrea, 
more recently known as the People's Front for Democracy 
and Justice (PFDJ).  Relations soured between Sudan and 
Eritrea in 1993 when Eritrea accused Sudan of projecting 
an Islamic agenda by aiding and training the Eritrean 
Islamic Jihad Movement to overthrow the Eritrean 
government.  In return, Eritrea has supported and hosted 
Sudanese opposition groups, including the Sudan People's 
Liberation Movement (SPLM), the National Democratic 
Alliance (NDA), and the Eastern Front, which has many of 
its principal officials there at present.  In 1994, 
Eritrea severed bilateral relations with Sudan due to its 
support of Eritrean opposition groups.  During the 1998 
Eritrean-Ethiopian border war, Khartoum supported 
Ethiopia, further cementing the poor relations between 
 
KHARTOUM 00001123  002 OF 003 
 
 
Sudan and Eritrea.  In 2000, diplomatic relations 
improved briefly, although it proved to be a short-lived 
improvement. 
 
-------------------------------------------- 
Cultural and Social Ties, Migratory Patterns 
-------------------------------------------- 
 
¶6. (SBU) There are at least twenty shared tribes between 
Ethiopia and Sudan, including the Dinka, Anuak, and Anjuk 
tribes of Southern Sudan.  There are an estimated 79,000 
South Sudanese refugees in Ethiopian refugee camps and 
14,800 Ethiopian refugees in Sudanese refugee camps. 
 
¶7. (SBU) There are an estimated 116,000 Eritrean refugees 
in Sudan, mainly in refugee camps in Eastern Sudan.  The 
refugees have lived in Sudan for over twenty years, and 
most have no plans to return to what is now Eritrea. 
Culturally, Eritrea and Sudan share Beja and Rashaida 
tribes.  One indication of these close ties is that the 
Governor of Kassala State allegedly was born in Eritrea 
and is of Eritrean descent. 
 
----------------------- 
Economic and Trade Ties 
----------------------- 
 
¶8. (SBU) In 2002, Sudanese Vice President Ali Osman Taha 
summed up the economic relationship between Ethiopia and 
Sudan as "very nominal."  The highest period of trade 
between the two countries was in 1994, with not more than 
4 million USD in total bilateral trade.  In May 2006, the 
Sudanese Ambassador to Ethiopia stated that, "Ethiopia 
and Sudan are making lots of efforts in connecting roads, 
electrification, and fiber optics." Sudan and Ethiopia 
are exploring the potential to use Port Sudan as an 
export base for Northern Ethiopia.  Sudan and Ethiopia 
are also working together on the Ethiopia-Sudan 
Transmission Interconnection Project, a high-voltage 
transmission line connecting the two countries, which 
would be the first step in realizing an integrated power 
system in the Eastern Nile region. 
 
¶9. (U) The Ethiopian government is currently importing 
oil from Sudan by road, which has enabled Ethiopia to 
reduce the cost of oil imports.  Sudan currently provides 
about eighty percent of Ethiopia's oil needs.  At 
present, coffee has become Sudan's primary commodity 
import from Ethiopia, and Sudanese investors import ready- 
made shoes and other leather and cement products.  There 
is vibrant border trade in gum Arabic, sorghum, coffee, 
honey, and beans. 
 
¶10. (U) The trade relationship between Eritrea and Sudan 
is based on informal border trade.  There is no formal 
trade agreement between Eritrea and Sudan; however, 
border trade between East Sudan and Eritrea occurs with 
food and gum Arabic from Sudan entering Eritrea. 
 
------------------- 
Political Relations 
------------------- 
¶11. (SBU) Sudan shares its longest border with Ethiopia 
and receives the majority of its water from it. 
Currently, the two nations enjoy a positive relationship; 
however, critics cite the Sudanese government with 
failing to pay attention to strengthening the 
relationship.  Others add that the overarching problem is 
that Sudan consistently looks to Arab, not African, 
neighbors in developing its bilateral relationships. 
Sudan participates in regional discussions and meetings 
on addressing use of the waters of the Nile.  In 2002, 
Sudan joined Yemen and Ethiopia in the Sana'a Axis to 
"fight against extremists in the Horn of Africa."  In 
April 2004, a joint ministerial committee was created to 
further improve relations between the two countries; in 
December 2005, Prime Minister Meles Zenawi visited 
Khartoum. 
¶12. (SBU) Sudan and Ethiopia dispute the Fashaga region 
of Eastern Sudan, as Ethiopia claims the fertile region, 
which stands in contrast to its own largely rocky and 
mountainous landscape.  Over the past three years, a 
demarcation committee has worked to determine the proper 
ownership of the land; however, Ethiopians continue to 
settle in large numbers in the disputed area. 
 
¶13. (SBU) After the signing of Sudan's North-South 
Comprehensive Peace Agreement (CPA) in January 2005, 
Eritrea approached the SPLM members of the Government of 
National Unity (GNU), including First Vice President 
 
KHARTOUM 00001123  003 OF 003 
 
 
Salva Kiir and Minister of Foreign Affairs Lam Akol, to 
improve bilateral relations.  In the later part of 2005, 
Salva Kiir led a delegation to Asmara; some observers 
believe that Asmara's approach to Khartoum was an effort 
to solidify Khartoum's neutrality in another border war 
between Eritrea and Ethiopia.  In January 2006, President 
Bashir sent Presidential Advisor Ghazi Salahuddin to 
Asmara to invite personally President Isaias Afewerki to 
the African Union (AU) Summit held in Khartoum.  However, 
Asmara sent a low-level delegation, underscoring the 
strained relationship.  A series of diplomatic exchanges 
followed, beginning in March 2006.  In April 2006, 
Khartoum agreed to upgrade diplomatic relations, exchange 
ambassadors with Eritrea, and allow Eritrea to host and 
mediate the anticipated GNU-Eastern Front negotiations. 
 
HUME