VZCZCXRO7530
OO RUEHROV
DE RUEHDS #2663/01 2760556
ZNR UUUUU ZZH
O 030556Z OCT 06
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2698
INFO RUCNIAD/IGAD COLLECTIVE PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/CJTF HOA PRIORITY
RUEKDIA/DIA WASHINGTON DC PRIORITY
RHMFIUU/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 03 ADDIS ABABA 002663 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR AF A/S FRAZER AND DAS YAMAMOTO FROM CHARGE VICKI 
HUDDLESTON 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM ECON EFIN MARR ET
SUBJECT: ETHIOPIA: PM MELES TOUR D'HORIZON ON TPLF 
CONFERENCE DECISIONS 
 
 
¶1. (SBU) Summary: In response to a request from major donors, 
Prime Minister Meles met September 30 with the Ambassador's 
Donor Group (ADG) to review internal and external 
developments, as well as to review the decisions of the 
Tigray Peoples Liberation Front (TPLF), the core decision 
making body of the ruling EPRDF.  Meles said that the major 
areas of discussion were governance, capacity-building, and 
democracy; economic development was an important sub-theme. 
Present at the party conference for the first time were 
representatives of the private sector and non-party members. 
The most significant actions to be taken by government are as 
follows: 
 
-- Government will be accountable to civil society 
organizations, who will be able to participate in local 
government discussions and have improved access to the media. 
-- Government will stay at a distance and create a positive 
environment for the operation of the Human Rights Commission 
and the Ombudsman. 
-- The verdict in the trial of Hailu Shawel et al will likely 
be handed down by 2007. 
-- All of the opposition parties in Parliament will be 
treated as full participants in Parliament and as full 
partners. 
-- Meles will meet with the leaders of the opposition parties 
to restart the opposition party dialogue with the EPRDF. 
This dialogue will not be limited and will address a proposed 
media law that would reflect international standards as well 
as reform and capacity-building in the National Electoral 
Board (NEB). 
-- Illegal activities will be punished and rule of law will 
be strictly enforced with respect to the insurgencies and 
those parties or groups that do not adhere to the 
constitution. 
-- An anti-terrorism law is in the works. 
-- The Independent Commission of Inquiry report will be 
forthcoming soon. 
-- The cabinet will approve Ethiopia's submission of its 
memorandum of trade practices to the WTO, the next step in 
WTO accession. 
 
¶2. (SBU) In my view, we can anticipate progress on reforms 
that will provide more political space and improved access to 
the media for the legal opposition, as well as more 
consultations on the composition of the NEB and preparations 
for the 2007 local elections.  At the same time, those groups 
and parties that act outside the law -- to include civil 
disobedience -- can expect an even sharper government 
reaction.  This in part reflects government's preoccupation 
with Eritrea's support for these groups.  Overall, I would 
call PM Meles' new policy "the iron fist in the velvet 
glove."  End Summary. 
 
------------------------------------- 
HOW THE GOVERNMENT WILL DEAL WITH 
CIVIL SOCIETY ORGANIZATIONS AND NGOs 
------------------------------------- 
 
¶3. (SBU)  Meles said that he anticipated that the trial of 
"Hailu Shawel et al" would be completed by the beginning of 
¶2007. The Prime Minister said that the Government bureaucracy 
to some degree misunderstood civil society organizations, but 
that this had been remedied at the TPLF conference.  We could 
anticipate a relationship between Government and Civil 
Society to be based on mutual accountability.  Civil Society 
Organizations (CSO) will be accountable to their members and 
the Government is accountable to Civil Society.  Members of 
CSOs should be able to influence their leadership and should 
not be dependent on foreign sources for personnel or for 
major resources. (Meles later explained that he did not have 
any problem with foreign funding of CSO projects.)   Meles 
made clear that foreign NGOs are separate and apart from 
local CSOs.  Foreign-affiliated NGOs are "partners" of the 
Government, but the Government is not accountable to them as 
it is to indigenous CSOs.   Meles said that he hoped that 
CSOs would begin attending Kebele (local governing body) 
meetings, where they could raise and discuss issues.  This 
would improve the exchange of information on the local level 
and improve local governance.  CSOs would have access to the 
media as per recommendations in the USAID-funded media 
 
ADDIS ABAB 00002663  002 OF 003 
 
 
best-practices study. The CSOs should be registered with the 
ministries which govern the area in which they work.  The 
Government's view of CSOs and Civil Society in general will 
be reflected in the Governance matrix being prepared by the 
Finance Ministry and the Donor Assistance Group (DAG).  Meles 
sees no major gulf between the ADG's vision of governance and 
that of the Government.  Overall, Meles said that NGOs had a 
generally positive impact in Ethiopia and add to the 
resources available for development and democracy. 
 
---------------------- 
THE OPPOSITION PARTIES 
---------------------- 
 
¶4.  (SBU)  Government intends to be more open to the legally 
recognized opposition political parties, regardless of 
whether they are acting in a strictly legal manner. 
Government's engagement with these parties will be based on 
the Constitution.  The modification of Parliamentary 
procedures at the urging of the opposition and the donors was 
not "appeasement", but a principled decision based on 
international practices.  The rule of law will apply at all 
times in order to remove conflict and fear.  The EPRDF will 
strengthen its dialogue with the Parliamentary opposition 
parties on all issues, especially the drafting of the new 
media law and the capacity building/reform within the 
National Electoral Board.  As CUDP has not yet been engaged 
with the EPRDF on the issue of rule of law, it will have this 
opportunity; UEDP-Medhin has already begun this dialogue. 
While the EPRDF prefers to engage all the opposition together 
they will respect their wishes to be engaged separately in 
the dialogue. 
 
¶5. (SBU)  Meles said that he would meet soon with the leaders 
of all the opposition parties to reinitiate the dialogue on 
democratic reforms.  However, he said that he is worried 
about a dispute between UEDP-Medhin and CUDP over 
representation in Parliament.  He asked that the donors-- led 
by the US Embassy -- who had worked out the agreement between 
the four parties attempt to ensure that this agreement will 
remain valid.  ADG Chair promised to do so and asked about 
the CUDP's claim that the EPRDF was attempting to force the 
CUDP into a different or lesser status in Parliament.  Meles 
said that as far as the EPRDF is concerned the CUDP should 
remain with the representation agreed upon in the 
ADG-brokered agreement.  He explained that all the opposition 
parties - including the CUDP - had signed an agreement on 
Parliamentary rules which stated that parties that were 
formed after the elections would be considered as 
Parliamentary Caucasus. (Comment: our reading of the rules is 
that the agreement does not say this, but rather states that 
"Parliamentary Groups" can either be parties or groups that 
did not compete against each other in the election.  In the 
case of the later, both CUDP and Medhin would be Parliament 
Groups.  This issue will have to be sorted out over the next 
week.)  Meles stated that CUDP does not have seats in 
Parliament as the "CUDP" because it did not exist when the 
elections were held, therefore it is a caucus.   He claimed 
that this status still gives Temesgen Zewde, the CUDP Whip, 
the same legal status in Parliament. "It does not in any way 
diminish CUDP rights in Parliament. If they have 46 members 
they will given the time and status accorded to 46," Meles 
said.  Meles also stated that there will be a discussion with 
the opposition parties on a scheme for financing political 
parties.  COMMENT: UK and French Ambassadors commended the PM 
for his positive approach to CSOs and the intent to renew and 
strengthen the EPRDF dialogue with the opposition parties. 
The USG and Canada commended the government for the pardon of 
10,000 prisoners on Ethiopian New Year. 
 
--------------------------------------------- --- 
HUMAN RIGHTS ORGANIZATIONS/ INQUIRY COMMISSION/ 
AND TEACHERS ORGANIZATION 
--------------------------------------------- --- 
 
¶6. (SBU)  In response to a questions on the GOE-funded Human 
Rights Commission and Ombudsman, Meles confirmed that these 
are institutions that hold the Executive accountable for its 
actions, and as such are an important part of a system of 
good governance.  Government will stay at a distance and 
 
ADDIS ABAB 00002663  003 OF 003 
 
 
create an environment in which they can operate effectively. 
In response to a question about why members of the Ethiopian 
Teachers Association had been jailed, Meles said that this 
was an example of applying the policy of sticking to the law. 
 The judicial system had found that the ETA was an illegal 
organization.  Some people had tried to defy this ruling and 
were detained.  While Meles understands that the ETA has many 
friends abroad, this is simply an example of applying the 
rule of law strictly.  As for the Independent Commission that 
has been investigating the violence of June and November 
2005, he anticipated that the report would be forthcoming, 
although it had been delayed. 
 
----------------------------------- 
ILLEGAL ACTIVITIES AND INSURGENCIES 
----------------------------------- 
 
¶7. (SBU) The Prime Minister stated, "Parties who are willing 
to engage peacefully will be recognized, if not the 
Government will try to reduce them.  There will be no 
dialogue with them until their statements and actions 
indicate that they will work within the constitution." 
(Comment: This undoubtedly applies to the five CUD jailed 
leaders who have recently published a calendar of civil 
disobedience and endorsed the Alliance of the CUD with the 
ONLF and OLF  As for the ONLF insurgency, Meles said that it 
was a problem before the crisis in Somalia.  Now it is more 
so because it is easier for the ONLF to associate with the 
activities of the AIAI in Somalia and the Ogaden.  The 
internal and external risks the Government faces are related 
to one another.  The Government will therefore sharpen its 
response to these challenges by looking at institutions that 
can help rid the country of these elements.   The government 
intends to table an anti-terrorism law in Parliament.  Meles 
said that the risks today are about the same as last year in 
regards to threats from terrorism and instability (Comment: 
Tensions and risks were fairly high this time last year.) 
 
----------------- 
THE ECONOMIC PLAN 
----------------- 
 
¶8. (SBU) Meles identified the major economic problem as 
uneven growth.  Rural farming areas are often in surplus, 
while pastoral and urban areas are less so.  Of particular 
concern are urban youth that are not benefiting from or 
participating in the economy.  The Government will try to 
re-balance the economy without slowing growth by linking 
urban, rural and pastoralists sectors.  It will focus on 
pastoralists and on food-insecure areas.  Growth corridors 
will be linked with the slow growth areas.  The Prime 
Minister believes macro stability is impacted by a 20% 
inflation rate in the urban economy that needs to be reduced. 
 It appears that incomes have not kept pace with the rise in 
prices, he commented.  Concerning economic governance, the 
Government will combat corruption and improve efficiency 
while expanding dialogue with the private sector.  The PM 
noted that private sector representatives were invited to the 
TPLF conference for the first time.  Government will continue 
to try to attract foreign investment, especially in the areas 
of natural resources and infrastructure.  There are no 
immediate plans to liberalized the financial sector, however, 
as Government lacks the regulatory capacity.  The Conference 
agreed that Ethiopia will join the WTO as soon as possible. 
HUDDLESTON