VZCZCXRO4721
PP RUEHPA
DE RUEHAB #1253 3131452
ZNY CCCCC ZZH
P 091452Z NOV 06
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC PRIORITY 2147
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHTU/AMEMBASSY TUNIS 0040

C O N F I D E N T I A L ABIDJAN 001253 
 
SIPDIS 
 
SIPDIS 
 
TREASURY FOR DAN PETERS 
TUNIS FOR AFDB USED 
 
E.O. 12958: DECL: 11/09/2016 
TAGS: EFIN ECON IBRD IV PREL
SUBJECT: FRENCH ECONOMIC COUNSELOR ADDRESSES COTE 
D'IVOIRE'S DEBT TO WORLD BANK 
 
REF: ABIDJAN 1099 
 
Classified By: DepPolEconChief EMassinga, Reasons 1.4 (b,d) 
 
 ¶1.  (SBU)  Econ Chief met with French Economic and 
Commercial Counselor Jean Dolle at the French Embassy on 
November 8.  Dolle began by discussing French economic 
interests in Cote d'Ivoire, which, despite the political 
crisis and its resultant effects on the economy, remain 
strong.  Economic activity generated by French companies and 
their subsidiaries constitute, according to statistics 
provided by Dolle, 30% of Cote d'Ivoire's GDP, and these 
companies pay over 50% of all business taxes.  Dolle said 
that Cote d'Ivoire and France would likely maintain close 
economic links, and that French companies, despite having to 
"do what they have to do" to remain profitable in the Ivorian 
environment, provide legal structures and norms to the 
Ivorian economy in a way that Lebanese business enterprises 
(which have grown in importance since the events of November 
2004), for example, do not. 
 
¶2.  (C)  In discussing the question of Cote d'Ivoire's 
arrears to the World Bank, Dolle clearly indicated that 
France is anxious to see reengagement with the IFIs and was 
accordingly somewhat upbeat on Abidjan's progress on the 
three-pronged conditionality required.  Aside from movement 
on the peace and security front (where Dolle said things were 
moving in the right direction until August), Dolle said Cote 
d'Ivoire made some progress reducing the "opacity" in both 
oil/gas and cocoa accounts through the creation of 
governmental committees designed to oversee the flow of 
funds.  Pressed, Dolle conceded that whether these committees 
are actually effective performing their tasks is open to 
question. 
 
¶3.  (C)  Turning to the arrears, the final prong in IFI's 
conditionality formula, Doll was initially optimistic about 
the government'sprogress, touting its bond floatation in May 
andJune.  Pressed, he acknowledged that the funds raied are 
not sufficient to repay the arrears, whichcontinue to mount, 
and that increasingly the chaces that the Ivorian government 
will actually pa the debt is remote.  In discussing 
alternatives Dolle freely stated that Paris is "flexible" onthe question of partial payments, willing to considr either 
a "down payment" or accepting what has een raised so far and 
negotiating a solution forthe rest.  (Note: Econ Chief 
reported Washingtonagencies' discomfort with such an 
approach. End ote)  Dolle did indicate doubts as to whether 
the government would be able to keep itself from eventally 
spending the money as it did in 2005, despie the fact that 
it is ostensibly in an escrow acount at the BCEAO.  (Note: 
Econ Chief heard sepaately from a well-placed German 
diplomat that Berlin would not be well disposed to accepting 
partil payment of the arrears.  However, EU solidarity ould 
play a decisive role should the question coe before the WB's 
Board.  End Note) 
 
¶4.  (C)  ddressing the question of the permanent location of 
the African Development Bank, Dolle said Paris spports the 
eventual return to Abidjan, and was uaware of any plans or 
ideas to distribute the HQfunctions to different cities. 
 
Hooks