VZCZCXRO8513
RR RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #4170/01 3560532
ZNR UUUUU ZZH
R 220532Z DEC 07
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC 2002
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLETIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RUCNDT/USMISSION USUN NEW YORK 4324
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 02 KABUL 004170 
 
SIPDIS 
 
DEPARTMENT FOR SCA/FO, SCA/A 
STATE PASS TO USAID FOR AID/ANE, AID/DCHA/DG 
NSC FOR WOOD 
OSD FOR SHIVERS 
CENTCOM FOR CG CSTC-A, CG CJTF-82 POLAD 
 
SENSITIVE, SIPDIS 
 
E.O. 12958 N/A 
TAGS: PREL PGOV PTER PHUM AF
SUBJECT: Kunduz, Afghanistan: A Regional Hub for Security and 
Economic Growth 
 
¶1. (SBU) Summary: In 2007, Kunduz province has made demonstrable 
progress along all lines of operations (security, development and 
governance) and served as a regional catalyst for Northeast 
Afghanistan.  There is both visible reconstruction activity and 
private sector development, symbolized by the new Afghan-Tajik 
Bridge.  The local population remains overwhelming supportive of the 
GoIRA and International Security Assistance Force (ISAF), although 
there has been an increase in the number of insurgent suicide, 
rocket and IED attacks.  Provincial government officials engage with 
their constituents, and line ministries and municipalities deliver 
basic services.  In 2008, the USG will look to build upon last 
year's significant increase in personnel, programmatic and financial 
resources to continue to support reconstruction and security 
activity in the province and beyond.  End Summary. 
 
Security - Population Supportive and ANSF Responsive 
--------------------------------------------- ------- 
 
¶2.  (SBU) The local population continues to support the GoIRA and 
ISAF, although there has been a quantitative increase in the number 
of insurgent suicide, rocket and IED attacks.  In 2007, there were 
seven suicide attacks in the province, including the May 2007 attack 
in Kunduz city that killed three German soldiers, as compared with 
the one event in 2006.  The insurgent's focus on suicide attacks has 
impacted the German-led Provincial Reconstruction Team's (PRT) 
ability to conduct dismounted patrols and vehicle movements in 
Kunduz city.  Both ISAF and ANSF are resolved to confront this 
threat and have focused their efforts on joint operations, planning 
and intelligence sharing.  The relocation of the Joint Provincial 
Coordination Center in a new purpose-built building and commitment 
by the line ministries should ensure that it becomes operational in 
early 2008. 
 
¶3.  (SBU) Kunduz remains the security hub, and correspondingly the 
insurgent target, for northeast Afghanistan.  The RTC Kunduz is 
playing an integral role in the roll-out of CSTC-A's Focused 
District Development program, indeed one of the first districts 
selected was in the province (Chahar Dara).  The greatest threat to 
ISAF and USG assets in Kunduz, particularly on the plateau, is 
insurgent rocket activity.  The German-led PRT has taken pro-active 
steps, within their rules of engagement, to neutralize this threat 
including supplementing aerial and personnel reconnaissance assets. 
 
¶4.  (U) Both the Afghan provincial government and ISAF recognize 
that the population's support is crucial to security efforts in the 
province.  The governor, district administrators, and provincial and 
district police chiefs engage regularly with local officials, elders 
and religious figures to enlist their support.  The PRT has 
emphasized the contributions of the international community and 
aligned development projects with security initiatives. 
 
From Quick Impact Projects to Private 
Sector Development 
------------------------------------- 
 
¶5.  (U) The opening of the $37 million Afghan-Tajik Bridge in 
October 2007 inaugurated a new regional trade route, slashed 
transportation costs and spurred private sector development.  New 
construction abounds on the arteries of the city (new rice factory 
and gas stations), within the city itself (commercial buildings, 
marketplace) and once again in the new housing development 
"Sar-e-Dawra".  While large infrastructure projects remain 
(hydroelectric in Khanabad, water systems, district connector 
roads), donor attention is increasingly focusing on efforts to 
assist private sector development.  USG efforts to strengthen 
associations (re-establishment of Kunduz' carpet association), 
facilitate trade (first Afghan-Tajik trade fair) and extend credit 
(small and medium enterprise loan program) are paying dividends and 
could be expanded.  One of the best signs of stability and a 
positive business climate is that business owners are prepared to 
resume investment in their businesses, whether through the mayor's 
mandated, but un-funded, program to resurface sidewalks or through 
microfinance and SME loans. 
 
¶6. (SBU) The Afghan National Development Strategy held sub-national 
consultations this summer in the province and sectoral working 
groups have submitted their prioritized lists to Kabul.  The 
 
KABUL 00004170  002 OF 002 
 
 
German-funded and -administered Provincial Development Fund (PDF) 
has successfully supported small development projects and promoted 
good governance.  It is only through the PDF that the Provincial 
Council has any budgetary approval role in development.  NGO's 
continue to operate from the province, although one German NGO 
resettled from Kunduz to Takhar citing a decrease in overall 
security. 
 
Good Faith Effort to Deliver Essential Services 
--------------------------------------------- -- 
 
¶7.  (SBU) As in other provinces, Kunduz provincial officials are 
keen to be seen as fulfilling their government mandates.  Despite 
the lack of personnel and resources, electricity flows (when 
released by Tajikistan), schools and hospitals function and streets 
are cleaned.  The new Kunduz mayor, armed with both a vision and a 
budget, has made a tangible difference - for the better - in the 
lives of the townspeople.  Directors of line ministries are disposed 
to cooperating with the international community.  In 2007 the USG 
supported the rule of law in Kunduz through the establishment of a 
Justice Sector Support Program (JSSP) regional office, hosting of a 
Provincial Justice Conference and launch of police-prosecutor 
training.  Judicial corruption remains of great concern as it 
distorts the population's willingness to co-operate with the ANSF. 
 
¶8.  (SBU) Governor Omar, in office since March 2004, has remained 
the province's leading political personality.  He is predisposed to 
cooperating with the international community on development and 
security; however, he is unlikely to reform the system.  Recently, 
he has shown an effort to improve governance and the coordination of 
the line ministries.  In his first year in office, Provincial Chief 
of Police Salangi has attacked corruption in passport issuance and 
helped direct international assistance to priority projects, while 
at the same time repelling insurgent night attacks on checkpoints 
and neutralizing suicide attackers.  Relishing the fight, but 
loathing the administrative work, he commands respect through his 
personal authority and physical stature.  The Provincial Council 
continues to search for a role, currently involved in the 
developmental planning process and through the PDF, project 
allocation. 
 
Increased International Presence 
-------------------------------- 
 
¶9. (SBU) International donor activity increased significantly in 
2007 in Kunduz.  The U.S. Army began its police mentoring program, 
JSSP lawyers arrived to train police-prosecutors and the U.S. Army 
Corps of Engineers shifted its attention and office from the bridge 
at Sher Khan Bandar to Kunduz and police and army construction in 
the surrounding provinces.  The German PRT launched the Provincial 
Development Fund, began mentoring the ANA and welcomed the EU's 
police mission.  Currently, USAID is considering placing a Field 
Program Officer in Kunduz to better tap into national and local 
programs, such as the Local Governance and Community Development 
Program that plans to begin its activities in 2008 in the province. 
 
 
¶10.  (SBU) Comment: Kunduz has made forward progress in all lines of 
operation.  While insurgents have adopted tactics new to Kunduz 
(rocket and suicide attacks), ANSF and ISAF are working with the 
local population to improve security.  Private sector activity has 
been spawned by the opening of the new bridge.  To further 
strengthen these positive developments, the international community 
should support private sector development, strengthen judicial 
institutions and devote public diplomacy assets to cover this 
positive story.  End Comment. 
WOOD