VZCZCXRO4423
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHVI #1890 3590912
ZNR UUUUU ZZH
R 240912Z DEC 08
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC 1785
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHMU/AMEMBASSY MANAGUA 0051

UNCLAS VIENNA 001890 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN (KRAAIMOORE) 
 
E.O. 12958: N/A 
TAGS: EAID PGOV PREL NU AU
SUBJECT: AUSTRIAN POSITION ON ASSISTANCE TO NICARAGUA 
FOLLOWING FRAUDULENT ELECTIONS 
 
REF: STATE 132044 
 
¶1. Polchief discussed reftel points December 23 with Andreas 
Melan, MFA Unit Chief for Latin America and the Caribbean. 
Melan agreed that the Nicaraguan elections had fallen far 
short of international standards.  He said EU states have 
agreed to re-orient aid, both EU and bilateral, for Nicaragua 
in light of the elections.  EU members have decided to 
suspend all budgetary support for the Nicaraguan Government. 
They have also agreed to review aid programs and, so far as 
practicable, shift away from projects with government 
institutions in favor of NGOs, he said. 
 
¶2. Melan averred that the new approach will have little 
immediate impact on Austrian aid programs for Nicaragua.  The 
GOA had never provided budgetary support to the GON.  Most 
GOA aid programs are implemented through NGOs; less than a 
quarter involve government institutions as partners.  Melan 
said GOA officials in Nicaragua monitor the programs to 
ensure that funds are not diverted.  Cooperation with local 
GON partners has been good, and the GOA will continue those 
programs as long as that remains true, he said.  Polchief 
emphasized the importance of pressuring the GON to undertake 
electoral reform.  The fraudulent elections had tainted GON 
institutions, which should now be treated differently from 
NGOs, he argued.  Melan replied that most aid programs 
worldwide are implemented in countries with flawed political 
systems.  He argued that a suspension of all programs 
involving GON institutions would do more harm than good. 
GIRARD-DICARLO