VZCZCXRO6756
OO RUEHIK RUEHPOD RUEHYG
DE RUEHBS #0405/01 0820615
ZNR UUUUU ZZH
O 230615Z MAR 09
FM USEU BRUSSELS
TO RUEHLO/AMEMBASSY LONDON IMMEDIATE
RUEHFR/AMEMBASSY PARIS IMMEDIATE
RUEHRL/AMEMBASSY BERLIN IMMEDIATE
RUEHRO/AMEMBASSY ROME IMMEDIATE
RUEHOT/AMEMBASSY OTTAWA IMMEDIATE
RUEHBJ/AMEMBASSY BEIJING IMMEDIATE
RUEHRH/AMEMBASSY RIYADH IMMEDIATE
RUEHAD/AMEMBASSY ABU DHABI IMMEDIATE
RUEHAK/AMEMBASSY ANKARA IMMEDIATE
RUEHBY/AMEMBASSY CANBERRA IMMEDIATE
RUEHUL/AMEMBASSY SEOUL IMMEDIATE
RUEHMO/AMEMBASSY MOSCOW IMMEDIATE
RUEHTC/AMEMBASSY THE HAGUE IMMEDIATE
RUEHNY/AMEMBASSY OSLO IMMEDIATE
RUEHCP/AMEMBASSY COPENHAGEN IMMEDIATE
RUEHSM/AMEMBASSY STOCKHOLM IMMEDIATE
RUEHHE/AMEMBASSY HELSINKI IMMEDIATE
RUEHKU/AMEMBASSY KUWAIT IMMEDIATE
RUEHMS/AMEMBASSY MUSCAT IMMEDIATE
RUEHWL/AMEMBASSY WELLINGTON IMMEDIATE
RUEHSW/AMEMBASSY BERN IMMEDIATE
RUEHMD/AMEMBASSY MADRID IMMEDIATE
RUEHJA/AMEMBASSY JAKARTA IMMEDIATE
RUEHKL/AMEMBASSY KUALA LUMPUR IMMEDIATE
RUEHBS/USEU BRUSSELS IMMEDIATE
RUEHC/SECSTATE WASHDC
INFO RUEHZG/NATO EU COLLECTIVE IMMEDIATE
RUEHIL/AMEMBASSY ISLAMABAD IMMEDIATE
RUEHBUL/AMEMBASSY KABUL IMMEDIATE
RUEHKP/AMCONSUL KARACHI IMMEDIATE
RUEHLH/AMCONSUL LAHORE IMMEDIATE
RUSBPW/AMCONSUL PESHAWAR IMMEDIATE
RUCNDT/USMISSION USUN NEW YORK IMMEDIATE

UNCLAS SECTION 01 OF 02 BRUSSELS 000405 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN IBRD IMF PK EUN
SUBJECT: DEMARCHE ON PAKISTAN DONORS CONFERENCE IN TOKYO (APRIL 17) 
 
REF: SECSTATE 24367 
 
BRUSSELS 00000405  001.2 OF 002 
 
 
1.(SBU) SUMMARY. USEU, along with the Japanese Mission to the 
European Union, presented subject demarche to European Commission 
(EC) counterparts.  While the EC indicated interest in the upcoming 
Tokyo donors conference and expressed hope that it will be 
successful, they noted that the composition of the EC delegation and 
the size of its pledge have yet to be determined.  EC counterparts 
also highlighted the fact that the European Union is Pakistan's 
largest trading partner.  In addition, they noted that the first 
ever EU-Pakistan summit is likely to be held in June, toward the end 
of the Czech Presidency. END SUMMARY. 
 
¶2. (SBU) As requested, US Mission to the EU (USEU) delivered subject 
demarche to the European Commission (EC) on the upcoming Pakistan 
donors conference scheduled to take place in Tokyo on April 17.  A 
colleague from the Japanese Mission to the European Union also 
participated in the meeting, ensuring that the demarche was 
delivered jointly. 
 
¶3. (SBU) EC counterparts expressed interest and support, though 
noting that the timing over Easter is not fortuitous and that it is 
not yet certain who will represent the EC.  Japan was also asked to 
provide details as soon as possible on practical arrangements, 
including the program, location and schedule. 
 
¶4. (SBU) According to counterparts, the EC funding system is not 
particularly flexible and expectations on possible EU support need 
to take into account the rigidities of the EC budgetary process. 
Current EC assistance to Pakistan is on the order of 50 million euro 
annually, a figure which has been increasing in recent years.  Also, 
the European Investment Bank (EIB) is contemplating an energy 
(hydro-power) loan to Pakistan.  More broadly, though, the 
Commission should typically not be viewed as an international lender 
except in exceptional cases. 
 
¶5. (SBU) As far as non-financial assistance is concerned, EC 
counterparts noted that the European Union is Pakistan's largest 
trading partner.  Also, the first ever EU-Pakistan summit will 
likely take place in late June under the Czech presidency in either 
Prague or Brussels.  Deliverables need to be developed in advance of 
that summit and may include a trade component, though it would be 
premature to announce the details in Tokyo. 
 
¶6. (SBU) EC representatives will be attending the Friends of 
Pakistan expert meeting held in Abu Dhabi on April 1-2 and believe 
that meeting can help inform the Tokyo discussion.  However, the 
fact that the two events are separated by only two weeks makes it 
unlikely that the EC will make any decisions based on the Abu Dhabi 
meetings in time to have an impact in Tokyo. 
 
¶7. (SBU) Following the discussion of the Pakistan donors conference, 
EC counterparts noted that they had been approached by Pakistan 
about contributing to provincial police training, especially in the 
Northwest Frontier Province (NWFP), and asked if the United States 
had received a similar request. 
 
 
BRUSSELS 00000405  002.2 OF 002 
 
 
¶8. (SBU) The EC also expressed interest in the idea put forward in a 
previous Friends of Pakistan meeting about a Frontier Trust Fund, 
possibly managed by the World Bank, and would like to know if the 
United States still supports it.  According to the EC, they are very 
interested in the idea but their World Bank contacts in Pakistan had 
indicated little or no progress so far. They requested further 
details from the United States on whether or not the trust fund 
concept is likely to move forward. 
 
¶9. (SBU) Finally, the meeting closed with a brief discussion of 
Afghanistan.  Most notably, EC counterparts expressed interest in 
what they interpreted as signals that the USG may be willing to 
consider dialogue with some elements of the Taliban.  While views 
among the donor community in Kabul vary, it was suggested that the 
position of the Taliban is now stronger than was the case even a 
couple of years ago.  The fact that Taliban-led actions are taking 
place simultaneously in Kabul, southern Afghanistan and Pakistan 
point to some degree of strategic coordination among the main 
Taliban players.  Also, while discussions with the Taliban might 
previously have focused exclusively on Afghanistan it is 
increasingly clear that issues related to Pakistan might need to 
figure in any talks as well. 
 
MURRAY