VZCZCXRO1787
PP RUEHRN
DE RUEHBS #0529/01 0971606
ZNR UUUUU ZZH
P 071606Z APR 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC PRIORITY
INFO RUEHHE/AMEMBASSY HELSINKI
RUEHPG/AMEMBASSY PRAGUE
RUEHSM/AMEMBASSY STOCKHOLM
RUCNDT/USMISSION USUN NEW YORK
RUEHRN/USMISSION UN ROME
RUEHGV/USMISSION GENEVA

UNCLAS SECTION 01 OF 02 BRUSSELS 000529 
 
SIPDIS 
 
NSC FOR KRISTINA KVIEN 
 
E.O. 12958: N/A 
TAGS: EAID PREL IO EAGR EUN ECON EFIN
SUBJECT: SENIOR EUROPEAN COMMISSION OFFICIALS AFFIRM 
INTEREST IN TRANS-ATLANTIC DEVELOPMENT DIALOGUE 
 
REF: BRUSSELS 00450 
 
 
¶1.  SUMMARY: During recent meetings with Acting USAID 
Administrator Alonzo Fulgham in Brussels, senior European 
Commission (EC) officials responsible for both policy and 
operational matters affirmed strong interest in elevating 
development to a more visible role within the ongoing 
trans-Atlantic dialogue.  On the policy side, one suggestion 
included regular senior meetings following the EU-US summit 
in June, possibly involving a troika approach.  At the same 
time, all sides agreed that any renewed dialogue would suffer 
the same fate as a similar, short-lived effort launched 
nearly a decade ago if it did not also lead to better and 
more effective aid delivery in the field.  END SUMMARY. 
 
¶2.  During a stop-over in Brussels following the Afghanistan 
conference in The Hague, Acting USAID Administrator Alonzo 
Fulgham met separately with Director General for Development 
and Relations with African, Caribbean and Pacific States 
(ACP) Stefano Manservisi, and with Director General of 
EuropeAid Koos Richelle. Both officials - Manservisi oversees 
EC development policy and programming to the ACP countries 
while Richelle has responsibility for implementing all EC 
development programs - expressed strong support for a renewed 
EU-US dialogue on development during the months ahead. 
 
¶3.  Manservisi stated that the Commission sees new political 
opportunities with the arrival of a new administration in 
Washington.  In his words, I have never seen the development 
agenda so high r so relevant, adding that if we do it right,development policy 
can become a major part of or broader 
policy approach on other issues.  I his view, the discussion 
should take a long term perspective rather than being driven 
by ad hoc, immediate concerns. Simply increasing contact and 
furthering understanding about our respective approaches to 
development would be a step forward. Looking ahead to the 
EU-US summit in June, he suggested that a high level 
mechanism for regular engagement on development needs to be 
put in place, possibly using a troika-like approach that 
would include representation from the Commission, Council and 
Presidency. 
 
¶4.  Manservisi also briefly commented on broader development 
issues.  While emphasizing the need to meet official 
development assistance (ODA) commitments, he acknowledged the 
emergence of a more complex development terrain, noting in 
particular remittances, private investment and contributions 
from foundations as important new sources of investment. 
Despite the global economic crisis, trade facilitation 
efforts need to continue.  The EC also attaches special 
importance to regional approaches, with Manservisi noting 
that the EC and EU member states set aside two billion euro 
to fund regional programs.  In this regard, he specifically 
cited the February 2009 EC-USAID consultation in Brussels on 
economic integration in Africa as a positive example of EU-US 
cooperation. 
 
¶5.  Manservisi acknowledged fragmentation as an issue that 
the EC is attempting to address, partly through its promotion 
of a code of conduct aimed at ensuring that the EC and 
individual member states work together in their pursuit of 
common development objectives.  Good governance is another 
area of increasing EC concern.  In addition, the EC welcomes 
the elevation of climate change to a more important part of 
the U.S. development agenda.  In keeping with both Accra and 
the Paris Declaration, there is strong EC interest in budget 
support.  According to Manservisi, nearly fifty percent of 
all EC aid funding in Africa, the Caribbean and Pacific 
involves budget support.  In his view, budget support is an 
especially powerful implementation tool because it is focuses 
less on procedures and more on results. 
 
¶6.  Finally, Manservisi confirmed that he will attend the 
World Bank meetings in Washington in late April.  He added 
that the EC delegation in Washington is developing his 
schedule and that he hopes to meet with a broad range of U.S. 
actors involved in development policy, including counterparts 
at the National Security Council (NSC). 
 
¶7.   In a separate meeting the following morning, EuropeAid 
Director Koos Richelle also emphasized support for a 
revitalized trans-Atlantic development dialogue, though 
noting that a similar effort launched nearly a decade ago 
 
BRUSSELS 00000529  002 OF 002 
 
 
proved unsustainable.  In his view, the ideological divide 
between Brussels and Washington has now been narrowed.  In 
addition, the global financial crisis gives added urgency to 
the discussion.  Among other things, he expressed concern 
over reduced capital flows to the third world as well as an 
over-reliance on foreign assistance in some countries such as 
Mozambique.  While acknowledging support for public-private 
sector partnerships, Richelle bluntly stated that so far the 
EC has no good examples of success.  Welcoming the Acting 
USAID Administrator's comment that this could be a fruitful 
area for future EU-US dialogue, he suggested that the sharing 
of US experience on global development alliances would be 
especially helpful and that a broad range of counterparts 
within the EC could usefully attend. 
 
¶8.  Richelle also expressed strong EC interest in budget 
support, though noting the need for more discussion on the 
criteria and framework for delivering it.  Acknowledging 
governance, capacity and accountability as key concerns, he 
suggested that the US and EC could learn from each other's 
experiences delivering and monitoring direct budget 
assistance and noted the EC now provides budget support to 55 
countries.  More broadly, Richelle cited a need to draw new 
donors such as India and China into the global development 
discussion.  He also sees interest on the part of several 
emerging economies (he specifically mentioned Brazil, Mexico, 
South Africa and Thailand) in becoming a conduit for 
assistance to poorer countries, suggesting that their 
experience might make them both more credible and more 
effective in terms of delivering foreign aid. 
 
¶9.  As always, Richelle's comments reflected a strongly 
candid and pragmatic approach.  He also emphasized that a 
renewed trans-Atlantic dialogue on development, if it 
emerges, needs to focus on operational concerns, not elegant 
theories.  Describing EuropeAid as the slaves in the cellar 
with minimal policy authority but responsibility for actually 
delivering assistance, he also highlighted the importance of 
ensuring that policy discussions are rooted in field 
realities. 
 
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COMMENT 
------- 
 
¶10.  The two meetings confirmed broad EC interest in a 
renewed EU-U.S. development dialogue and echoed many of the 
themes highlighted in Reftel.  In addition, there was an 
interesting symmetry to both meetings, with one featuring the 
key EC official responsible for development policy and the 
other involving the senior EC official charged with 
implementation.  While also commenting on U.S. views and 
experience in several areas (including budget support), the 
Acting USAID Administrator reiterated that any extended 
EU-U.S. conversation must lead to practical, tangible 
results.  Among other things, that means ensuring that any 
strategic dialogue on development makes an operational 
difference and leads to more effective aid delivery in the 
field. 
 
¶11.  Acting USAID Administrator Fulgham cleared this cable. 
 
MURRAY 
.