VZCZCXRO9781
PP RUEHAG RUEHROV RUEHSR
DE RUEHRL #0531/01 1281338
ZNY CCCCC ZZH
P 081338Z MAY 09
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 4032
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUCNFRG/FRG COLLECTIVE PRIORITY
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 0507
RUEHBUL/AMEMBASSY KABUL PRIORITY 0629
RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 000531 
 
STATE FOR SCA/FO (DEUTSCH), SCA/RA (MICALLER), 
EEB/IFD/ODF(MONOHAN),IO/EDA(HARRIMAN), EUR/CE (SCHROEDER) 
TREASURY FOR ICN (KOHLER) 
LABOR FOR ILAB (BRUMFIELD) 
SIPDIS 
 
E.O. 12958: DECL: 05/07/2019 
TAGS: BEXP EAID EAGR ECON EFIN ENRG KPWR PREL AF
EUN, GM, PK 
SUBJECT: GERMAN PARTICIPATION IN MAY 13-14 RECCA CONFERENCE 
LIMITED 
 
REF: STATE 039779 
 
Classified By: ECON COUNSELOR INGRID KOLLIST FOR REASONS 1.4 (B) AND (D 
). 
 
¶1. (C) On May 4 and 5, 2009, post delivered reftel points to 
the German Ministry of Economic Cooperation and Development 
(BMZ), Ministry of Foreign Affairs (MFA), Ministry of 
Economics and Technology (BMW) and the German Federation of 
Industries (BDI), encouraging high-level German participation 
and support for our objectives within the five working groups 
at the May 13-14, 2009 Islamabad Regional Economic 
Cooperation Conference on Afghanistan (RECCA).  Our demarche 
to the MFA was carried out jointly with the Pakistani 
Embassy.  The Afghan Embassy DCM had also planned to 
participate in the demarche, but had to drop out at the last 
minute because of another urgent matter. 
 
¶2. (C) Martin Kipping, Afghanistan Desk Officer, Ministry of 
Economic Cooperation and Development (BMZ), advised that 
Martin Schuldes, Counselor for Economic and Development 
Affairs, German Embassy, Kabul, would lead the German 
delegation to RECCA.  He would be joined by two Kabul-based 
colleagues -- a development expert from BMZ and a trade 
expert from the German development implementing agency (GTZ). 
 Kipping said that RECCA should "not be primarily about 
pledging," but rather "about regional neighbors talking to 
each other."  He noted Germany's major focus was on "overland 
trade and transit."  What was most needed on the 1965 transit 
trade agreement, Kipping said, was for Afghanistan and 
Pakistan to "hammer out their problems."  Germany was ready 
to support moving the process forward in any way it could, 
though it did not believe that outside financial assistance 
was required at this time.  Kipping was pleased the United 
States was not emphasizing "trans-boundary water" at RECCA, 
as the issue had become quite "political," and raising it 
could scuttle the conference.  He also praised U.S. efforts 
in the area of health, saying they were "working well." 
Kipping was unaware if any German businesses planned to 
attend. 
 
¶3. (C) Ruediger Koenig, Head of the Afghanistan/Pakistan Task 
Force, Ministry of Foreign Affairs (MFA), was pleased the 
RECCA meeting would finally take place, as it had been 
"postponed on three or four occasions."  He confirmed that 
BMZ had the substantive lead for RECCA, but added that the 
MFA had been instrumental in getting the EU Commission 
involved, especially in the area of "energy and 
infrastructure."  He understood the "Southeast Asia 
Directors" would also be attending.  Koenig said he would be 
surprised if any German businesses participated, as the 
absence of "state guarantees and security" made Afghanistan 
unattractive for them at the moment.  He also reminded us of 
the German role in establishing the local chamber of commerce. 
 
¶4. (C) Bernhard Schroeder of the Ministry of Economics' North 
Africa and Near East Unit said he was unaware of any German 
businesses planning to participate in RECCA.  He pointed out, 
however, that his Ministry would support a German Near and 
Middle East Association (NUMOV)-organized meeting between 
Afghan President Karzai and German firms in Berlin on May 10. 
 (NOTE: NUMOV encourages trade and investment across the 
region.  With former Chancellor Gerhard Schroeder as its 
honorary chairman, NUMOV recently dismayed the German 
Chancellery and Ministry of Economics by sponsoring a 
business conference attended by the Iranian oil minister. 
The German government had already agreed to cooperate with 
NUMOV on the Karzai meeting before learning of NUMOV,s 
involvement with the Iran conference.)  Separately, Ministry 
of Economics officials told us that Economics Minister 
Karl-Theodor zu Guttenberg was committed to visiting 
Afghanistan, and is seeking a date for the visit in June or 
July. 
 
¶5. (SBU) Cornelia Berg, the German Federation of Industries, 
(BDI's) specialist for Afghanistan, likewise knew of no 
planned participation by German business.  She said BDI had 
not promoted the conference because of security concerns. 
(NOTE: In 2008, German firms exported 267 million euros worth 
of goods to Afghanistan, according to the German government's 
Statistical Office; the biggest categories were heavy trucks, 
 
BERLIN 00000531  002 OF 002 
 
 
machinery and electronics.  Meanwhile, German imports from 
Afghanistan amounted to less than 3 million euros.  Since 
2004, Bundesbank data show only a handful of German 
investments in Afghanistan, each below 500,000 euros.) 
Koenig