VZCZCXRO8250
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #1392/01 1531101
ZNR UUUUU ZZH
P 021101Z JUN 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 9209
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0807
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEABND/DEA HQS WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBU/AMEMBASSY BUENOS AIRES 0087

UNCLAS SECTION 01 OF 02 KABUL 001392 
 
DEPT FOR SRAP, SCA/FO, SCA/RA, AND SCA/A 
DEPT PASS FOR AID/ANE 
DEPT PASS USTR FOR DELANEY AND DEANGELIS 
DEPT PASS OPIC 
DEPT PASS FOR TDA FOR STEIN AND GREENIP 
USOECD FOR ENERGY ATTACHE 
CENTCOM FOR CSTC-A 
NSC FOR JWOOD 
TREASURY FOR MHIRSON, ABAUKOL, AWELLER, AND MNUGENT 
COMMERCE FOR HAMROCK-MANN, DEES, AND FONOVICH 
 
SENSITIVE 
 
SIPDIS 
 
E.O.  12958: N/A 
TAGS: ETRD EINV EFIN EAID AF
SUBJECT: AMBASSADOR MEETS MOCI, DISCUSSES TRADE, CORRUPTION 
 
ROZS, TRADE, CAPACITY BUILDING, CORRUPTION TOP MOCI AGENDA 
 
¶1. (SBU) Ambassador Eikenberry, accompanied by Deputy ECOUNS note 
taker, met with Minister of Commerce and Industry (MOCI) Wahidulla 
Sharani for a courtesy call on May 28.  Sharani briefed the 
Ambassador on Afghan thinking on Reconstruction Opportunity Zones 
(ROZs), WTO accession the status of Afghan-Pakistani Transit Trade 
Agreement (APTA) discussions, and the need for technical assistance 
within the MOCI.  Sharani was receptive to the Ambassador's comments 
on invigorating "Afghan First" procurement polices, as well as the 
need to tackle corruption both within MOCI and in Afghanistan in 
general.  The meeting was both cordial and informative, and the 
Minister and Ambassador agreed to stay in close contact as movement 
on ROZs in particular progressed.  In addition, Sharani's take on 
corruption at the Ministry were followed by a more informal but no 
less telling general discussion of government corruption between the 
Ambassador and local bazaar vendors in a surprise stop on Darulaman 
Road.  While not a scientific survey, the "everyman" view from the 
bazaar of the Afghan government nonetheless made clear that 
corruption was foremost on the minds of at least this small sampling 
of the Afghan electorate. 
 
AFGHANS ANXIOUS FOR PROGRESS ON ROZ LEGISLATION 
 
¶2. (SBU) Sharani began the meeting with a briefing on his recent 
meetings in Washington on ROZs.  He noted that his meetings with 
Congress, State, USTR and Commerce were helpful, but that he hopes 
to see movement forward on the legislation soon.  Sharani said that 
GIRoA has already identified six sites for ROZs: Kandahar, Khost, 
Jalalabad, Kunduz, Parwan, and Herat.  (NOTE: Upcoming SEPTEL will 
inform Washington of Embassy views on ROZs and how best to achieve 
fast results. End Note) 
 
¶3. (SBU) The Ambassador noted USG support for ROZ legislation and 
the efforts of State and other cabinet agencies to press Congress to 
pass the legislation.  The Ambassador also emphasized the positive 
role ROZs can play in the counter-insurgency campaign and for their 
consideration in integrated civ-mil plans. 
 
¶4. (SBU) Sharani said that the U.S military could be helpful in 
working to develop facilities at Hairatan, Toragundi, and Sher Khan 
Bandar as part of an overall export-oriented trade development 
strategy. 
 
WTO ACCESSION, ROZ IMPLEMENTATION RELY ON CAPACITY BUILDING... 
 
¶5. (SBU) Sharani said his conversations in Washington with State and 
USAID focused on a USAID-funded project to support trade policy 
capacity building within MOCI.  Sharani said that the Memorandum for 
Foreign Trade Regime (MFTR), a major first step toward gaining WTO 
membership, would be submitted in Geneva next week.  He said GIRoA 
has assembled a team of all government stakeholders to work on 
accession.  At the same time, he noted that the human capacity of 
MOCI to deal with these increasingly complex trade issues was 
lacking, and urged the Ambassador to shake loose approval for the 
USAID Trade Assistance (TAFA) program. Sharani also emphasized the 
role of the private sector in development and lauded efforts by the 
Department of Commerce in Washington to establish a business 
roundtable discussion.  The Ambassador told Sharani that he recently 
met the CEO of Pepsi who expressed interest in investing in 
Afghanistan. 
 
. . . BUT APTA IS MAIN CONCERN 
 
¶6. (SBU) Sharani quickly turned the discussion to APTA negotiations 
with Pakistan.  He said the key issues for Afghanistan boiled down 
to two: overland access for Afghan goods through the Wagha Border, 
and choice of Freight Forwarders for access to India.  He said 
technical barriers and standards issues were not a major concern, 
but emphasized that, especially because of the upcoming summer fruit 
harvest, both of these issues are of the utmost importance.  Sharani 
said that Afghanistan possesses a comparative advantage in carpets, 
agricultural products, gems, and marble, and that successful 
conclusion of the APTA was crucial for these sectors. 
 
KABUL 00001392  002 OF 002 
 
 
 
¶7. (SBU) The Ambassador noted his support not only for technical 
assistance to the Ministry, but also for successful conclusion of 
the APTA negotiations by the ambitious December 31 deadline.  He 
suggested that it may be helpful to host both the Afghan and 
Pakistani negotiating teams for a reception at his residence when 
the next round of talks takes place at the end of June. 
 
CORRUPTION ON EVERYONE'S MIND. . . 
 
¶8. (SBU) Sharani concluded the meeting by noting his personal 
efforts to reform the Fuel and Liquid Gas Enterprise (FLGE), the 
MOCI-related entity that was a source of numerous complaints by 
USFOR-A and ISAF logistics, due in large part to the shakedown 
perpetrated by the former head of the FLGE, Engineer Rozi.  Sharani 
said Rozi was gone and that FLGE was well on its way to functioning 
as a privatized entity. 
 
¶9. (SBU) The Ambassador noted that corruption was not only 
inhibiting the functioning of the Afghan government, but could even 
be seen as fueling the insurgency.  He stressed that good governance 
was paramount to ensuring the continued support of the Afghan people 
for GIRoA and defeating anti-government militants. 
. . . ESPECIALLY THE AVERAGE CITIZEN, VOTER 
 
¶10. (SBU) This importance of the corruption issue was emphasized 
when the Ambassador made an impromptu stop at a local bazaar on 
Darulaman Road on the way back to the Embassy.  The Ambassador spoke 
with several local vendors and shopkeepers, all of whom noted with 
varying degrees of excitement corruption as the real enemy of the 
Afghan people.  The Ambassador asked pointed questions about the 
opinion of Afghans of coalition and especially U.S. forces, and most 
responses - sometimes reluctantly - admitted that foreign donors had 
done a lot to assist Afghanistan.  The real message however, was 
that corruption among Afghan government officials and the siphoning 
off of dollars to political cronies made a number of good faith 
donor efforts amount to naught. 
 
EIKENBERRY