VZCZCXYZ0002
OO RUEHWEB

DE RUEHC #9424 2111338
ZNR UUUUU ZZH
O 301322Z JUL 09
FM SECSTATE WASHDC
TO AMEMBASSY CAIRO IMMEDIATE 2386

UNCLAS STATE 079424 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PHUM EG
SUBJECT: INTERAGENCY LAYS OUT FUTURE EGYPT D&G FUNDING 
PLANS 
 
¶1.  (SBU) SUMMARY:  Acting Director of Foreign Assistance 
(DFA) Rich Greene chaired an interagency roundtable with 
Ambassador Margaret Scobey on July 20 to discuss democracy 
and governance (D&G) funding in Egypt.  There was general 
agreement that $20-25 million per year (about 10 percent of 
appropriated funds) is a proper proportion of D&G programming 
from ESF in FY 2009-2011.  The participants agreed that it is 
important to continue to fund unregistered NGOs and Acting 
DFA Greene concluded that we will need to identify funds 
outside bilateral ESF to maintain funding levels for 
unregistered NGOs in FY 2010 and FY 2011.  END SUMMARY. 
 
¶2.  (SBU) Ambassador Scobey started the discussion by stating 
that our goal should be to demonstrate our values and provide 
support to civil society and jailed dissidents, while 
recognizing that the NDP is likely to remain in power for the 
foreseeable future.  She put D&G funding issues into the 
context of our efforts to resolve points of contention with 
the GOE in the overall ESF program earlier this year, and 
said U.S. policy on D&G issues in Egypt should be 
"supportive, not confrontational." 
 
¶2.  (SBU) Following Ambassador Scobey's opening remarks, 
Acting DFA Greene posed two questions:  what level of D&G 
programming should the U.S. plan for the future, and should 
the U.S. continue the Fiscal Year (FY) 2009 arrangement of 
funding unregistered U.S. and Egyptian NGOs and civil 
companies from resources outside bilateral ESF?  After 
some discussion, there was general agreement that $20-25 
million per year (about 10 percent of appropriated funds) is 
a proper proportion of D&G programming from ESF in FY 
2009-2011.  Acting DFA Greene said it is likely that the U.S. 
will maintain a $25 M D&G level in FY 2011 that includes 
funding for registered civil society organizations.  The 
participants agreed that it is important to continue to fund 
unregistered NGOs, and Acting DFA Greene concluded that we 
will need to identify funds outside bilateral ESF to maintain 
funding levels for unregistered NGOs in FY 2010 and FY 2011 
as this step is crucial to the success of the bilateral 
relationship.  MEPI and DRL, each of which allocated $1.3 
million from FY 2009 funds for unregistered NGOs in Egypt, do 
not have specific allocations for Egypt in their FY 2010 
spending plans, but will seek to maintain the $2.6 million 
total.  MEPI also noted it had requested $1.8 million for FY 
¶2011. 
 
¶3.  (SBU) Acting DFA Greene asked why D&G funding was not 
ramping up ahead of the Egyptian elections in 2010 and 2011. 
Ambassador Scobey replied that Egyptian NGOs have reached 
their absorptive capacity, and some will not accept USG 
funds.  DRL took a different view, noting that DRL's receipt 
of 26 proposals for its $1.3 million in FY 2009 funds 
indicates that there are NGOs ready and able to undertake new 
work in Egypt. 
 
¶4.  (SBU) Ambassador Scobey responded to questions from the 
group about how D&G programming in Egypt could support 
overall assistance and policy objectives.   She stated that 
the broad approach is to ensure that the USG is investing in 
assistance that is visible and making an impact on the lives 
of the Egyptian people and preparing future generations.  She 
indicated a willingness to consider ideas for ways to make 
the D&G portfolio more effective and responsive to current 
priorities.  She will have further discussions on this topic 
with the participants at a later time. 
 
¶5.  (SBU) Participants in the meeting included NEA DAS Maura 
Connelly, DRL DAS Kay Mayfield, NSC Director Prem Kumar, 
NEA/ELA Director Nicole Shampaine, NEA/PI Director Tim 
Andrews, USAID/DCHA Director Dorothy Taft, USAID/MEA Director 
Jane Nandy, and H/RGF David Greene. 
 
¶6.  (SBU) Ambassador Scobey did not clear this cable. 
CLINTON