VZCZCXYZ0000
PP RUEHWEB

DE RUEHUNV #0467/01 2870757
ZNR UUUUU ZZH
P 140757Z OCT 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 0176
INFO RUCNDT/USMISSION USUN NEW YORK 1780
RUEHBJ/AMEMBASSY BEIJING 0941
RUEHEG/AMEMBASSY CAIRO 0258
RUEHIL/AMEMBASSY ISLAMABAD 0323
RUEHMO/AMEMBASSY MOSCOW 1017

UNCLAS UNVIE VIENNA 000467 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KCRM KCOR UN AU
SUBJECT: INL DAS VERVILLE AND BREAKING THE DEADLOCK ON A NEW 
ANTICORRUPTION REVIEW MECHANISM 
 
REF: UNVIE VIENNA 000429 
 
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SUMMARY 
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¶1. In a whirlwind Vienna tour, INL DAS Elizabeth Verville hosted 
several meetings with key delegations in an effort to break the 
deadlock on creating a new anti-corruption review mechanism (reftel) 
for the UN Convention Against Corruption (UNCAC).  In meetings with 
Ambassadors from the key obstructionist countries - China, Russia, 
Pakistan and Egypt- DAS Verville stressed the urgency of adopting 
terms of reference for the new mechanism during the November 9-13 
3rd meeting of the UNCAC Conference of the States Parties (COSP) in 
Doha, Qatar.  After exploring why these countries refuse to join the 
vast majority of States Parties which desire a strong and 
transparent mechanism that would include country visits, publication 
of reports, involvement of civil society and the use of all 
available information during the course of reviews, DAS Verville 
held a meeting with  key "like-minded" governments - Sweden, France, 
Austria, Peru, Mexico, Argentina, and Canada - to coordinate a 
strategy for moving forward in unison and trying to bring the few 
reluctant countries into the fold as the negotiations enter their 
final stages. END SUMMARY 
 
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BREAKING THE DEADLOCK 
---------------------- 
 
¶2. On September 28-29, while in Vienna to chair formal meetings 
related to the UN Convention Against Transnational Organized Crime 
(septel) INL DAS Elizabeth Verville organized a series of meetings 
to attempt to break the deadlock in current negotiations to create a 
new mechanism to review implementation of UNCAC. The meetings helped 
solidify a U.S.-created bloc of "like-minded" countries that are 
trying to identify common negotiating positions.  The meetings also 
sent a clear message to four key reluctant countries - Egypt, 
Pakistan, Russia and China - that failure is not an option when the 
negotiations culminate at the November 9-13 3rd UNCAC COSP in Doha. 
 
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PRODDING RELUCTANT COUNTRIES 
----------------------------- 
 
¶3. DAS Verville first met with Russian Ambassador Alexander 
Zmeyevskiy and highlighted the recent G-20 statement calling for an 
"inclusive, transparent and effective" UNCAC review mechanism.  She 
emphasized the importance of coming to agreement in Doha to the 
credibility of the UNCAC and our international anticorruption 
efforts.  The Russian Ambassador remarked that Russia shared the 
U.S. goal of finalizing terms of reference in Doha for a new peer 
review mechanism, but was concerned about the role of NGO's in the 
work of the mechanism.  Russia was particularly concerned with the 
possibility that some countries might appoint representatives of 
NGO's to represent them on the expert team to review other 
countries.  To preclude having NGO representatives review Russia, 
Moscow was requesting that UNODC maintain a list of experts for each 
country that would participate in reviews.  Ambassador Zmeyevskiy 
also shared Russian concerns about country visits, which, like NGO 
participation, he felt were not commonly found in other treaty 
review mechanisms.  DAS Verville stressed that States Parties had 
long ago committed to developing a constructive mechanism that will 
be useful and not seek to embarrass countries.  Zmeyevskiy and DAS 
Verville agreed to meet at the working level to try to resolve 
differences.  (COMMENT: The ability of countries to appoint NGOs to 
the review teams is particularly important to EU countries. END 
COMMENT) 
 
¶4. In her meeting with Egyptian Ambassador Ehab Fawzy and Counsellor 
Ayman Elgammal, DAS Verville explored Egypt's review mechanism 
concerns.  Elgammal emphasized that his delegation sought to limit 
the participation of NGO's in what they consider an 
intergovernmental peer review mechanism.  While Egypt also wants to 
limit the type of information that would be considered during any 
review (only information provided by the country under review), 
Elgammal noted that one potential compromise would be to omit in the 
terms of reference any discussion on sources of information that 
could be used during the course of reviews. He also reiterated 
Egypt's insistence that the core activities of the mechanism be 
funded via the UN Regular Budget, with possible exceptions for 
technical assistance and country visit activity. DAS Verville noted 
that while their meeting was not a negotiating session, she 
appreciated the frank outline of Egypt's position and hoped the 
dialogue could continue in advance of Doha.  She further highlighted 
the importance of establishing an inclusive, transparent and 
effective review mechanism, which included all sources of 
information, rather than limiting the process to information 
provided by governments.  On the issue of funding, DAS Verville 
 
stressed a practical approach, noting that an increase in the UN 
Regular Budget would not be possible in the short term, given that 
UNODC's Regular Budget request for the biennium 2010-2011 had 
already been submitted to New York.  She also noted that many States 
Parties would come forward with voluntary contributions if the end 
mechanism adopted proved to be inclusive, transparent, and 
effective. 
 
¶5. DAS Verville met on September 29 with Chinese Ambassador Hu 
Xiaodi, Counsellor Chen Peijie and two organized crime experts 
visiting from Bejing, and once again called their attention to the 
pledge of the G-20 to develop an inclusive, transparent and 
effective mechanism.  Given the well established and accepted role 
of civil society in the UNCAC and our anticorruption efforts, DAS 
Verville stressed to the Chinese Ambassador, it would make a 
"mockery" of the UNCAC and our review efforts if we did not find a 
useful way to integrate civil society into our review work. 
Ambassador Xiaodi admitted that he was relatively new in Vienna, but 
knew that countries had been negotiating for some time on the new 
review mechanism. He claimed that China is also committed to 
developing a useful mechanism, but wanted a mechanism where 
governments could feel comfortable in discussing their 
implementation of UNCAC. DAS Verville pointed to the UNCAC Pilot 
Review Program, involving 29 countries, which contained various 
characteristics that China opposed, such as country visits and 
publication of final reports, as an example that States Parties had 
nothing to fear from a transparent review process.  Counsellor Chen 
replied that the pilot program was voluntary, and countries needed 
to be more careful about how to design a mandatory review mechanism 
that would involve all States Parties.  DAS Verville urged China to 
join the large number of countries that want a transparent and 
useful mechanism adopted at Doha. 
 
¶6. In her meeting with Pakistan Ambassador Khurshid Anwar and Third 
Secretary Usman Jadoon, DAS Verville stressed the need for a 
transparent mechanism, which is a key concept behind the fight 
against corruption.  Ambassador Khurshid wondered if state parties 
had time to overcome our differences before Doha; DAS Verville 
opined that it was possible if we shared a "joint vision" for a 
transparent mechanism.  Ambassador Khurshid said that transparency 
is a "good thing," but it was also critical to bring "reluctant" 
countries into the fold.  He noted his work with a Central Asian 
regional mechanism while posted in Tehran, and said that they had 
been able to design something useful that had, at the same time, 
ensured all countries were comfortable with the organization.  He 
further noted the suspicions of NGO's, which are not always 
objective, and felt that we should not give NGO's a disproportionate 
role in the review process.  DAS Verville urged Pakistan to look for 
compromises on the disputed issues in order to maintain the 
credibility of any new review mechanism.  She noted that just that 
morning she had read an article detailing Pakistan's corruption 
problems. Detrimental information that could affect Pakistan's 
standing is already out there, DAV Verville stressed.  This review 
mechanism offers Pakistan a chance for some help. 
 
-------------------------------- 
RALLYING "LIKE-MINDED" COUNTRIES 
-------------------------------- 
 
¶7. On September 29, DAS Verville hosted a lunch with key 
"like-minded" countries: Sweden, Argentina, Canada, France, Peru, 
Mexico, and Austria.  All agreed that, given the complexities of the 
issues, it was crucial to enter Doha with some type of agreement 
among like-minded and reluctant countries.  The like-minded group 
pledged to develop potential credible compromises on the six major 
disputed issues (composition of review teams, sources of 
information, country visits, publication of reports, role of the 
Implementation Review Group, and financing) and to also identify 
redlines on each issue.  Many attendees thanked DAS Verville for 
sending a message to the local ambassadors of the "reluctant" 
countries, as well as for U.S. plans to reach out to these same 
governments in Washington and in capitals.  All agreed that it would 
be important to approach reluctant countries at the highest levels 
in capitals, and to possibly coordinate our in-country demarches. 
 
------------------------------------- 
STRATEGIZING WITH UNODC CHIEF COSTA 
------------------------------------- 
 
¶8. On September 29, DAS Verville and Ambassador Glyn Davies met with 
UNODC Executive Director Costa to demonstrate U.S. commitment to 
developing an UNCAC review mechanism.  In this regard, DAS Verville 
outlined U.S. outreach efforts with reluctant countries, including 
meetings with Vienna-based ambassadors, planned demarches via 
capitals and outreach in Washington.  She also noted the work of the 
like-minded group to develop a possible compromise package.  Costa 
welcomed these efforts and noted that the UN Secretary General was 
contemplating whether he might also write to all governments in 
 
order to stress the importance of adopting a review mechanism in 
Doha.  Costa also raised the specter of potentially calling for a 
vote - something which has yet to be done in the context of 
Vienna-based anti-crime work - and suggested this might be necessary 
in order to reach agreement on a review mechanism.  DAS Verville 
emphasized her reluctance to use this option and to consider it only 
as a last resort, noting that the goal should be to create a 
mechanism that had buy-in from all States Parties. 
 
¶9. On the margins of the meeting, DAS Verville urged Costa to fill 
the vacant D-2 position as Director for the Division of Treaty 
Affairs.  If the position remains vacant for one year (until March 
2010), New York has the option of withdrawing it.  Costa said that 
the position was frozen.  He noted that he "has his pulse" on 
whether New York would withdraw the position and indicated he would 
take action to prevent this from occurring. 
 
 
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COMMENTS 
--------- 
 
¶10. We are heartened by the close cooperation exhibited by a large 
group of like-minded countries, and the progress in developing joint 
compromises and strategies.  DAS Verville apparently was the first 
senior diplomat to approach China, Russia, Egypt and Pakistan at the 
ambassadorial level in Vienna on the topic of the mechanism; she was 
able to send a strong message about the urgent need to reach 
agreement in Doha.  However, we remain concerned that, with little 
time until Doha, reluctant countries continue to advocate for a 
review mechanism that lacks critical elements of transparency (no 
site visits, limits on information that can be used during reviews, 
and elimination of any role for civil society) and feel that the 
like-minded countries areare not addressing their concerns.  Six 
informal negotiation sessions have been scheduled in Vienna prior to 
November, and we will continue to work closely with the like-minded 
countries to develop viable compromises that do not adversely affect 
the integrity or transparency of any new review mechanism.  At the 
same time, we will reach out in capitals and in Washington to China, 
Russia, Egypt and Pakistan, and will coordinate with Sweden (EU 
chair) and other like-minded countries during the course of our 
outreach, as well as working with the interagency, to take advantage 
of other high-level opportunities to make the point that it is in 
all state parties' interest to have a strong and transparent review 
mechanism. END COMMENTS 
 
DAVIES