VZCZCXYZ0012
OO RUEHWEB

DE RUEHC #4991 3101928
ZNR UUUUU ZZH
O 061924Z NOV 09
FM SECSTATE WASHDC
TO AMEMBASSY CAIRO IMMEDIATE 3922

UNCLAS STATE 114991 
 
SIPDIS, SENSITIVE 
 
E.O. 12958: N/A 
TAGS: OPDC PREL EAID PHUM EG
SUBJECT: RESPONSE FROM SECRETARY CLINTON TO FOREIGN 
MINISTER AHMED ABOUL GHEIT ON AN ENDOWMENT 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. Please deliver the following message from Secretary 
Clinton to Foreign Minister Ahmed Aboul Gheit.  There 
will be no signed original. 
 
¶2.  Begin text: 
 
Dear Mr. Minister: 
 
Thank you for your letter on the U.S. economic 
assistance program in Egypt.  I assure you that we 
continue to support the idea of an endowment that 
perpetuates our mutual, cooperative efforts to advance 
economic and social development in Egypt.  My staff is 
currently working to develop the details of a 
counterproposal to present to Egypt.  We look forward to 
entering into a formal dialogue on the endowment once we 
have finalized our proposal and consulted our Congress. 
 
Any fund would at first be relatively modest, run by a 
non-profit corporation, with limited focus on a few 
priority themes such as education.  Although the 
eventual U.S. proposal may differ from Egypt's proposal 
in terms of initial size, institutional structure, and 
technical details, we have commonalities in other areas. 
We hope we can work with you to reach agreement on an 
instrument that reflects both our countries' interests. 
It continues to be the United States' desire to maintain 
a positive bilateral relationship with Egypt, in which 
we address our differences via consultations and 
negotiations.  As I mentioned above, we will need to 
consult with Congress about the endowment to ensure its 
success. 
 
I also understand that, despite our joint interests, we 
have not yet reached agreement on a portfolio of 
programs for the $50 million in FY 2009 supplemental 
funds prioritized for Sinai.  In the August 2009 
discussions between USAID and the Minister of 
International Cooperation, I understand that Egypt 
expressed a preference to eliminate U.S. involvement in 
these development programs.  A letter will be sent this 
week from the USAID Director to the Minister of 
International Cooperation with options for the use of 
these funds that we believe meet the requirements of our 
governments. 
 
Let me reiterate that development in Sinai is very 
closely tied to our mutual goal of ending smuggling and 
trafficking between Gaza and the Sinai.  The United 
States has a clear interest in projects that directly 
increase employment opportunities in agriculture, 
fisheries, technical education, and micro- and small- 
business development.  Although I agree that it is 
helpful for the Government of Egypt to take a prominent 
and visible ownership role in these economic development 
activities, I also strongly encourage you to lean 
heavily on USAID's technical expertise to implement 
these programs.  I believe USAID's robust involvement, 
direction, and support to these programs will be 
essential to their success. 
 
This issue has the attention of many in the United 
States Congress, and we will need to demonstrate that 
our active partnership with Egypt in northern Sinai is 
leading to the timely implementation of programs 
designed to increase economic opportunities for the 
residents of this region. 
I urge the Egyptian government to consider seriously 
USAID's expertise as an asset in our mutual efforts to 
improve the northern Sinai economy.  I believe our 
partnership on this issue will go a long way to cement 
the positive progress we have made in our bilateral 
relationship and further engender good will with the 
U.S. Congress. 
 
Sincerely yours, 
 
Hillary Rodham Clinton 
 
END TEXT. 
CLINTON