VZCZCXYZ0082
PP RUEHWEB

DE RUEHEG #2402/01 3641521
ZNR UUUUU ZZH
P 301521Z DEC 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC PRIORITY 4606
INFO RHEHNSC/NSC WASHDC
RHEHAAA/WHITE HOUSE WASHDC

UNCLAS CAIRO 002402 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR NEA/RA, NEA/ELA, OES/STC (WILLIAM LAWRENCE) 
WHITE HOUSE FOR OSTP (JASON RAO) 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KPAO OVIP EG
SUBJECT: SCENE SETTER FOR SCIENCE ENVOY ZEWAIL 
 
Sensitive but Unclassified.  Please handle accordingly. 
 
1.(SBU) Dr. Zewail, we warmly welcome you back to Egypt.  Working 
successfully with the Egyptian government on science and technology 
cooperation is an important component to our bilateral relationship. 
Your inaugural visit as science envoy will enable the U.S. to 
highlight this collaboration and discuss ways to bolster our science 
programming in Egypt as well as reach out to young science students 
and graduates, a key goal raised by President Obama during his June 
speech in Cairo.  We have requested meetings for you with President 
Mubarak, Prime Minister Nazif, Minister of Trade Rachid Rachid, 
Minister of Defense Field Marshall Mohamed Hussein Tantawi, Minister 
of Telecommunications Tarek Kamel, and Minister of Higher Education 
Hany Hilal. 
 
--------------- 
S&T COOPERATION 
--------------- 
 
¶2. (SBU) The U.S.-Egypt Science and Technology Cooperation Fund 
established in 1995 and administered in Cairo by the Egyptian 
government and USAID and in Washington by the Department of State, 
NSF, and USDA, has long been the Department's most active and 
productive bilateral science account.  The $4 million annual fund 
(presently at $2 million from each side) has awarded grants for over 
420 funded scientific collaborations between American scientists and 
their Egyptian counterparts and over 60 workshops, with topics 
ranging from renewable energy to astrophysics, to combating neonatal 
jaundice.  In addition, the fund supports the junior scientist 
development program which provides grants for short-term training 
for Egyptian researchers traveling to U.S. institutions and for 
Americans to visit Egyptian organizations. More than 100 scientists 
have participated in the program. There is interest on both sides to 
expand the fund and we hope to increase our contribution from 
economic support fund assistance given to Egypt. 
--------------- 
SCIENCE SCHOOLS 
--------------- 
 
¶3. (SBU) USAID, in cooperation with the Egyptian Ministry of 
Education, is currently designing a "Science Schools" program to 
increase student interest, participation, and achievement in 
mathematics and science while also raising the quality of teaching 
through expanded professional development opportunities for 
mathematics and science teachers.  The program will identify 
existing schools at the 7-12 grade level as centers of excellence to 
provide gifted learners with pathways to develop the skills needed 
to pursue accelerated study in science and mathematics.   The 
program will also establish effective collaborations between these 
newly established science programs in Egypt and similar programs in 
the US.  The project will support the Ministry of Education in 
improving the curriculum standards for science and mathematics 
education in accordance with international standards.  The design 
phase of this program is expected to be completed in three months. 
 
---------------- 
RENEWABLE ENERGY 
---------------- 
 
¶4. (SBU) The Egyptian government has set a target for 20% of Egypt's 
electricity consumption to be generated by renewable energy 
resources by the year 2020.  12% is expected to come from wind power 
(which translates into the addition of approximately 7,200 megawatts 
of grid-connected wind farms over the period), 8% from hydro-power, 
and nominal contributions from other renewable energy resources. The 
U.S. has played an important role in developing Egypt's renewable 
energy sector, having contributed to the creation of the Ministry of 
Electricity's New and Renewable Energy Authority in the 1980s, and 
continues to offer technical assistance to the government. 
 
--------------- 
REGIONAL ISSUES 
--------------- 
¶5. (SBU) Egypt is a key strategic partner on critical regional 
issues, most prominently the Israeli-Palestinian conflict.  Egypt 
supports a two-state approach but is concerned that negotiations 
will remain stalled due to Israeli settlement activity and weakened 
Palestinian Authority leadership.  Currently, Egyptian efforts are 
focused on brokering reconciliation among Palestinian factions, 
including Fatah and Hamas, in a manner that addresses Egyptian 
security concerns and would allow for an eventual return of the PA 
to Gaza.  Egypt continues to maintain a low-profile but effective 
strategic relationship with Israel on security issues, and remains 
concerned about Iran's regional activity, including in Lebanon, 
Yemen and Sudan.  Egypt is keenly attuned to the situation in Sudan, 
given its strategic interest in Nile water flows. 
------------------ 
INTERNAL POLITICS 
------------------ 
 
¶6. (SBU) Egyptians are currently focused on the 2010 parliamentary 
and 2011 presidential elections.  The press, politicians and 
activists are engaged in a public debate over issues such as 
succession, international monitoring, and voter registration. 
Former head of the International Atomic Energy Agency Mohammed 
El-Baradei's public comments that he would consider running against 
Mubarak in 2011 if certain constitutional reforms were enacted has 
generated a great deal of interest.  The question of succession is 
also a much-debated topic, with many observers speculating over 
whether President Mubarak's son Gamal will become president in the 
future.  Succession is a highly sensitive issue and we continue to 
make clear that, while the U.S. government supports free and fair 
elections, the question of succession is ultimately one for 
Egyptians to decide. 
 
------- 
ECONOMY 
------- 
 
¶7. (SBU) Egypt continues to suffer from widespread poverty affecting 
35-40% of its population, particularly in rural areas and Upper 
Egypt.  Economic reform has stalled while policy-makers attempt to 
digest problems of high inflation and the global economic crisis. 
Egypt was somewhat spared the early effects of the global credit 
crunch since Egyptian banks operate conservatively.  However, the 
effects of the global economic crisis have slowed GDP growth to an 
annual 3-4% rate.  Exports, Suez Canal revenues, tourism and 
expatriate remittances - Egypt's largest sources of revenue - have 
all dropped significantly in the past year. 
 
----- 
TRADE 
----- 
¶8. (SBU) Egyptian-U.S. trade has more than doubled over the past 
four years, reaching almost $9 billion in 2008.  The U.S. exports to 
Egypt about twice as much as it imports, and Egypt has become the 
seventh largest market for U.S. agricultural exports.  Egyptian 
exports to the U.S. are dominated by textiles, which enjoy generous 
trade preferences under the QIZ grogram.  Minister of Trade and 
Industry Rachid Rachid has said he hopes to increase U.S.-Egypt 
bilateral trade to $16 billion by 2013.  Minister Rachid and U.S. 
Trade Representative Ambassador Ron Kirk agreed to a new trade 
dialogue under the rubric "U.S.-Egypt Strategic Economic 
Partnership" in May 2009. 
Scobey