VZCZCXRO8029
PP RUEHDBU RUEHPW RUEHSL
DE RUEHBUL #4210/01 3641305
ZNR UUUUU ZZH
P 301305Z DEC 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 4375
INFO RUEHLO/AMEMBASSY LONDON 3903
RUCNAFG/AFGHANISTAN COLLECTIVE

UNCLAS SECTION 01 OF 02 KABUL 004210 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID EFIN ECON PREL AF
SUBJECT:  AFGHAN FINANCE MINISTER DISCUSSES LONDON CONFERENCE 
PREPARATIONS AND OTHER TOPICS 
 
¶1. (SBU) Summary:  Afghan Minister of Finance Omar Zakhilwal 
explained his understanding of Afghan preparations for the January 
28-29 London Conference to Coordinating Director of Development and 
Economic Assistance Ambassador E. Anthony Wayne and Embassy Staff 
December 29, and invited Embassy assistance in preparing development 
documents for the conference.  Zakhilwal said he was comfortable 
with the general direction of preparations but indicated that the 
Afghans are still working hard to coordinate and one of his key 
advisors said they are very concerned that the British are pushing 
too hard for specific development commitments at London. The advisor 
said that these commitments are more apt for the subsequent Kabul 
conference in March or April.  Ambassador Wayne indicated our 
support for a well-prepared Kabul conference to address development 
issues with more specifics, rather than trying to rush for London. 
In a separate meeting on December 30, Afghan Foreign Minister Spanta 
told Deputy Ambassador Ricciardone that the Turkish government was 
organizing a January 25 Trilateral with the Afghan and Pakistan 
sides and a January 26 "regional summit" in Istanbul prior to 
London, both attended by President Karzai and aiming to address the 
same broad themes (reported septel).  END SUMMARY. 
 
¶2. (SBU) During a December 29 office call, which also discussed 
reforming USG salary support for Afghan officials in the office of 
the Presidency and several ministries (septel), Finance Minister 
Zakhilwal said that Afghan Government (GIRoA) preparations for the 
London Conference are going well despite the short time frame and 
the ongoing confirmation process for all cabinet members. 
 
PAPERS FOR LONDON CONFERENCE 
 
¶3. (SBU) The Afghan Government is preparing a number of documents 
for the London Conference being prepared by different ministries. 
Defense Minister Wardak and Interior Minister Atmar are preparing a 
paper on security topics.  This is currently a 4-5 page paper with a 
description of the current situation, timelines and goals for 
transition and discussion of commitments that both Afghans and 
partners should make.  Zakhilwal said he has the lead on development 
and governance papers covering aid and development.  The MFA is 
holding a meeting with the UK Embassy and Afghan Ministers on 
December 30.  In a separate meeting Foreign Minister Spanta 
indicated that he would provide a readout a day or two later of that 
meeting and Afghan goals. 
 
¶4. (SBU) The Finance Ministry is preparing two documents for London. 
 The first document explains the concept of creating clusters of 
ministries with a lead ministry/minister in each cluster and talks 
about the need to focus assistance and capacity building on the 
eight ministries that handle 80% of the development budget.  The 
second paper, on aid effectiveness, focuses on pressing donors to 
deliver more assistance through the Afghan Government.  Because 
donors doubt GIRoA's technical capacity to receive and utilize USG 
funds, Zakhilwal will include a capacity building plan.  This plan 
aims to utilize the U.S. and multi-donor funded Afghanistan Civilian 
Technical Assistance Plan (CTAP) to increase the capacity of GIRoA 
ministries.  Ambassador Wayne welcomed the idea of additional 
funding through GIRoA, but stressed the need to show that funds can 
be handled effectively and transparently.  He mentioned the 
Congressional notification language which Congress included in the 
2010 budget for any money going directly to the Afghan government. 
Zakhilwal said he welcomed such language as a way to press for 
needed reforms.  Ambassador Wayne asked that USAID-Afghanistan share 
this language with the Ministry of Finance. 
 
¶5. (SBU) Zakhilwal said he has also prepared a paper on 
corruption/service delivery for which he hopes the High Office of 
Oversight (HOO) will take ownership and present as an 
anti-corruption/good governance initiative in London.  The paper 
will identify key public services which currently offer big 
opportunities for corruption and which can be turned around with 
capacity building and assistance.  He said he hopes the HOO can take 
his draft ideas and add enforcement as part of a larger 
anti-corruption package. 
 
¶6. (SBU) The Foreign Affairs Ministry is taking the lead on regional 
cooperation.  (Though Zakhilwal did not mention it, it's understood 
that the Palace is also preparing a paper on 
reconciliation/reintegration.)  In a separate meeting on December 
30, Foreign Minister Spanta told Ambassador Ricciardone and 
Political Counselor Pforzheimer that they would press for a 
"Preparatory Committee" to be formed after London to work out the 
exact content of the Kabul conference, which is where we would 
properly get into details of economic development and governance. 
 
U.S. HELPING GIROA GET READY FOR LONDON 
 
¶7. (SBU) Minister Zakhiwal expressed concern for getting the 
information prepared in time for the January 28 London Conference. 
He reported that the documents are too long and the GIRoA offices 
are challenged by the efforts to shorten them.  The Minister asked 
for USG review and assistance with the documents his ministry is 
 
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preparing.  Ambassador Wayne responded positively to this, 
suggesting that his office and USAID team up to provide such 
assistance in reviewing the draft documents. 
 
¶8. (SBU) One of Zakhilwal's close advisors added that the Ministry 
is very concerned that the British are pushing too hard for specific 
development outcomes in London.  She said that there is not enough 
time to do the work needed to do that before London, noting that 
ministers are still going through the confirmation process in Kabul. 
 Echoing Foreign Minister Spanta's views, she said that it would 
also make more sense to develop specifics on development, governance 
and aid for the Kabul conference planned for March or April. 
Ambassador Wayne said he agreed that the goal for London on 
development and governance should be to set broad goals and 
directions and then specifics including benchmarks should be 
developed in the weeks following for the Kabul conference. 
 
¶9. (SBU) Ambassador Wayne also indicated that the World Bank staff 
was on track to issue its judgment of Afghanistan's new mining 
regulations in early January, which is the last remaining benchmark 
for being granted HIPIC (Highly Indebted Poor Country) debt relief. 
While the World Bank may not be able to conduct a board meeting on 
HIPC before the London Conference, he said he was still hopeful that 
a means might be found to give a positive signal in time for the 
conference as Zakhilwal had previously requested.  The Ambassador 
and Minister agreed to remain in close touch on this and other 
issues. 
 
¶10. (U) SEPTELs will report discussion on other issues, including 
steps to reform significantly existing programs that have provided 
salary supplements to select Afghan officials and Turkish government 
plans to host a January 25 Trilateral with the Afghan and Pakistan 
sides and a January 26 "regional summit" in Istanbul prior to 
London, both attended by President Karzai and aiming to address the 
same broad themes. 
 
RICCIARDONE