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UNCLAS SECTION 01 OF 03 STATE 128592 
 
FROM COORDINATOR FOR RECONSTRUCTION AND SIPDIS 
STABILIZATION JOHN E. HERBST 
 
E.O. 12958: N/A 
TAGS: KCRS PREL PGOV EAID
SUBJECT: GUIDANCE FOR FY 10 SECTION 1207 PROCESS 
 
STATE 00128592  001.2 OF 003 
 
 
¶1. (U) The Office of the Coordinator for 
Reconstruction and Stabilization (S/CRS) is 
pleased to inform posts of $100 million in 
Section 1207 funding authorized in FY 2010 for 
reconstruction and stabilization projects.  The 
purpose of this message is to provide guidance 
on the Section 1207 process for FY10. End 
Summary. 
 
1207 Goals and Principles 
------------------------- 
 
¶2. (U) Since FY06, the Office of the Coordinator 
for Reconstruction and Stabilization (S/CRS), in 
coordination with the Office of the Director of 
U.S. Foreign Assistance (F), USAID and DOD, has 
administered Section 1207 funds.  The 1207 
authority allows DOD to transfer funds to State 
to provide immediate reconstruction, security, 
or stabilization assistance to a foreign country 
for the purpose of restoring or maintaining 
peace and security in that country. 
 
¶3. (U) Based on this authorization and further 
refined and informed by conference language and 
briefings with the State and Defense 
Congressional oversight and appropriations 
committees plus four years of considered 1207 
project selection processes, the 1207 
interagency review committee has established 
these principles to determine the 
appropriateness and eligibility of a country for 
1207 funding: 
 
a)      Countries/regions should demonstrate a high or 
escalating risk of conflict or instability, 
neglect of which could impact U.S. national 
security and policy interests. 
 
b)      Countries/regions will be selected based on 
inter-agency consensus that providing 1207 
resources can address root causes of conflict 
and instability or strengthen local sources of 
resilience, thereby diminishing the 
probability of U.S. military intervention, 
reducing possible stress on U.S. forces or 
decreasing the space for activities that may 
threaten U.S. national security. 
 
c)      Activities will only be funded if they address 
urgent or emergent issues and could not, 
therefore, be considered for funding through 
the normal annual foreign assistance budget 
request or appropriations process. 
 
d)      Programs should reflect a whole-of-government 
perspective following wide consultation in the 
field and in Washington. 
 
e)      Countries/regions selected should face urgent 
or emergent risks or threats or immediate 
reconstruction and stabilization emergencies 
that can be measurably impacted through the 
allocation of a one-time injection of 1207 
funds. 
 
f)      Projects should be designed to leverage host 
government and local contributions and 
participation where possible and appropriate. 
 
 
Identifying Countries 
--------------------- 
 
¶4. (U) For the FY10 process, S/CRS will work 
with the interagency 1207 Review Committee and 
DAS-level 1207 Selection Committee (both 
committees have representatives from S/CRS, F, 
USAID, OSD, and Joint Staff) to identify by 
 
STATE 00128592  002.2 OF 003 
 
 
early January a list of countries that will be 
invited to submit 1207 proposals.  Those 
Embassies will be contacted by S/CRS directly to 
inform them of this decision.  Identification of 
a country does not guarantee 1207 funding; this 
is dependent on the needs of the country, the 
continued interest of the Embassy and 
implementing bureaus, and available funds.  This 
process will also be informed by an on-going 
series of S/CRS hosted informal discussions with 
State and USAID regional and functional bureaus, 
DOD's OSD and Combatant Commands to identify a 
targeted group of countries most appropriate for 
conflict prevention and stabilization efforts, 
including consideration for 1207 funds. 
 
¶5. (U) While we expect to spend most of the 1207 
funds on identified countries, we want to 
maintain sufficient flexibility to respond to 
evolving crises or otherwise overlooked 
stabilization needs.  Therefore, Embassies which 
believe they are good candidates for 1207 
funding, but are not included in this list, 
should be in touch with their regional bureau 
POC (see para 12) and S/CRS to discuss options 
for proposing their own project.  Combatant 
Commands which believe they have good candidate 
countries that are not on the list should 
contact the Joint Staff (J5) to discuss options 
for proposing their own projects. 
 
Engagement with Embassies 
------------------------- 
 
¶6. (U) Our goal is to help Embassies submit the 
strongest possible proposals, consistent with 
the goals of the legislation.  Once targeted 
countries are identified, S/CRS staff will offer 
to work with Embassies in these countries to 
develop a whole-of-government approach to 
address an evolving crisis or root causes of 
instability.  Upon request, we will help these 
embassies develop a crisis prevention strategy 
and aid in the development of relevant projects 
consistent with 1207 principles for funding from 
the $100 million authorized in FY 2010.  Posts 
are strongly encouraged to share draft proposals 
with their S/CRS point of contact, who will then 
consult with relevant interagency stakeholders 
and provide timely review and comment. 
 
¶7. (U) S/CRS strongly recommends that, as a 
first step in this engagement, Embassies work 
with S/CRS to organize an Interagency Conflict 
Assessment Framework (ICAF) analysis, either at 
post or in Washington, to identify key issues 
promoting or constraining instability and to 
locate gaps in current prevention efforts [NOTE: 
For further background on the ICAF, please go to 
www.crs.state.gov, and click on "key issues" and 
then click on "ICAF"]. 
 
¶8. (U) For DOD, Combatant Commands will 
prioritize proposals and make recommendations 
through the Joint Staff (J5) for consideration 
by the Chief of Mission. 
 
Review Process 
-------------- 
 
¶9. (U) Once proposals are finalized, and 
formally submitted to S/CRS by the Chief of 
Mission and approved by the relevant State 
regional bureau Assistant Secretary, S/CRS will 
convene the interagency 1207 Review Committee to 
recommend projects to the DAS-level 1207 
Selection Committee for funding (both committees 
have representatives from S/CRS, F, USAID, OSD 
and Joint Staff). S/CRS will then recommend 
approved projects through the Director of 
Foreign Assistance (F)to the Secretary of State 
for DOD funding.  Funding is subject to 
availability and, when conditions warrant, could 
 
STATE 00128592  003.2 OF 003 
 
 
be reallocated by the Secretary of State, with 
Secretary of Defense concurrence, for security, 
stabilization, and reconstruction crises. 
 
Proposed Time Line 
------------------ 
 
¶10. (U) Project review and funding will be done 
on a rolling basis, so all applications will be 
evaluated for funding as they are finalized. 
Applications will not be accepted after April 
16, and we intend to finalize all project 
recommendations by June 1.  Depending upon how 
quickly awards are approved, funds should be 
available between June and September. 
 
1207 Funds for Crisis Response 
------------------------------ 
 
¶11. (U) 1207 funds are to be used to respond to 
immediate security, stabilization, or 
reconstruction crises that cannot wait for the 
normal budget cycle (but generally not for 
humanitarian crises, which have their own 
contingency funds).  Such crises will normally 
be identified by senior State, USAID or DOD 
leadership.  1207 funds may also be used for 
program support following the mobilization of 
the Civilian Response Corps of S/CRS, USAID and 
other agencies for crisis deployments and for 
related security, stabilization, and 
reconstruction programs. 
 
POCs 
---- 
 
¶12. (U) For further information on the 1207 
program, please e-mail SCRS1207@state.gov or 
contact Claire Sneed (SneedCD@state.gov or 703- 
875-6723).  Each State regional bureau has a 
point of contact who can help post further 
understand the program.  They are: AF/RSA: Julie 
Chalfin; EUR/ACE: Mike Litwinowicz and Dan 
Froman; NEA/RA: William Huggins; SCA/RA: Aisha 
Sabar; WHA/PPC: Jenna Ben-Yehuda; EAP/RSP: Kim 
Archea.  Please keep your regional bureau POC 
informed of all correspondence with S/CRS.  For 
Combatant Commands, please contact Lt Col Glenn 
Roettger, Joint Staff J-5, at 
Glenn.Roettger@js.pentagon.mil.  For USAID, 
please contact Melissa Brown in COO at 
MEBrown@USAID.gov. 
 
Further Information 
-------------------- 
 
¶13. (U)Copies of the FY10 1207 Guiding 
Principles, an outline of the process, and other 
information is available at www.crs.state.gov. 
From the S/CRS home page, click on "key issues" 
and then click on "1207 Resources." 
 
¶14.  Minimize Considered 
CLINTON