VZCZCXRO3041
RR RUEHIK
DE RUEHBS #0063/01 0201423
ZNR UUUUU ZZH
R 201423Z JAN 10 ZDK
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIL/AMEMBASSY ISLAMABAD
RUEHBUL/AMEMBASSY KABUL

UNCLAS SECTION 01 OF 02 BRUSSELS 000063 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PREL EUN PK
SUBJECT: DEPUTY ASSISTANT SECRETARY JONES DISCUSSES 
PAKISTAN ASSISTANCE WITH EUROPEAN COMMISSION 
 
REF: 2009 BRUSSELS USEU 1480 
 
BRUSSELS 00000063  001.2 OF 002 
 
 
 This message is sensitive, but unclassified.  Please protect 
accordingly. 
 
¶1.  (SBU) EUR Deputy Assistant Secretary Stuart Jones met 
with the European Commission's Director of Asia and Oceania 
James Moran January 12 to discuss assistance to Pakistan. 
Moran stated the European Commission is deepening its 
commitment to Pakistan by increasing its assistance, holding 
a EU-Pakistan summit in the first half of 2010, and including 
it in its high-level Action Plan for Afghanistan and Pakistan 
(reftel).  Specific sectors of interest to the European Union 
include education, the civil service, and energy, but Moran 
reported significant security and protection worries for 
European Union diplomats in Pakistan are hindering the 
EU-Pakistan relationship.  Moran and Jones agreed that 
enhanced upstream coordination on Pakistan assistance would 
be positive. 
 
¶2.  (SBU)  Moran noted baseline European Commission 
assistance is rising sharply.  In April 2009, the Commission 
pledged 485 million euros to Pakistan for 2009-2013.  In 
2009, 150 million euros were disbursed, approximately three 
times prior amounts.  Out of this, 50 million euros were for 
a food facility and the other funds were primarily 
development assistance and humanitarian aid for the Malakand 
strategy.  Additionally, the Commission will be raising the 
annual development assistance budget to 75 million euros 
(from a previous 50 million euros).  This fund increase is 
part of the mid-cycle review of the European Commission's 
five-year development budget, which covers 2008-2013.  In 
addition the EC is making a significant increase in its 
Afghanistant assistance budget, from 150 million euros 
annually to 200 million euros annually.  Together, 
Afghanistan and Pakistan now account for 41 percent of the 
Asia budget.  Moran reported that after this increase, the 
development budget for Pakistan and Afghanistan will be 
"fixed in stone" through 2013.  Any additional increases 
would require moving resources from another regional area to 
the Asia budget (which is typically not part of the mid-cycle 
review, but theoretically possible) and would likely happen 
only on direction from High Representative Catherine Ashton, 
with co-approval by the European Council (i.e., member 
states) and the European Parliament.  Moran opined that SRAP 
Holbrooke or other senior government officials may want to 
raise this issue directly with Ashton. 
 
¶3.  (SBU)  On specific programs, Moran noted the European 
Commission has some direct budget support to Pakistan in the 
field of education, through the UN, but the most recent 
tranches of funding have been delayed because Pakistan has 
not met the benchmark conditions.  Additionally, the EC has a 
capacity-building and curriculum development program planned 
with the central Ministry of Education, but the program 
remains a highly sensitive issue for the government of 
Pakistan.  Additionally, there is a planned program in the 
North-West Frontier Province (NWFP), but security problems 
there have stymied its roll-out.  Additionally, the European 
Commission has budgeted funding for some small rural 
development projects on civil service training.  Moran noted 
all of these programs have been affected by security and 
access problems, particularly in the NWFP.  Additionally, 
accountability and output remain a concern. 
 
¶4.  (SBU)  Moran said the European Commission's primary role 
in the field of energy comes in the form of a 
one-million-euro European Investment Bank (EIB) loan for 
renewable energy.  Moran noted the Commission's development 
budget is not designed for heavy infrastructure projects; 
thus, the EIB was better suited to fund projects in this 
area.  He thought it unlikely the European Commission would 
become involved in further energy projects in Pakistan unless 
the EIB is willing to invest more in this sector.  However, 
the EIB has reached the end of its Asia mandate and funding 
which provided the 100-million-euro loan.  The EIB is looking 
at an additional Asia mandate and would likely partner with 
the Asian Development Fund in future projects in the region. 
 
¶5.  (SBU)  Moran said that security is a major concern for 
the European Union delegation in Islamabad.  The delegation 
had hired a private Pakistan security company who provided 
perimeter security for the compound and also provided the gun 
licenses for Western-contracted guards who provided close 
protection for the delegation members.  Approximately two 
months ago, however, the license was revoked by the Pakistan 
authorities, who said it was not in order.  As a result, the 
delegation is currently lacking a significant element of 
their security plan.  Moran noted the European Union would be 
 
BRUSSELS 00000063  002.2 OF 002 
 
 
willing to increase the size of its delegation in Pakistan 
from its current 50 people (of whom 13-14 are expatriates), 
but they are stymied by the security problems. 
 
¶6.  (SBU)  Jones and Moran agreed that closer cooperation on 
development assistance to Pakistan would benefit both the 
United States and the European Union.  In addition to 
Islamabad-level coordination, Jones noted closer coordination 
on funding and projects between Washington and Brussels could 
enhance the international efforts.  Jones noted a visit to 
Brussels by Ambassador Robin Raphel, who coordinates U.S. 
non-military assistance to Pakistan, may allow for more 
specific information sharing.  Moran said he would warmly 
welcome such a visit, and invited increased coordination on 
international assistance to Pakistan. 
 
¶7. (U)  DAS Jones has cleard this message. 
 
KENNARD 
.