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FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC PRIORITY 1108
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHKA/AMEMBASSY DHAKA 2253
RUEHIL/AMEMBASSY ISLAMABAD 9275
RUEHKT/AMEMBASSY KATHMANDU 7530
RUEHLO/AMEMBASSY LONDON 5365
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RUEHNY/AMEMBASSY OSLO 5290
RUEHOT/AMEMBASSY OTTAWA 0151
RUEHSM/AMEMBASSY STOCKHOLM 0818
RUEHKO/AMEMBASSY TOKYO 4412
RUEHCG/AMCONSUL CHENNAI 9836
RUEHBI/AMCONSUL MUMBAI 7125
RUEHON/AMCONSUL TORONTO 0146
RHEFDIA/DIA WASHINGTON DC
RUEHGV/USMISSION GENEVA 3988
RHHMUNA/HQ USPACOM HONOLULU HI
RUEHBS/USEU BRUSSELS
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 04 COLOMBO 000026 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PREF PHUM PTER EAID MOPS ECON EFIN
SUBJECT: MALDIVES ASSISTANCE OVERVIEW: U.S. AND OTHER DONORS 
 
REF: A) COLOMBO 936 B) COLOMBO 1144 
 
COLOMBO 00000026  001.6 OF 004 
 
 
¶1. (U) SUMMARY: The United States and Maldives have enjoyed a 
friendly and expanding relationship. U.S. efforts were instrumental 
in the successful conclusion of negotiations between Maldives and 
IMF, with the IMF approving in December 2009 a stand-by arrangement 
and related program worth a combined 92 million USD for Maldives. 
President Obama also signed in December 2009 a proclamation 
reinstating Maldives as a beneficiary to the Generalized System of 
Preferences (GSP). The Trade and Investment Framework Agreement 
(TIFA) between the United States and Maldives signed in October 2009 
aims to examine ways to enhance bilateral trade and investment. 
 
¶2. (U) In the areas of military defense and law enforcement, the 
United States has extended significant assistance to Maldives with 
President Obama signing a determination in September 2009 that made 
Maldives eligible to receive U.S. defense articles and services. In 
the areas of democratization, human rights, education and drug 
prevention, the Embassy has extended continuing and regular 
assistance through international visitors and educational programs, 
visits and lectures from U.S. experts, and civic and good governance 
programs. In the aftermath of the 2004 tsunami, the United States 
extended 12 million USD to Maldives for relief and reconstruction 
efforts. Maldives also has a host of development partners that 
continue to provide assistance. On December 16, 2009, Ambassador 
Patricia Butenis convened a Friends of Maldives Meeting to discuss 
development partnership engagement in Maldives and prospective 
future assistance plans. END SUMMARY. 
 
UNITED STATES ASSISTANCE TO MALDIVES 
------------------------------------ 
¶3. (U) Per reftel A, President Mohamed Nasheed outlined an ambitious 
program of economic, social and political development that includes 
pledges for affordable cost of living, low-cost housing, drug-abuse 
reduction, introduction of a health care plan, and establishment of 
a nationwide transport system.  The GOM has stated to Post that is 
seeking assistance in consolidating and deepening democracy, 
budget/fiscal management, climate change adaptation, social service 
improvements and military defense and enforcement. The GOM has 
insisted that it does not want handouts but rather seeks technical 
assistance and help in finding free market solutions to its 
problems. U.S. assistance to the GOM in the aforementioned areas is 
as follows: 
 
¶4. (U) Economy, Fiscal Management and Trade 
 
-- Current and Ongoing Programs: In December 2009, President Obama 
signed a proclamation reinstating Maldives as a GSP beneficiary. The 
Maldives will be eligible to export nearly 3,500 products to the 
United States duty-free, which would assist in advancing economic 
development in the country. With support from the U.S., IMF approved 
a USD 92 million loan for Maldives, which would assist the GOM in 
tackling its large fiscal and external imbalances. The U.S.-Maldives 
TIFA agreement signed in October 2009 provides opportunities for 
enhanced bilateral and trade investment. The first TIFA council 
meeting is scheduled for spring 2010 in Washington. The Maldives 
Economic Minister is expected to be accompanied by a Maldivian 
business delegation. Post is working with Treasury to fulfill the 
Maldives Ministry of Finance's request to provide a TDY official in 
Male to help design new revenue taxes. Post has asked the GOM for 
additional information on expertise required, and logistical and 
operational arrangements. Post is also coordinating with Treasury on 
developing a proposal requested by the GOM for implementation of a 
business profit tax. 
 
-- Proposals/Future Programs: Maldives has been selected for 200,000 
USD in global financial crisis support funds to provide technical 
assistance to support the GOM's efforts to establish a government 
bond market.  This assistance will be managed by USAID/Sri Lanka. 
Per reftel B, Post has requested an annual program for Maldives of 
10 million USD in Economic Support Funds for three years beginning 
FY 2010. The MCC did not accept new threshold members in 2009, but 
 
COLOMBO 00000026  002.3 OF 004 
 
 
Post plans to advocate for the GOM for future acceptance into the 
MCC threshold program. Post is also working with Treasury to sponsor 
a regional counter terrorism financing conference in March or April, 
which will examine how to develop effective sanction regimes and 
strengthen the expertise of South Asian financial intelligence 
units. 
 
¶5. (SBU) Military Defense 
 
-- Current and Ongoing Programs: Regular high-level visits, USN ship 
visits, expert exchanges, conferences, Joint-Combined Exercise 
Trainings (JCETs), U.S. service academy scholarships, trainings, and 
seminars on counter-terrorism, drug trafficking, maritime security, 
disaster management and crisis response.  The number of JCETs is 
expected to increase this year.  Funding for IMET courses which 
include Intelligence, Special Forces, and basic and captain career 
courses for Maldivian military officers has increased every year. 
The determination made by President Obama in September 2009 
recognizes that Maldives is a valued strategic partner to whom the 
United States is willing to provide equipment in defense of our 
shared national interests. 
 
-- Proposals/Future Programs: Post plans to seek additional IMET and 
Foreign Military Financing (FMF) to professionalize the Maldives 
National Defense Force (MNDF). No FMF was allocated for Maldives in 
FY 2011. Current IMET funding levels limit U.S. security assistance 
to the tactical level. Post has requested 3.4 million USD in 1206 
funding that would provide training, equipment and intelligence 
support to increase GOM capacity to conduct counter-terrorism 
operations. The request is currently under review at PACOM and OSD. 
Post is working on an information sharing agreement between the 
United States and the GOM and trainings on Vessel Board Search and 
Seizure (VBSS), and maritime security. The Joint Interagency Task 
Force West (JIATF West) is developing a plan to extend assistance to 
the GOM in areas of border security, interdiction of narcotics 
traffic and transnational crime.  The draft plan calls for a broad 
approach to providing assessments, training, and some equipment to 
security forces, including the MNDF. JIATF West support, with DOD 
funding would enable U.S. agencies such as DHS, DEA, FBI and others 
to provide more robust assistance. Post has requested an assessment 
of Maldivian Coast Guard and Customs boat maintenance capabilities, 
and as required, provision for a Small Craft Maintenance Training 
Team (SCMTT). STATE/PM will look into the GOM's interest in GPOI 
operations to see if there might be any benefit for them becoming a 
GPOI partner. 
 
¶6. (U) Law Enforcement 
 
-- Current and Ongoing Programs: ICE provides training in narcotics 
interdiction and fraud document recognition, capacity building, 
investigative support and information sharing under the Customs 
Mutual Assistance Agreement entered into by ICE and CBP with the 
GOM. The FBI enjoys an outstanding relationship with the Maldives 
Police Service (MPS). The DEA New Delhi Country office covers 
Maldives and coordinates directly with the MPS on narcotics matters 
and any request for assistance. DS Office of Antiterrorism 
Assistance Programs (DS/ATA) provided pilot courses on Underwater 
Explosives Incidents Response and Vital Infrastructure Security in 
FY 09. 
 
-- Proposals/Future Programs: Post has requested an assessment of 
infrastructure improvements for Maldivian Security and LE Forces 
with priority on establishing a biometric identification system for 
the Department of Immigration, as requested by the GOM, and an air 
and sea port interdiction program for Maldivian Customs, Police and 
Coast Guard. ICE is working with JIATF-West and the DAO on a 
proposal to provide training and maritime security assessments for 
Maldives Customs, Coast Guard and Maritime Police on fraudulent 
document detection, bulk cash smuggling and cash couriers, money 
laundering, trafficking-in-persons and human smuggling, basic drug 
enforcement, criminal investigative intelligence and biometrics, 
border enforcement and airport passenger analysis. DS/ATA is looking 
 
COLOMBO 00000026  003.3 OF 004 
 
 
into the possibility of reprogramming funds to enable more ATA 
training in the future. 
 
¶7. (U) Climate Change Adaptation 
 
-- Current and Ongoing Programs: USAID currently has a team in 
Maldives to assess ways in which the 2004 tsunami can provide clues 
on sea-level rise and adaptation. 
 
-- Proposals/Future Programs: State as well as USAID will have FY 
2010 funds for climate change adaptation and mitigation programs 
that Maldives should be able to benefit from. SCA plans to 
coordinate with OES on climate project proposals for Maldives. 
State, NOAA, and others are working to provide a ten-day intensive 
training seminar in the Maldives this year on coastal management and 
global climate change. The U.S. Navy has also offered to conduct an 
oceanographic study for Maldives. 
 
¶8. (U) Drug Prevention/Treatment 
 
-- Current and Ongoing Programs: In 2009, Post provided 50,000 USD 
to NGOs and GOM institutions that support after care services for 
recovering drug addicts.  The program aims to improve the capacity 
of after-care counseling and support services to create a cycle of 
treatment that if successful can be used as a best practice model. 
 
-- Proposals/Future Programs: State/INL is funding efforts to 
understand why so many drug addicts in the Maldives are committing 
suicide - as many as 30 in the past three years.  The team will be 
traveling to Maldives early this year. State/INL has strong programs 
in drug rehabilitation for prisoners. State/EEB may also have some 
funding for public outreach programs. 
 
¶9. (U) Democratization/Human Rights/Education/Cultural Preservation 
 
-- Current and Ongoing Programs: Annually, Post sends Maldivians to 
the United States under the International Visitors Leadership (IVLP) 
and Fulbright programs. Maldives currently is allocated five grants 
under the IVLP and Post has requested an increase in the number or 
Maldivian participants. These programs provide intensive exposure to 
current best practices in the U.S. in a variety of fields and 
topics. Post also regularly sends U.S. speakers to Maldives on 
topics including fiscal policy and civil issues such as the role of 
women, family violence, and drug use.  Post plans to continue 
providing experts on these and related topics this year. Post has a 
DVC facility located at the American Corner in the National Library 
in Male through which lectures on a number of topics are transmitted 
from Colombo and the United States. Post recently funded a new 
computer-assisted English program at the American Corner and the 
English Language Fellow from Post regularly visits to improve 
English teaching in the schools. The Ambassador's Fund for Cultural 
Preservation provides grants for the preservation of objects and 
sites of national importance.  Maldives has an ongoing grant for the 
preservation of the site of an old Buddhist monastery on Kashidhoo. 
Post has received a number of Maldivian proposals for next year. 
Grants average about USD 40,000. 
 
-- Proposals/Future Programs: Under the 2011 MSP, Post requested USD 
2 million for judicial reform and civil society programs, including 
modernizing legal training of lawyers, streamlining judicial 
procedures, case-management training for court officials, and 
encouraging civic education and citizen participation. DRL would 
consider ideas and likely have some resources from its worldwide 
budget to develop programs for deepening Maldivian democracy. 
 
¶10. (U) Post-tsunami Recovery Program 
 
-- In response to the 2004 tsunami, U.S. Congress allocated 12 
million USD for relief and reconstruction assistance for Maldives. 
Relief programs worth 1.3 million USD were concluded within the six 
months following the tsunami. For longer term reconstruction, State 
awarded Maldives an 8.6 million USD grant for construction of a 
 
COLOMBO 00000026  004.12 OF 004 
 
 
harbor and breakwater, upgrading of sewage systems, repair of power 
systems, and assistance to the Ministry of Finance to improve its 
public accounting. Most of these projects have already been 
completed. USAID/Sri Lanka provided a 1.9 million USD grant to 
install water desalination plants, help build local capacity, and 
improve health care services. 
 
¶11. (U) Other Proposals/Future Programs 
 
-- To deepen United States engagement and Post's contact network and 
relationships with the GOM, the embassy is looking into hiring a 
public affairs specialist in Male and a Maldivian Political and 
Economic Specialist that will be based at the embassy in Colombo. 
 
ASSISTANCE PROVIDED BY OTHER DEVELOPMENT PARTNERS 
--------------------------------------------- ---- 
¶12. (U) On December 16, 2009, Ambassador Butenis convened a Friends 
of Maldives Meeting in preparation for a donor conference that 
Maldives is planning to hold in March. It was attended by financial 
institutions such as the International Monetary Fund (IMF), the 
Asian Development Bank (ADB) and the World Bank. IMF and ADB 
recently granted 127 million USD in loans to the GOM in support of 
reform initiatives that seek to correct fiscal imbalances and 
restore economic growth.  In 2008 and 2009, the Bank extended 
financing to the GOM totaling 24.6 million USD for pension and 
social protection administration, environmental management, and 
mobile banking services. 
 
¶13. (U) Other development partners in attendance were Australia, the 
European Union, Japan, Germany, Norway, The Netherlands, the U.K. 
and the UNDP, all of whom have contributed to tsunami recovery 
efforts. These development partners have continued to extend 
assistance to the GOM through loans, grants, and technical 
assistance in areas that include democratic governance capacity 
building, infrastructure development, food-aid, environmental 
protection, and climate change mitigation. 
 
¶14. (U) Based on the GOM's public database and media reports, other 
countries such as China, India, Kuwait, Saudi, and the U.A.E. have 
increasingly extended loans and grants for infrastructure and 
utilities development, and improvements in the health and education 
sectors. The World Health Organization (WHO) provides ongoing 
assistance for health sector development. 
 
¶15. (U) A matrix outlining other donors' assistance is available 
from Post upon request. POC is Political Specialist Mary Anne Green, 
email: greenma@state.gov 
 
FOWLER