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Cablegate: Further World Food Program Discussions With

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ROME 002371

SIPDIS

FROM US MISSION TO THE UN AGENCIES IN ROME

STATE FOR A/S PRM DEWEY, MCKELVEY AND KNUDSON, NEA/ENA, A/S
IO HOLMES AND IO/EDA BERHEND AND KOTOK
USAID/W FOR ADMINISTRATOR NATSIOS, D/A SCHIECK, AA/DCHA
WINTER, AA/AFR ACTING, DCHA/D/FFP LANDIS, DCHA/OFDA OWENS
USMISSION GENEVA FOR AMBASSADOR MOLEY AND USAID/KYLOH
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER
USUN FOR TAMLYN AND MLUTZ
NSC FOR JDWORKEN AND AFRICA DIRECTORATE

E.O. 12958: N/A
TAGS: PREF EAID ELTN XA CD SU WFP
SUBJECT: Further World Food Program Discussions with
Libya on Opening New Transportation Corridors through
Libya to Darfur and Eastern Chad

REF: (A) ROME 001781 (B) N'DJAMENA 599, (C) ROME 001677

Sensitive but unclassified. Please protect accordingly.
-------
Summary
-------

1. (SBU) WFP received a letter dated June 14 from Mohamed
Fakheri El-Kreikshi, Director-General of the Economic
Department, regarding the agreement of the Libyan Arab
Jamahiriya with WFP's request for a waiver for all taxes and
fees applicable to WFP cargo in transit. Libya's letter
seeks confirmation of WFP's acceptance of revised (and
lower) transport rates being offered by the Al-Khofrah
Transport Union and the Benghazi Transport Union related to
shipment of WFP commodities from Libyan ports to
destinations in Chad and Sudan. WFP, in their response dated
June 17, remarked favorably on the revised, more competitive
rates being offered and confirmed its "intention to work
with the Government of Libya and the Transport Union of Al-
Khofrah for commodity movements from the port of Benghazi to
destinations in Chad and Sudan," and requested further
confirmation from Libyan port authorities on the breakdown
of costs for stevedoring and storage as required. WFP's next
step is to send a trial shipment soonest to Benghazi port to
test the system and, if this is successful, consider the
next formal step of negotiating a basic country agreement.
End summary.

2. (U) USUN-Rome's Humanitarian Attache Tim Lavelle met on
June 17 with WFP's Director of Transport and Logistics,
David Morton, and Gerard Rebello, a logistics officer who
was part of the team that visited Libya April 13-20. The
team's mission was to assess the possibility of opening new
surface transport corridors through Libya for the delivery
of humanitarian assistance to populations affected by the
current conflict in the Darfur region of western Sudan and
to Sudanese refugees in eastern Chad, in order to complement
existing delivery corridors to the affected regions through
Douala (Cameroon), and Port Sudan.

3. (SBU) WFP confirmed receipt of a translation of a letter
dated June 14 from Mr. Fakheri El-Kreikshi, Director-General
of Libya's Economic Department, in the General People's
Committee for Foreign Liaison and International Economic
Cooperation, informing of the agreement of the Libyan Arab
Jamahiriya to WFP's request for a waiver of all taxes and
fees applicable to WFP cargo in transit. The letter seeks
confirmation of WFP's acceptance of revised (and lower)
transport rates being offered by the Al- Khofrah Transport
Union and the Benghazi Transport Union related to transport
of WFP commodities from Libyan ports to destinations in Chad
and Sudan.

4. (SBU) WFP, in a response letter dated June 17, 2004,
remarked favorably on the revised, more competitive rates
being offered and confirmed its "intention to work with the
Government of Libya and the Transport Union of Al-Khofrah
for commodity movements from the port of Benghazi to
destinations in Chad and Sudan." WFP has requested further
confirmation from Libyan port authorities on the breakdown
of costs for stevedoring and storage as required. Note.
Copies of both letters have been faxed to Richard Owens,
DCHA/OFDA. End note.

5. (SBU) As per Morton, WFP's immediate plan is to send a
trial shipment soonest to Benghazi port to test the system
and, if this is successful, consider the next formal step of
negotiating a basic country agreement. Receipt of the trial
shipment would involve posting a WFP port officer in
Benghazi and a logistics team in Libya to ride with/track
the shipment from the port to the final destination.

6. (SBU) Finally, regarding recognition of Libya's
contributions, WFP would like to receive directly whatever
funds the Government of Libya would make available to
internally subsidize transport, shipping and handling rates.
Seven percent would be added to this amount as an indirect
support cost (ISC) fee which WFP charges to all donors, as
part of full cost recovery. This would permit WFP to record
in its books the full value of the Libyan donation. If the
Libyan government rejects this solution and payment of the
seven percent ISC, WFP policy would not allow them to credit
the donation and the Government of Libya would have the
administrative burden of paying the various actors directly.
This will have to be negotiated further and is hence not
addressed in the WFP reply letter.

----------------------------
Comment from Ambassador Hall
----------------------------

7. (SBU) With the rainy season now upon us, this corridor
presents a good option, particularly for reaching the
refugee populations in eastern Chad. WFP is committed to
moving quickly yet prudently as they sail into Libya's
"uncharted" waters. I will continue working with WFP and the
Libyan Ambassador in Rome to promote a swift and successful
outcome to these negotiations.

8. Khartoum minimize considered. Cleverley


NNNN
2004ROME02371 - Classification: UNCLASSIFIED

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