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Cablegate: Visit of Afghan Commerce Minister Farhang: Need for Active

VZCZCXRO3161
OO RUEHDBU RUEHIK RUEHYG
DE RUEHBUL #5237/01 3020322
ZNR UUUUU ZZH
O 290322Z OCT 06
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3780
RUCPDC/USDOC WASHDC
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0188
RHEHAAA/NSC WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUCNAFG/AFGHANISTAN COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEHEG/AMEMBASSY CAIRO 0176
RUEHAM/AMEMBASSY AMMAN 0200

UNCLAS SECTION 01 OF 02 KABUL 005237

SIPDIS

SENSITIVE, SIPDIS

DEPT FOR EB/TPP DAS CHRIS MOORE and EB/TPP/BTA/ANA:MBGOODMAN
DEPT FOR SCA FRONT OFFICE (DAS GASTRIGHT) AND SCA/A
DEPT PASS AID/ANE
DEPT PASS USTR FOR HARTWICK, KLEIN, AND GERBER
USDOC FOR SHAMROCK AND DFONOVICH
TREASURY PASS TO ANDY BAUKOL
NSC FOR AHARRIMAN
OSD FOR BRZEZINSKI

E.O. 12958:N/A
TAGS: ECON ETRD EINV AF
SUBJECT: VISIT OF AFGHAN COMMERCE MINISTER FARHANG: NEED FOR ACTIVE
GOA ENGAGEMENT ON THE PRESIDENT'S RECONSTRUCTION OPPORTUNITY ZONE
INITIATIVE

KABUL 00005237 001.2 OF 002


(U) This cable contains SENSITIVE BUT UNCLASSIFIED INFORMATION,
Please protect accordingly. Not for INTERNET DISTRIBUTION.

1. (SBU) SUMMARY: Economic Counselor twice in the past week raised
with Minister of Commerce and Industries Farhang the need for active
GoA engagement on the President's Reconstruction Opportunity Zone
initiative. Econcouns reported that the AID-funded U.S. ROZ study
team was completing the final draft of its report and would be
presenting conclusions to the U.S. interagency team the week of
10/23. The Minister, who had met at length with the study team in
late September, confirmed that his Ministry intends to take the lead
role within the GoA in developing ROZ policy and recommendations.
Minister Farhang's travel the week of October 28, to Washington
presents a great opportunity for USG interlocutors to engage him
further on ROZs and other critical commercial policy and business
development issues. Septel will address a range of other key
economic policy areas where we can usefully engage the Minister.
END SUMMARY.

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2. (SBU) Econcouns used meeting with Minister of Commerce and
Industries M. Amin Farhang on October 17 to press for more vigorous
GoA engagement on President Bush's Reconstruction Opportunity Zone
initiative with Afghanistan and Pakistan. Farhang was accompanied
by his new senior adviser, Mohammed Shah Hachemi. Econcouns
reported that the AID-funded U.S. ROZ study team was completing the
final draft of its report and would be presenting conclusions to the
U.S. interagency team the week of 10/23. The Minister, who had met
at length with the study team in late September, confirmed that his
Ministry intends to take the lead role within the GoA in developing
ROZ policy and recommendations. With release of the report,
Econcouns elaborated that Washington will be very eager for Afghan
perspectives and timely input into the ROZ policy process.
Furthermore, ROZs could be expected to feature on the Prosperity
Working Group agenda for the upcoming Strategic Partnership
session.

3. (SBU) Econcouns again raised our interest in identifying a
principal GoA point of contact with whom to liaise as the ROZ
initiative moves forward. The Ministry also needed to play a lead
role in developing GoA positions on the ROZ initiative, and engaging
other appropriate GoA Ministries (e.g., Finance/Investment Support
Agency), including on consideration of product selection and ROZ
location within Afghanistan. In response, Farhang asked his senior
adviser, Mohammed Shah Hachemi to take on this contact point role.
Additionally, we reiterated Washington's offer to arrange a possible
Afghan-Pakistani delegation for a study/visit to either Egypt and/or
Jordan to better understand how the ROZ model has functioned, and
how similar benefits could be derived from the ROZ initiative with
Afghanistan and Pakistan. We proposed that Farhang's Ministry take
the lead with us in organizing the proposed study/visit, and use it
as a means to engage interagency involvement and coordination on ROZ
policy. The Minister agreed that MoCI might reach out to other key
GoA Ministries that could usefully participate. We also raised the
possibility of including one or two private sector representatives.


4. (SBU) Subsequently, Econcouns and Deputy spoke to the Minister
and Hachemi again on 10/19. Pursuant to our earlier conversation,
Hachemi reported that he just had organized an internal MoCI meeting
to begin to address issues raised related to ROZ policy and
preparations for the Minister's trip. Hachemi, who departed Kabul
in advance of Minister Farhang, indicated that he would accompany
the Minister to DC and expected to participate in his bilateral
meetings.

5. (SBU) Comment: Embassy is in contact with embassy Islamabad to
explore prospects for making the ROZ study/visit a joint

KABUL 00005237 002.2 OF 002


Afghan-Pakistani activity. AID Kabul has confirmed its ability to
fund and support arrangements for Afghan participants, but would not
be able to fund Pakistani representatives. This was our third
meeting with Farhang since he took office in late August, in which
we have prominently raised our eagerness to work together closely to
advance the ROZ initiative. He was also one of four GoA Ministers
briefed extensively by the ROZ team, and has continued to express
interest and a desire to work with us on this initiative.
Nonetheless, his recent assumption of this Ministerial portfolio and
focus on a range of other pressing economic policy matters has to
date made him and his Ministry a rather tentative partner on ROZs.
We strongly recommend that Washington agencies use their meetings
with Minister Farhang to our desire to work closely and press for
stronger MoCI leadership in developing Afghan policy interests and
recommendations on development of ROZs. Septel will address a range
of other critical economic policy areas where we can usefully engage
the Minister.

NEUMANN

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