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Cablegate: Czech Republic: Soliciting Potential Contributions

VZCZCXRO6194
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPG #0637 2751549
ZNR UUUUU ZZH
R 011549Z OCT 08
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC 0726
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHPS/AMEMBASSY PRISTINA 0045

UNCLAS PRAGUE 000637

SENSITIVE
SIPDIS

DEPT FOR EUR/ACE AND EUR/CE

E.O. 12958: N/A
TAGS: EAID EFIN EINV PREL EZ
SUBJECT: CZECH REPUBLIC: SOLICITING POTENTIAL CONTRIBUTIONS
TO KOSOVO DEBT RELIEF TRUST FUND

REF: A. SECSTATE 101356
B. PRAGUE 584
C. PRAGUE 524
D. PRAGUE 416
E. PRAGUE 312

(U) This cable is sensitive but unclassified. Please protect
accordingly.

1. (SBU) We delivered reftel demarche September 30 to MFA
South and South East Europe Officer Josef Zrzavecky and MFA
Development Officer Jana Korbelova. Zrzavecky confirmed that
the Czechs pledged four million Euros over four years at the
July 11 Kosovo Donors' Conference (one million per year). Of
the one million pledged for this year, 500,000 Euros is going
to the World Bank Trust Fund for Social and Economic
Development. The Czechs also plan to donate half of their
remaining pledge (i.e. 500,000 Euros annually) to this fund
for each of the remaining three years, but may adjust these
plans if conditions warrant. Zrzavecky reported that the
Czechs are not planning to contribute to the World Bank
Kosovo Debt Relief Trust Fund at this time as they believe
debt repayment to be less of a pressing need. They are
doubtful that Serbia will agree soon to the level of Kosovo's
debt, as to do so would be an acknowledgment of Kosovo's
sovereignty.

2. (SBU) Zrzavecky stressed Czech frustration that, two
months after the Donors' Conference, the World Bank had yet
to operationalize its two funds. He asked for USG support to
push the World Bank to get these funds up and running. He
also reaffirmed Czech support for World Bank and IMF
membership for Kosovo.
Graber

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