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Cablegate: Pecdar

VZCZCXYZ0006
RR RUEHWEB

DE RUCNDT #1029 3111421
ZNR UUUUU ZZH
R 061421Z NOV 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 5301
INFO RUEHKO/AMEMBASSY TOKYO 8591

UNCLAS USUN NEW YORK 001029

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: UNDP PREL PGOV JA KWBG
SUBJECT: PECDAR

REF: STATE 116601

1. (SBU) Legoff met with Mr. Nakamura at the Japanese
Mission on November 4 and delivered the points contained in
Reftel. Nakamura said that the United Nations Development
Program (UNDP) had requested that Japan reach out to the
United States through diplomatic channels to try to
facilitate a resolution of the PECDAR matter related to the
status of the proceeds of Japan's grant of approximately $1.8
million through UNDP to the Palestinian Economic Council for
Development and Reconstruction (PECDAR). Nakamura said that
the primary responsibility should be on UNDP and the United
Nations, and that UNDP should make a claim for "its own
funds." Nakamura said that this matter seemed very complex
and that there did not appear to be a "button" that can be
pushed to resolve it.

2. (SBU) In response to Legoff's query regarding Japan's
intentions, Nakamura said that (1) the project at issue was
not yet terminated; (2) Japan plans to terminate the project;
and (3) Japan will ask UNDP to refund the $1.8 million. UNDP
is not yet aware of Japan's intentions.
Khalilzad

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