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Cablegate: Goi Unofficially Agrees to Immediate Budget

VZCZCXYZ0004
PP RUEHWEB

DE RUEHRO #1323 3361339
ZNR UUUUU ZZH
P 021339Z DEC 09
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 2957

UNCLAS ROME 001323

SENSITIVE
SIPDIS

NEA/IPA FOR ANDREW LENTZ

E.O. 12958: N/A
TAGS: EAID EU IS IT OPDC PGOV PREL WBG
SUBJECT: GOI UNOFFICIALLY AGREES TO IMMEDIATE BUDGET
SUPPORT FOR PALESTINIAN AUTHORITY

REF: STATE 120487

1. (SBU) Summary. The GOI has unofficially agreed to convert
10 million euros of its unobligated Paris pledge into
immediate budget support for the Palestinian Authority. End
summary.

2. (U) On 1 December ECONOFF conveyed Secretary Clinton's
request for immediate budget support for the Palestinian
Authority (reftel) to Counselor Antonello De Riu of the
Directorate General for Development Cooperation (DGCS) of the
Italian Ministry of Foreign Affairs along with the USG
suggestion that Italy convert unobligated funds from their
Paris pledge into immediate support.

3. (SBU) De Riu informed ECONOFF that the DGCS and the
Directorate General for the Mediterranean and Middle East
(DGMM) will present their joint recommendation today to the
Foreign Minister that Italy immediately allocate 10 million
euros towards budget support for the Palestinian Authority.
He stressed that this information was "unofficial" until
their recommendation is officially approved. He added that
they had already begun making this decision upon receipt of
Prime Minister Stoere's request.

4. (SBU) Counselor De Riu mentioned that this decision was
made easier "in these difficult financial times" when funding
for a planned NGO project became available after the
Palestinian Authority refused to allow the project to go
forward. The project was a cooperative venture between
Palestinian and Israeli NGOs aimed at placing Palestinian
children in Israeli hospitals.
THORNE

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