VZCZCXYZ0000
RR RUEHWEB

DE RUEHEG #2669 2411434
ZNY CCCCC ZZH
R 291434Z AUG 07
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 6703
INFO RUEHTV/AMEMBASSY TEL AVIV 1540
RUEHJM/AMCONSUL JERUSALEM 0862
RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RUEKJCS/JOINT STAFF WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC

C O N F I D E N T I A L CAIRO 002669 

SIPDIS 

SIPDIS 

E.O. 12958: DECL: 08/28/2012 
TAGS: PREL EAID EG
SUBJECT: GAMAL MUBARAK ADVISOR DISCUSSES EGYPT'S ASSISTANCE 
PACKAGE 


Classified By: Minister Counselor for Economic and Political 
Affairs William R. Stewart for reasons 1.4(b) and (d). 

¶1. (C) Mohamed Farnawany, senior advisor to Gamal Mubarak, 
told poloff on August 27 that the GOE is not happy that the 
USG never responded to the ESF proposal to create an 
endowment. Poloff reminded Farnawany that the U.S. did 
respond, explaining the difficulties with the concept. 
Farnawany said that Egypt nonetheless feels that the U.S. is 
making assistance decisions unilaterally, without substantive 
engagement with GOE officials, and said Egypt would like to 
discuss the direction of both ESF and FMF. When poloff noted 
that the proposed ten-year FMF package was exactly what Egypt 
requested, Farnawany said MoD concern stems from the decision 
to increase Israel's FMF, thereby moving away from the 3:2 
assistance ratio that previously existed. He noted that the 
"MoD Generals" used to be the USG's "staunchest allies," but 
now "things are different." He said he believes the MoD 
officials want more engagement with U.S. DoD counterparts. 

¶2. (C) Poloff told Farnawany that the current focus on 
Egypt's counter-smuggling efforts will likely continue. The 
advisor said that Egypt needs a new approach with the Hill -- 
a point he said he had raised recently with Ambassador Fahmy. 
He thought that MoD's receptivity to U.S. proposals on 
enhancing border security (particularly technical support and 
training) may be linked to the degree to which MOD perceives 
that the administration is vigorously defending FMF. 
RICCIARDONE