Cable Viewer

Currently released so far... 12439 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AORC AMGT APER AU AF AS ACBAQ AFGHANISTAN AFIN AR AE AMED AEMR AJ ADANA AG ATRN ADPM APECO AGAO AX AM AL ADCO AA AECL AADP ABUD AMEX ACAO ANET AODE ASCH AY APEC AID AORG ASEAN AFSI AFSN AINF AGR AROC AO AFFAIRS ASIG ABLD ASUP AND ARM ARF AC AQ ATFN ACOA ADM AUC AGMT AMBASSADOR AMG ACABQ ASEX AFU AER ALOW AZ APCS AVERY AN AGRICULTURE AORL ASECKFRDCVISKIRFPHUMSMIGEG AMCHAMS AIT ACS
BR BA BD BL BTIO BO BF BU BEXP BX BILAT BRUSSELS BK BN BM BT BY BIDEN BG BH BB BE BP BC BBSR BTIU BWC BMGT
CH CY CA CU CS CO CVIS CPAS CMGT CE COUNTER CASC CR COUNTRY CJAN COUNTERTERRORISM CBW CNARC CG CI CWC CB CD CDC CIDA CJUS CDG CBSA CEUDA CM CLMT CAC CODEL COPUOS CIC CW CBE CHR CFED CT CONS CIA CTM CVR CF CLINTON CSW CITEL CLEARANCE COE CN CACM CDB CACS CBC CARICOM CAN CONDOLEEZZA CV CITT COM CKGR CARSON CROS CAPC CTR CL CICTE CIS
DR DHS DEA DTRA DA DJ DPRK DEPT DO DOMESTIC DAO DCM DE DK DEAX DOE DS DEFENSE DISENGAGEMENT DOD
ECON EFIN ELAB ETRD EIND EC EINV EAGR ENRG ETTC EAID EPET ELTN EWWT EAIR EFIS EMIN EG EU ER EUN EPA ENVI EXTERNAL ECPS ENGR ETRC ECIN EN ES ELN ET EI EFINECONCS EINT ETRDEINVTINTCS ETRDEINVECINPGOVCS EZ ETRO EDU ETRN EFIM EFTA EAIG EK EUREM EURN ECONCS ECONOMICS ENVR ELECTIONS EAP ERD ENIV ECONOMY ESA EINN ECONOMIC EIAR EXBS ECA ECUN EINDETRD EUR EREL ENGY EAIDS ENERG EINVEFIN EUC EINVETC EUMEM EINVECONSENVCSJA ESENV ETRA ECONEFIN ETC ECIP ENNP ERNG ETRDECONWTOCS EUNCH ECINECONCS EXIM EEPET
FR FREEDOM FTA FJ FARC FI FTAA FAC FBI FOREIGN FOI FDA FM FAO FAS FINR FOR FINANCE FMLN FO FISO
GM GV GOI GT GY GOV GL GAERC GH GG GA GR GF GCC GE GZ GTIP GANGS GERARD GLOBAL GAZA GTMO
HA HK HR HUMAN HO HU HILLARY HUMOR HI HURI HEBRON HSTC HYMPSK
IR IS IZ IAEA IO IAHRC ID IPR IC IT IRAQI IWC IN IRS IL ISLAMISTS IV ICAO INDO ITPHUM ITPGOV ITALIAN ICRC INTERPOL IQ IMO IBET INR ITRA INTERNAL ICJ INMARSAT ICTY IMF ILO INRA INRO ISRAELI IEA INRB ITALY IRC ITU IACI IBRD IIP IRAJ ILC INTELSAT IDA ICTR IA IZPREL IGAD IF IEFIN IDP ITF ISRAEL
JA JUS JP JO JOSEPH JM JAMES JOHNNIE JOHN
KN KCRM KOMC KNNPMNUC KIPR KPAL KWBG KSCA KFRD KNNP KUNR KTIP KWMN KSTC KFLU KOLY KISL KPAO KMDR KJUS KDEM KS KSTH KCOR KIRF KAWC KU KTFN KWAC KNPP KERG KSEO KACT KHLS KPRP KTDB KZ KFLO KBIO KGHG KTIA KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KCRCM KE KOCI KPKO KHDP KIFR KCIP KDRG KRVC KVPR KV KMPI KCFC KIDE KICC KSUM KGIT KCFE KG KBTS KSEP KGIC KPAI KHSA KTLA KTEX KFSC KPLS KHIV KCSY KSAC KTRD KID KMRS KOM KSAF KR KMOC KNAR KIRC KBCT KSPR KFIN KBTR KJUST KNEI KAWK KGCC KMCA KREL KMFO KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFTFN KICA KVRP KCOM KO KLIG KPIN KAID KRAD KSCI KESS KDEV KVIR KCRS KTBT KCGC KNSD KOMS KRIM KMIG KTER KDDG KPRV KRFD KHUM KREC KWMNCS KSEC KPOA KWWMN KX KCMR KPWR KCHG KRGY KPAK KWMM KRCM KWNM KPAONZ KNUC KDEMAF KNUP
LY LE LO LG LH LI LTTE LAB LOG LA LABOR LT LU
MARR MOPS MASS MCAP MTCRE MNUC MIL MX MEDIA MEPP MA MR MO MASSMNUC MPOS MU ML MAR MP MY MERCOSUR MG MD MW MK MAS MT MI MOPPS MASC MTS MLS MILI MTRE MV MEPN MAPP MTCR MEPI MCC MZ MDC MEETINGS MQADHAFI MAPS MARAD MRCRE MILITARY MC MIK MUCN
NATO NL NZ NPT NI NSF NE NU NG NAFTA NS NDP NIPP NP NPA NO NK NRR NSC NEW NH NR NA NZUS NATIONAL NSG NC NSFO NSSP NASA NT NAR NGO NW NV NPG NORAD NATOPREL
OTRA OAS OPRC OIIP OVIP OREP OPDC OMIG OEXC OPIC OSCE OFFICIALS ODIP OFDP OECD OBSP OPCW OTR OSAC OSCI ON OIC OFDA OCII OES OPAD OIE OVP OHUM OCS
PREL PGOV PK PHUM PINS PARM PA PTER PINR PREF PHSA PBTS PBIO PO POL PE PARMS PM PGIV PROG PL PAK POLITICS PORG PTBS PNAT PUNE POLICY PDOV PCI PROP PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PP PS PAO PG PY PTERE PGOF PALESTINIAN PKFK PSOE PEPR PPA PINT PMAR PRELP PSEPC PREFA PGOVE PINF PHUMPGOV PNG PMIL PGOC PFOR PF POLINT PRAM PCUL PLN PAS PHUH POGOV PHUMPREL PRL PROV PHUMBA PEL PECON PSA PGGV PNR POV PHALANAGE PARTY PGOVLO PHUS PDEM PREO PAHO PSI PINL PU PRGOV PAIGH POLITICAL PARTIES POSTS
QA
RS RU REACTION REPORT REGION RW RP RIGHTS RO RCMP RF RM RFE RSP ROBERT RICE RIGHTSPOLMIL ROOD RELATIONS RUPREL RSO
SU SNAR SO SOCI SW SENV SMIG SCUL SP SZ SK SENVKGHG SR SY SNARN SA SI SN SPCVIS SL SYRIA SF SC SWE SARS SHUM STEINBERG SG SIPRS ST SEVN SIPDIS SSA SPCE SHI SNARIZ SH SOFA SAN SNARCS SEN SYR SAARC SANC SCRS
TRGY TBIO TU TF TERRORISM TI TSPL TPHY TH TIP TW TSPA TC TO TX TZ TNGD TT TL TV TS TRSY TINT TN TURKEY TBID TD TFIN TP TAGS TK TR THPY
UNGA UN UK US UNC UNSC USUN USTR UG UP UY USEU UNESCO USPS UNMIK UZ UNHRC UNO UNAUS UNHCR UNCHR USAID UNVIE UAE USOAS UNFICYP UV UNDESCO UNEP UNDC UNCHC UNDP UNODC UNCND UNCHS UNIDROIT UNCSD UNICEF USNC UNPUOS UE
VT VE VTPREL VM VAT VZ VI VN VTIZ VC VTEG
WS WTRO WTO WTRQ WI WZ WHO WFP WBG WHA WWARD WB WA WMO WITH WMD WIPO WHTI WEU
XA XF XM XL XW XV XB XU XR XY XS XG XT XH XE XK XX XD XI XTAG XQ XZ XC
YE YM YI YMCS
ZI ZP ZB ZO ZU ZEALAND ZK ZR ZF ZOELLICK ZN ZANU ZL ZA ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 08CAIRO2098, NAZIF AFFIRMS IMPORTANCE OF ESF, PLEDGEST CONTINUED REFORM

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08CAIRO2098.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08CAIRO2098 | 2008-09-25 13:01 | 2011-02-16 21:09 | CONFIDENTIAL | Embassy Cairo

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHEG #2098/01 2691349
    ZNY CCCCC ZZH
    P 251349Z SEP 08
    FM AMEMBASSY CAIRO
    TO SECSTATE WASHDC PRIORITY 0555

` `

    C O N F I D E N T I A L CAIRO 002098

    SIPDIS

    AID FOR LAUDATO

    E.O. 12958: DECL: 09/23/2018
    TAGS: EAID ECON EFIN PGOV PREL PHUM KDEM EG
    SUBJECT: NAZIF AFFIRMS IMPORTANCE OF ESF, PLEDGEST CONTINUED REFORM
    AND DOWNPLAYS NEW MEDIA LAW

    REF: A) CAIRO 931 B) CAIRO 397 C) CAIRO 1370 D) CAIRO 1560 E) CAIRO 730 Classified by Ambassador Margaret Scobey for reason 1.4 (d).
    1.(C) SUMMARY: In a meeting with the Ambassador, Prime Minister Nazif said that it is essential that the GOE continue with its economic reform program, including privatization, and maintain high growth levels. He said that Egypt has been able to "weather a difficult year" but that "we can't take a second blow." He said inflation was the biggest challenge, and would prevent further subsidy adjustments in the near term, but was also concerned about developments in international financial markets. On ESF, Nazif appears to distance himself from the Ministry of International Cooperation's (MIC) position of "no new projects" after FY 2008 (ref a), and called ESF a "symbol of friendship and partnership." He reitereated earlier comments that the level per se was not as important as the fact that it is "a way to bring in know-how that we couldn't get any other way." The prime minister downplayed concerns about the draft media law (ref b) and observed that efforts to censor the internet would not be effective. "As long as I am prime minister, we will not censor the internet, or remove Facebook." In a discussion about Ayman Nour, he repeated the GOE position that Ayman Nour's case is a criminal one, not a human rights case, and that mention of Nour by POTUS was very upsetting to President Mubarak. END SUMMARY.

    2.(C) Ambassador called on Prime Minister Ahmed Nazif on September 22 to review the status of the economic reform program and ESF issues, accompanied by econ counselor (notetaker). She opened by delivering Secretary Rice's Eid greetings to the prime minister, for which he was grateful. He asked about recent developments in US financial markets. He said Egypt has been able to weather a difficult year, noting that inflation remains very high. He described inflation in Egypt as "imported," with about 80 percent of it attributable to increasing food and energy prices. Nazif said the GOE had addressed this with the "May package" of a thirty percent wage hike to government employees, offset by tax hikes and a reduction in energy subsidies. With these measures, combined with high growth rates, the GOE brought the budget deficit within targets, but, he cautioned, "we can't take a second blow." The GOE hopes to maintain growth at 6.0-6.5% percent this year, but Nazif said this is a minumum.

    3.(C) When asked about plans for continued reform, Nazif explained that the GOE had made its commitment to economic reform clear at the WEF in Sharm in May 2008. Now, he said, "we need action." A major goal of the GOE right now is to fix internal market mechanisms, and to improve internal trade. Egypt needs distribution centers for wholesale and retail trade outside of Cairo and Alexandria. This, he said, would create investment opportunities and jobs, and allow the development of a more structured market. It will increase competition in the market and smooth retail prices. It will be up to the private sector to create these distribution points, but the problem they face is land. The GOE is working to identify and provide small parcels (about 50 acres) to private commercial developers.

    4.(C) Another major goal is to revitalize the privatization process. The GOE plans to rehire the consultant for the Banque du Caire privatization as a signal to the markets that the GOE still intends to sell the bank (ref c). They are also looking at other ways to privatize firms including mass privatizations, as was done in eastern Europe. These programs will be announced at the NDP party conference in November.

    5.(C) On the issue of energy, the prime minister observed that energy prices in Egypt did not change between 1992 and 2004. Since 2004, gasoline prices have risen 75 percent, and diesel, 120%. Under current economic circumstances and inflation rates (24 percent year-on-year in August 2008), it would be hard, he said, to raise prices again. The GOE target is single digit inflation by mid-2009. The Egyptian pound, he said, is sometimes seen as slightly undervalued, and if it were to strengthen somewhat this would have an impact on inflation. Nazif also noted that the composition of Egypt's foreign reserves in terms of currency closely reflect the breakdown of its foreign debt, thereby protecting Egypt from currency movements. Once inflation is down, he hopes that the GOE can restart the reform program and return to accelerated growth rates. Economic Assistance -------------------

    6.(C) The Ambassador reminded Nazif that the Administration has proposed $200m in ESF for Egypt in 2009, but that Congress has not taken any action as yet. She underlined that even at $200m, Egypt is one of the USG's largest aid recipients. She said USAID would like to continue to focus on health, education and poverty eradication. Nazif agreed, commenting that "the economic assistance is a symbol of our cooperation. The value is not the money, but in the partnership, in the flexibility of the assistance, and for the expertise." The significance, he said, is in those two things: "it has been a symbol of friendship and partnership, and it is channeled to areas where it is difficult to use Egyptian government funds." "It is a way to bring in know-how that we couldn't get any other way." "We should keep it intact."

    7.(C) The Ambassador outlined what we have been told by MIC's Fayza Aboulnaga; that the Egypt government does not accept this level, and that no new projects will be signed using FY 2009 money (ref a). This, she explained, was forcing USAID to make decisions on ongoing programs. One area that will be affected will be salary support for Egyptians who have been recruited internationally, and outside the civil service system, to work within the reform units at the economic ministries. USAID will phase out ESF support for these experts, and suggests that the GOE program local currency to cover these costs. Nazif responded that the GOE was "a little disappointed" in the process of setting the new ESF level, and "that is the reason that Fayza is taking this approach." Nazif said that the USAID support for these reform units has been very helpful, and remain critical to getting the right people on board as they cannot be paid under Egypt's current civil service pay scale. "It will put us into trouble," he said, "if we don't find a way to pay for this."

    8.(C) In discussing the future of the overall program, the Ambassador underlined that it is important to the U.S. to remain engaged in projects that directly benefit the Egyptian people. "We have a significant military assistance program. We want to maintain our economic assistance as well," she said. She noted that there is no support within the Administration for using ESF for debt relief, and that it did not make economic sense. Nazif did not disagree. She noted that the idea of an endowment, or foundation, has not been rejected, but that it would require Congressional action. The Ambassador also said that the D&G program continues to garner Congressional attention, and cautioned that an endowment would not get Egypt out from under this requirement. Nazif observed that "we do not see the foundation as a way out of D&G programming," adding that the U.S. and Egypt agree on the basics of the program. Media law ---------

    9.(C) The Ambassador noted the importance of not backtracking on progress made in media freedom, and expressed concern about press reports about the draft media law (ref b). Nazif said that the draft law had been misrepresented in the press, and that the intent of the law would be to create a media regulator, with the authority to issue licenses to media outlets, and was not based on recent Arab League resolutions regarding the media (ref d). The prime minister observed, however, that the GOE continued to be concerned about the potential for using the internet, and Facebook in particular, to incite violence, as was the case leading up to the April 6 Mahalla riots (ref e). He agreed that banning Facebook and limiting internet access was not effective, but said the GOE would monitor the internet closely. However, "as long as I am prime minister," he said, "we will not censor the internet, or remove Facebook." Ayman Nour ----------

    10.(C) The Ambassador noted that the President would be speaking about D&G in New York that day at a democracy luncheon, and the issue of Ayman Nour's continuing detention could arise. Nazif responded that such a public statement would not do Ayman Nour any good. He said President Mubarak becomes very upset every time that President Bush raises the case, as he considers it a criminal, rather than a human rights, case, and that raising it publicly would not help Nour. The Ambasasdor responded that the USG continues to take this case very seriously, and would continue to raise it. Nazif commented that the Egyptian government would always talk to the US about these issues privately. SCOBEY

`