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### Viewing cable 09BERLIN1609, GERMANY'S NEW DEVELOPMENT MINISTER CONNECTS

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Reference ID | Date | Classification | Origin
--- | --- | --- | ---
09BERLIN1609 | 2009-12-21 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Berlin

`

    VZCZCXRO2092
    PP RUEHIK
    DE RUEHRL #1609/01 3551631
    ZNR UUUUU ZZH
    P 211631Z DEC 09
    FM AMEMBASSY BERLIN
    TO RUEHC/SECSTATE WASHDC PRIORITY 6111
    INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
    RUCNFRG/FRG COLLECTIVE PRIORITY
    RUEHBUL/AMEMBASSY KABUL PRIORITY 0680
    RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0602
    RUEHDF/AMCONSUL DUSSELDORF PRIORITY 0263
    RUEHFT/AMCONSUL FRANKFURT PRIORITY 8348
    RUEHAG/AMCONSUL HAMBURG PRIORITY 0352
    RUEHLZ/AMCONSUL LEIPZIG PRIORITY 0257
    RUEHMZ/AMCONSUL MUNICH PRIORITY 2223
    RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

` `

    UNCLAS SECTION 01 OF 02 BERLIN 001609

    SENSITIVE

    STATE FOR EEB/IFD/ODF (LEATHAM, ALEXANDER), SCA/A (BRADY),
    NEA/IPA (LENTZ), EUR/CE (HODGES, SCHROEDER)
    TREASURY FOR SMART, ICN (NORTON), IMB, OASIA
    SIPDIS

    E.O. 12958: N/A
    TAGS: EAID ECON EFIN PGOV PREL GM
    SUBJECT: GERMANY'S NEW DEVELOPMENT MINISTER CONNECTS
    DEVELOPMENT WITH SECURITY POLICY

    BERLIN 00001609  001.3 OF 002

    ¶1. (SBU) SUMMARY:  Dirk Niebel (FDP) was an odd pick as
    Germany's new Development Minister -- he had no experience in
    international development, and had previously suggested
    abolishing the Development Ministry.  Now in charge, Niebel
    has big shoes to fill, following on the heels of Heidemarie
    Wieczorek-Zeul (SPD).  Important differences with his
    predecessor are already apparent: he would like to integrate
    Germany's development policy more closely with its foreign
    and security policy, including in Afghanistan.  Niebel is
    also a firm believer in free markets, and sees a successful
    conclusion of the Doha Development Round as critical for
    developing countries.  For Niebel, nothing is sacrosanct: he
    intends to phase out German aid to China, which he regards as
    no longer a developing country.  With the ministry under new
    management, there may be additional opportunities for
    collaboration between the United States and Germany on
    development policy.  END SUMMARY.

    DIRK WHO?
    ---------

    ¶2.  (SBU) Dirk Niebel struck many as an unlikely choice for
    Development Minister in the coalition government of
    Chancellor Merkel's Christian Democratic Union
    (CDU)/Christian Social Union (CSU) and Guido Westerwelle's
    Free Democratic Party (FDP) (the "Black-Yellow" coalition).
    A Hamburg native, Niebel's previous work experience includes
    eight years as a paratrooper in the German armed forces, and
    five years as a placement officer at a job center in
    Heidelberg.  In 1998, he was elected to the Bundestag (lower
    house of Parliament), where he became caucus spokesperson for
    labor market policy and a member of the Labor Committee.  In
    2005, FDP Chairman (and current Foreign Minister) Westerwelle
    tapped him as FDP Secretary General -- a position he held
    until Chancellor Merkel appointed him Development Minister in
    November 2009.  As Secretary General, Niebel had called for
    the elimination of the ministry he would later head, the
    Ministry for Economic Cooperation and Development (BMZ).
    (NOTE: This option appears off the table for now. END NOTE)
    Niebel succeeds Heidemarie Wieczorek-Zeul of the Social
    Democratic Party (SPD), who headed BMZ for a record 11 years.

    CONNECTED SECURITY
    ------------------

    ¶3.  (SBU) In a December 18 meeting with Ambassador Murphy,
    Niebel said he intended to "make some changes at BMZ."  One
    such change is linking development policy more closely with
    foreign and security policy -- a concept he referred to as
    "connected security."   Niebel told the Ambassador he planned
    to coordinate very closely with Foreign Minister Guido
    Westerwelle, and that he foresaw much greater cooperation
    between BMZ and the German military in northern Afghanistan.
    (NOTE: Days prior to the meeting with Ambassador Murphy,
    Niebel had announced BMZ would increase civilian assistance
    to Afghanistan by around 50 million euros, bringing Germany's
    2009 total to over 260 million euros. END NOTE)

    ¶4. (SBU) In a separate meeting several months ago,
    Chancellery National Security Advisor Christoph Heusgen had
    told us that BMZ under a Black-Yellow coalition would be less
    wedded to "old" notions of doing development work.  This
    assessment now appears to be accurate.   Wiezcorek-Zeul had
    ensured that German development staff worked and lived in
    separate compounds, away from provincial reconstruction teams
    (PRTs) and other bases from which the Ministry of Defense,
    Ministry of Foreign Affairs and Ministry of Interior
    operated.  She even refused to ride in German military
    vehicles when she visited Afghanistan.  This kind of
    separation seems likely to end under Niebel, both physically
    and substantively.

    ¶5. (SBU) Among other ideas Niebel brings to the table is a
    plan to partner with third country donors like Israel on
    projects in developing countries.  Niebel told the Ambassador
    that Israel,s expertise in border protection could be shared

    BERLIN 00001609  002.3 OF 002

    with African countries, for example.  By teaming up with
    Germany, Israel could participate in certain capacity
    building projects where it might not otherwise have access.

    LAISSEZ-FAIRE DEVELOPMENT
    -------------------------

    ¶6. (SBU) Shortly after becoming Minister, Niebel remarked
    that his overall development philosophy was helping recipient
    countries help themselves.  He regards the successful
    conclusion of World Trade Organization's (WTO's) Doha
    Development Round as especially meaningful for developing
    countries.  "There is more money being lost by trade barriers
    than all the development aid can make up for," he said.  This
    perspective marks a noteworthy departure from the approach of
    Wieczorek-Zeul, dubbed "red Heide" for her affiliation with
    the Young Socialists years ago.

    ¶7. (SBU) Niebel also opposes a proposed tax on international
    financial transactions to fund development assistance.  Both
    Chancellor Merkel and Wieczorek-Zeul had championed the
    so-called "Tobin tax."  Citing "differences" within the
    government on the issue, Niebel has reportedly ended BMZ's
    participation in an international working group on the
    proposed tax.

    ¶8.  (SBU) Niebel is keen to reorient BMZ's assistance.
    Reflecting on comments made publicly in his first days as
    Minister, Niebel told Ambassador Murphy that Germany planned
    to stop providing development assistance to China, currently
    one of the largest recipients of German aid.  He added that
    China was "only a developing country when it came to climate
    change negotiations."  BMZ will carry out its existing aid
    obligations to China only through next year.  The decision
    has proved controversial, as BMZ's assistance to China had
    reportedly benefitted German companies doing business there.

    TRAVEL PLANS
    ------------

    ¶9. (SBU) Niebel said he planned to spend the holidays in
    Israel.  (NOTE: Niebel is a long-standing member of the
    German-Israeli Society. END NOTE) His first official travel
    to the developing world will be a late January trip to
    "Rwanda, eastern Congo, Mozambique, Afghanistan and Asia."
    The Ambassador suggested Niebel visit Washington to meet with
    new USAID Administrator Shah once confirmed.  Niebel said he
    would coordinate dates for the visit with the Embassy.

    COMMENT
    -------

    ¶10. (SBU) Niebel takes charge of BMZ at a challenging time:
    Germany will run its largest post-war deficit in 2010, and
    pressure to rein in spending will strain every ministry.
    Niebel's close relationship with Westerwelle should be an
    asset, however, and could help minimize cuts on key
    priorities.  The close relationship will also facilitate
    Niebel's vision of integrating development policy with
    foreign and security policy.  Since taking over at BMZ,
    Niebel has increased assistance to Afghanistan, where Germany
    was already the third largest donor, and appears open to
    doing more in support of an integrated strategy in the north.
     An early meeting between the new USAID Administrator, who
    oversees the world's largest aid budget, and the new German
    Development Minister, who oversees the world's second
    largest, could be an important step in building stronger
    U.S.-German cooperation on our top development priorities.
    DELAWIE

`