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Viewing cable 07CAIRO1834, NEGATIVE MEDIA SURROUNDS U.S. WHEAT SHIPMENT

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Reference ID Created Released Classification Origin
07CAIRO1834 2007-06-17 04:54 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Cairo
VZCZCXYZ0008
RR RUEHWEB

DE RUEHEG #1834 1680454
ZNR UUUUU ZZH
R 170454Z JUN 07
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 5690
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/USDOC WASHDC 0283
INFO RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS CAIRO 001834 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA, NEA/RA, EB/TPP/ABT 
USAID FOR ANE/MEA MCCLOUD AND DUNN 
USTR FOR SAUMS 
TREASURY FOR NUGENT AND HIRSON 
COMMERCE FOR 4520/ITA/ANESA/OBERG 
 
E.O. 12958:  N/A 
TAGS: ECON EAID ETRD EAG EG
SUBJECT: NEGATIVE MEDIA SURROUNDS U.S. WHEAT SHIPMENT 
 
1.  (U) On May 27, 2007, the vessel Fu Zhou Hai arrived at Damietta 
Port in Egypt carrying 62,010.19 metric tons of U.S. soft red winter 
wheat.  The cargo was inspected by Egyptian Quarantine authorities, 
and live insects were found, indicating possible irregularities in 
the fumigation procedures at Destrehan, Louisiana, the shipment's 
point of origin.  The shipment was accompanied by a letter from an 
Operations Supervisor of the Federal Grain Inspection Service 
(FGIS), certifying fumigation was done according to FGIS procedures. 
 A second letter from the private firm Research Fumigation Company 
certified that the cargo was fumigated using a gas-based "full 
recirculation" method of fumigation on May 5 at Destrehan, 
Louisiana. 
 
2.  (U) Upon opening the ship's holds, Egyptian inspectors claim to 
have found fumigation tubes lying on top of the wheat rather than 
vertically inserted, as would normally be the case.  Inspectors also 
reported not smelling gas residue, which would also normally be the 
case with a gas-based fumigation method.  Two samples were taken by 
the Egyptian authorities.  In the first, taken May 29, five insect 
species were found, three of which do not exist in Egypt and are 
categorized as quarantine pests presenting a threat to Egyptian 
agriculture.  The other two species were unidentifiable.  In a June 
1 inspection, sixteen species were found, eleven of which were 
recognized quarantine pests, three were pests already existing in 
Egypt, and two were unidentifiable.  Live insects, eggs and larvae 
were also found.  Both inspections found excessive levels of weed 
seeds as well. 
 
3.  (U) While Egyptian authorities were considering the disposition 
of the wheat, stories appeared in local newspapers, some of them 
alarmist and implying a lack of competence on the part of the 
General Authority for Supply Commodities (GASC), an element of the 
Ministry of Trade and Industry which purchased the cargo on an "FOB" 
basis.  Egyptian authorities decided not to re-fumigate the wheat 
and allow it in, but to re-export the cargo.  The company that sold 
the wheat to GASC offered to purchase it back and re-export it. 
Agreement was reached on prices but discussion continues over 
liability for the cargo when it reaches its final destination, 
 
4.  (SBU) COMMENT:  Media coverage has been very negative, at a time 
when U.S.-Egypt bilateral relations are particularly sensitive. 
Newspapers have claimed the wheat may be harmful, which is not the 
case.  Reports have emphasized that this is the first time in recent 
memory that U.S. wheat was not allowed to enter Egypt.  Wheat from 
other sources (e.g., Russia and Ukraine) is routinely rejected, but 
these rejections receive little or no press attention.  The negative 
media coverage appears intended to discredit the U.S.  This is 
highlighted by the fact that Egyptian officials have not actually 
rejected the cargo, nor do they intend to enter into arbitration as 
provided for in the purchase contract.  Rather, the authorities plan 
to sell the wheat and are prepared to conduct fumigation and certify 
the process before the vessel leaves Egyptian waters.