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Viewing cable 07CAIRO2111, RUMORS CONTINUE ABOUT SHIPMENT OF U.S. WHEAT

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Reference ID Created Released Classification Origin
07CAIRO2111 2007-07-10 03:55 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Cairo
VZCZCXYZ0000
RR RUEHWEB

DE RUEHEG #2111 1910355
ZNR UUUUU ZZH
R 100355Z JUL 07
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 6051
RUEHRC/USDA FAS WASHDC
RUCPDOC/USDOC WASHDC 0289
INFO RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS CAIRO 002111 
 
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: RUMORS CONTINUE ABOUT SHIPMENT OF U.S. WHEAT 
 
REF:  CAIRO 1834 
 
Sensitive but unclassified. Please protect accordingly. 
 
-------------------------------------------- 
Spanish Firm Buys Wheat Rejected by Egypt... 
-------------------------------------------- 
 
1.  (U) The Egyptian media reported on June 28 that the Ministry of 
Trade and Industry had received a "refund" of the cost of a 62,000 
ton shipment of U.S. wheat that was denied entry into Egypt by the 
Egyptian Quarantine Authority because of alleged insect infestation 
(reftel).  The report quoted Minister of Trade and Industry Rachid 
as saying that the ministry had received $13 million for the 
shipment, the original cost of the wheat, from the Alfred C. Toepfer 
International Company, a German firm that supplied the consignment. 
Contacts at the Ministry of Trade confirmed that the wheat had 
actually been resold to a Spanish firm for the same price as the GOE 
paid.  The wheat arrived in Spain on July 4, but according to 
information available to FAS Cairo, has not yet passed inspection 
and been allowed into Spain. 
 
---------------------- 
...but Rumors Continue 
---------------------- 
 
2.  (U) Despite repurchase of the wheat by a Spanish firm, rumor 
continues in the Egyptian media about the allegedly infested wheat, 
repeating claims that it was "cancerous."  On July 5, the Muslim 
Brotherhood website posted an unattributed report claiming that some 
of the wheat had been allowed into Egypt for "industrial" purposes, 
eventually making its way to the Egyptian consumer.  The posting 
claimed that the wheat was infected with the "Alpha toxin fungus," 
which causes cancer, and that wheat importers, "whether from the 
government or private sector" resorted to "tricks and twisted 
methods" to allow the wheat into Egypt.  The report claims that the 
Quarantine Authority found "drugging seeds," fungus, "woodworms" and 
poisons upon inspecting the wheat. 
 
----------------- 
Ulterior Motives? 
----------------- 
 
3.  (SBU) Before the wheat was re-sold to the Spanish firm, a U.S. 
Federal Grain Inspection Service (FGIS) official traveled to Egypt 
to witness re-fumigation of the wheat.  Upon inspection of the 
vessel containing the wheat, the FGIS official found no insects, 
dead or alive, in the wheat.  If the claims of the Egyptian 
Quarantine Authority were true, the insects found in the wheat would 
have multiplied and would have been immediately apparent upon 
inspection of the vessel holds containing the wheat.  Despite the 
inconsistency of the Egyptian Quarantine Authority's findings and 
those of the FGIS official, the wheat was re-fumigated before being 
re-exported to Spain. 
 
4.  (SBU) Theories abound on the motivations behind the media's 
fixation with this story.  One theory posits that the story was 
created by a rival firm intending to discredit the Alfred C. Toepfer 
International Company, which sold the wheat to the Ministry of Trade 
and Industry.  Other observers speculate that the story was intended 
to discredit Minister of Trade and Industry Rachid, as rumors swirl 
about his being named Egypt's next prime minister.  By tying him 
specifically to the U.S., those responsible for the rumors 
capitalize on anti-U.S. sentiments, currently running high in Egypt. 
 Moreover, the allegation that the Ministry of Trade and Industry 
made a mistake in purchasing such an important commodity casts 
aspersions on Rachid's competence and concern for the average 
Egyptian. 
 
---------------- 
Embassy Response 
---------------- 
 
5.  (SBU) FAS will draft a letter to the Egyptian Quarantine 
Authority protesting GOE handling of this matter.  The Quarantine 
Authority did not use standard communication channels with USDA for 
handling disputed agricultural imports.  A Quarantine Authority 
official initially informed FAS Cairo that the USDA certificate 
accompanying the wheat would not be stamped "Refused."  Without 
informing FAS, Quarantine officials did, in fact, stamp the 
certificate "Refused" before the shipment left Egypt. 
RICCIARDONE