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### Viewing cable 02KATHMANDU371, FY 02-03 SA BUREAU ESF FOR REGIONAL INITIATIVES

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
02KATHMANDU371 | 2002-02-15 09:41 | 2011-08-24 01:00 | UNCLASSIFIED | Embassy Kathmandu

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 05 KATHMANDU 000371

    SIPDIS

    DEPT FOR SA A/S ROCCA AND SA/RA - L ROBINSON AND M BIXBY
    DEPT ALSO FOR SA/INS, SA/PAB, OES/PCI, OES/ETC, AND INL
    PLEASE PASS TO AID FOR ANE - J WILSON
    BANGKOK FOR REO - T OSIUS

    E.O. 12958: N/A
    TAGS: SENV EAID PGOV IN PK NP BD AF REO
    SUBJECT: FY 02-03 SA BUREAU ESF FOR REGIONAL INITIATIVES

    REFS: Bixby and Ekpuk e-mails to Embassy Kathmandu on ESF

    ------------
    INTRODUCTION
    ------------

    ¶1.  Regional Environment Office (REO) for South Asia,
    based at Embassy Kathmandu, would like to propose several
    projects for FY 02 and FY 03 funding via South Asia Bureau
    regional Economic Support Funds (ESF).  While all of the
    proposals have an environmental dimension, they are cross-
    cutting, multi-purpose concepts that will contribute to
    regional stability, confidence-building, and support other
    important U.S. objectives in the region.  REO would like
    to withdraw the FY 02 and 03 requests for USD 1 million
    per year for an integrated river basin management and
    flood forecasting proposal and substitute three new
    proposals.  The total request for REO projects has been
    revised downward slightly for FY02, to USD 1.2 million,
    and sharply, to 1.3 million, for FY 03.

    -------
    SUMMARY
    -------

    ¶2.  Projects have been listed in priority order, with
    approximate amounts required for effective execution in
    each of the fiscal years 2002 and 2003.  Projects with an
    asterisk are new proposals; others are ongoing initiatives
    requiring continued funding already submitted through the
    MPP and BPP processes.

         Project                       FY02           FY03

    (1) USGS Bengal Basin              250,000        350,000
    Groundwater Arsenic Research

    (2) Forests, People, Conflict      250,000        150,000
    and Insurgency*

    (3) SA Transboundary Water         150,000           -
    Quality Monitoring Project

    (4) Environmental Crime*           250,000        250,000
    Anti-Trafficking Enforcement

    (5) Asian Water Quality            100,000        250,000
    Coalition*

    (6) Regional Environmental         200,000        300,000
    Governance Initiative              -------        -------

    TOTAL:                           1,200,000      1,300,000

    ¶3.  Thumbnail descriptions of the initiatives follow
    (complete project proposals to be furnished if needed):

    --------------------------------------------- -
    USGS Bengal Basin Groundwater Arsenic Research
    --------------------------------------------- -

    REO requests USD 250,000 in FY02 and 350,000 in FY03 to
    fund continued research by the U.S. Geological Survey into
    the causes of groundwater arsenic contamination in the
    Bengal Basin.  This would complement, not/not duplicate or
    replace the separate request for bilateral ESF by Embassy
    Dhaka and our USAID mission to Bangladesh. (Note: The
    World Bank has USD 37 million left in a USD 40 million
    fund for arsenic research and mitigation in Bangladesh,
    but the results of this research are needed to be able to
    use the funds effectively.)  Regional funds would be used
    to cover the cost of USGS participation in a multi-donor
    effort to research the extent of the problem in Nepal's
    Terai and investigate the mobilization pathways by which
    the arsenic makes its way into the groundwater.  In
    addition, it would fund travel to India, especially West
    Bengal, for USGS consultations and collaborative research
    with responsible Indian officials and groundwater experts.
    (Coordination of research efforts between India and
    Bangladesh to date has been poor.)

    Justification: Arsenic-contaminated groundwater has been
    called - accurately, in our view - the greatest natural
    disaster ever to strike mankind, affecting tens of
    millions of people in the Bengal basin, including Nepal's
    Terai.  The problem is not limited to South Asia, as
    extensive contamination has been discovered in the
    countries of the Mekong region, as well as in the U.S.
    USGS has great credibility with all partners involved in
    the arsenic question and, by common consensus, has the
    greatest scientific capacity to address hydrogeological
    and geochemical issues that need to be resolved.  Nepal
    offers several comparative advantages for extending
    research already underway:

    -- The contaminated aquifers are much closer to the
    Himalayan source of the arsenic.  The simpler hydrogeology
    (compared to the complicated stratography of the Gangetic
    Delta) is more likely to yield early answers as to how the
    arsenic gets into groundwater.

    -- The relatively recent and less extensive development of
    groundwater resources in Nepal offers an opportunity to
    study aquifers less influenced by human activities.

    -- The concentrations of arsenic in Nepal are roughly
    equal to those found in parts of the U.S.  The Terai, with
    its relatively stable population, is favorable to a study
    of the long-term effects of consumption of moderately
    contaminated water -- of great interest to U.S. health
    authorities studying cancer risk.

    -----------------------------------------
    Forests, People, Conflict, and Insurgency
    -----------------------------------------

    REO requests USD 250,000 in FY02 and USD 150,000 in FY03
    for an initiative to counter the spread of regional
    insurgencies through a sustained effort to promote
    community-based natural resource management policies in
    forest areas of South Asia.  The purpose is to identify
    specific socio-economic measures and policy changes that
    will prevent disadvantaged, disenfranchised and
    dispossessed societies and communities from becoming the
    perfect breeding ground for extremist ideologies and
    violent movements.  Goals of the project are:

    -- Reduce tensions and conflicts between people and the
    government agencies through participatory, socially
    acceptable and sustainable forestry/natural resources
    policies and regulations.

    -- Give local people greater access and greater
    entitlement to forests and other natural resources,
    enabling them to raise their standard of living and
    discouraging them from extremist ideologies and
    activities.

    -- Identify corruption in forestry management and find
    effective solutions to curb abuses.

    Justification:  Forests in Nepal, India Bangladesh, Bhutan
    and Sri Lanka and parts of Pakistan have turned into
    battlegrounds between government forces and insurgents.
    Ultra-left-wing "Naxalites" reportedly control an area two
    and half times the size of North Carolina in the dense
    forests of eastern India.  During a recent meeting, Indian
    Naxalites and Nepalese Maoist groups agreed to form a
    South Asian Maoist Coalition in a forest corridor from
    western Nepal to the hinterlands of Andhra Pradesh in
    Southern India to facilitate their movements and
    operations.  There is no one specific cause for the rise
    of such insurgencies in these areas.  However, there is
    now a general understanding that such insurgencies have
    been fueled by the dispossession of people of their
    traditional rights and access to natural resources, arcane
    and socially unpopular forest policies, severe poverty,
    and the alienation of forest people from the political
    mainstream.  People who traditionally depend on forests
    for their livelihood have joined the insurgents or are
    sympathetic to their cause.  They often find it easier to
    deal with insurgent groups than with corrupt government
    officials.  In many forest areas, insurgent groups are
    running parallel governments and issuing populist decrees,
    such as raising the price of forest products sold by local
    communities.  Forests also function as the resource base
    of insurgent groups, which resort to lucrative trafficking
    in wildlife products, illegal timber felling and other
    illegal activities to finance their activities.

    --------------------------------------------- ------------
    South Asia Transboundary Water Quality Monitoring Network
    --------------------------------------------- ------------

    REO requests USD 150,000 for FY 2002 to complete Phase
    II of this initiative, which seeks to establish a
    regional network for collecting and sharing water
    quality data of transboundary rivers South Asia.  The
    main U.S. partner for execution is DOE's Sandia
    National Laboratories Cooperative Monitoring Center.
    In the current phase of the project, the focus is on
    using technology to complement ongoing and existing
    projects and activities of the partners in the network
    and supporting institutions to foster a common
    understanding of critical water issues and improve
    communication and data sharing within the region.  The
    second phase of this project aims to:

    -- Broaden the partnership - include more strategic
    institutions in monitoring water quality in the region.

    -- Increase the number of parameters monitored and the
    geographic extent by enlarging the area of coverage
    (i.e., number of mutually agreed test sites).

    -- Strengthen the partnership by providing additional
    training and technological know-how.

    -- Institutionalize the partnership by creating a
    permanent framework for cooperation and data sharing.

    -- Move to the policy sphere.  As the extent and
    severity of regional water quality problems emerge from
    these studies, we hope that the partners will be
    motivated to seek support from their governments for
    regional approaches to pollution mitigation.

    Justification: South Asia is one of the most water-
    stressed areas of the world.  Many sub-regions, including
    southern Pakistan, western and southern parts of India,
    and nearly all of Afghanistan, are already facing moderate
    to acute shortages of water scarcity, increasing the
    danger of social conflict and fragmentation within these
    societies.  Compounding the problem is the fouling of
    existing supplies.  Water quality in South Asia is
    degrading at a fast - and accelerating -- pace.  Pollution
    of surface and ground water is caused by poorly planned
    and uncontrolled growth of industries, human settlements
    and agricultural runoff.  Lack of adequate water data is
    hampering the ability of scientists in the region to
    understand the true extent of the problem and find
    effective solutions.  Regional cooperation in this area
    can support sustainable development and, consequently,
    social, economic, and political stability - thereby
    contributing to the relaxation of regional tensions and
    reducing the risk of conflict.  There is considerable
    potential for embedding this project in a larger regional
    approach to water quality issues funded by multilateral
    lenders and other major bilateral donors -- please see the
    section entitled "Asian Water Quality Coalition."

    --------------------------------------------- -----------
    Environmental Crime Anti-Trafficking Enforcement Project
    --------------------------------------------- -----------

    REO requests USD 250,000 in each of FYs 02 and 03 to
    support South Asian governments in strengthening their
    capacity to enforce Multilateral Environmental Agreements
    (MEAs).  South Asia is in immediate need of assistance in
    implementing and enforcing MEAs, especially at the
    operational levels, i.e. intelligence-gathering, inter-
    agency coordination, detection of contraband and smuggling
    operations, prosecution of traffickers, and
    institutionalization of enforcement training.  Expected
    outcomes of the project include:

    -- Increased knowledge about the status of MEA enforcement
    in South Asia and diagnosis of deficiencies, particularly
    in intelligence and investigative techniques.

    -- A strategic plan devised by South Asian governments to
    build their intelligence-gathering regarding various types
    of illegal trafficking, bolster MEA enforcement capacity
    and develop measures to control this illegal commerce.

    -- Enhanced regional capacity to detect illegal commerce
    under several MEAs and apprehend/prosecute traffickers,
    consistent with international obligations.
    -- Greater domestic and international coordination and
    cooperation among the various law enforcement agencies in
    South Asian countries charged with enforcing MEAs.
    -- Creation of an indigenous South Asian capacity to
    provide field-based MEA training modules to law
    enforcement officials.

    Justification: Terrorism is a threat to democracy and
    civil society everywhere, and cutting off the sources of
    finance and support for terrorism is one of the highest
    priorities for the U.S.  Typically, when South Asian
    insurgencies falter in their popular support, they link up
    with existing criminal networks to finance revolutionary
    activities through such varied illegal pursuits as drug
    running, trafficking in women and children, smuggling of
    arms and ammunition, as well as illegal commerce in
    products covered under the convention on endangered
    species (CITES).  More recently, the development of
    illicit markets for chemicals prohibited or regulated
    under the Montreal Protocol on ozone-depleting substances
    (ODS) have opened up another extraordinarily lucrative
    line of business for criminal smuggling syndicates.
    Reports indicate that profits from this criminal activity
    may be second only to the narcotics trade.

    -----------------------------
    Asian Water Quality Coalition
    -----------------------------

    REO requests USD 100,000 in FY02 and USD 250,000 in FY03
    to support participation by USG scientific agencies, such
    as USGS and EPA, in a broad-based, multi-donor initiative
    to address water quality issues in South Asia.  The funds
    would be used to pay for TDY travel for consultations and
    joint research by USG scientists in the region.  We would
    welcome support from REO for Southeast Asia/Pacific
    (Bangkok) in soliciting additional support from EAP and/or
    OES for this proposal.

    Justification: See the comments on the South Asia Water
    Quality Monitoring for background.  The World Bank and
    other multilateral lenders, as well as international
    organizations such as UNICEF and WHO, have recognized the
    inefficiencies involved in designing country-specific
    programs for each of the many contaminants of concern
    (i.e., arsenic, fluoride, cadmium, other metals,
    fertilizers, organics such as pesticides, microbiological
    organisms, etc.)  As a result, a coalition of donors and
    international agencies is now considering a broad
    initiative on water quality for the South and Southeast
    Asian regions.  These entities frequently seek world-class
    expertise and consulting services from top-ranked USG
    scientific agencies, but are prevented by their charters
    or other technical reasons from funding USG activities.
    The purpose of this request is to ensure that the premier
    U.S. scientific capabilities can be employed effectively
    to support an international initiative to address critical
    South Asian water quality issues.

    --------------------------------------------
    Regional Environmental Governance Initiative
    --------------------------------------------

    REO requests USD 200,000 in fiscal year 2002 and USD
    300,000 in FY 2003 to promote environmental good
    governance in South Asia.  Small grants (not to exceed USD
    25,000) will be provided, on a competitive basis, to local
    and national non-governmental organizations.  The grants
    will help implement projects to:

    -- Enhance civil society's environmental knowledge base,

    -- Build local governments' capacity to integrate
    environmental considerations into development planning,

    -- Promote effective enforcement of environmental
    regulations at the local level,

    -- Strengthen local communities' ability to manage natural
    resources in an environmentally sound manner,

    -- Encourage local environmental advocacy and stewardship
    using democratic means.

    Justification: One of the major causes for rapid
    environmental degradation in South Asia is the poor
    implementation of environmental rules and regulations and
    the insufficient ability of local governments to integrate
    environmental considerations into their development
    planning.  The low level of environmental awareness of the
    rural population and the lack of effective civil society
    organizations to advocate and promote environmental
    conservation further aggravates this problem.  There is an
    immediate need to strengthen environmental governance at
    the local level.  While there is a growing effort by
    central governments to devolve more power and resources to
    the local level, there has been a lack of complementary
    efforts to assist local communities and governments to
    manage their natural resources in a sustainable manner. As
    a result, the natural resource base, the source of
    livelihood and sustenance of the mostly rural people of
    South Asia, is increasingly threatened.

    ¶4. The Regional Environment Office for South Asia hopes
    the above will be useful to the South Asia Bureau in
    setting priorities and planning for FY 02 and 03 regional
    Economic Support Funds.

    MALINOWSKI

`