C O N F I D E N T I A L SECTION 01 OF 03 HARARE 004611

SIPDIS

STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK
USDOC FOR 2037/ERIC HENDERSON
STATE PASS USTR/RWHITTAKER
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH
CONFIDENTIAL

PAGE 02 HARARE 04611 01 OF 03 171638Z
LONDON FOR CHARLES GURNEY

E.O. 12958: DECL: 08/17/05
TAGS: PREL ECON PINR PHUM ZI EFIN EAGR
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR

REF: HARARE 3910

CLASSIFIED BY AMBASSADOR MCDONALD, REASON 1.5 (B), (D)

SUMMARY
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1. (C) NEW INDUSTRY AND INTERNATIONAL TRADE MINISTER
NKOSANA MOYO TOLD THE AMBASSADOR AUGUST 15 THAT PRESIDENT
MUGABE WAS DETERMINED TO SEIZE 3,000 FARMS AND HAD NO
INTENTION OF PROVIDING COMPENSATION. MOYO CLAIMED THAT
MOST CABINET MEMBERS WERE IN FAVOR OF A FAIR,
TRANSPARENT LAND REFORM EFFORT, AND ADMITTED THAT THE
GOVERNMENT DOES NOT HAVE THE RESOURCES TO PROVIDE
SIGNIFICANT ASSISTANCE TO RESETTLED FAMILIES. MOYO
SHARED THE AMBASSADOR'S CONCERN ABOUT LAWLESSNESS IN THE
RURAL AREAS. THE AMBASSADOR STRESSED THAT SEIZURE OF
FARMS WITHOUT COMPENSATION IS ILLEGAL AND IS NEARLY
ELIMINATING ANY NEW FOREIGN INVESTMENT, AND SAID THE
GOVERNMENT'S ACTIONS WOULD SPEAK LOUDER THAN ITS WORDS.
MOYO IS AN ACCOMPLISHED BUSINESSPERSON AND A CAPABLE
POLITICAL INDEPENDENT WHO INTENDS TO WORK TO REVERSE SOME
OF THE GOVERNMENT'S RUINOUS POLICIES. HE IS AN
INEXPERIENCED POLITICIAN, HOWEVER, AND WE ARE SKEPTICAL
THAT MUGABE WILL GIVE HIM SUFFICIENT ROOM TO MANEUVER,
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PAGE 03 HARARE 04611 01 OF 03 171638Z
BUT THE EMBASSY WANTS TO ASSIST HIM. END SUMMARY.

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MOYO'S OBJECTIVES
--------------


2. (C) AMBASSADOR MCDONALD ASKED RECENTLY-APPOINTED
MINISTER OF INDUSTRY AND INTERNATIONAL TRADE NKOSANA MOYO
ON AUGUST 16 WHAT HE HOPED TO ACCOMPLISH IN HIS NEW
POSITION. MOYO SAID HIS PRIMARY FOCUS WOULD BE TO HELP
THE ZIMBABWEAN GOVERNMENT FORGE A MORE COOPERATIVE
RELATIONSHIP WITH THE PRIVATE SECTOR. HE ALSO PLANNED TO

TRY TO REPAIR SOME OF ZIMBABWE'S BILATERAL AND
MULTILATERAL RELATIONSHIPS.

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LAND REFORM
--------------


3. (C) MOYO THEN TURNED TO THE LAND QUESTION,
ACKNOWLEDGING THE PROBLEM OF LAWLESSNESS ON THE FARMS.
HE TERMED THE GOVERNMENT'S PUBLIC RELATIONS EFFORT
"APPALLING," AND SAID IT MUST DO A BETTER JOB OF
EXPLAINING THE RATIONALE FOR ITS ACTIONS. PRESIDENT
MUGABE IS SERIOUS ABOUT SEIZING 3,000 FARMS AND WANTS ALL
OF THEM IDENTIFIED NOW AND RESETTLED AS SOON AS POSSIBLE.
MOYO EXPRESSED HIS VIEW THAT MANY OF THESE FARMS HAD LONG
BEEN IDLE, SO THEIR RESETTLEMENT WOULD NOT HAVE A SERIOUS
IMPACT ON PRODUCTIVITY.


4. (C) THE AMBASSADOR NOTED THAT THE GOVERNMENT DOES NOT
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PAGE 04 HARARE 04611 01 OF 03 171638Z
HAVE THE NECESSARY RESOURCES FOR AN EFFECTIVE
RESETTLEMENT EFFORT AND THAT SUCH AN EFFORT WOULD
SUBSTANTIALLY HURT AGRICULTURAL PRODUCTION. THE FARM
OCCUPATIONS, HE STRESSED, ARE ILLEGAL, HAVE BEEN TERRIBLY
DISRUPTIVE, AND GIVE ZIMBABWE A BLACK EYE ABROAD. THE
UNITED STATES AGREES THAT LAND REFORM IS NECESSARY AND A
MATTER OF SOCIAL JUSTICE, BUT IT SHOULD BE DONE IN A
FAIR, TRANSPARENT PROCESS. IN ADDITION, SEIZURES OF
FARMS WITHOUT COMPENSATION WILL SOUR RENEWED DONOR
SUPPORT FOR LAND REFORM. IT IS CRITICAL THAT THE
GOVERNMENT ADDRESS THIS AND ITS OTHER ECONOMIC PROBLEMS
SERIOUSLY, AS MORE AND MORE INDUSTRIES, INCLUDING MINING,
ARE SUFFERING, AND THE PATIENCE OF THE INTERNATIONAL
COMMUNITY IS WEARING THIN.


5. (C) MOYO ACKNOWLEDGED THAT THE GOVERNMENT WOULD BE
UNABLE TO PROVIDE RESETTLED FAMILIES WITH SIGNIFICANT
RESOURCES, BUT THOUGHT MANY WERE PEASANT FARMERS WHO
WOULD BE ABLE TO LOOK AFTER THEMSELVES. HE AGREED THAT
COMPENSATION WAS IMPORTANT BUT DID NOT THINK HE COULD
REVERSE THE GOVERNMENT'S DETERMINATION NOT TO PAY FOR THE
SEIZED FARMS. THE GOVERNMENT, MOYO ADMITTED, HAS DUG
ITSELF INTO A HOLE, BUT ITS PRIDE MAKES IT DIFFICULT TO
DO WHAT IS NECESSARY TO DIG ITSELF OUT. HE HOPED TO
TRAVEL SOON TO LONDON TO TRY TO ESTABLISH A MORE

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ACTION AF-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
SMEC-00 CTME-00 DINT-00 DODE-00 DOEE-00 DOTE-00 SRPP-00
DS-00 EB-00 EUR-00 EXIM-01 E-00 FAAE-00 FBIE-00
VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01
LAB-01 L-00 VCE-00 AC-01 NSAE-00 OIC-02 OMB-01
OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00
IRM-00 SSO-00 SS-00 STR-00 T-00 USIE-00 R-00
PMB-00 DSCC-00 PRM-01 DRL-02 G-00 NFAT-00 SAS-00
SWCI-00 /013W
-------------- 7B0638 171712Z /38
P 171634Z AUG 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 6874
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
AMEMBASSY LONDON
AMEMBASSY PARIS
AMEMBASSY THE HAGUE
USDOC WASHDC
NSC WASHDC
DEPTTREAS WASHDC

C O N F I D E N T I A L SECTION 02 OF 03 HARARE 004611

SIPDIS

STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK
USDOC FOR 2037/ERIC HENDERSON
STATE PASS USTR/RWHITTAKER
CONFIDENTIAL

PAGE 02 HARARE 04611 02 OF 03 171639Z
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH
LONDON FOR CHARLES GURNEY

E.O. 12958: DECL: 08/17/05
TAGS: PREL ECON PINR PHUM ZI EFIN EAGR
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR

CONSTRUCTIVE, BACK-CHANNEL DIALOGUE WITH BRITAIN ON LAND.
(IN A ONE-ON-ONE AFTER THE FORMAL MEETING, MOYO TOLD THE
AMBASSADOR THAT THESE CONTACTS WOULD ORIGINATE THROUGH
STANDARD CHARTERED BANK IN THE UNITED KINGDOM, HIS
PREVIOUS EMPLOYER.) WITHOUT ELABORATING, HE SAID
PRESIDENT MUGABE HAD GIVEN HIM THE GREEN LIGHT TO MOVE
FORWARD ON A RANGE OF KEY ISSUES.


6. (C) THE AMBASSADOR COMMENTED THAT THE GOVERNMENT HAS
USED LAND REFORM AS A POLITICAL TOOL TO GARNER ELECTORAL
SUPPORT. MOYO ACKNOWLEDGED THAT LAND REFORM IS A
POLITICAL ISSUE FOR SOME CABINET MEMBERS, BUT NOT FOR
MUGABE, WHO PERCEIVES IT AS A CORRECTION OF AN INJUSTICE.
MOYO SAID HE THOUGHT SOME POSITIVE MOVEMENT COULD BE
ACHIEVED ON LAND REFORM, SINCE MOST OF THE CABINET WAS ON
THE "RIGHT SIDE" OF THE ISSUE. HE THOUGHT MUGABE COULD
BE CONVINCED TO TONE DOWN HIS PUBLIC RHETORIC, BUT SAID
HIS MAIN CONCERN WAS WITH INFORMATION MINISTER JONATHAN
MOYO, WHO CAN DO THE MOST DAMAGE. A CHANGE IN RHETORIC
WOULD CERTAINLY BE HELPFUL, THE AMBASSADOR NOTED, BUT
POSITIVE, CONCRETE ACTIONS WOULD SEND THE MOST POWERFUL
MESSAGE. THE FUNDAMENTAL POINT, HE EMPHASIZED, WAS THAT
THE RULE OF LAW MUST BE RESTORED. THE AMBASSADOR SAID
THE U.S. WANTS TO HELP, BUT NOT UNDER THESE CONDITIONS.
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PAGE 03 HARARE 04611 02 OF 03 171639Z

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NEW PARLIAMENT AND MOYO'S ROLE IN CABINET
--------------


7. (C) ASKED FOR HIS ASSESSMENT OF THE NEW PARLIAMENT,
MOYO SAID BOTH THE RULING ZANU-PF AND THE MDC ARE SHOWING
"INCREDIBLE IMMATURITY," WHICH WOULD PROBABLY PREVENT HIM
FROM JOINING A POLITICAL PARTY IN THE NEAR FUTURE. THE
AMBASSADOR ASKED WHETHER MOYO FELT UNCOMFORTABLE AS A
MEMBER OF THE CABINET, GIVEN HIS REPUTATION AS A
POLITICAL INDEPENDENT (REFTEL). ON THE CONTRARY, MOYO
REPLIED. HE FELT INCREDIBLE FREEDOM AND WAS NOW
CONVINCED THAT NOT JOINING A POLITICAL PARTY WAS THE BEST
THING HE HAD EVER DONE. HE HAD NOT BEEN REQUIRED TO JOIN
ZANU-PF AND, IN FACT, HAD GIVEN A SPEECH ON ZIMBABWEAN
TELEVISION AFTER HIS APPOINTMENT MAKING IT CLEAR THAT HE
WAS NOT A MEMBER OF THE RULING PARTY AND EXPRESSING HIS
DETERMINATION TO BE A MINISTER FOR THE COUNTRY AS A
WHOLE. MANY PEOPLE SUBSEQUENTLY HAD ASKED HIM WHY HE HAD
JOINED THE CABINET. HE TOLD THEM HE CONSIDERED IT HIS
OBLIGATION TO DO ALL HE COULD TO PREVENT THE ZIMBABWEAN
SHIP FROM SINKING.

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FINANCIAL DIFFICULTIES
--------------


8. (C) ASKED HOW THE GOVERNMENT PLANNED TO ADDRESS ITS
SERIOUS ECONOMIC DIFFICULTIES, MOYO SAID HE IS WORKING
CLOSELY WITH FINANCE MINISTER SIMBA MAKONI ON NEXT STEPS.
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PAGE 04 HARARE 04611 02 OF 03 171639Z
IN THE NEAR TERM, THE GOVERNMENT HAD TALKED TO THE DUTCH
ABOUT ACQUIRING ASSISTANCE TARGETTED AT RESETTLEMENT OF A
LIMITED NUMBER OF FARMS, AS WELL AS THE FUEL AND
ELECTRICITY SECTORS. IN ADDITION, THE CABINET HAD
APPROVED THE MILLENIUM ECONOMIC RECOVERY PLAN THE
PREVIOUS WEEK. THE PLAN SEEKS, INTER ALIA, TO REDUCE THE
BUDGET DEFICIT FROM 14 TO 10 PERCENT, ESTABLISH A
REALISTIC EXCHANGE RATE, DOWNSIZE THE BLOATED CIVIL
SERVICE, AND RE-ESTABLISH RELATIONS WITH THE IFI'S.


9. (C) THE ECONOMIC RECOVERY PLAN, MOYO CONTINUED, ALSO
STRESSED THE NEED TO BETTER "MANAGE" THE ISSUE OF TROOPS
IN THE DROC. HE ASKED WHY UN TROOPS HAD NOT YET BEEN
DEPLOYED THERE. MONUC DEPLOYMENT HAD NOT BEEN EXPANDED,
THE AMBASSADOR EXPLAINED, BECAUSE SUFFICIENT SAFETY
GUARANTEES WERE NOT IN PLACE. BEFORE SUCH A DEPLOYMENT
COULD OCCUR, KABILA HAD TO MEET HIS LUSAKA ACCORDS
COMMITMENTS, AND ZIMBABWE COULD PLAY A POSITIVE ROLE IN
PRESSING KABILA TO DO SO, THE AMBASSADOR POINTED OUT.

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ANTI-AMERICAN RHETORIC
--------------


10. (C) THE AMBASSADOR EXPRESSED CONCERN ABOUT RECENT
ANTI-AMERICAN STATEMENTS FROM GOVERNMENT OFFICIALS,

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ACTION AF-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
SMEC-00 CTME-00 DINT-00 DODE-00 DOEE-00 DOTE-00 SRPP-00
DS-00 EB-00 EUR-00 EXIM-01 E-00 FAAE-00 FBIE-00
VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01
LAB-01 L-00 VCE-00 AC-01 NSAE-00 OIC-02 OMB-01
OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00
SSO-00 SS-00 STR-00 T-00 USIE-00 PMB-00 DSCC-00
PRM-01 DRL-02 G-00 NFAT-00 SAS-00 /013W
-------------- 7B23FE 180009Z /21
P 171634Z AUG 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 6875
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
AMEMBASSY LONDON
AMEMBASSY PARIS
AMEMBASSY THE HAGUE
USDOC WASHDC
NSC WASHDC
DEPTTREAS WASHDC

C O N F I D E N T I A L SECTION 03 OF 03 HARARE 004611

SIPDIS

STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK
USDOC FOR 2037/ERIC HENDERSON
STATE PASS USTR/RWHITTAKER
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH
CONFIDENTIAL

PAGE 02 HARARE 04611 03 OF 03 180009Z
LONDON FOR CHARLES GURNEY

E.O. 12958: DECL: 08/17/05
TAGS: PREL ECON PINR PHUM ZI EFIN EAGR
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR

PROMPTED BY THE U.S. CONGRESS' ACTION ON THE ZIMBABWE
DEMOCRACY ACT. SUCH RHETORIC WAS NOT A HELPFUL WAY TO
CONDUCT OUR BILATERAL BUSINESS, AND HE HOPED WE COULD
DISCUSS OUR DIFFERENCES IN A MORE LOW-KEY, PRIVATE
MANNER. MOYO AGREED.

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COMMENT
--------------


11. (C) MOYO IS A WELL-REGARDED, CAPABLE FIGURE, WHOSE
APPOINTMENT TO THE CABINET WAS A SURPRISE, GIVEN HIS
REPUTATION AS A POLITICAL INDEPENDENT. A WELL-TO-DO
INVESTMENT BANKER AND CLOSE CONTACT OF THE EMBASSY, MOYO
APPEARS MOTIVATED BY A GENUINE DESIRE TO SERVE HIS
COUNTRY AND REVERSE THE GOVERNMENT'S DISASTROUS POLICIES.
HE IS NOT AN EXPERIENCED POLITICIAN, HOWEVER, WHICH COULD
HINDER HIS EFFECTIVENESS, PARTICULARLY IN THE CURRENT
TOUGH POLITICAL ENVIRONMENT. IN THE ONE-ON-ONE AFTER THE
FORMAL MEETING, MOYO TOLD THE AMBASSADOR HE HAD NOT BEEN
CONSULTED ABOUT THE CABINET POSITION, BUT HAD LEARNED OF
HIS APPOINTMENT ON TELEVISION. ALTHOUGH MOYO BELIEVES HE
HAS THE PRESIDENT'S CONFIDENCE, WE ARE SKEPTICAL THAT
MUGABE WILL GIVE HIM THE NECESSARY MANEUVERING ROOM TO
EFFECT A SIGNIFICANT CHANGE EITHER IN THE GOVERNMENT'S
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PAGE 03 HARARE 04611 03 OF 03 180009Z
HISTORICAL MISHANDLING OF THE ECONOMY OR ITS APPROACH ON
LAND. HE HAS BEEN OUTSPOKEN, HOWEVER. THE DAY AFTER HIS
MEETING WITH THE AMBASSADOR, MOYO REPORTEDLY TOLD THE
CONFEDERATION OF ZIMBABWE INDUSTRIES THAT THE LAWLESSNESS
WAS DAMAGING ZIMBABWE'S INTERNATIONAL IMAGE AND THAT
FOREIGN INVESTMENT WAS UNLIKELY TO BE FORTHCOMING IN THE
CURRENT ENVIRONMENT. WE DO WANT TO HELP MOYO AND WILL
LOOK FOR WAYS TO DO SO.

MCDONALD

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