AMBASSADOR CALLS ON NEW FINANCE MINISTER

C O N F I D E N T I A L SECTION 01 OF 02 HARARE 004692

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
LONDON FOR CHARLES GURNEY

CONFIDENTIAL

PAGE 02 HARARE 04692 01 OF 02 241454Z
E.O. 12958: DECL: 08/24/05
TAGS: ECON EFIN PREL EAGR PINR ZI
SUBJECT: AMBASSADOR CALLS ON NEW FINANCE MINISTER
SIMBA MAKONI


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


1. (C) SUMMARY: THE AMBASSADOR, ECON AND NEW POL
OFFICER MADE AN INTRODUCTORY CALL ON SIMBA MAKONI, THE
RECENTLY APPOINTED FINANCE MINISTER ON AUGUST 22.
MAKONI (WHOM THE EMBASSY KNOWS WELL) SHARED WITH US
HIS DETERMINATION TO BE A FORCE FOR POSITIVE CHANGE
AND PAINTED A NEW PICTURE OF THE POST-ELECTION CABINET
AS A TEAM GIVEN THE BRIEF BY PRESIDENT MUGABE TO "GET
ZIMBABWE WORKING AGAIN." ON THE LAND ISSUE HE TOLD US
"TO ONLY BELIEVE WHAT WE SEE." THE NEW MINISTER
EXPRESSED SERIOUS INTEREST IN THE STATUS AND OUTLOOK
OF THE ZIMBABWE DEMOCRACY ACT, AND PLEADED FOR
IMMEDIATE FINANCIAL ASSISTANCE AND CLEAR USG SUPPORT
GOING AHEAD. HIS MESSAGE WAS STAND BY US, AND JUDGE
ZIMBABWE ON ITS DEEDS, NOT ITS RHETORIC. END SUMMARY.


2. (C) IN AN AUGUST 22 INTRODUCTORY CALL ON NEW
FINANCE MINISTER SIMBA MAKONI, ACCOMPANIED BY ECON AND
POL OFFICERS, THE AMBASSADOR DISCUSSED THE TOUGH
PORTFOLIO AND CHALLENGES FACING THE NEW CABINET
MEMBER, AND CRITICAL ISSUES ON THE PATH AHEAD. THE
COM AND OTHER SENIOR EMBASSY STAFF KNOW MAKONI WELL
FROM HIS PRIOR PROFESSIONAL ACTIVITIES AND INTERESTS
OVER THE YEARS, AND IN THE MEETING MAKONI WAS WARM AND
STRAIGHTFORWARD WITH US.
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THE WAY AHEAD WITH A NEW CABINET
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3. (C) WHEN ASKED HOW HE VIEWED THE WAY FORWARD,
MAKONI DECLARED THAT DETERMINING WHAT TO DO WAS NOT
THE CHALLENGE, BUT RATHER WHEN, HOW AND WHETHER TO
CARRY OUT THE HARD STEPS NECESSARY TO TURN AROUND THE
DECLINE. HOW FAR TO PUSH WAS A DELICATE ISSUE, THE
MINSTER TOLD US, AND HE HAD SPENT MUCH OF THE LAST FEW
WEEKS (MAKONI HAD BEEN SWORN IN 4 WEEKS PRIOR TO THE
DAY OF OUR CALL) BEING BREIFED BY SENIOR MINISTRY
STAFF AND LEARNING IN THE PROCESS THAT THE "JOB IS
LESS ABOUT FINANCE, THAN IT IS ABOUT POLITICS." THE
NEW CABINET, IN MAKONI'S VIEW, CONSTITUTES A TEAM THAT
HAS BEEN TASKED BY THE PRESIDENT TO GET RESULTS. HE
IS DEDICATED TO THIS GOAL, AND TOLD US THAT ZIMBABWE
IS IN THE TOUGH SPOT OF NEEDING FOREIGN HELP TO GET
OUT OF ITS PREDICAMENT; BUT AT THE SAME TIME HE KNEW
THAT HELP WOULD ONLY COME WHEN CLEAR PROGRESS HAD BEEN
MADE. "WE WILL START THE CHANGE," HE STATED, "AND YOU
CAN JUDGE US BY OUR DEEDS AND NOT OUR WORDS. HOWEVER,
WE NEED A SOFT BELLY TO LAND ON, AND ASK FOR ANY HELP
YOU CAN PROVIDE."


4. (C) CONTINUING IN THIS SAME VEIN THE MINISTER
STATED THAT THE CRITICAL ISSUE FACING THE GOVERNMENT
IS TO REIN IN AND ELIMINATE LAWLESSNESS, AND THEREBY
WIN BACK THE CONFIDENCE AND TRUST OF THE PEOPLE, AS
WELL AS THE INTERNATIONAL COMMUNITY. ONLY IF THIS IS
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DONE CAN NORMALCY RETURN, AND EFFORTS CAN THEN BE MADE
TO STEM THE ECONOMIC DECLINE. MAKONI EMPHASIZED THAT
THERE WERE NO SACRED COWS IN THIS EFFORT. THE
DEVALUATION SHOWED THIS AND THE SPENDING CUTS THAT ARE
TO ENSUE WILL ALSO DEMONSTRATE THIS BY DEED. MAKONI
STATED THAT THE GOVERNMENT WAS FORMULATING A PLAN TO
ADDRESS THE RUNAWAY INFLATION RATE, WHICH HE HOPED TO
HAVE FINALIZED BEFORE THE ANNOUNCEMENT OF THE NEW
BUDGET LATER THIS YEAR. HE TOLD US BLUNTLY THAT
ZIMBABWE WANTED OUT OF THE CONGO, AND THE AMBASSADOR
ASSURED HIM THAT THE U.S. FULLY SUPPORTED WITHDRAWAL
AND WAS DOING ALL IT COULD TO ACHIEVE THIS.

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THE LAND ISSUE
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5. (C) THE AMBASSADOR ASKED THE NEW MINISTER IF THE
GOZ WOULD GO AHEAD WITH ITS ANNOUNCED PLANS TO SEIZE
3,000 COMMERCIAL FARMS BEFORE THE START OF THE RAINY
SEASON. MAKONI POINTEDLY REPLIED THAT WE SHOULD "ONLY
BELIEVE WHAT YOU SEE," CLEARLY IMPLYING THAT THE
SEIZURES AND RESETTLEMENT MAY WELL FALL SHORT OF THE
3,000 MARK. MAKONI FURTHER REMARKED THAT CLARITY WILL
COME TO THE LAND ISSUE, AS IT IS SOMETHING ALL IN THE
NATION NEED. IN A FURTHER ATTEMPT AT REASSURING US,

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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 ITC-01 LAB-01
L-00 VCE-00 AC-01 NSAE-00 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 FMP-00 PMB-00 DSCC-00 DRL-02
G-00 FDIC-01 NFAT-00 SAS-00 /011W
-------------- 7D9751 241455Z /38
P 241452Z AUG 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 6922
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
AMEMBASSY LONDON
USDOC WASHDC
NSC WASHDC
DEPT OF TREASURY WASHDC

C O N F I D E N T I A L SECTION 02 OF 02 HARARE 004692

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
LONDON FOR CHARLES GURNEY

CONFIDENTIAL

PAGE 02 HARARE 04692 02 OF 02 241454Z
E.O. 12958: DECL: 08/24/05
TAGS: ECON EFIN PREL EAGR PINR ZI
SUBJECT: AMBASSADOR CALLS ON NEW FINANCE MINISTER
SIMBA MAKONI

MAKONI AGAIN EMPHASIZED THAT THE PRESIDENT'S BRIEF TO
BOTH HIM AND THE ENTIRE CABINET WAS TO "GET ZIMBABWE
WORKING AGAIN." "IF I CANNOT DO THAT JOB, I WILL NOT
BLAME IT ON THE PRESIDENT, BECAUSE IT WILL BE MY FAULT
OR THE FAULT OF THE TEAM," HE PASSIONATELY STATED.
"WE WILL SINK OR SWIM TOGETHER, AND I THINK THIS IS
STARTING TO BE REALIZED," MAKONI ASSURED US.


6. (C) IN CLOSING, THE MINISTER ASKED US WITH NOTABLE
CONCERN ABOUT THE STATUS, IMPACT AND OUTLOOK FOR THE
ZIMBABWE DEMOCRACY ACT. THE AMBASSADOR EXPLAINED OUR
PRESENT DOMESTIC POLITICAL ENVIRONMENT, AND PROVIDED
AN ASSESSMENT OF WHAT ACTION COULD TAKE PLACE, HOW AND
WHY. HE STATED THAT THE EMBASSY SHARED CONGRESS'
CONCERN ABOUT THE STATE OF AFFAIRS IN ZIMBABWE. WE
EXPLAINED TO THE FINANCE MINISTER THE KEY ROLE THE
FOREIGN MINISTER'S UPCOMING VISIT TO WASHINGTON COULD
PLAY, AND INFORMED HIM THAT WE WERE WILLING TO BRIEF
THE FOREIGN MINSTER AND OTHER GOZ OFFICIALS BEFORE
THEIR TRIP. IN HIS FINAL WORDS THE NEW FINANCE CHIEF
ASKED IF THERE WAS ANY FINANCIAL ASSISTANCE THE UNITED
STATES COULD PROVIDE ZIMBABWE TO HELP IT THROUGH ITS
PRESENT DIFFICULT TIMES. FOREIGN EXCHANGE IS SO
SHORT, HE EXPLAINED, THAT IT IS A STRUGGLE TO EVEN
COME UP WITH USD 2 MILLION TO GET SMALL AMOUNTS OF
FUEL IMPORTED. ANYTHING WE COULD PROVIDE "THAT'S NOT
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TIED TO THE BIG PICTURE" WOULD BE VERY MUCH
APPRECIATED. THE AMBASSADOR EXPLAINED THE NATURE,
AMOUNTS AND LIMITS ON OUR AID TO ZIMBABWE AND LET THE
NEW MINISTER DOWN GENTLY.

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COMMENT
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7. (C) THOUGH WE KNOW MAKONI FAIRLY WELL, THIS
INITIAL MEETING IN HIS NEW OFFICES WAS DIFFERENT THAN
OUR PREVIOUS DISCUSSIONS WHEN HE WAS BUSINESSMAN
BECAUSE OF THE IMPORTANT POST THE MINISTER HOLDS.
WHILE MAKONI WAS SCANT ON DETAILS OF THE MINISTRY'S
POLICIES GOING FORWARD (A FAULT SHARED BY THE
MILLENIUM ECONOMIC RECOVERY PLAN),HE WAS HONEST,
LISTENED CAREFULLY AND MADE HIS PITCH FOR ZIMBABWE
WITHOUT SUSPENDING CRITICISM OR IGNORING REALITY. WE
LOOK FORWARD TO WORKING WITH HIM AND HOPE THAT HIS
WORDS AND VISION ARE MADE REAL. THE EMBASSY DOES WANT
TO HELP THIS MINISTER. END COMMENT.

MCDONALD

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