ZIMBABWE LAND REFORM ASSISTANCE UPDATE -

C O N F I D E N T I A L SECTION 01 OF 02 HARARE 005051

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER; AFR/SA FOR

N. NEWMAN, C. PALMA

STATE FOR AF DAS SCHNEIDMAN, AF/S DIRECTOR RENDER AND
DESK OFFICER KRAFT

E.O. 12958: DECL: 1
TAGS: EAID EAGR ZI
SUBJECT: ZIMBABWE LAND REFORM ASSISTANCE UPDATE -
PROPOSAL TO TERMINATE PROGRAM

REFS: (A) HARARE 2271; (B) HARARE 1609


1. FROM AMBASSADOR MCDONALD TO AF DAS SCHNEIDMAN, AND
AF/S DIRECTOR RENDER: I WOULD APPRECIATE RECEIVING
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PAGE 02 HARARE 05051 01 OF 02 111542Z
YOUR THOUGHTS ON THIS ISSUE AT YOUR EARLIEST
CONVENIENCE. WE NEED TO COME TO SOME CONSENSUS
QUICKLY ON TERMINATING THIS PROJECT.


2. DONORS INVOLVED IN THE UNDP/TECHNICAL SUPPORT UNIT
(TSU) LAND REFORM SUPPORT ACTIVITY, INCLUDING THE
U.S., NORWAY, SWEDEN, AND THE NETHERLANDS, MET ON
TUESDAY, SEPTEMBER 5 AT UNDP WITH ACTING UNDP RESIDENT
REPRESENTATIVE (RESREP) CHINWE TO DISCUSS THE STATUS
AND RECOMMENDED DISPOSITION OF THIS ACTIVITY GIVEN THE
CONTINUING ILLEGAL FARM OCCUPATIONS AND ASSOCIATED
PROBLEMS. NOTE: ALTHOUGH NOT A CONTRIBUTING DONOR TO
THIS SPECIFIC ACTIVITY, GIVEN THEIR CLOSE ASSOCIATION
WITH THIS PROGRAM, A WORLD BANK REPRESENTATIVE ALSO
ATTENDED THIS MEETING. END NOTE. SEE REFTEL A FOR A
FULLER DESCRIPTION OF THIS MULTI-DONOR LAND REFORM
SUPPORT PROJECT ACTIVITY.


3. PER REFTEL B, THIS ACTIVITY WAS OFFICIALLY 'FROZEN'
(I.E., NO NEW FUNDING COMMITMENTS) AFTER DONOR AND
STATE DEPARTMENT CONSULTATIONS IN MARCH 2000. A
LETTER WAS SENT TO THE GOZ OULY REFLECTING THIS
DECISION. NOTE: TO DATE, WE HAVE RECEIVED NO
RESPONSE FROM THE GOZ TO THIS 'FREEZE'
LETTER/DECISION. END NOTE. AS A RESULT, THE PROJECT
HAS ONLY BEEN PAYING SALARIES OF RECRUITED TSU STAFF
SINCE THAT TIME, AS NO ADDITIONAL MATERIALS, EQUIPMENT
OR OPERATING COSTS ARE PERMITTED UNDER THE SUSPENSION
OR FREEZE. ACCORDINGLY, EXACERBATED BY THE MORE
RECENT DRAMATIC AOVERSE TURN OF IN-COUNTRY EVENTS, TSU
STAFF HAVE BEEN ABLE TO ACCOMPLISH LITTLE OF THEIR
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PAGE 03 HARARE 05051 01 OF 02 111542Z
EXPECTED SCOPE OF WORK SINCE MARCH 2000. RESREP
CHINWE ALSO INFORMED THE MEETING THAT THERE WAS NEED
FOR A TIMELY DECISION IN THIS MATTER AS, GIVEN ITS
CURRENT LOCATION WITHIN THE OFFICE OF THE PRESIDENT
AND CABINET, THE TSU IS COMING UNDER INCREASING
PRESSURE FROM THE GOZ TO USE THEIR EQUIPMENT AND STAFF
IN SUPPORT OF THE GOVERNMENT'S 'FAST-TRACK' PROGRAM
WHICH THE DONORS DO NOT SUPPORT IN ITS CURRENT FORM.


4. CONSIDERING THESE CIRCUMSTANCES, AND THE CURRENT
BLEAK PROSPECTS FOR ANY RAPID IMPROVEMENT IN THIS
SITUATION, ALL DONORS TO THIS PROGRAM RECOMMEND THAT
IT IS BEST TO 'CUT OUR LOSSES' AT THIS TIME, AND
TERMINATE OUR SUPPORT FOR THIS ACTIVITY.


5. LESS DRASTIC OPTIONS DISCUSSED (E.G., RETAINING
SOME MODIFIED SEMBLANCE OF THIS ACTIVITY FOR SUPPORT
OF ON-GOING TECHNICAL ASSISTANCE ACTIVITIES WITH
REMAINING PROJECT FUNDS, SUCH AS MONITORING OF ON-
GOING ZIMBABWE LAND REFORM ACTIVITIES/EVENTS,
CONSTRUCTIVE TECHNICAL STUDIES, AND/OR FACILITATION OF
A DONOR-GOVERNMENT DIALOGUE ON THIS SUBJECT) WERE
REJECTED DUE TO THE FORMAL NATURE OF THE AGREEMENT FOR
THIS ACTIVITY BETWEEN THE UNDP AND THE GOZ REQUIRING
THAT ANY/ALL SUCH MODIFIED USES OF PROJECT RESOURCES
WOULD HAVE TO APPROVED BY THE GOZ. UNDER THESE
CIRCUMSTANCES, AND IN THE INTEREST OF MAINTAINING A
DESIRED DEGREE OF AUTONOMY AND FLEXIBILITY VIS-A-VIS
THE GOVERNMENT'S EXPRESSED PLANS AND ACTIONS ON THIS
SUBJECT, ALL PRESENT AGREED THAT IT WAS BEST TO
TERMINATE THIS ACTIVITY ALTOGETHER. THEREAFTER, ONCE
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PAGE 04 HARARE 05051 01 OF 02 111542Z
WE HAVE A CLEARER IDEA WHERE THE 'FAST-TRACK' PROGRAM
IS GOING AND WHAT OUR POSSIBLE STRATEGIC POINTS OF
ENTRY MIGHT BE, A NEW PROGRAM COULD BE DEVELOPED.
NOTE: IN THIS LATTER REGARD, THE MISSION NOTES THAT
THE U.S.G. WILL RETAIN THE CAPABILITY FOR SUCH ON-
GOING TECHNICAL SUPPORT FOR ZIMBABWE LAND REFORM,
REGARDLESS OF THE FINAL STATUS OF THIS MULTI-DONOR
UNDP/TSU ACTIVITY, UNDER OUR SEPARATE, COMPLEMENTARY
AND DIRECT AGREEMENT WITH THE UNVIERSITY OF
WISCONSIN'S LAND TENURE CENTER (SEE REFTEL A).


6. NEXT STEPS:

-A. AFTER DONOR CONCURRENCE, UNOP WILL DRAFT A FORMAL
LETTER TO GOVERNMENT INDICATING OUR OECISION TO
TERMINATE OUR SUPPORT UNDER THIS ACTIVITY. NOTE: IT
WAS AGREED AT THIS MEETING THAT THIS DRAFT LETTER
WOULD BE CLEARED BY ALL CONCERNED PARTIES PRIOR TO
FINALIZATION/TRANSMITTAL. END NOTE.

-B. UNDP WILL COMPLETE A FINAL ACCOUNTING OF PROJECT

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PAGE 01 HARARE 05051 02 OF 02 111543Z
ACTION AID-00

INFO LOG-00 NP-00 AF-00 AGRE-00 CIAE-00 DODE-00 SRPP-00
EB-00 TEDE-00 IRM-00 SAS-00 /000W
-------------- 83D637 111543Z /38
P 111541Z SEP 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 7053

C O N F I D E N T I A L SECTION 02 OF 02 HARARE 005051

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER; AFR/SA FOR

N. NEWMAN, C. PALMA

STATE FOR AF DAS SCHNEIDMAN, AF/S DIRECTOR RENDER AND
DESK OFFICER KRAFT

E.O. 12958: DECL: 1
TAGS: EAID EAGR ZI
SUBJECT: ZIMBABWE LAND REFORM ASSISTANCE UPDATE -
PROPOSAL TO TERMINATE PROGRAM

EXPENSES TO DATE (INCLUDING ANY TSU STAFF TERMINATION
COSTS) WHICH WILL THEN BE ALLOCATED EQUALLY AMONG THE
FOUR DONORS CONTRIBUTING TO THIS ACTIVITY FOR A FINAL
ACTIVITY ACCOUNTING IN PREPARATION FOR ITS CLOSEOUT.
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PAGE 02 HARARE 05051 02 OF 02 111543Z

-C. IN THE INTERIM, PARTICIPATING DONORS WILL CONSIDER
THE POSSIBILITY/INTEREST IN CONTINUING TO SUPPORT SOME
TYPE OF SUCCESSOR TECHNICAL ASSISTANCE (TA) ACTIVITY
WITH REMAINING PROJECT FUNDS AS DISCUSSED ABOVE.


7. ONCE THESE STEPS ARE COMPLETE, THE DONORS WILL MEET
AGAIN TO FINALIZE OUR RESPECTIVE FUNDING ALLOCATIONS
AND CLOSE-OUT PROCEDURES UNOER THE EXISTING ACTIVITY,
AND TO DETERMINE THE EXTENT OF ANY SUPPORT FOR A
SUCCESSOR ACTIVITY.

8. COMMENT: FOR THE SEVERAL REASONS STATED ABOVE,
EMBASSY BELIEVES THIS ACTIVITY TERMINATION DECISION IS
THE CORRECT ONE AT THIS TIME. ALL OTHER DONORS
PARTICIPATING IN THIS ACTIVITY CLEARLY SUPPORT THE
NECESSITY FOR THIS ACTION AT THIS TIME. IN THE
PRESENT CIRCUMSTANCES, AT BEST, WE ARE SIMPLY WASTING
MONEY BY CONTINUING TO FUND THE TSU; AND, AT WORST, WE
COULD SEE OUR RESOURCES CO-OPTED TO SUPPORT THE
GOVERNMENT'S CURRENT ILLEGAL 'FAST-TRACK' LAND REFORM
ACTIVITIES. IN ADDITION, ALTHOUGH A FINAL ACCOUNTING
IS YET TO BE COMPLETED, IT IS ESTIMATED THAT, AT MOST,
WE HAVE US$100,000 TO 150,000 OF U.S.G. FUNDS
REMAINING UNDER THIS ACTIVITY AT THIS TIME.
THEREFORE, EVEN IF WE OPTED TO 'GO IT ALONE', WE COULD
ACCOMPLISH LITTLE ON OUR OWN WITHOUT THE CONTINUING
PARTICIPATION OF THE OTHER THREE DONORS TO THIS
ACTIVITY. FINALLY, IT IS NOTEO THAT THERE IS
CONSIDERABLE MERIT TO MAINTAINING A UNITED OONOR FRONT
ON THIS ISSUE. HOWEVER, AS THE TERMINATION LETTER TO
THE GOZ IS ONLY BEING ORAFTED NOW, WE WILL HAVE TIME
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PAGE 03 HARARE 05051 02 OF 02 111543Z
TO RECONSIOER THIS OECISION BEFORE IT BECOMES FINAL,
IF, FOR EXAMPLE, THE RECENT DEVELOPMENTS AT THE UNITED
NATIONS GENERAL ASSEMBLY MEETING IN NEW YORK (UNGA)
MERIT SUCH A RECONSIDERATION. NOTE: THE UNDP HAS
SINCE CALLED AN INFORMAL DONORS MEETING FOR THIS WEEK
TO DISCUSS THE RECENT UNGA DELIBERATIONS AND THEIR
POSSIBLE IMPACT ON THE SITUATION IN ZIMBABWE. FURTHER
POST NOTES DAS SCHEIDMAN'S DISCUSSION LAST WEEK WITH
THE DIRECTOR OF UNDP. END NOTE. MCDONALD

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