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 CONFIDENTIAL 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 CONFIDENTIAL 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 �00A;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 CONFIDENTIAL 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 CONFIDENTIAL CONFIDENTIAL PTQ4922 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. CONFIDENTIAL 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 CONFIDENTIAL 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 CONFIDENTIAL >