1. (C) SUMMARY: THE CEO OF A MAJOR ZIMBABWEAN
CORPORATION TOLD AMBASSADOR NOVEMBER 2 THAT HE AND OLD
MUTUAL INSURANCE COMPANY ARE ARRANGING A PRIVATE CREDIT
FACILITY TO PURCHASE 300 TO 400 COMMERCIAL FARMS TO HELP
BREAK THE LOGJAM ON LAND REFORM. THE CEO ALSO STATED
THAT HE AND OTHER BUSINESS LEADERS ARE ENCOURAGING THE
RULING ZANU-PF AND OPPOSITION MDC TO IRON OUT THEIR
DIFFERENCES THROUGH THIRD-PARTY MEDIATION. HE IS HAVING
AN INTERMEDIARY APPROACH FORMER ZAMBIAN PRESIDENT
KENNETH KAUNDA TO DETERMINE IF HE WOULD SERVE AS
MEDIATOR. END SUMMARY.



2. (C) THE AMBASSADOR SPOKE NOVEMBER 2 WITH PATRICK
ROONEY (PROTECT), THE CEO OF DELTA CORPORATION, A
ZIMBABWEAN CORPORATION THAT IS CONTROLLED BY OLD MUTUAL
AND SOUTH AFRICAN BREWERIES, AND IS IN THE BEVERAGE AND
TOURISM BUSINESSES IN ZIMBABWE. ROONEY IS A WELL-
CONNECTED WHITE ZIMBABWEAN WHO IS POLITICALLY ASTUTE AND
MOVES EASILY IN A VARIETY OF BUSINESS AND GOVERNMENT
CIRCLES. ROONEY TOLD THE AMBASSADOR THAT HE AND OLD
MUTUAL ARE ARRANGING A CREDIT FACILITY FOR THE GOZ TO
PURCHASE 300 TO 400 COMMERCIAL FARMS CURRENTLY
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PAGE 03 HARARE 06191 01 OF 02 021653Z
DESIGNATED FOR ACQUISITION. PART OF THE PROPOSAL WOULD
ALLOW WAR VETERANS OCCUPYING FARMS TO BE RELOCATED TO
THE NEWLY PURCHASED PROPERTIES. ROONEY STATED THAT HE
HOPES THIS MOVE WILL HELP BREAK THE LOGJAM ON LAND
REFORM AND REMOVE THE LAWLESS ELEMENTS, NAMELY THE WAR
VETERANS, FROM THE LAND RESETTLEMENT PICTURE, THEREBY
DEMONSTRATING TO THE INTERNATIONAL COMMUNITY THAT LAW
AND ORDER IS RETURNING TO ZIMBABWE.



3. (C) ROONEY CONTINUED THAT THIS PROPOSAL WOULD SOON
BE PUT TO PRESIDENT MUGABE, BUT IT WAS UNCLEAR TO HIM
WHETHER THE PRESIDENT WOULD ACCEPT IT. THE CEO SAID
THAT VICE-PRESIDENT MSIKA HAD ENDORSED THE PROGRAM, BUT
BELIEVED THAT MINISTER OF STATE FOR INFORMATION AND
PUBLICITY JONATHAN MOYO, MINISTER FOR LOCAL GOVERNMENT
IGNATIUS CHOMBO, AND MINISTER FOR LANDS, AGRICULTURE AND
RESETTLEMENT JOSEPH MADE COULD STILL SCUTTLE THE EFFORT.
ROONEY STATED THAT THE COMMERCIAL FARMER'S UNION (CFU)
HAS NOT BEEN ABLE TO GET ITS ACT TOGETHER IN NEGOTIATING
WITH THE GOZ. HE SAID THAT THE CFU IS NOT INVOLVED IN
THE DEAL, NOTING THAT IT WAS STRICTLY A PRIVATE BUSINESS
PROPOSAL.



4. (C) ON A SEPARATE SUBJECT, ROONEY INFORMED THE
AMBASSADOR THAT HE AND OTHER BUSINESS LEADERS ARE
ENCOURAGING THE RULING ZANU-PF AND OPPOSITION MDC TO
WORK OUT THEIR DIFFERENCES AND ARE SEEKING A MEDIATOR TO
HELP THEM. THERE IS CURRENTLY A SHORT LIST OF POTENTIAL
MEDIATORS, AT THE TOP OF WHICH IS FORMER ZAMBIAN
PRESIDENT KENNETH KAUNDA. KAUNDA IS A GOOD POSSIBILITY
BUT MAY BE A PROBLEM WITH MUGABE BECAUSE OF HIS PRIOR
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PAGE 04 HARARE 06191 01 OF 02 021653Z
SUPPORT OF JOSHUA NKOMO. THERE ARE NO SOUTH AFRICANS ON
THE SHORT LIST, ROONEY CONTINUED. THE AMBASSADOR TOLD
ROONEY THAT THE USG WELCOMES BOTH THESE INITIATIVES AND
ENCOURAGES ALL THE PARTIES INVOLVED TO KEEP THE CHANNELS
OF DIALOGUE OPEN. THE AMBASSADOR ASKED ROONEY TO KEEP
US APPRISED OF ANY DEVELOPMENTS IN THESE NEGOTIATIONS.



5. (C) COMMENT: WE BELIEVE ROONEY TO BE A VERY CREDIBLE
SOURCE AND WHAT HE TOLD US REPRESENTS A PROLIFERATION OF
BEHIND-THE-SCENES ATTEMPTS TO GET THE GOVERNMENT AND
OPPOSITION TALKING. IT TRACKS PARTICULARLY WELL WITH
WHAT BUSINESSMAN AND MDC SUPPORTER CLIVE PUZEY TOLD US,
IN THAT THE PRESIDENT'S OFFICE HAD BEEN TALKING TO THE
MDC ABOUT A PRIVATELY-FUNDED LAND DEAL AS PART OF A
RETIREMENT PACKAGE FOR MUGABE (REFTEL). ROONEY'S
REMARKS ABOUT ENCOURAGING THE PARTIES TO SEEK MEDIATION
COULD ALSO BE AN INDICATION THAT ATTEMPTS BY ZANU-PF AND
MDC TO NEGOTIATE HAVE STALLED. IT IS DIFFICULT TO
PREDICT WHETHER ANY OF THESE DISCUSSIONS WILL AMOUNT TO
ANYTHING AND HEAD OFF A MORE PUBLIC CONFRONTATION
BETWEEN OPPOSITION SUPPORTERS AND THE POWERS-THAT-BE.
WE ARE ENCOURAGED NEVERTHELESS THAT THE STAKEHOLDERS DO
SEEM TO BE TALKING OFF-STAGE EVEN AS THEIR ON-STAGE
THEATRICS BECOME MORE VITRIOLIC. THE AMBASSADOR WILL
CONTINUE TO ENCOURAGE ROONEY'S EFFORTS. END COMMENT.

CONFIDENTIAL

CONFIDENTIAL PTQ4360

PAGE 01 HARARE 06191 02 OF 02 021653Z
ACTION AF-00

INFO LOG-00 NP-00 AGRE-00 AID-00 ACQ-00 CEA-01 CIAE-00
COME-00 CTME-00 DINT-00 DODE-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 L-00 VCE-00
AC-01 NSAE-00 OMB-01 OPIC-01 PA-00 PM-00 PRS-00
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PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /009W


--------------------------

9A0625 021653Z /38
O 021652Z NOV 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC IMMEDIATE 7511
INFO NSC WASHDC IMMEDIATE
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
AMEMBASSY NAIROBI

C O N F I D E N T I A L SECTION 02 OF 02 HARARE 006191

SIPDIS

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

LONDON FOR CHARLES GURNEY

PARIS FOR BISA WILLIAMS

PASS USTR FOR ROSA WHITAKER

E.O. 12958: DECL: 11/02/10
TAGS: PGOV ECON EAGR PREL PINR ZI
CONFIDENTIAL

PAGE 02 HARARE 06191 02 OF 02 021653Z
SUBJECT: PROMINENT ZIMBABWEAN BUSINESS LEADERS TRYING
TO ENCOURAGE A SOLUTION TO THE LAND PROBLEM AND URGE
POLITICAL PARTIES TO WORK OUT THEIR DIFFERENCES

MCDONALD

CONFIDENTIAL

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