ZIMBABWE'S COMMERCIAL FARMERS QUIETLY WORKING

C O N F I D E N T I A L SECTION 01 OF 02 HARARE 001276 SIPDIS NSC FOR SENIOR AFRICA DIRECTOR JFRAZER LONDON FOR CGURNEY PARIS FOR BWILLIAMS NAIROBI FOR PFLAUMER PASS USAID FOR AFR/SD - DWELLER, AFR/SA - CPALMA, NNEWMAN, AA/AFR - VDICKSON-HORTON E.O. 12958: DECL: 04/09/11 TAGS: EAGR PGOV PHUM EAID PINR ZI SUBJECT: ZIMBABWE'S COMMERCIAL FARMERS QUIETLY WORKING CONFIDENTIAL PAGE 02 HARARE 01276 01 OF 02 091254Z TO RE-ENGAGE WITH THE GOZ ON LAND REFORM REF: HARARE 1102 CLASSIFIED BY CHARGE D' AFFAIRES EARL M. IRVING FOR REASONS 1.5 (B/D). ¶1. (C) SUMMARY: THE CFU AND THE GOZ ARE QUIETLY MEETING TO TRY AND REACH AN AGREEMENT TO END THE STAND-OFF OVER LAND. THE CFU IS PITCHING A PROPOSAL TO THE GOZ WHEREBY IT WILL PROVIDE A LIST OF FARMS TOTALING FIVE MILLION HECTARES THAT WOULD BE MADE AVAILABLE FOR RESETTLEMENT, A PORTION OF THEM IMMEDIATELY. THE GOZ WOULD THEN PRIVATELY AGREE TO AN ACQUISITION TIMETABLE SPREAD OVER A NUMBER OF YEARS, GIVING THE FARMERS TIME TO WIND-DOWN THEIR OPERATIONS. THE PROSPECTS FOR SUCCESS IN THESE NEGOTIATIONS HINGE ON THE CFU AND COMMERCIAL FARMERS DECIDING THAT THEY CAN TRUST THE GOZ TO HONOR AN AGREEMENT OF THIS TYPE, INCLUDING PROVIDING FAIR COMPENSATION FOR THE VALUE OF THE FARMS OBTAINED (NOTE: THE FARMERS WILL ACCEPT FAIR COMPENSATION FOR THE IMPROVEMENTS, WITH THE HOPE THAT THEY WOULD LATER BE COMPENSATED FOR THE VALUE OF LAND IF DONOR OR GOZ FUNDS BECAME AVAILABLE FOR THIS.) MORE CRUCIAL TO THE SUCCESS OF THESE NEGOTIATIONS IS A DEAL THAT WILL ALLOW PRESIDENT MUGABE TO PROCLAIM THAT HE HAS FULFILLED HIS PROMISE TO PROVIDE LAND TO THE BLACK MAJORITY. END SUMMARY. ¶2. (C) ON APRIL 5, ECONOFF MET WITH WILLIAM HUGHES, COMMERCIAL FARMERS UNION (CFU) VICE PRESIDENT FOR CONFIDENTIAL PAGE 03 HARARE 01276 01 OF 02 091254Z REGIONS, AND COLLIN CLOETE, CFU VICE PRESIDENT FOR COMMODITIES, TO DISCUSS THE STATUS OF CFU EFFORTS TO RE- ENGAGE THE GOVERNMENT OF ZIMBABWE (GOZ) ON THE ISSUE OF LAND REFORM. HUGHES AND CLOETE WERE IN AGREEMENT THAT COMMUNICATION BETWEEN THE CFU AND THE GOZ HAD IMPROVED SINCE THE CFU SPECIAL CONGRESS IN MARCH (REFTEL),AND SAID THAT THE CFU HAD PRESENTED TO THE GOZ ITS PLAN FOR A WAY FORWARD ON THE ISSUE OF LAND REFORM. HUGHES STATED THAT GOZ OFFICIALS WITH WHOM THE CFU HAS MET IN THE LAST COUPLE OF WEEKS HAVE BEEN RECEPTIVE TO THE CFU'S PROPOSALS, BUT ADDED THAT THESE OFFICIALS WERE "TECHNOCRATS" AND IT IS NOT CLEAR THAT THEY CARRY MUCH WEIGHT IN NEGOTIATING AN AGREEMENT BETWEEN THE CFU AND THE GOZ. ¶3. (C) IN THE LAST FEW WEEKS, A CFU GROUP, LED BY NICK SWANEPOEL, THE CO-CHAIRMAN OF THE NATIONAL ECONOMIC CONSULTATIVE FORUM (NECF) LAND TASK FORCE, HAS MET WITH VINCENT HUNGWE, THE PERMANENT SECRETARY IN THE LANDS MINISTRY AND THE OTHER CO-CHAIRMAN OF THE NECF LAND TASK FORCE, LANDS MINISTER JOSEPH MADE, FINANCE MINISTER SIMBA MAKONI, AND VICE PRESIDENT JOSEPH MSIKA, WHO IS THE NOMINAL HEAD OF THE GOZ LAND REFORM AND RESETTLEMENT EFFORT IN THE CABINET. THE SWANEPOEL-LED GROUP HAS BEEN ATTEMPTING TO SELL THE CFU'S PROPOSAL ON LAND REFORM TO A SUSPICIOUS GOZ THAT CONTINUES TO VIEW ANY PROPOSALS FROM THE CFU AND COMMERCIAL FARMERS AS DELAYING TACTICS RATHER THAN GOOD FAITH EFFORTS TO SUPPORT LAND REFORM. ACCORDING TO CLOETE, THE GOZ OFFICIALS HAVE INDICATED A DESIRE TO CONTINUE THE DIALOGUE, BUT THEY ALSO WANT TO SEE CONCRETE ACTIONS BY THE CFU. THESE INCLUDE THE CONFIDENTIAL PAGE 04 HARARE 01276 01 OF 02 091254Z WITHDRAWAL OF THE CFU LAWSUIT AGAINST THE GOZ ON THE CONSTITUTIONALITY OF "FAST-TRACK" AND A PUBLIC COMMITMENT TO IDENTIFY FIVE MILLION HECTARES OF COMMERCIAL FARMLAND FOR RESETTLEMENT. ¶4. (C) CLOETE SAID THAT THE REQUEST TO WITHDRAW THE CFU LAWSUIT IS A MOOT POINT. THE SUPREME COURT HAS ALREADY RULED ON THE SUIT AND HAS FOUND IN FAVOR OF THE CFU AND COMMERCIAL FARMERS. HOWEVER, THE CFU HAS PROMISED THAT IT WILL NOT PURSUE A RULING OF CONTEMPT