AMBASSADOR TONY P. HALL IN MALAWI - "THE JOURNEY IS

UNCLAS SECTION 01 OF 04 ROME 005133

SIPDIS

FROM U.S. MISSION IN ROME

AMEMBASSY LILONGWE FOR AMBASSADOR MEECE AND USAID DIRECTOR
UNCLASSIFIED

PAGE 02 ROME 05133 01 OF 04 220735Z
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, DCHA/FFP,
USAID/GLOBAL/HEALTH, SA/KPOE AND CWHAGELMAN
STATE FOR U/S GROSSMAN, U/S LARSON, IO ACTING A/S WOOD, A/S
PRM DEWEY, A/S AFR KANSTEINER, AFR/SA
USDA/FAS FOR U/S PENN, RTILSWORTH AND LREICH
NSC FOR JWDORKEN

E.O. 12958: N/A
TAGS: EAID AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR EU WFP UN EU EAID WFP UN EU EAID WFP UN EU EAID WFP UN
SUBJECT: AMBASSADOR TONY P. HALL IN MALAWI - "THE JOURNEY IS
FAR FROM OVER"


--------------
SUMMARY
--------------


1. A TEAM LED BY AMBASSADOR TONY HALL VISITED MALAWI OCTOBER
11-13 AND FOUND THAT RELIEF PROGRAMS TO ALLEVIATE HUNGER AND
THE SEVERE FOOD SHORTAGE ARE PROGRESSING WELL, ALTHOUGH THE
NEED TO EXPAND AND ACCELERATE OPERATIONS REMAINS AS MORE AND
MORE HOUSEHOLDS GO WITHOUT FOOD. NEARLY THIRTY PERCENT OF
THE COUNTRY'S POPULATION WILL REQUIRE RELIEF ASSISTANCE OVER
THE PERIOD JANUARY-MARCH 2003 (3.3 MILLION). THE FOOD CRISIS
HAS BEEN EXACERBATED BY PRE-EXISTING CONDITIONS,
PARTICULARLY HIV/AIDS AND POVERTY. DESPITE A WELL-ORGANIZED
INTERNATIONAL HUMANITARIAN RESPONSE, LOGISTICAL CONSTRAINTS
ARE SIGNIFICANT AND HAVE THE POTENTIAL TO SERIOUSLY DISRUPT
THE TIMELY FLOW OF RELIEF FOOD. END SUMMARY.

-------------- --------------
BACKGROUND - "GOING TO FUNERALS IN THIS COUNTRY HAS BECOME
UNCLASSIFIED

PAGE 03 ROME 05133 01 OF 04 220735Z
PART OF THE SOCIAL FABRIC OF EVERYDAY LIFE"
-------------- --------------


2. AMBASSADOR TONY HALL, US MISSION TO ROME; HUMANITARIAN
ATTACHE TIM LAVELLE; AND SPECIAL ASSISTANT TO THE AMBASSADOR
MAX FINBERG, VISITED MALAWI OCTOBER 11-13. IN ADDITION TO
MEETINGS IN LILONGWE WITH U.S. EMBASSY/USAID, UN AND GOM
FUNCTIONARIES, THE TEAM SPENT ONE DAY IN THE RURAL
COUNTRYSIDE REVIEWING UN AND NGO RELIEF OPERATIONS.


3. MALAWI IS A SMALL, LANDLOCKED COUNTRY WHICH IS DENSELY
POPULATED (10.5 MILLION PEOPLE),POVERTY-STRICKEN AND ALMOST
ENTIRELY DEVOTED TO AGRICULTURAL PRODUCTION. MALAWI, WHICH
HAS INITIATED AN ECONOMIC REFORM AGENDA, FACES CHALLENGES ON
SEVERAL FRONTS, AMONG THEM A RAPIDLY GROWING POPULATION,
LIMITED NATURAL RESOURCES, HIGH LEVELS OF INEQUALITY, AND
THE CORROSIVE EFFECTS OF RECURRING DROUGHTS, POOR RESOURCE
MANAGEMENT, AND ENVIRONMENTAL DEGRADATION. IN LATE 2000,
MALAWI WAS APPROVED FOR ASSISTANCE UNDER THE HEAVILY
INDEBTED POOR COUNTRIES (HIPC) PROGRAM.


4. MOREOVER, MALAWI HAS ONE OF THE HIGHEST HIV/AIDS RATES ON
THE CONTINENT (31 PERCENT HIV PREVALENCE FOR WOMEN IN ANTI-
NATAL CLINICS COMPARED TO A 12 PERCENT AVERAGE IN SUB-
SAHARAN AFRICA). AT THE END OF 2001, THERE WERE 850,000
PEOPLE LIVING WITH HIV/AIDS IN MALAWI, OF WHOM 7.5 PERCENT
WERE CHILDREN. APPROXIMATELY 16.5 PERCENT OF THE ADULT
POPULATION IS ESTIMATED TO BE INFECTED. THE LEADING CAUSE OF
ADULT DEATH, AIDS HAS SERIOUSLY IMPACTED ON THE REDUCTION IN
LIFE EXPECTANCY FROM 52 TO 37 YEARS. IT IS ESTIMATED THAT
THERE ARE MORE THAN 500,000 ORPHANS WHO HAVE LOST AT LEAST
UNCLASSIFIED

PAGE 04 ROME 05133 01 OF 04 220735Z
ONE PARENT. THE DFID REPRESENTATIVE, THE UK'S AID AGENCY,
OBSERVED THAT "AS MUCH AS 75 PERCENT OF THE DISCRETIONARY
BUDGET OF MANY GOM MINISTRIES GOES TO FUNERAL EXPENSES FOR
THEIR EMPLOYEES." EACH USG EMPLOYEE WE MET IN COUNTRY HAD
RECENTLY ATTENDED A FUNERAL. THE STARK CONNECTION BETWEEN
THE CURRENT FOOD CRISIS AND THE ALARMING HIV/AIDS PANDEMIC
WAS CLEARLY EVIDENT IN ONE NGO STAFF'S QUOTE: "POVERTY TAKES
AWAY HOPE, SO WHY NOT HAVE SEX?"


5. MALNUTRITION AMONG CHILDREN IS ENDEMIC (AROUND 30 PERCENT
OF CHILDREN UNDER FIVE ARE UNDERWEIGHT).


6. THE WORLD BANK/IMF POINT OUT THAT "WHILE MALAWI HAS A
NUMBER OF SAFETY NET PROGRAMS, THESE HAVE NOT BEEN
INTEGRATED INTO A COORDINATED STRATEGY (AND HENCE) AS A
RESULT THE EXISTING PROGRAMS AND PROJECTS ARE CHARACTERIZED
BY A DUPLICATION OF EFFORTS, GAPS IN COVERAGE, AND COST
INEFFECTIVENESS."

--------------
CURRENT HUMANITARIAN CONTEXT
--------------

UNCLASSIFIED

UNCLASSIFIED PTQ1095

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ACTION SSO-00

INFO LOG-00 AF-00 AID-00 ANHR-00 E-00 UTED-00 TEDE-00
IO-00 NEA-00 NSCE-00 OIC-02 P-00 SS-00 TEST-00
SA-00 PRM-00 SAS-00 /002W
-------------- FC0C28 220739Z /38
P 220649Z OCT 02
FM AMEMBASSY ROME
TO AMEMBASSY LILONGWE PRIORITY
SECSTATE WASHDC PRIORITY 6457
USDA FAS WASHDC PRIORITY 2335
INFO AMEMBASSY PRETORIA
AMEMBASSY HARARE
AMEMBASSY LUSAKA
AMEMBASSY MAPUTO
AMEMBASSY OTTAWA
AMEMBASSY NAIROBI
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
USEU BRUSSELS 2861
USMISSION GENEVA

USMISSION USUN NEW YORK

UNCLAS SECTION 02 OF 04 ROME 005133

SIPDIS

FROM U.S. MISSION IN ROME

AMEMBASSY LILONGWE FOR AMBASSADOR MEECE AND USAID DIRECTOR
UNCLASSIFIED

PAGE 02 ROME 05133 02 OF 04 220735Z
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, DCHA/FFP,
USAID/GLOBAL/HEALTH, SA/KPOE AND CWHAGELMAN
STATE FOR U/S GROSSMAN, U/S LARSON, IO ACTING A/S WOOD, A/S
PRM DEWEY, A/S AFR KANSTEINER, AFR/SA
USDA/FAS FOR U/S PENN, RTILSWORTH AND LREICH
NSC FOR JWDORKEN

E.O. 12958: N/A
TAGS: EAID AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR EU WFP UN EU EAID WFP UN EU EAID WFP UN EU EAID WFP UN
SUBJECT: AMBASSADOR TONY P. HALL IN MALAWI - "THE JOURNEY IS
FAR FROM OVER"


7. DUE TO DROUGHT AND FLOODS (FEBRUARY 2002),THE 2002
HARVEST TURNED OUT TO BE 28 PERCENT BELOW THE FIVE-YEAR
AVERAGE, AND SIX PERCENT LOWER THAN 2001. MAIZE IMPORT
REQUIREMENTS IN 2002/2003 (APRIL/MARCH) WERE CALCULATED BY
THE FAO/WFP MISSION AT 433,000 TONS, INCLUDING 225,000 TONS
OF COMMERCIAL IMPORTS AND 208,000 TONS OF FOOD AID. (THE
FOOD AID NUMBER HAS NOW BEEN FURTHER RATCHETED UP TO 236,500
MTS.) ON THE COMMERCIAL SIDE, MANY PRIVATE TRADERS HAVE
EFFECTIVELY WITHDRAWN FROM MAJOR IMPORTATION DUE TO THE COST
OF FINANCE (LOCAL INTEREST RATES ABOUT 50 PERCENT),
UNCERTAINTIES OVER THE USD/MALAWI KWACHA EXCHANGE RATE
(CURRENTLY 80MK = USD 1) AND UNCERTAINTIES OVER GOVERNMENT
INVOLVEMENT IN PRICE CONTROLS. GOVERNMENT HAS THEREFORE, AS
IN 2001, ASSUMED RESPONSIBILITY FOR COMMERCIAL GRAIN (MAIZE)
IMPORTATION.


8. NOTE: OVER THE PAST 10-15 YEARS, MALAWI HAS SHIFTED FROM
BEING A NATIONALLY SELF-SUFFICIENT PRODUCER OF MAIZE IN NON-
UNCLASSIFIED

PAGE 03 ROME 05133 02 OF 04 220735Z
DROUGHT YEARS TO BEING DEPENDENT ON COMMERCIAL FOOD IMPORTS
AND FOREIGN ASSISTANCE TO ACHIEVE A NATIONAL FOOD BALANCE.
END NOTE.


9. FROM JUNE 2001 LOCAL MAIZE PRICES ROSE DRAMATICALLY. OVER
THE PAST SEVERAL MONTHS, PRICES HAVE DROPPED AND BEGUN TO
STABILIZE BETWEEN M/10-M/15/KG., WHICH IS 50 PERCENT HIGHER
THAN LAST YEAR AT THIS TIME. MANY HOUSEHOLDS OVERSTRETCHED
THEIR COPING MECHANISMS LAST YEAR, REDUCING THEIR RESILIENCE
AND INCREASING THEIR VULNERABILITY IN THE FACE OF CONTINUED
FOOD SHORTAGES.


10. DESPITE WIDESPREAD REPORTS THAT THE SALE OF GOM'S
STRATEGIC GRAIN RESERVE LAST YEAR CAUSED THE PRESENT
SHORTAGES, USAID REFUTED THESE ARGUMENTS. WHILE NOT
DISMISSING SOME POSSIBILITY OF CORRUPTION, THE SALE OF
167,000 METRIC TONS OF MAIZE THIS PAST YEAR HAD SOME
JUSTIFICATION, INCLUDING AGE OF THE STOCK IN STORAGE,
STORAGE COSTS, AND LACK OF INDICATION OF MAJOR CROP
SHORTFALLS FOR 2002. WHILE THE GOM-HELD MAIZE RESERVE MIGHT
HAVE HELPED THE FOOD CRUNCH THIS YEAR, THE AMOUNT SOLD WAS
TOO MODEST TO HAVE MADE A SUBSTANTIVE DIFFERENCE IN THE
PRESENT CONTEXT.

--------------
WHAT THE TEAM SAW
--------------


11. ON OCTOBER 12 THE TEAM VISITED A NUMBER OF SITES IN
SALIMA DISTRICT AND SPOKE WITH A NUMBER OF BENEFICIARIES,
UN, GOM AND NGO STAFF. IN THE FIELD, USAID AND OTHER DONORS
UNCLASSIFIED

PAGE 04 ROME 05133 02 OF 04 220735Z
ARE WORKING THROUGH WFP AND A CONSORTIUM OF NGOS UNDER THE
LEADERSHIP OF CARE. TWELVE NGOS HAVE TAKEN UP THE DISTRICT
CO-ORDINATION ROLE IN THE DIFFERENT DISTRICTS OF THE
COUNTRY.


12. IT WAS EVIDENT THAT THE PROBLEM OF FOOD INSECURITY RUNS
DEEP IN MALAWI, AND WILL REQUIRE A LONG-TERM FOCUS.
PARTICULARLY MENACING IS THE HIV/AIDS PANDEMIC. WE VISITED A
CENTER RUN BY A LOCAL NGO, SALIMA AIDS SUPPORT ORGANIZATION
(SASO),AT CHANKUNGU. BEGUN IN 2000 WITH 60 ORPHANS (WHO
RECEIVE WEEKLY FOOD SUPPLEMENTS AND CHILD-CARE),THE NUMBER
OF CHILDREN PRESENTLY ENROLLED EQUALS 604. THE CENTER'S
ADMINISTRATOR TOLD US THAT THE DISTRICT CONTAINED 1,426
CHILDREN WHO HAD LOST ONE OR MORE PARENTS, LARGELY DUE TO
AIDS.


13. WE SAW A GENERAL RELIEF FOOD DISTRIBUTION NEAR SALIMA,
MANAGED BY SAVE/UK. A NUMBER OF BENEFICIARIES REPORTED THAT
THEY HAD CUT DOWN THEIR FOOD CONSUMPTION TO ONE MEAL A DAY.
WE INQUIRED OF MANY CHILDREN AS TO WHEN WAS THE LAST TIME
THEY HAD EATEN A MEAL. MANY SAID, "TWO DAYS AGO;" OTHERS
SAID, "FIVE DAYS AGO." A CUP OF TEA, A SWEET POTATO OR A

UNCLASSIFIED

UNCLASSIFIED PTQ1096

PAGE 01 ROME 05133 03 OF 04 220736Z
ACTION SSO-00

INFO LOG-00 AF-00 AID-00 ANHR-00 E-00 UTED-00 TEDE-00
IO-00 NEA-00 NSCE-00 OIC-02 P-00 SS-00 TEST-00
SA-00 PRM-00 SAS-00 /002W
-------------- FC0C2F 220740Z /38
P 220649Z OCT 02
FM AMEMBASSY ROME
TO AMEMBASSY LILONGWE PRIORITY
SECSTATE WASHDC PRIORITY 6458
USDA FAS WASHDC PRIORITY 2336
INFO AMEMBASSY PRETORIA
AMEMBASSY HARARE
AMEMBASSY LUSAKA
AMEMBASSY MAPUTO
AMEMBASSY OTTAWA
AMEMBASSY NAIROBI
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
USEU BRUSSELS 2862
USMISSION GENEVA

USMISSION USUN NEW YORK

UNCLAS SECTION 03 OF 04 ROME 005133

SIPDIS

FROM U.S. MISSION IN ROME

AMEMBASSY LILONGWE FOR AMBASSADOR MEECE AND USAID DIRECTOR
UNCLASSIFIED

PAGE 02 ROME 05133 03 OF 04 220736Z
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, DCHA/FFP,
USAID/GLOBAL/HEALTH, SA/KPOE AND CWHAGELMAN
STATE FOR U/S GROSSMAN, U/S LARSON, IO ACTING A/S WOOD, A/S
PRM DEWEY, A/S AFR KANSTEINER, AFR/SA
USDA/FAS FOR U/S PENN, RTILSWORTH AND LREICH
NSC FOR JWDORKEN

E.O. 12958: N/A
TAGS: EAID AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR EU WFP UN EU EAID WFP UN EU EAID WFP UN EU EAID WFP UN
SUBJECT: AMBASSADOR TONY P. HALL IN MALAWI - "THE JOURNEY IS
FAR FROM OVER"

MANGO - WAS ALL MANY PEOPLE HAD EATEN IN THE PAST WEEK. AND
THE TRADITIONAL "HUNGRY SEASON" IS STILL TWO MONTHS AWAY. WE
WERE INFORMED THAT NUTRITION REHABILITATION PROGRAMS ARE
SUPPORTING AN AVERAGE 35,000 CHILDREN AND VULNERABLE WOMEN
PER MONTH.


14. UNEMPLOYMENT IS HIGH. RURAL WAGES FOR CASUAL LABOR ARE
ON THE ORDER OF 30 TO 60 KWACHA PER DAY (I.E., ROUGHLY U.S.
.38 TO .75 CENTS). WE WERE TOLD THAT MOST OF THE POPULATION
IS NOT ABLE TO AFFORD THE FULL COMMERCIAL PRICE FOR A BAG OF
MAIZE. THE GOM'S ANSWER IS UNIVERSALLY SUBSIDIZING THE PRICE
OF MAIZE AT AROUND 17 KWACHA (U.S. .21 CENTS/KILO),MEANING
THAT THOSE WHO CAN AFFORD TO PAY FOR THE COMMERCIAL MAIZE
ARE ALSO BENEFITING FROM THE SUBSIDY. NOTE: OVER THE PERIOD
SEPTEMBER 2002-MARCH 2003, THE GOM HOPES TO IMPORT 250,000
MTS (FINANCED BY COMMERCIAL LOANS). THE GOM WILL NOT PROVIDE
OR DISTRIBUTE HUMANITARIAN FOOD SUPPLIES, WHETHER FOR NORMAL
DISTRIBUTION OR FOR FEEDING PROGRAMS (THEY EXPECT
HUMANITARIAN ORGANIZATIONS TO DO THIS). END NOTE.
UNCLASSIFIED

PAGE 03 ROME 05133 03 OF 04 220736Z

--------------
CONCLUSIONS AND RECOMMENDATIONS
--------------


15. MALAWI NEEDS A BETTER SYSTEM FOR IDENTIFYING AREAS OF
THE COUNTRY DUE TO LOWER THAN NORMAL PRODUCTION AND/OR AN
UNEXPECTED FALL IN PURCHASING POWER. AS OF NOW, THERE IS
LITTLE EMPIRICAL BASIS FOR TARGETING FOOD AID, INSOFAR AS
DISAGGREGATED INFORMATION ON HOUSEHOLD FOOD SECURITY IS
LACKING.


16. THERE NEEDS TO BE A BETTER RATIONALIZATION AND
PRIORITIZATION OF BOTH NEW AND EXISTING SAFETY NET PROGRAMS.


17. MALAWI WOULD GREATLY BENEFIT FROM A REGULAR TITLE II
FEEDING PROGRAM, WHICH SHOULD BE DIRECTLY COORDINATED
THROUGH USAID/MALAWI. SPECIFICALLY, THERE IS A COMPELLING
NEED TO DIRECTLY ADDRESS THE PROBLEMS OF UNDER-NUTRITION IN
INFANTS AND EXPECTANT MOTHERS. UNLIKE OTHER COUNTRIES SUCH
AS INDIA, MALAWI HAS NO PROGRAM THAT DELIVERS A COMBINATION
OF SERVICES (FOOD SUPPLEMENTS, MICRO-NUTRIENTS, HEALTH
INPUTS, IMMUNIZATIONS, ETC.) TARGETED TO THE MOST
NUTRITIONALLY DISADVANTAGED GROUPS IN THE POPULATION (E.G.,
INFANTS AND PREGNANT WOMEN).


18. THE LONG-TERM VALUE OF EDUCATION, PARTICULARLY FOR
GIRLS, TO IMPROVED NUTRITION FOR FUTURE GENERATIONS CANNOT
BE OVERSTATED. IN THIS CONTEXT, SCHOOL FEEDING INTERVENTIONS
SHOULD BE SYSTEMATICALLY RATCHETED UP. WFP AND OTHER UN
AGENCIES SHOULD ACTIVELY PURSUE ADDITIONAL PARTNERSHIPS AND
UNCLASSIFIED

PAGE 04 ROME 05133 03 OF 04 220736Z
COMPLEMENTARY FUNDING TO COVER NON-FOOD COSTS AND ENSURE
HIGH-QUALITY EDUCATION.


19. BOTH THE UN AND NGOS NEED TO QUICKLY INTENSIFY AND
EXPAND ACTIVITIES TO STRENGTHEN HIV/AIDS INFORMATION
CAMPAIGNS, CARE FOR ORPHANS, AND TRAINING FOR SERVICE
PROVIDERS TO BETTER MANAGE THIS TERRIBLE SCOURGE.


20. WFP AND THE UN AGENCIES SHOULD TAKE ADVANTAGE OF FOOD
DELIVERIES (WHERE LARGE NUMBERS OF BENEFICIARIES OFTEN WAIT
FOR HOURS TO RECEIVE THEIR RATION) TO IMPART MOTHER-CHILD
CARE HEALTH TRAINING AND NUTRITION EDUCATION MESSAGES,
HIV/AIDS AWARENESS, ETC. WITHOUT MORE COMPLEMENTARY
PROGRAMS, ESPECIALLY REGARDING HIV/AIDS, FOOD AID ALONE WILL
HARDLY PRODUCE THE RESULTS WE ALL DESIRE.


21. MALAWI IS LIKELY GOING TO BE A NET IMPORTER OF MAIZE IN
THE FUTURE, BUT THIS NEED NOT BE VIEWED AS A FAILURE. THE UN
(PARTICULARLY FAO) SHOULD ASSIST WITH DIVERSIFICATION INTO
HIGHER-VALUE CROPS, AS OPPOSED TO THE CURRENT MONO FOCUS ON
MAIZE PRODUCTION. NOTE: GIVEN THE RESTRICTIONS ON PROMOTING
TOBACCO CULTIVATION, OTHER CASH CROPS SHOULD RECEIVE

UNCLASSIFIED

UNCLASSIFIED PTQ1097

PAGE 01 ROME 05133 04 OF 04 220736Z
ACTION SSO-00

INFO LOG-00 AF-00 AID-00 ANHR-00 E-00 UTED-00 TEDE-00
IO-00 NEA-00 NSCE-00 OIC-02 P-00 SS-00 TEST-00
SA-00 PRM-00 SAS-00 /002W
-------------- FC0C3C 220740Z /38
P 220649Z OCT 02
FM AMEMBASSY ROME
TO AMEMBASSY LILONGWE PRIORITY
SECSTATE WASHDC PRIORITY 6459
USDA FAS WASHDC PRIORITY 2337
INFO AMEMBASSY PRETORIA
AMEMBASSY HARARE
AMEMBASSY LUSAKA
AMEMBASSY MAPUTO
AMEMBASSY OTTAWA
AMEMBASSY NAIROBI
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
USEU BRUSSELS 2863
USMISSION GENEVA

USMISSION USUN NEW YORK

UNCLAS SECTION 04 OF 04 ROME 005133

SIPDIS

FROM U.S. MISSION IN ROME

AMEMBASSY LILONGWE FOR AMBASSADOR MEECE AND USAID DIRECTOR
UNCLASSIFIED

PAGE 02 ROME 05133 04 OF 04 220736Z
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, DCHA/FFP,
USAID/GLOBAL/HEALTH, SA/KPOE AND CWHAGELMAN
STATE FOR U/S GROSSMAN, U/S LARSON, IO ACTING A/S WOOD, A/S
PRM DEWEY, A/S AFR KANSTEINER, AFR/SA
USDA/FAS FOR U/S PENN, RTILSWORTH AND LREICH
NSC FOR JWDORKEN

E.O. 12958: N/A
TAGS: EAID AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR EU WFP UN EU EAID WFP UN EU EAID WFP UN EU EAID WFP UN
SUBJECT: AMBASSADOR TONY P. HALL IN MALAWI - "THE JOURNEY IS
FAR FROM OVER"

ATTENTION. END NOTE.

22. THE INTERNATIONAL COMMUNITY MUST KEEP UP THE "DRUM BEAT"
THAT MALAWI'S HEAVY PARASTATAL INVOLVEMENT IN AGRICULTURAL
MARKETING NEEDS SUBSTANTIVE REVAMPING TO ALLOW MORE PRIVATE
SECTOR PARTICIPATION IN THE HANDLING AND DISTRIBUTION OF
MAIZE AND OTHER STAPLE FOODS TO INCREASE SUPPLIES, LOWER
PRICES, AND ENSURE GREATER AVAILABILITY TO THOSE WHO CAN
AFFORD TO PURCHASE.


23. THE REPAIR OF THE NACALA RAIL LINE (BOTH THE 77
KILOMETERS IN MOZAMBIQUE AND THE 65 KILOMETERS ON THE MALAWI
SIDE) - NEEDS TO BE A MAJOR PRIORITY OF BOTH THE GOM AND THE
INTERNATIONAL DONOR COMMUNITY. EVEN RELATIVELY MAJOR REPAIRS
COULD BE SELF-FINANCING THROUGH SAVINGS ON HUMANITARIAN
DELIVERIES.


24. WHILE PROGRESS HAS BEEN MADE ON THE BIOTECH FOOD ISSUE,
THERE IS AT PRESENT LIMITED MILLING CAPACITY IN-COUNTRY.
THESE LIMITATIONS NEED TO BE FACTORED IN TO ANY
UNCLASSIFIED

PAGE 03 ROME 05133 04 OF 04 220736Z
IMPLEMENTATION PLAN FOR MILLING GM MAIZE.


25. FINALLY, MALAWI IS FACING A 2002/2003 OVERALL CEREALS
FOOD AID NEED OF 236,500 MTS AS CONFIRMED BY THE
VULNERABILITY ASSESSMENT COMMITTEE REPORT ISSUED LAST MONTH.
USAID/MALAWI RECOMMENDS AN ADDITIONAL USG COMMITMENT OF
47,568 METRIC TONS OF FOOD ASSISTANCE (BEYOND THE 79,400 MTS
ALREADY AUTHORIZED),CITING A POSSIBLE PIPELINE BREAK IN
FEBRUARY 2003. WE STRONGLY ENDORSE THIS REQUEST.
HALL

UNCLASSIFIED

>
2002ROME05133 - Classification: UNCLASSIFIED