Identifier
Created
Classification
Origin
05ACCRA634
2005-03-31 17:44:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Accra
Cable title:  

SCENESETTER FOR DEPUTY COMMANDER, EUCOM, GENERAL

Tags:  GH OVIP 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 ACCRA 000634 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: GH OVIP
SUBJECT: SCENESETTER FOR DEPUTY COMMANDER, EUCOM, GENERAL
CHARLES F. WALD VISIT TO ACCRA


For General Wald from Ambassador Mary C. Yates

SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY

------------
INTRODUCTION
------------

UNCLAS SECTION 01 OF 04 ACCRA 000634

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: GH OVIP
SUBJECT: SCENESETTER FOR DEPUTY COMMANDER, EUCOM, GENERAL
CHARLES F. WALD VISIT TO ACCRA


For General Wald from Ambassador Mary C. Yates

SENSITIVE BUT UNCLASSIFIED - PLEASE HANDLE ACCORDINGLY

--------------
INTRODUCTION
--------------


1. (SBU) U.S. interests center on support for Ghana's
fifteen-year-old democracy and promotion of open markets. The
long-term success of Ghana's constitutional democracy is not
guaranteed. Government institutions are still evolving, and
economic challenges, left unresolved, could erode popular
support for democracy. A top Mission priority is to encourage
respect for rule of law, individual rights and accessible,
open, corruption-free civic institutions. This effort goes
hand-in-hand with our support for economic policy reform and
pursuit of market-based growth, primary education, and
combating HIV/AIDS. On May 6, 2004, the U.S. designated
Ghana eligible for assistance under the Millennium Challenge
Account. In July 2004, the Government of Ghana reached HIPC
completion point. The events of September 11 have led to
increased emphasis on anti-terrorism, particularly in
successfully lobbying the Ghanaian Government on
anti-terrorism conventions and suggesting improvements to
Ghana's financial systems.

--------------
Internal Political Situation
--------------


2. (U) President Kufuor of the New Patriotic Party (NPP)
won reelection in a free and fair election in December 2004,
defeating John Atta Mills of the National Democratic
Congress. The NPP controls 128 of the 230 seats in
Parliament. The NDC controls 94 seats, with the remainder
held by independents and two small parties. Kufuor,s vice
president is a northern Muslim, Alhaji Alieu Mahama. The
election was close (52% NPP, 44% NDC) and split the nation
almost evenly between voters in the north and east (NDC) and
the NPP stronghold in the south and west. There is
significant intra-party tension at the moment.


3. (U) The Kufuor government frequently proclaims its
dedication to the rule of law and to constitutional
government. It repealed colonial-era criminal libel laws,
dropped a number of libel suits against journalists,
initiated abolition of sometimes abusive community tribunals,
established a juvenile justice system, and generally takes a
more balanced attitude toward individual freedoms and
personal expression. The President signed a new labor bill
into law in October of 2003, bringing its law into conformity
with ILO conventions.


--------------
Peacekeeping/Military Cooperation
--------------


4. (U) Ghana's 8,000 strong military establishment is
characterized by its allegiance to elected civilian
leadership, a rich peacekeeping tradition and a close
relationship with the United States. From 1960 through
present day, 80,000 Ghanaian soldiers and police have
participated in peacekeeping missions across the sub-region
and abroad with the United Nations and the Economic Community
of West African States (ECOWAS). This makes Ghana one of the
leading contributors of peacekeeping troops in the world.
The Ghana Armed Forces (GAF) have received peacekeeping
training under ACOTA, (the USG's Africa Contingency
Operations, Training and Assistance),and Operation Focus
Relief. The armed forces, leadership role in regional
peacekeeping operations was once again on display in
2003-2005 in both Liberia and Cote d'Ivoire. Ghana has made
further contributions to peacekeeping with the opening of the
Kofi Annan International Peacekeeping Training Center in

2004. Many of Ghana's senior officers have benefited from
the USG's International Military Education and Training
program, while the Navy received three ships from the U.S.
Excess Defense Article program. They recently pursued
purchase of T-37 trainer aircraft through the Excess Defense
Article program, but decided to cancel the purchase in late
March 2005. In addition, DOD/EUCOM humanitarian assistance
programs have constructed and equipped a new clinic in the
Western Region, rebuilt a destroyed dam in the Upper West
Region, and assisted small-scale community-based self-help
projects throughout the country, including an HIV/AIDS
hospice in Tamale. In February/March 2005, the USS Emory S.
Land conducted a port visit in Sekondi which included five
days of engagement and training. The Exercise Reception
Facility in Accra was completed in mid-2004 and has planned
electrical upgrades scheduled for early 2006. Ghana recently
hosted a visit by the Adjutant General of North Dakota to
move forward Ghana,s participation in the State Partnership
Program.

--------------
Sub-Regional Issues
--------------


5. (U) Sub-regional issues: Ghana has been a strong leader
within the sub-region. President Kufuor served as the Chair
of the Economic Community of West African States (ECOWAS) for
two terms, ending in January 2005. The Executive Secretary
of ECOWAS is Ghanaian (Mohammed Ibn Chambas). Ghana
contributes troops to peacekeeping missions in Liberia,
Sierra Leone and Cote d,Ivoire. Ghana also hosts around
43,000 refugees, mostly Liberian.

--------------
Counter-Terrorism
--------------


6. (U) The GOG condemned the September 11 attacks, publicly
and privately, and expressed its sympathy, again publicly and
privately, for the victims of the attacks. Local security
forces have offered enhanced cooperation, both in terms of
security of Mission personnel and in exchange of information.
The Government in December 2001 signed the Convention on
Suppression of Terrorist Financing, and has indicated its
willingness to exercise greater oversight of suspicious
transactions. The Bank of Ghana drafted anti-money
laundering legislation, which is currently waiting
Parliamentary action. The Ministry of Justice is amending
local laws to bring them into conformity with this and other
anti-terror conventions. In July 2002, the GOG ratified the
five remaining conventions to which it was not yet a party,
and now subscribes to all 12 conventions. The computerized
PISCES system has been installed at the airport and two other
entry points to track visitors. One of Africa,s largest
drug busts of cocaine was made in December 2003 by Ghana,s
Narcotics Control Board.

--------------
Development Assistance
--------------


7. (U) Ghana is one of USAID's largest programs in
Sub-Saharan Africa, receiving approximately USD 55 million in
grant assistance and food aid per year. In July 2003 USAID -
Ghana,s Country Strategic Plan for 2004 - 2010 was approved
with improved health an important component. USAID works in
the education, health/population and HIV/AIDS, environment,
trade and investment, and democracy/governance sectors. The
trade and investment program focuses on macroeconomic and
trade policy reform, and technical assistance to business
groups and individual entrepreneurs. USAID has also provided
technical assistance to the Government for the West African
Gas Pipeline (a project of great interest to CMS Energy, a
U.S. corporation in Ghana),and the West African Power Pool.
In February 2000, Ghana launched a USAID-funded "Stop AIDS,
Love Life" campaign to help slow the rate of infection, now
hovering well below the critical 5 percent level.


8. (U) September 2003 marked the Peace Corps' 42nd
anniversary in Ghana, the first country in the world to
receive Peace Corps volunteers. Ghana currently hosts some
130 volunteers who are working as teachers, agro-foresters,
small business and water/sanitation advisers, and youth
development volunteers. The USG-funded African Development
Foundation supports grassroots development and small-scale
community-based enterprises, including micro-financing
projects. Ghana also participates in the Leland (computer
and internet connectivity) and Education for Democracy and
Development (EDDI) initiatives thru USAID.


9. (U) Donor coordination is excellent in Ghana, with
active coordination groups in 14 sectoral areas including
health, education, and governance/democracy. Assistance to
Ghana in forms of grants and concessional loans from over 20
multilateral and bilateral donors was approximately USD 1
billion in both 2002 and 2003. The United States ranks third
among bilateral donors and contributes approximately 6
percent of that total. On May 06, 2004, the United States
Millennium Challenge Corporation (MCC) designated Ghana as
one of the sixteen countries eligible to apply for funding
under the Millennium Challenge Account program. Ghana is
currently working with the MCC to complete its proposal for
MCA funding.


10. (U) Japan and Great Britain are among the largest
donors with programs in public administration, health,
education, rural infrastructure, and agriculture. Other
major donors include the World Bank (infrastructure,
education, and health),United Nations agencies, the European
Union, Denmark, the Netherlands, Germany, France, Canada,
Italy, and Spain. Ghana signed an IMF Poverty Reduction and
Growth Facility (PRGF) program in May 2003 and to date has
met most performance targets.

--------------
Child Labor and Child Trafficking
--------------


11. (U) Ghana is a source, transit, and destination country
for trafficked persons and has an internal trafficking
problem. An ILO/IPEC-sponsored household survey of child
labor by the Ghana Statistical Service released in March
found that 2.47 million Ghanaian children were engaged in
some economic activity, of which 1.27 million children were
found to be engaged in child labor as defined by age and
hazardous working conditions. Most trafficking victims are
children trafficked internally for casual labor.


12. (U) Ghana has been working diligently to combat the
problem of child labor and child trafficking. The Mission
works hard to create momentum within Ghana's Ministries,
Security Agencies, trade unions, employers associations, NGO
community and media outlets to create awareness and start
addressing the root causes of the problem. In the State
Department's 2004 Trafficking in Persons report, Ghana was
the only Sub-Saharan country to be listed in Tier One Status,
meaning Ghana met the minimum standards for combating
trafficking in persons.

--------------
Economics and Trade
--------------


13. (U) In 2000, the Kufuor Government inherited a
distressed economy: high levels of debt, accelerating
inflation, interest rates above 50 percent, a plummeting
currency (the "cedi"),all exacerbated by declining world
cocoa and gold prices (the main foreign exchange earners),
and rising crude oil prices (heavily subsidized on the local
market). The government moved to restore macroeconomic
stability, and promised a new "Golden Age of Business." It
imposed badly needed fuel, water and energy price hikes in
January 2003, and reined in spending by deferring some
infrastructure projects and also by accumulating arrears to
creditors. The government's moves were in good measure
successful; the 12-month inflation rate, after spiking to 30
percent in April 2003, was lower than 12 percent for 2004.
Interest rates have fallen below 20 percent, and the cedi is
stable. The decision to seek debt relief under the Heavily
Indebted Poor Countries (HIPC) initiative was a controversial
move, but afforded Ghana roughly USD 250 million in debt
relief in 2002, and over USD 100 million debt relief in 2003.
The IMF and World Bank approved HIPC Completion Point in
July 2004. Debt relief from IMF, World Bank and other
official creditors will exceed USD 3.5 Billion.


14. (U) The government still has much to do to create its
"Golden Age of Business." While voicing support for
divestiture, the government has yet to sell its big assets -
the utilities, the airline, and telecommunications. Ghana
continues to rely on multilateral and bilateral donors to
provide a significant percentage of its total revenue.
Looming revenue constraints, spending pressures, high
interest rates, and major inefficiencies in agriculture
continue to limit growth and hamper poverty reduction. A
number of nettlesome commercial disputes involving U.S.
companies raise questions about the long-term investment
climate. While each dispute has its unique characteristics,
most involve a sustained GOG failure to pay its creditors in
a timely fashion or a failure to abide by contractual
obligations, though the situation has been improving.


15. (U) Despite these problems, the United States and Ghana
experience a relatively dynamic trade relationship. Ghana
ranks fifth among African markets for U.S. goods (after South
Africa, Kenya, Angola, and Nigeria). In 2004 U.S. exports
rounded to USD 307 million, principally heavy equipment and
machinery, building materials, and food. Ghanaian exports to
the U.S. in 2004 amounted to USD 146 million, primarily
cocoa, gold and timber. The Star-Kist tuna plant, owned by
Heinz, and the CMS Energy thermal power plant are the largest
U.S. investments in Ghana, and soon will be surpassed by
Newmont Mining Company. Ghana has taken steps to take
advantage of the Africa Growth and Opportunity Act (AGOA); it
was the first country in Africa to receive certification for
AGOA apparel benefits. Secretary of Commerce Donald Evans
formally opened a Department of Commerce office in Accra in
November 2002.

--------------
Corruption
--------------


16. (SBU) The Kufuor government claims a "zero tolerance"
policy for corruption and has pursued some high-profile
prosecutions, including its Minister of Youth and Sports and
several former high-level government officials. In July of
2003, the President established an Office of Accountability
within his office to ensure government appointees and public
servants abide by the code of ethics for government
employees. It is still unclear, however, if this initiative
is sufficient for the government to pursue corruption
effectively against its own senior officials, and if it will
succeed against working-level corruption pervasive in Ghana's
public sector.

--------------
Conclusion
--------------


17. (U) Post is finishing an in-depth think piece on the
future of Ghana for President Kufuor,s second term. It will
be forwarded in the coming week upon completion. Post warmly
welcomes General Wald,s visit and will offer a discussion
with the country team on 15 April 05.
YATES