GUEBUZA UPBEAT AT AMBASSADOR'S COURTESY CALL

C O N F I D E N T I A L SECTION 01 OF 02 MAPUTO 000248

SIPDIS
STATE FOR AF/FO AND AF/S - TREGER
MCC FOR HARRINGTON AND GAULL
E.O. 12958: DECL: 02/24/10
TAGS: PGOV PREL KDEM EINV MZ
SUBJECT: GUEBUZA UPBEAT AT AMBASSADOR'S COURTESY CALL


Classified by Ambassador Helen La Lime for Reason 1.4(d)


1. (C) Summary: In the Ambassador's courtesy call, a
confident and relaxed President Guebuza expressed appreciation
for USG assistance, particularly our support for democracy,
fighting HIV/AIDS, promoting rural development, and defense.
Guebuza highlighted the need to take action against rural
poverty and change the mindset that led to corruption,
"bureaucratism," the spirit of "letting things slide",
and criminality. The Ambassador outlined USG activities in
Mozambique. Guebuza expressed interest in sending a Mozambican
delegation to the Corporate Council on Africa's June Business
Summit in Baltimore. He raised the Nyati Beach Lodge investment
dispute as a concern, and he reacted favorably to the Ambassador's
expression of hope that it could be resolved favorably and quickly.
Guebuza's government appears to have gotten off to a good start,
though we understand that high public expectations may be a
challenge. End Summary.


2. (U) Ambassador La Lime paid a courtesy call on President
Guebuza at the GRM's request on February 23. Guebuza was
accompanied by Minister in the Presidency for Diplomatic Affairs
Francisco Madeira, Vice Foreign Minister Henrique Banze, and
Presidential Private Secretary Renato Matusse. The Ambassador
was accompanied by the DCM (notetaker).


3. (C) Guebuza started the meeting by expressing his thanks to
the USG and President Bush for USG support. He emphasized the
importance of our "exemplary" support for Mozambican democracy
and for fighting diseases like HIV/AIDS. He added that Mozambique's
economy would not be where it was today without USG assistance.
He showed himself well-briefed, praising nontraditional USG
efforts such as AGOA, OPIC, and the MCA, which he said would
help Mozambique speed up its fight against rural poverty. In
a reference to the ongoing investment dispute involving the
OPIC-supported Nyati Beach Lodge, he expressed regret that OPIC
had had problems in Mozambique. He did not go into details, but
said the problems were due in part to the country's "bureaucratic
problems" and "our structure." He thanked the USG for support
during the recent elections period and also for support in
sensitive areas like training and equipment for defense. He
repeated a theme from his July trip to Washington in saying
that his government would respect Mozambique's international
commitments and continue the general policy line of the
Chissano government. He expressed interest in continuing to
deepen the bilateral relationship.


4. (SBU) Guebuza then gave an overview of his aims for his
government. He emphasized his desire to fight poverty, saying
that this would require a change in attitudes, which in turn
would help Mozambique better use its human and natural
resources and donor assistance. He highlighted the need to
fight corruption, "bureaucratism," the spirit of letting things
slide ("deixa-andar"),and criminality. He expressed optimism
that the Mozambican people were ready to contribute.


5. (SBU) Guebuza stressed the importance of rural development.
He said he would push for rural infrastructure, take steps to
stimulate rural markets such as creating a rural bank, and
increase the quality of the rural labor force through training.
He noted that Mozambican universities lacked the sort of courses
on rural development that were found in U.S. universities, and
he said he wanted Mozambique's intelligentsia to focus its
talents on fighting rural poverty.


6. (C) The Ambassador responded by noting that Guebuza's
impact was already being felt. An Embassy FSN had reported
that morning that he had renewed his driver's license
in 48 hours without paying any bribes; a pleased Guebuza said he
assumed this had not been the case before. The Ambassador
reviewed the USG presence and activities in Mozambique.
Guebuza responded favorably to the Ambassador's mention of
the Peace Corps, saying he had seen many of its volunteers
in rural areas. She noted the increase in USG assistance
levels in recent years, emphasizing the President's Emergency
Plan for AIDS Reduction and the Millennium Challenge Account.
She said that Mozambique had not taken much advantage of AGOA
benefits but said that the Corporate Council on Africa wanted
to increase its relationship with the country. She added
that the Council's June 21-24 summit in Baltimore would be an
opportunity for the new government to increase Mozambique's
international profile. She also noted our interest in obtaining
a site for a New Embassy Compound and explained that we would
need certain rights to the land as part of our lease.


7. (SBU) Guebuza expressed interest in sending a Mozambican
delegation that would include ministers to the CCA event. He
did not know if he would be able to attend but said he needed
to get to the U.S. at some point.


8. (C) The Ambassador raised the Nyati Beach Lodge investment
dispute, to which Guebuza had referred earlier. She also
previewed the March 2 visit of Assistant Secretary of State
Newman and suggested that she might raise the issue. She noted
that the dispute was hurting the country's image and expressed
hope that it could be resolved favorably and quickly. Guebuza's
response was an understanding, "Yes, yes."


9. (C) Comment: Guebuza appeared confident and more relaxed
than at any time in recent months. He seemed well-briefed on
USG programs and enthusiastic about deepening our relationship.
He was aware of the importance to the bilateral relationship
of the Nyati dispute. His reaction when the Ambassador returned
to the issue was much more positive than in his January meeting
with charge, OPIC Senior Adviser Shore, and the U.S. investor.


10. (C) Comment Continued: Several of Guebuza's ministers appear
to have gotten off to good starts, and we are hearing anecdotal
evidence of service to the public improving. Offices are opening
at their scheduled hours, and ministers are carrying out surprise
inspections. One minister even locked out all employees who
arrived after the 7:30 opening time. We also have heard that
public expectations are high, which may be a challenge as Guebuza
settles in. End Comment.
LA LIME