Identifier
Created
Classification
Origin
06ANTANANARIVO1425
2006-12-20 12:29:00
CONFIDENTIAL
Embassy Antananarivo
Cable title:
PRESIDENT OFFERS LITTLE IN RESPONSE TO SEABOARD
how-toVZCZCXRO9912 OO RUEHLMC DE RUEHAN #1425 3541229 ZNY CCCCC ZZH O 201229Z DEC 06 FM AMEMBASSY ANTANANARIVO TO RUEHC/SECSTATE WASHDC IMMEDIATE 4070 INFO RUEHNR/AMEMBASSY NAIROBI 0338 RUEHFR/AMEMBASSY PARIS 0772 RUEHSAJ/AMCONSUL JOHANNESBURG 0084 RUEHLMC/MILLENNIUM CHALLENGE CORP RUCPDOC/USDOC WASHDC
C O N F I D E N T I A L ANTANANARIVO 001425
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
PARIS FOR AFRICA WATCHER D'ELIA
E.O. 12958: DECL: 12/20/2016
TAGS: EAGR ETRD KTDB PGOV AGOA MA
SUBJECT: PRESIDENT OFFERS LITTLE IN RESPONSE TO SEABOARD
DEMARCHE
REF: A. A) STATE 196979
B. B) ANTANANARIVO 1291
Classified By: AMBASSADOR JAMES D. MCGEE FOR REASONS 1.4 B AND D
C O N F I D E N T I A L ANTANANARIVO 001425
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
PARIS FOR AFRICA WATCHER D'ELIA
E.O. 12958: DECL: 12/20/2016
TAGS: EAGR ETRD KTDB PGOV AGOA MA
SUBJECT: PRESIDENT OFFERS LITTLE IN RESPONSE TO SEABOARD
DEMARCHE
REF: A. A) STATE 196979
B. B) ANTANANARIVO 1291
Classified By: AMBASSADOR JAMES D. MCGEE FOR REASONS 1.4 B AND D
1. (C) Ambassador delivered points (Ref A) about Seaboard's
investment difficulty in Madagascar to President Ravalomanana
December 19. The President interrupted the short demarche to
blame the whole problem on Seaboard's Madagascar Director
Armando Lopez. He claimed Lopez botched a deal in Angola
with Seaboard and is "doing the same in Madagascar."
President Ravalomanana insisted that his company (TIKO) and
Seaboard cooperate well in South Africa, made no commitment
to investigate or act on Seaboard's claims, and insisted one
of his foreign advisors (Paul Porteus, who is on leave until
mid-January) is handling the problem.
2. (C) In response to the Ambassador's insistence on the
urgency of this matter, the President said he was willing to
speak directly to the head of Seaboard (CEO Steve Bresky).
Ravalomanana concluded with a request for "concrete proof"
that Seaboard is being disadvantaged.
3. (C) It is critical to note Ravalomanana has been nearly
impossible to reach since the December 3 Presidential
election. Unofficial results have him as a first round
victor; Post expects the High Constitutional Court to confirm
as much December 23. During the same call, the Ambassador
also confirmed the President's participation at a ceremony to
announce Madagascar's selection for the President's Malaria
Initiative and discussed potential high-level USG
participation at the expected January 19 Presidential
inauguration.
COMMENT:
--------------
4. (C) Post assesses the President's response to reflect
either profound ignorance or indifference to the real
situation between U.S. firm Seaboard and his own company TIKO
at the Port of Tamatave. Moreover, the President seems not
to grasp the nuanced argument that even the perception of
corruption -- that the Port and GOM are forcing out Seaboard
to create a monopoly for TIKO in wheat milling -- should be
avoided. While Lopez is aggressive and Seaboard could
possibly have done more due diligence on their Malagasy
partner, the reality -- as confirmed by our World Bank and
IMF colleagues in addition to Seaboard -- is that publicly
financed bulk offloading equipment will serve only TIKO if
Seaboard ceases to be an operator in Tamatave.
5. (C) Post suggests three explanations for President
Ravalomanana's response: 1) He is aware TIKO is getting a
monopoly at Seaboard's expense and does not believe there
will be consequences; 2) He thinks there might be minor
consequences he can tolerate; 3) He is genuinely ignorant of
the facts and what is at stake because his staff is not
giving him honest and prudent counsel. Whatever the
President's thinking, Post will continue to lobby him and his
Government vigorously to ensure a level playing field for a
significant U.S. investor. END COMMENT.
McGEE
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
PARIS FOR AFRICA WATCHER D'ELIA
E.O. 12958: DECL: 12/20/2016
TAGS: EAGR ETRD KTDB PGOV AGOA MA
SUBJECT: PRESIDENT OFFERS LITTLE IN RESPONSE TO SEABOARD
DEMARCHE
REF: A. A) STATE 196979
B. B) ANTANANARIVO 1291
Classified By: AMBASSADOR JAMES D. MCGEE FOR REASONS 1.4 B AND D
1. (C) Ambassador delivered points (Ref A) about Seaboard's
investment difficulty in Madagascar to President Ravalomanana
December 19. The President interrupted the short demarche to
blame the whole problem on Seaboard's Madagascar Director
Armando Lopez. He claimed Lopez botched a deal in Angola
with Seaboard and is "doing the same in Madagascar."
President Ravalomanana insisted that his company (TIKO) and
Seaboard cooperate well in South Africa, made no commitment
to investigate or act on Seaboard's claims, and insisted one
of his foreign advisors (Paul Porteus, who is on leave until
mid-January) is handling the problem.
2. (C) In response to the Ambassador's insistence on the
urgency of this matter, the President said he was willing to
speak directly to the head of Seaboard (CEO Steve Bresky).
Ravalomanana concluded with a request for "concrete proof"
that Seaboard is being disadvantaged.
3. (C) It is critical to note Ravalomanana has been nearly
impossible to reach since the December 3 Presidential
election. Unofficial results have him as a first round
victor; Post expects the High Constitutional Court to confirm
as much December 23. During the same call, the Ambassador
also confirmed the President's participation at a ceremony to
announce Madagascar's selection for the President's Malaria
Initiative and discussed potential high-level USG
participation at the expected January 19 Presidential
inauguration.
COMMENT:
--------------
4. (C) Post assesses the President's response to reflect
either profound ignorance or indifference to the real
situation between U.S. firm Seaboard and his own company TIKO
at the Port of Tamatave. Moreover, the President seems not
to grasp the nuanced argument that even the perception of
corruption -- that the Port and GOM are forcing out Seaboard
to create a monopoly for TIKO in wheat milling -- should be
avoided. While Lopez is aggressive and Seaboard could
possibly have done more due diligence on their Malagasy
partner, the reality -- as confirmed by our World Bank and
IMF colleagues in addition to Seaboard -- is that publicly
financed bulk offloading equipment will serve only TIKO if
Seaboard ceases to be an operator in Tamatave.
5. (C) Post suggests three explanations for President
Ravalomanana's response: 1) He is aware TIKO is getting a
monopoly at Seaboard's expense and does not believe there
will be consequences; 2) He thinks there might be minor
consequences he can tolerate; 3) He is genuinely ignorant of
the facts and what is at stake because his staff is not
giving him honest and prudent counsel. Whatever the
President's thinking, Post will continue to lobby him and his
Government vigorously to ensure a level playing field for a
significant U.S. investor. END COMMENT.
McGEE