NEW LAND SEIZURE LAW; DUTCH FARMERS CHALLENGE

UNCLAS SECTION 01 OF 02 HARARE 001492 SIPDIS SENSITIVE SIPDIS AF/S FOR S.HILL ADDIS ABABA FOR USAU ADDIS ABABA FOR ACSS STATE PASS TO USAID FOR E.LOKEN STATE PASS TO NSC FOR SENIOR AFRICA DIRECTOR B.PITTMAN E.O. 12958: N/A TAGS: ECON EFIN EAGR ZI SUBJECT: NEW LAND SEIZURE LAW; DUTCH FARMERS CHALLENGE SEIZURES REF: A. A) HARARE 1396 ¶B. B) HARARE 1361 -------------- Summary -------------- ¶1. (SBU) An Act requiring most farmers whose land was compulsorily acquired by the GOZ to cease farming and vacate their homes during the present summer growing season passes into law on December 20. Over 700 farmers could face eviction if the Act is implemented. In the meantime, an international arbitration tribunal has begun hearing the case of a group of evicted Dutch farmers. Reserve Bank of Zimbabwe (RBZ) Governor Gono is reportedly concerned about the possible seizure of Zimbabwe,s overseas assets if the case is decided against the GOZ. End Summary. -------------- -------------- Eviction Bill Starts Clock Ticking for White Farmers -------------- -------------- ¶2. (U) On December 20, the Gazetted Land (Consequential Provisions) Act passed into law, setting the clock ticking for the possible eviction of most of the remaining white commercial farmers in Zimbabwe. The Act, gazetted on December 8, requires all farmers whose land was compulsorily acquired by the GOZ, and who are not in possession of an official offer letter, permit or lease, to cease to occupy, hold or use that land forty-five days (i.e. February 3, 2007) after passage of the Act into law. The Act also requires farmers to vacate their homes within 90 days (March 19, 2007). Failure to comply is a criminal offense punishable by a fine and/or a sentence of up to two years. ¶3. (SBU) Commercial Farmers, Union (CFU) President Doug Taylor-Freeme told us on December 11 that the Act could be &the end of the road for agriculture,8 if implemented. In a notice to its members, the CFU pointed out that the vast majority of white commercial farmers still on the land have complied with the GOZ,s criteria to continue farming: they had offered land, downsized, co-existed with settlers, and over 700 of them had applied for permission to stay on the land through the A2 offer letter system. Yet barely a handful of applicants had received an offer letter or lease (Ref A). The CFU is, however, advising its members to continue farming and has engaged a high-powered legal team from South Africa. -------------- Dutch BIPPA Case Hearing Begins -------------- ¶4. (SBU) Taylor-Freeme also updated us on the dispute brought to the International Centre for the Settlement of Investment Disputes (CISID) by evicted Dutch farmers. The group of farmers is demanding that the Zimbabwe Government honor the Netherland,s Bilateral Investment Promotion and Protection Agreement (BIPPA) with Zimbabwe. (Note. Other countries with BIPPAs are France, Mauritius, Belgium, Sweden, Holland, Denmark, Norway, Italy, and Germany. According to the CFU, about 100-150 farmers from these countries could potentially bring actions against Zimbabwe. End Note.) ¶5. (SBU) According to Taylor-Freeme, the GOZ failed to pay a required US$150,000 advance payment to the Centre, citing HARARE 00001492 002 OF 002 foreign exchange shortages, but the Dutch group had made the payment on behalf of the GOZ to move the case forward. The Dutch farmers, who rejected an out-of-court settlement of the case, would attempt to put a lien on GOZ assets outside of Zimbabwe. ¶6. (SBU) Taylor-Freeme said he had briefed RBZ Governor Gono recently on the case and said Gono had appeared poorly informed. Gono had called the Ministry of Foreign Affairs while with Taylor-Freem and had demanded a full dossier on the dispute. Speaking in Shona (which Taylor-Freeme understads),Gono had told the MFA official &we can,t have a repeat of the Air Zimbabwe situation.8 (Note. n early November Air Zimbabwe was forced to cancl its lucrative London flight for several days rther than risk seizure of an airplane by creditos. The RBZ intervened and paid the debt. Ref B End Note.) -------------- Update -------------- ¶7. (SBU) The Netherlands Embassy in Harare informed us that an initial hearing was held in Paris on December 15. A briefing schedule was set which will conclude in mid-August. Zimbabwe was represented by two lawyers from the Attorney General,s office in Harare. According to unconfirmed news reports, GOZ Attorney General Sobuza Gula-Ndebele attempted to obtain a visa to travel to Paris for the hearing, but was refused a visa because he is on the EU sanctions list. -------------- Comment -------------- ¶8. (SBU) Passage into law of the eviction act deepens the pall of uncertainty over Zimbabwe,s remaining productive farmers. In addition, if implemented, it could be a further blow to Zimbabwe,s food security and to its foreign exchange generating capacity, as evictions would occur at the height of the cereal and tobacco growing season. While BIPPA arbitrations may result in judgements for compensation for some evicted farmers, hope is fading among the remaining white farmers that the GOZ will provide them with secure tenure. SCHULTZ