Identifier
Created
Classification
Origin
06HARARE309
2006-03-10 12:43:00
CONFIDENTIAL
Embassy Harare
Cable title:
GOZ BLAMES U.S., U.K., "RULE CHANGE" FOR IMF VOTE
VZCZCXRO4671 PP RUEHMR DE RUEHSB #0309 0691243 ZNY CCCCC ZZH P 101243Z MAR 06 FM AMEMBASSY HARARE TO RUEHC/SECSTATE WASHDC PRIORITY 9737 INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUEHUJA/AMEMBASSY ABUJA 1149 RUEHAR/AMEMBASSY ACCRA 0981 RUEHDS/AMEMBASSY ADDIS ABABA 1153 RUEHBY/AMEMBASSY CANBERRA 0413 RUEHDK/AMEMBASSY DAKAR 0773 RUEHKM/AMEMBASSY KAMPALA 1207 RUEHNR/AMEMBASSY NAIROBI 3551 RUEHFR/AMEMBASSY PARIS 0979 RUEHRO/AMEMBASSY ROME 1607 RUEKDIA/DIA WASHDC//DHO-7// RHEHNSC/NSC WASHDC RUEHBS/USEU BRUSSELS RUEKJCS/JOINT STAFF WASHDC RUCNDT/USMISSION USUN NEW YORK 1364 RUCPDOC/DEPT OF COMMERCE WASHDC RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK//DOOC/ECMO/CC/DAO/DOB/DOI// RUEPGBA/CDR USEUCOM INTEL VAIHINGEN GE//ECJ23-CH/ECJ5M//
C O N F I D E N T I A L HARARE 000309
SIPDIS
SIPDIS
AF/S FOR B. NEULING
NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE
AFR/SA FOR E. LOKEN
COMMERCE FOR BECKY ERKUL
TREASURY FOR BEN CUSHMAN, JOHN RALYEA
E.O. 12958: DECL: 12/31/2011
TAGS: PREL EFIN KPAO PGOV ZI
SUBJECT: GOZ BLAMES U.S., U.K., "RULE CHANGE" FOR IMF VOTE
Classified By: Ambassador Christopher Dell under Section 1.4 b/d
C O N F I D E N T I A L HARARE 000309
SIPDIS
SIPDIS
AF/S FOR B. NEULING
NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE
AFR/SA FOR E. LOKEN
COMMERCE FOR BECKY ERKUL
TREASURY FOR BEN CUSHMAN, JOHN RALYEA
E.O. 12958: DECL: 12/31/2011
TAGS: PREL EFIN KPAO PGOV ZI
SUBJECT: GOZ BLAMES U.S., U.K., "RULE CHANGE" FOR IMF VOTE
Classified By: Ambassador Christopher Dell under Section 1.4 b/d
1. (U) The state-controlled Herald Newspaper on March 10,
under a headline "US, UK block IMF funds", claimed that the
United States and the U.K. improperly engineered the IMF's
March 8 decision to deny Zimbabwe technical assistance and
restoration of its voting rights. The article claimed that
the voting results (49.2 percent for Zimbabwe, 30.3 against,
20.7 abstaining) entitled Zimbabwe to be eligible for
resources under the Poverty Reduction and Growth Facility and
Exogenous Shocks Facility Trust (PRGF-ESF) but that "the
rules were suddenly changed as the decision on access to the
funds was completely withdrawn from the voting exercise."
The article suggested that the GOZ would submit a formal
complaint to the IMF.
2. (U) In a front page story "IMF maintains sanctions
against Zim", the independent weekly Independent newspaper on
March 10 offered a fairly straight account of Zimbabwe's
status with the IMF. It noted that the IMF Board had
rejected Reserve Bank Governor Gono's and Finance Minister
Murerwa's pleas and commitments and urged the implementation
of a comprehensive policy package of macroeconomic
stabilization and structural reforms. The article
inaccurately reported, however, that sanctions would remain
in place until Zimbabwe's US$119 million in arrears to the
PRGF-ESF fund were paid.
3. (C) Comment: The IMF vote throws a wrench into any dreams
ZANU-PF may have had of an international bailout. We
anticipate that in the wake of the vote, the GOZ's recent
propaganda concerning international &bridge-building8 will
revert to shrill attacks against the West -) and the U.S.
and the UK in particular. In typical fashion, they may even
try to conflate the IMF vote with the other headline of the
week -- the discovery of an arms cache in Mutare -- and
concoct a wild conspiracy theory linking this all together
into a plot against Zimbabwe. Gono and Murerwa almost
certainly understand what happened at the IMF and what needs
to be done to attract rescue from the outside. However, it
is clear from the Herald,s contorted account that many in
the ruling elite still don,t understand that rescue requires
reform.
DELL
SIPDIS
SIPDIS
AF/S FOR B. NEULING
NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE
AFR/SA FOR E. LOKEN
COMMERCE FOR BECKY ERKUL
TREASURY FOR BEN CUSHMAN, JOHN RALYEA
E.O. 12958: DECL: 12/31/2011
TAGS: PREL EFIN KPAO PGOV ZI
SUBJECT: GOZ BLAMES U.S., U.K., "RULE CHANGE" FOR IMF VOTE
Classified By: Ambassador Christopher Dell under Section 1.4 b/d
1. (U) The state-controlled Herald Newspaper on March 10,
under a headline "US, UK block IMF funds", claimed that the
United States and the U.K. improperly engineered the IMF's
March 8 decision to deny Zimbabwe technical assistance and
restoration of its voting rights. The article claimed that
the voting results (49.2 percent for Zimbabwe, 30.3 against,
20.7 abstaining) entitled Zimbabwe to be eligible for
resources under the Poverty Reduction and Growth Facility and
Exogenous Shocks Facility Trust (PRGF-ESF) but that "the
rules were suddenly changed as the decision on access to the
funds was completely withdrawn from the voting exercise."
The article suggested that the GOZ would submit a formal
complaint to the IMF.
2. (U) In a front page story "IMF maintains sanctions
against Zim", the independent weekly Independent newspaper on
March 10 offered a fairly straight account of Zimbabwe's
status with the IMF. It noted that the IMF Board had
rejected Reserve Bank Governor Gono's and Finance Minister
Murerwa's pleas and commitments and urged the implementation
of a comprehensive policy package of macroeconomic
stabilization and structural reforms. The article
inaccurately reported, however, that sanctions would remain
in place until Zimbabwe's US$119 million in arrears to the
PRGF-ESF fund were paid.
3. (C) Comment: The IMF vote throws a wrench into any dreams
ZANU-PF may have had of an international bailout. We
anticipate that in the wake of the vote, the GOZ's recent
propaganda concerning international &bridge-building8 will
revert to shrill attacks against the West -) and the U.S.
and the UK in particular. In typical fashion, they may even
try to conflate the IMF vote with the other headline of the
week -- the discovery of an arms cache in Mutare -- and
concoct a wild conspiracy theory linking this all together
into a plot against Zimbabwe. Gono and Murerwa almost
certainly understand what happened at the IMF and what needs
to be done to attract rescue from the outside. However, it
is clear from the Herald,s contorted account that many in
the ruling elite still don,t understand that rescue requires
reform.
DELL