Identifier
Created
Classification
Origin
06MASERU21
2006-01-12 12:46:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Maseru
Cable title:  

THE GAP - STATUS IN LESOTHO

Tags:  ETRD ECON PREL LT 
pdf how-to read a cable
VZCZCXRO9677
PP RUEHDU RUEHJO
DE RUEHMR #0021 0121246
ZNR UUUUU ZZH
P R 121246Z JAN 06
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC PRIORITY 1808
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHMR/AMEMBASSY MASERU 2059
UNCLAS MASERU 000021 

SIPDIS

SIPDIS

SENSITIVE
FOR AF/EPS AND AF/S; DEPT PLS PASS TO A/USTR - F. LISER

E.O. 12958: N/A
TAGS: ETRD ECON PREL LT
SUBJECT: THE GAP - STATUS IN LESOTHO


UNCLAS MASERU 000021

SIPDIS

SIPDIS

SENSITIVE
FOR AF/EPS AND AF/S; DEPT PLS PASS TO A/USTR - F. LISER

E.O. 12958: N/A
TAGS: ETRD ECON PREL LT
SUBJECT: THE GAP - STATUS IN LESOTHO



1. (SBU) Following rumors concerning the potential withdrawal
of the GAP as a major buyer of Lesotho's textile products,
Ambassador Perry contacted GAP Limited President and CEO Paul
Pressler via faxed letter on December 14. In response, GAP
Inc's Vice President for Social Responsibility (Dan Henkle)
called the Ambassador.


2. (SBU) During the 12/19 telcon, we reviewed the USG's
commitment to Lesotho as a star AGOA performer and projected the
potentially significant impact suspension of GAP purchases would
have on an economy already weakened by (1) HIV/AIDS in the work
place, and (2) by the end of the Multi Fiber Agreement. The GAP
representative concurred with our assessment and assured us that
the company was not pulling out of Lesotho, but was making some
adjustments in its ordering of denim and knit products. GAP
Inc. foresees only a minor reduction in one design product of
the Old Navy line and a significant increase in its acquisition
of knitwear made in Lesotho, thus maintaining its significant
share (35%) of the garments produced in Lesotho. We emphasized
the corporate responsibility of U.S. firms in Africa and our
continued desire to have a sustainable public/private
partnership in Lesotho.

(SBU) Comment: We have learned that one Basotho firm (parent
company is Taiwanese) ginned up the GAP withdrawal rumor and
produced a global round robin e-mail starting with Lesotho's
Minister of Trade. Since our December exchanges with GAP San
Francisco officers, we have spoken with the President of
Lesotho's Textile Exporters Association and the Minister of
Finance. Both are cognizant of the accurate picture of GAP
Inc's involvement. The GOL is looking forward to high-level
international corporate participation (including GAP Inc.) in
the January 22-24 Multi Fiber Forum in Lesotho and the expected
role of the Global Business Coalition in Lesotho during the
first quarter of 2006. End Comment

PERRY