FINANCE MINISTER ON MCC AND SADC

C O N F I D E N T I A L MASERU 000348

SIPDIS

SIPDIS

FOR AF/S

E.O. 12958: DECL: 7/25/2016
TAGS: PREL PGOV EAID PINR MCC LT
SUBJECT: FINANCE MINISTER ON MCC AND SADC


CLASSIFIED BY: June Carter Perry, Ambassador, EXEC , STATE.
REASON: 1.4 (b),(d)




1. (C) Ambassador met with Minister of Finance Thahane July 24
to advise him that the MCC Investment Committee had approved the
GOL's proposal. However, a final compact could not be signed
until there were full assurances that the Marriage Equity Act
had passed guaranteeing married women full rights (access to
business loans and the like).


2. (C) Minister Thahane said he realized that was the case and
planned to brief the informal Cabinet section later that day.
(We note that in response to our July 4 speech, the Minister of
Foreign Affairs pledged before the large audience that
Parliament would take up the Act in September.) Thahane
reiterated the FOMIN's comments during our meeting and provided
us a copy of the white paper upon which the legislation is to be
based. I observed that with Lesotho's assumption of the SADC
chairmanship, it would be looked to for leadership in this and
other matters. The GOL's Speaker of the National Assembly was
President of the SADC Parliamentary Forum and over 50 percent of
those elected in Lesotho's 2005 local polls were women.


3. (SBU) Thahane acknowledged the importance of the matter and
stated he would point out to the Cabinet the extensive progress
made in obtaining the MCC's approval; it must not be jeopardized
because of a traditional codification of inequality. He went on
to lay out Lesotho's objectives as SADC chair:

-- Restructuring of the regional body including economic
integration (Finance and Trade to be in the lead).

-- Reinforcement of Peace and Stability (Foreign Affairs and
Defense (Prime Minister) in the lead).

-- Upgrading of infrastructure and services to include
rationalization of pension funds, savings and investment funds
(Finance).

-- Regionalization of agricultural policies with an emphasis on
Food Security (Comment: the Minister said they hoped to use
this as a lever to restore Zimbabwe's past, important role in
this sector - Agriculture.

-- Regional HIV/AIDS strategies to be implemented through
public/private partnerships.


4. (SBU) We responded that the goals Lesotho proposed to
achieve during its tenure were impressive and we hoped to see
SADC come to life as an effective regional organization that
would deal with the situation in Zimbabwe. We agreed the needs
were great, but regional cohesion and economic diversification
would strengthen all member states. Thahane said that faced
with managing the SADC portfolio he had a full plate. He
expects to be in Singapore for bank meetings in mid-September;
expects to play a key role in Lesotho's 40th Anniversary
(October 4) celebration -- which he predicted would run for
several days; anticipates the MCC/CEO to visit o/a October 23
and to host a donors roundtable November 20-24.


5. (C) Comment: Although not a "politician," Thahane is the
GOL's point person on many regional and international matters.
He has shepherded the MCC process, supported us strongly in
obtaining the Article 98 Agreement and is astute in prodding
fellow Cabinet members toward policies that will benefit
Lesotho. With his wife at the helm of Baylor's Center of
Excellence in pediatric AIDS, Thahane also has his hand in the
HIV/AIDS portfolio and has made specific recommendations about
reorganizing the Ministry of Health.


6. (SBU) We will follow up with Minister of Foreign Affairs
Moleleki concerning passage of the Marriage Equality Act and its
relevance to a potential MCC compact. The FOMIN chairs the MCA
Interministerial Committee, but it is the Minister of Finance
who manages the process and who is assembling the core team.

PERRY