Identifier
Created
Classification
Origin
07ANTANANARIVO640
2007-06-28 11:10:00
UNCLASSIFIED
Embassy Antananarivo
Cable title:
SEABOARD SILOS SOLUTION SIGNED IN MADAGASCAR
how-toVZCZCXRO8250 RR RUEHJO RUEHLMC DE RUEHAN #0640 1791110 ZNR UUUUU ZZH R 281110Z JUN 07 FM AMEMBASSY ANTANANARIVO TO RUEHC/SECSTATE WASHDC 5037 INFO RUEHNR/AMEMBASSY NAIROBI 0407 RUEHJO/AMCONSUL JOHANNESBURG 0108 RUCPDOC/USDOC WASHDC RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
UNCLAS ANTANANARIVO 000640
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
E.O. 12958: N/A
TAGS: EINV ETRD ECON KTDB PGOV MA
SUBJECT: SEABOARD SILOS SOLUTION SIGNED IN MADAGASCAR
REF: ANTANANARIVO 0426 AND PREVIOUS
UNCLAS ANTANANARIVO 000640
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
E.O. 12958: N/A
TAGS: EINV ETRD ECON KTDB PGOV MA
SUBJECT: SEABOARD SILOS SOLUTION SIGNED IN MADAGASCAR
REF: ANTANANARIVO 0426 AND PREVIOUS
1. Seaboard Corporation's Armando Lopes signed a five-year lease
extension for its silos at the Tamatave Port June 28. Tamatave Port
Director Pierrot Botozaza and Minister of Transport Julien LaPorte
have approved and signed the agreement. According to Lopes, the
terms and conditions of the extension are fair and will allow
Seaboard's local venture, Madagascar Mills (LMM) to continue its
wheat milling operation in competition with the newly-opened TIKO
mill.
2. Until renovations can be made by Seaboard and the Port to
connect the silos to a modern conveyor system (already connected to
the TIKO facility),Seaboard will enjoy discounted offloading fees.
Both sides agreed to substantial investments to renovate Port
equipment.
3. In addition to allowing an American enterprise to remain in the
Madagascar market, the agreement has the ancillary benefit of
guaranteeing two operators - Seaboard and TIKO - in the wheat
milling sector. Millions of dollars of U.S. Government PL480
commodities, mostly wheat, are imported and monetized to finance
food security and development activities by CRS, CARE, and ADRA.
With two buyers for wheat, the monetization consortium should be
able to negotiate better prices, thus generating more revenue for
these activities.
4. COMMENT: The Embassy has invested more time in the Seaboard
case than in any other U.S. venture in Madagascar. While Port
Director Botozaza and even the President were at times intransigent,
it appears our arguments for a level-playing field carried the day
in the end. While difficult and frustrating, this case illustrates
the GOM's willingness to guarantee fair treatment for U.S.
investors. END COMMENT.
SIBLEY
SIPDIS
SIPDIS
STATE FOR AF/EPS AND AF/E
USDOC FOR RASHIDA PETERSEN
JOHANNESBURG FOR SCO
NAIROBI FOR SCO
E.O. 12958: N/A
TAGS: EINV ETRD ECON KTDB PGOV MA
SUBJECT: SEABOARD SILOS SOLUTION SIGNED IN MADAGASCAR
REF: ANTANANARIVO 0426 AND PREVIOUS
1. Seaboard Corporation's Armando Lopes signed a five-year lease
extension for its silos at the Tamatave Port June 28. Tamatave Port
Director Pierrot Botozaza and Minister of Transport Julien LaPorte
have approved and signed the agreement. According to Lopes, the
terms and conditions of the extension are fair and will allow
Seaboard's local venture, Madagascar Mills (LMM) to continue its
wheat milling operation in competition with the newly-opened TIKO
mill.
2. Until renovations can be made by Seaboard and the Port to
connect the silos to a modern conveyor system (already connected to
the TIKO facility),Seaboard will enjoy discounted offloading fees.
Both sides agreed to substantial investments to renovate Port
equipment.
3. In addition to allowing an American enterprise to remain in the
Madagascar market, the agreement has the ancillary benefit of
guaranteeing two operators - Seaboard and TIKO - in the wheat
milling sector. Millions of dollars of U.S. Government PL480
commodities, mostly wheat, are imported and monetized to finance
food security and development activities by CRS, CARE, and ADRA.
With two buyers for wheat, the monetization consortium should be
able to negotiate better prices, thus generating more revenue for
these activities.
4. COMMENT: The Embassy has invested more time in the Seaboard
case than in any other U.S. venture in Madagascar. While Port
Director Botozaza and even the President were at times intransigent,
it appears our arguments for a level-playing field carried the day
in the end. While difficult and frustrating, this case illustrates
the GOM's willingness to guarantee fair treatment for U.S.
investors. END COMMENT.
SIBLEY