PRESIDENT RAVALOMANANA PROMISES MINISTRY OF

C O N F I D E N T I A L ANTANANARIVO 000074

SIPDIS

SIPDIS

DEPT FOR AF/E, AF/EPS
NAIROBI FOR SCO
PARIS FOR AFRICA WATCHER D'ELIA
JOHANNESBURG FOR SCO
USDOC FOR RASHIDA PETERSEN

E.O. 12958: DECL: 01/22/2017
TAGS: EINV EAGR KTDB PGOV PREL MA
SUBJECT: PRESIDENT RAVALOMANANA PROMISES MINISTRY OF
TRANSPORT AND TIKO WILL ENGAGE SEABOARD

REF: A. 06 ANTANANARIVO 1425


B. 06 STATE 196979

C. 06 ANTANANARIVO 1291

Classified By: Ambassador James D. McGee for reasons 1.4 B, D


1. (C) An animated President Ravalomanana insisted he was
"neutral and not interested" in Seaboard Corporation's
operations at the Port of Tamatave; neither as President of
Madagascar nor as owner/founder of the TIKO company
(reftels). Holding up literature from the Dynatech
Corporation, the President said, "This Company wants to
invest a billion dollars in my country. That is something
important that I must be involved in." When the Ambassador
repeated demarche points we had passed to the GOM, the
President replied firmly, "they (Seaboard) can talk to my
Minister of Transportation and to TIKO directly. I have no
role to play in this private commercial business." President
Ravalomanana went on to say he did not like so much pressure
over what he characterized as a minor commercial problem.


2. (C) After the meeting, the Ambassador personally confirmed
in a conversation with Minister of Transportation
Randriamampihonona that the meeting with Seaboard would be
scheduled: it is set for January 26. If the Minister is
reshuffled after the January 19 inauguration, he assures us
his successor will take up the case. In separate
conversations, Ministry of Agriculture Secretary General
Marius Ratolojanahary confirmed he would continue to follow
the Seaboard case so it does not negatively impact
U.S.-Malagasy relations, nor harm Madagascar's ability to
attract foreign investment. Post also confirmed that a
meeting with TIKO representatives, which Seaboard has sought
for several months to pursue sales or partnership
opportunities, will take place when Seaboard's representative
returns to Madagascar.


3. (C) COMMENT: In Washington and Antananarivo, Seaboard
representatives continue to apply constant pressure on
whatever officials will listen. That the GOM is under no
legal obligation to extend the lease on the KOBAMA/Seaboard
silos is never mentioned as a point of fact - though it is a
fact. True to form, the GOM has repeatedly shot itself in
the foot on this case, refusing to communicate with Seaboard
and fueling an onslaught of accusations. Even with the
promised meetings in the near future, Post is not convinced
Seaboard will obtain anything like total satisfaction. When
the GOM recently offered to discuss lease extension, Seaboard
was on the phone to the Embassy the same day demanding 15
years. The GOM, perhaps reasonably, offered a lease as long
as Seaboard's partnership contract with KOBANA; three years.


4. (C) COMMENT CONTINUED: The Ambassador and Embassy
officers have spent on average several hours per week on the
Seaboard case in the last year - far more than for any of the
other dozen U.S. commercial interests in Madagascar. We
remain prepared to engage on Seaboard's behalf in case of any
truly egregious violation of the "level playing field"
standard. Otherwise limited staff and demanding priorities
require Embassy resources be devoted to other Mission
objectives. END COMMENT.

McGEE