THE FORCES NOUVELLES AND THE DIAMOND TRADE IN

C O N F I D E N T I A L SECTION 01 OF 02 ABIDJAN 000522

SIPDIS

E.O. 12958: DECL: 08/01/2018
TAGS: EMIN PGOV MARR KCOR PREL ECON IV
SUBJECT: THE FORCES NOUVELLES AND THE DIAMOND TRADE IN
SEGUELA

REF: ABIDJAN 459

Classified By: EconChief EMassinga, Reasons 1.4 (b,d)


1. (C) Summary. During a recent visit to Bouake and
Seguela, Emboffs probed the issue of whether control of the
region's diamonds was a factor in the recent clash between
factions of the Forces Nouvelles (FAFN). Emboffs met with
Deputy FAFN Chief Wattao, who said that the Forces Nouvelles
were uninvolved in the control or protection of the diamond
trade. However, other interlocutors (UN officials, local
leaders of the major political parties and the local
representative of the central government's Ministry of Mines
and Energy) indicated the opposite and said the diamond trade
was an active and lucrative enterprise for senior FAFN
leaders. End Summary.


2. (C) Abidjan-based observers have speculated openly that
control of the diamond trade in Seguela was the underlying
issue that led to a June 28-30 clash between Forces Nouvelles
factions loyal to fomer Zone Commander (ComZone) Zakaria Kone
and those loyal to FAFN Deputy Chief of Staff Wattao. During
a recent visit to Seguela, DCM and Econ chief discussed the
issued with a wide range of officials including local
political leaders, Seguela-based representatives of the
United Nations Operation in Cote d'Ivoire (UNOCI),and the
local representative of the central government's Ministry of
Mines and Energy. Based on these discussions, it appears
that the diamond trade was an element of, if not the only
reason for the clash.


3. (C) Emboffs raised the diamond trade with Wattao, the
"interim" ComZone in Seguela, who said only that the Ivorian
Ministry of Mines and Energy had recently sent the Forces
Nouvelles a letter asking for "better security for diamond
miners in the Seguela area." Wattao asserted that the FN had
made a decision to stay out of the issue altogether and to
let "civilians" remain in control of diamond mining.


4. (C) The deputy prefect of Seguela explained to Emboffs
that diamond production in the Seguela region is unmechanized
and remains very artisinal. Emboffs witnessed mining
activities at a small mine near Bobi, about 15 kilometers
from Seguela where they observed miners digging and working
the sites by hand, using only portable generators to power
pumps evacuating the water out of the mine sites. The UNOCI
regional Force Commander told Emboffs (despite an apparent
headquarters order to avoid discussion of diamonds) that
aerial surveillance of the region indicates there are "more
than 100 active small artisinal diamond mines in the area
around Seguela and Bobi."


5. (C) The Seguela region Ministry of Mines and Energy
representative told Emboffs that local production is
substantial, and some stones of up to 10 carats have been
found. The area generates less overall value than the more
well-known Tortiya diamond-producing region, but is a major
producer nonetheless. He said "many" Malian, Guinean and
Burkinabe men, eager to find their fortune, come to work the
mines, establishing rough camps. Diamond buyers supply food
and equipment on credit, and purchase diamonds on discount
accordingly. The Ministry representative said that Ivoirian
diamonds are theoretically stockpiled until a new arrangement
with the Kimberly Process is worked out, but he intimated
clearly that diamonds are seeping out to neighboring
countries. He singled out Mali, which is now a Kimberly
signatory and had little to no known diamond production
before Cote d'Ivoire was cut off from exporting diamonds in

2002. Speaking candidly, the Ministry of Mines
representative said "they say agriculture is the main
industry in this region, but that is not true. It is diamond
mining that is the motor of this region's economy",
confirming Emboffs' impression that the exploitation of
diamonds in the region is substantial and extensive.


5. (C) Local representatives of the major political parties
underscored the importance of diamonds to the region and to
the FN in their conversations with Emboffs. The FPI
representative in Seguela said that he comes from a
diamond-producing village in the region and could attest to
the fact that "diamonds have paid for a lot of things"
acquired by the Forces Nouvelles. The Seguela PDCI
representative confirmed that the quality of Seguela diamonds
is known to be good and that diamond buyers who were active
in the region prior to the outbreak of hostilities in 2002
had fled, leaving the local ComZone and his entourage with an
effective lock on the diamond trade. Prices paid to diamond
miners by intermediaries authorized by the FN are low but
miners have no recourse but to sell at prices offered. The
PDCI representative reported that prior to the war, the state
governed the sector, but now that the state has no effective

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control and cannot benefit through taxation or patronage, it
appears to be largely uninterested in what is happening.


6. (C) Comment. Emboffs look at the diamond trade in
Seguela suggests that the industry is quite active. The
topic is politically sensitive, as evidenced by the UNOCI
commander's reticence to address the topic and ComZone
Wattao's unsolicited disavowal of any FN role in controlling
the trade. Firm conclusions about what role the diamond
trade did or did not play in the intra-FAFN clash in late
June cannot be made at this juncture. It is fairly clear,
however, that the former Zone Commander did have a role in
the trade and, that in the absence of central government
authority, some element of the Forces Nouvelles will continue
to carry out that role.
NESBITT