Identifier
Created
Classification
Origin
08ANTANANARIVO852
2008-12-19 09:14:00
UNCLASSIFIED
Embassy Antananarivo
Cable title:  

MADAGASCAR: GOM (AGAIN) DENIES DAEWOO LAND DEAL

Tags:  PGOV ECON EINV EAGR MA 
pdf how-to read a cable
VZCZCXRO0571
PP RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHAN #0852 3540914
ZNR UUUUU ZZH
P 190914Z DEC 08
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC PRIORITY 1886
INFO RUEHZO/AFRICAN UNION COLLECTIVE
UNCLAS ANTANANARIVO 000852 

SIPDIS

STATE FOR AF/E - MBEYZEROV

REF: ANTANANARIVO 787

E.O. 12958: N/A
TAGS: PGOV ECON EINV EAGR MA
SUBJECT: MADAGASCAR: GOM (AGAIN) DENIES DAEWOO LAND DEAL

UNCLAS ANTANANARIVO 000852

SIPDIS

STATE FOR AF/E - MBEYZEROV

REF: ANTANANARIVO 787

E.O. 12958: N/A
TAGS: PGOV ECON EINV EAGR MA
SUBJECT: MADAGASCAR: GOM (AGAIN) DENIES DAEWOO LAND DEAL


1. (U) The following diplomatic note dated December 12 was delivered
to Post in response to recent media reports concerning a major
agricultural investment by South Korea's Daewoo Logistics (reftel).
The story was reported on extensively in both foreign and domestic
media despite an immediate denial from the GOM, and continues to
provoke speculation in the Malagasy and international press. This
note was provided to further clarify the GOM's position.


2. (U) BEGIN TEXT:

MINISTRY OF FOREIGN AFFAIRS
OFFICE OF THE SECRETARY GENERAL
DIRECTION OF MULTILATERAL COOPERATION
Office in charge of Cooperation with Asia and Pacific
No. 08-2438/AE/M/NV

DIPLOMATIC NOTE

The Ministry of Foreign Affairs of the Republic of Madagascar
presents its compliments to ALL DIPLOMATIC AND CONSULAR MISSIONS in
Antananarivo and, pursuant to the information stated by the
international media, namely "The Financial Times", concerning the
alleged real estate rental contract on 3 million hectares between
the Government of Madagascar and Daewoo Logistics, has the honor to
provide hereafter an official denial by the Government of Madagascar
on this issue:

"The information affirming the signature of a contract of purchase
of estate in Madagascar by the Korean company Daewoo is false.
Indeed, Daewoo Logistics has expressed interest, just like any
investor, in investing in agribusiness in Madagascar, for large
scale farming of corn and production of palm oil.
As a result, a Memorandum of Understanding on the project was signed
for the purpose of land prospecting, at the end of which a report
should be submitted, followed by studies and analyses of compliance
with the draft project. Once the results of the studies comply with
the needs of the Government of Madagascar, the regulatory procedures
related to the application to rent an estate should be initiated.
In case there is no objection to the procedures, a contract for a
long-term lease shall be signed for the profit of the requestor in
exchange for the payment of an annual fee determined on the basis of
the geographic location of the zone requested, after approval issued
during a Cabinet Meeting.
As to Daewoo Logistics, the procedure performed to date remains at
the level of land prospecting, and no report, decision or lease
contract has been submitted to or signed by the Malagasy party.
Therefore, the information stated related to the signature of a
contract and the free allocation of an estate is false.
Finally, the press release from Daewoo Logistics denying the
allocation of any land, and the official denial by the Malagasy
Ministry of Land Reform, State Property and Development of
Territory, are both accessible on the Ministry of Foreign Affairs'
web site.

Antananarivo, December 12, 2008.

END TEXT.


2. (SBU) EMBASSY COMMENT: The "Affaire Daewoo" continues to
reverberate here and abroad, mainly for the enormous scale of the
project initially - and evidently quite prematurely - announced by
Daewoo in November. Most observers here take the GOM denials at
face value, and attribute the whole matter to Daewoo's extreme
naivete in having concluded that a permit to look around for land
here was anything more than the beginning of a long and still very
uncertain process. Still, Madagascar does have great expanses of
available, arable land, and official policy is to open it for
development, including by foreign investors. This incident may have
drawn useful international attention to these long-term
opportunities, while also highlighting the domestic political
sensitivities to foreign control of local land and the need to -
unlike Daewoo - move forward with discretion. End comment.


MARQUARDT