Identifier
Created
Classification
Origin
08ASMARA466
2008-09-18 11:16:00
CONFIDENTIAL
Embassy Asmara
Cable title:
ERITREA IMPORTS 55,000 METRIC TONS OF GRAIN FROM
how-toVZCZCXRO5772 RR RUEHROV DE RUEHAE #0466 2621116 ZNY CCCCC ZZH R 181116Z SEP 08 FM AMEMBASSY ASMARA TO RUEHC/SECSTATE WASHDC 9910 INFO RUCNIAD/IGAD COLLECTIVE RUEKJCS/SECDEF WASHDC RUMICEA/JICCENT MACDILL AFB FL RUKIA/DIA WASHDCQQRHRMDAB/COMUSNAVCENT RUEPADJ/CJTF-HOA J2X CAMP LEMONIER DJ RUEAIIA/CIA WASHDC RHMFISS/CDR USCENTCOM MACDILL AFB FL
C O N F I D E N T I A L ASMARA 000466
SIPDIS
DEPARTMENT FOR AF/E
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: DECL: 09/17/2018
TAGS: EAGR ETRD ER
SUBJECT: ERITREA IMPORTS 55,000 METRIC TONS OF GRAIN FROM
CARGILL
REF: ASMARA 356
Classified By: Ambassador Ronald K. McMullen for Reason 1.4 (d)
C O N F I D E N T I A L ASMARA 000466
SIPDIS
DEPARTMENT FOR AF/E
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: DECL: 09/17/2018
TAGS: EAGR ETRD ER
SUBJECT: ERITREA IMPORTS 55,000 METRIC TONS OF GRAIN FROM
CARGILL
REF: ASMARA 356
Classified By: Ambassador Ronald K. McMullen for Reason 1.4 (d)
1. (C) Cargill's representative in Eritrea informed Emboff
that on September 27 Eritrea will receive 55,000 metric tons
(MT) of grain from Cargill Corporation. According to
Cargill, 27,599 MT of sorghum grown in the U.S. was sold to
Eritrea for $421/MT ($11.6 million). An additional 27,500 MT
of wheat from Russia is scheduled to arrive on the same ship.
Although he didn't specify the price of the wheat, the
Cargill representative said the total dollar amount for both
grains was $27 million; back of the envelope calculations
imply a price of $560/MT. All Eritrean imports are made by
the ruling party-owned Red Sea Trading Corporation.
2. (C) Cargill extended the Government of the State of
Eritrea (GSE) a $40 million line of credit without bank
backing. According to Cargill, the GSE makes prompt payments
to Cargill and has an outstanding credit history with the
company. Cargill also said that in 2004 it sought permission
to invest $25 million in an outdated grain processing
facility in Asmara, but the GSE turned it down. According to
the Cargill representative (a former fighter in the Eritrean
struggle for independence and very nationalistic) the GSE
will not allow investment or development in anything it
either does not understand or cannot control.
MCMULLEN
SIPDIS
DEPARTMENT FOR AF/E
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: DECL: 09/17/2018
TAGS: EAGR ETRD ER
SUBJECT: ERITREA IMPORTS 55,000 METRIC TONS OF GRAIN FROM
CARGILL
REF: ASMARA 356
Classified By: Ambassador Ronald K. McMullen for Reason 1.4 (d)
1. (C) Cargill's representative in Eritrea informed Emboff
that on September 27 Eritrea will receive 55,000 metric tons
(MT) of grain from Cargill Corporation. According to
Cargill, 27,599 MT of sorghum grown in the U.S. was sold to
Eritrea for $421/MT ($11.6 million). An additional 27,500 MT
of wheat from Russia is scheduled to arrive on the same ship.
Although he didn't specify the price of the wheat, the
Cargill representative said the total dollar amount for both
grains was $27 million; back of the envelope calculations
imply a price of $560/MT. All Eritrean imports are made by
the ruling party-owned Red Sea Trading Corporation.
2. (C) Cargill extended the Government of the State of
Eritrea (GSE) a $40 million line of credit without bank
backing. According to Cargill, the GSE makes prompt payments
to Cargill and has an outstanding credit history with the
company. Cargill also said that in 2004 it sought permission
to invest $25 million in an outdated grain processing
facility in Asmara, but the GSE turned it down. According to
the Cargill representative (a former fighter in the Eritrean
struggle for independence and very nationalistic) the GSE
will not allow investment or development in anything it
either does not understand or cannot control.
MCMULLEN