BANDA JUMPS AT TRADE AND INVESTMENT, BALKS AT UN

C O N F I D E N T I A L SECTION 01 OF 02 LUSAKA 001186

SIPDIS

E.O. 12958: DECL: 12/19/2013
TAGS: PREL EAGR ETRD EINV ECON EAIR KHIV MASS ZA
SUBJECT: BANDA JUMPS AT TRADE AND INVESTMENT, BALKS AT UN
VOTING

Classified By: Ambassador Donald E. Booth for Reason(s) 1.4 (b) and (d)

SUMMARY:


1. (C) Summary: In a December 18 meeting, President Rupiah
Banda and the Ambassador discussed ways to strengthen
bilateral commercial ties to promote economic growth in
Zambia, including concluding an Open Skies agreement and
either a Bilateral Investment Treaty or Trade and Investment
Framework Agreement. President Banda encouraged the
Ambassador to prompt a new debate on Genetically Modified
Organisms (GMOs). Tourism Minister Namulunga will join Banda
over the holidays in South Luangwa National Park where they
will discuss ways to expand Zambia's tourism sector, perhaps
through building conference centers near game parks,
developing seaside resorts on Lake Tanganyika, and
establishing domestic airlinks to connect these to Victoria
Falls at Livingstone. Banda also expressed his hope that
President-elect Obama would include Zambia on the itinerary
of his first official trip to Africa. The Ambassador's
briefing on Millennium Challenge Account compact negotiations
and the intense discussion of Zimbabwe are reported septels.
The Ambassador congratulated President Banda again on his
election victory and praised the Electoral Commission of
Zambia's work to ensure a relatively open process free of
substantial irregularities. President Banda agreed with the
Ambassador's assessment. End summary.

STRENGTHENING BILATERAL COMMERCIAL TIES


2. (SBU) To strengthen bilateral ties and encourage more
commerce and investment, the Ambassador recommended Zambia
and the United States conclude an Open Skies agreement (as
civil aviation experts on both sides agreed earlier in 2008)
and seek to cement commercial ties through either a Bilateral
Investment Treaty (BIT),or a Trade and Investment Framework
Agreement (TIFA). Banda was surprised Zambia and the United
States had not concluded a modern BIT and enthusiastically
supported the idea of negotiating one.

UN AND INTERNATIONAL ORGANIZATIONS: AGREEABLE DISAGREEMENTS


3. (C) The Ambassador expressed disappointment that Zambian
and American voting coincidence, especially on issues
important to the United States has fallen so dramatically in
the last several years. He asked how the United States and
Zambia could work together to address this surprising
divergence. Taking a pedantic tone, Banda - a former
diplomat and Foreign Affairs Minister - suggested that more
frequent pre-consultation and communication could help to
address such issues. Banda then said that Zambia's
membership in SADC, the African Union and COMESA obligate it
to follow those groups' commitment to consensus. Banda added
that Zambia and the United States can disagree in principle
on issues and still respect each others' positions. Banda
concluded by suggested the United States and Zambia "need to
stay close" even when disagreeing, and committed to working
with the Ambassador to preview the 2009 UN General Assembly
and to identify particular areas where the two countries
could cooperate and agree.

HIV/AIDS: POUNDING PREVENTION


4. (C) The Ambassador reviewed the progress of President
Bush's Emergency Plan (PEPFAR) with Banda, but noted that as
long as new infection rates remain high, Zambia will never
turn the tide on HIV. Budgets are not infinite, the
Ambassador said, at some point the treatment bill will
outstrip Zambia's, the Global Fund's and the United States'
ability to fund it. Prevention is the key to solving the
HIV/AIDS crisis, the Ambassador asserted and in addition to
circumcision, mother to child transmission prevention, and
condom use, couples testing has proved a most effective
prevention method. The Ambassador challenged Banda and his
wife to undergo voluntary testing with the Ambassador and his
wife. The response was stone cold silence. The Ambassador
wrapped up this discussion by soliciting ideas on how to
reduce new infections.

GMOS: LET THE DEBATE BEGIN ANEW


5. (C) A discussion of food security provided an
opportunity for the Ambassador to raise Zambia's ban on
importing Genetically Modified Organisms (GMOs). Noting that
Zambians already consume GMOs in processed food, President
Banda conceded there was a lot of quiet support throughout
Zambia for buying GMO commodities from abroad. He was
distressed that Zambia pays a hefty premium to import
GMO-free commodities to feed its people. The President said
a new debate was needed but that he could not launch one.
Instead, he asked the Ambassador to prompt a new discussion
through inter alia, speeches, Op Eds and visiting expert

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speakers. (Note: Agriculture Minister officials may be on
board with GMO food and commodity imports, but GMO seeds seem
to be a red line).

ACOTA


6. (C) Noting Zambia's failure to schedule ACOTA training in
2008 as previously agreed (and provided for in the Defence
Ministry's 2009 budget),the Ambassador sought Banda's views
on the utility of this program for Zambia and a decision on
whether to pursue additional training sessions. Banda was
completely unbriefed and unaware of the ACOTA program and
seemed annoyed that he did not even know about the successful
2007 ACOTA training. The President said he would follow up
with his advisors on December 22.

BIOGRAPHIC NOTES: BANDA'S THIRD CULTURE KIDS


7. (C) President Banda -- a former Ambassador to Washington
-- noted that his older sons, who were partially raised and
university educated in America (one, Henry, holds an MBA from
Thunderbird) are culturally more American than Zambian. The
President also noted with pride his four-year old twins (one
boy and one girl) by his third (and present) wife. He also
took pleasure in noting that Zambia's former UN PermRep and
now Foreign Affairs Permanent Secretary, Ambassador Tens
Kapoma has worked for Banda in Washington when Kapoma was a
very junior second secretary. Kapoma, the only other Zambian
in the meeting, obviously has a long history with and access
to the President, indicating he is the real decisionmaker at
Foreign Affairs.

BOOTH