Identifier
Created
Classification
Origin
09DARESSALAAM428
2009-07-06 05:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Dar Es Salaam
Cable title:  

DEPUTY SECRETARY LEW'S MEETING WITH PRESIDENT KIKWETE

Tags:  EAID ECON PGOV PREL TZ BY CG KE SO 
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FM AMEMBASSY DAR ES SALAAM
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INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHJB/AMEMBASSY BUJUMBURA 2918
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UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000428 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON PGOV PREL TZ BY CG KE SO
SUBJECT: DEPUTY SECRETARY LEW'S MEETING WITH PRESIDENT KIKWETE

DAR ES SAL 00000428 001.2 OF 002


UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000428

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON PGOV PREL TZ BY CG KE SO
SUBJECT: DEPUTY SECRETARY LEW'S MEETING WITH PRESIDENT KIKWETE

DAR ES SAL 00000428 001.2 OF 002



1. (SBU) SUMMARY. President Kikwete, meeting with Deputy Secretary
Lew June 30 immediately before departing for the African Union
meeting in Libya, expressed satisfaction with U.S. assistance
programs, in particular MCC, PEPFAR, and PMI, and the U.S. approach
to assistance. Kikwete described Tanzania's response to the global
economic situation and was optimistic about recovery. On Zanzibar,
he said he was again engaging with the parties. Kikwete touched on
regional issues, noting concern about Somalia. Finally, on the APR
tax dispute, Kikwete turned to his Minister of Finance to ensure a
quick resolution. END SUMMARY.

U.S. ASSISTANCE TO TANZANIA
--------------

2. (SBU) President Kikwete thanked the Deputy Secretary for his
visit to Tanzania, saying it strengthened relations. He expressed
satisfaction with U.S. assistance programs, in particular with the
paradigm of partnership and Tanzanian ownership rather than
"dictation" and a commitment to "mutuality, open discussion and the
exchange of ideas." He cited the Millennium Challenge Compact as a
model, where the only limiting factor was the resources the U.S. was
willing to commit. Kikwete hoped President Obama or Secretary
Clinton would visit to see the bulldozers in action building roads
as soon as November. Turning to other programs, Kikwete praised
PEPFAR for helping Tanzania to build capacity. He cited U.S.
support in providing test kits for the nationwide voluntary
counseling and testing campaign, which had reached five million
people and reduced stigma. He called the Presidential Malaria
Initiative a "great success" that had appropriately targeted
assistance. Kikwete did not take up the Deputy Secretary's request
to identify ways the U.S. could improve its assistance programs.

TANZANIA AND ECONOMIC CRISIS
--------------

3. (SBU) Kikwete noted the global economic crisis had reached
Tanzania through its effect on exports, as market declines
accompanied falling prices. He said the GOT was taking measures to
help traders, such as through bank guarantees for credit to purchase
from farmers. Kikwete was confident Tanzania would recover, that
the situation would not get worse. He noted coffee prices were
already starting to recover.

ZANZIBAR
--------------

4. (SBU) President Kikwete said he had started the process of
reinitiating talks between the parties, although he was getting
attacked both by opposition CUF and within his own party. With the
short time remaining before the next election, "we can't do all we
planned," in particular holding a referendum on power-sharing.
Kikwete said the important thing before the 2010 elections was to
make arrangements for "new political dispensations," without which
"I don't know how it will end." He remarked on the "hairline
finish" that characterizes all Zanzibar elections. Kikwete said
both he and Vice President Shein (a Zanzibar native) were "quite
committed" to progress on Zanzibar.

REGIONAL ISSUES: SOMALIA, KENYA, BURUNDI, DR CONGO
-------------- --------------

5. (SBU) President Kikwete said the situation in Somalia was "almost
getting out of hand." Tanzania was concerned about the Islamist
factor in Somalia, the potential for support of Islamic extremists
in other countries. While Tanzania itself "essentially" doesn't
have extremists, the situation in Kenya was more worrisome. Kikwete
remarked that Somalis were using money from piracy to buy property
in Kenya, spending in Nairobi because there was nothing to buy in
Somalia. Kikwete added that Kenya's domestic situation was to have
been discussed on the margins of the Great Lakes Summit; however,
Kenya as chair of the summit had repeatedly postponed meetings.


6. (SBU) Kikwete touched briefly on Burundi, saying the country was
"on course," and on the DR Congo, where although the guns were
silent, the ex-FAR/Interahamwe/FDLR were still on the loose, looting
and raping.

APR ENERGY
--------------

7. (SBU) Deputy Secretary Lew thanked Kikwete for his attention to
the ongoing tax dispute involving U.S.-based APR Energy and
emphasized the importance of its speedy resolution. Kikwete
expressed surprise that the issue remained active and asked Minister
of Finance Mkulo to have a report ready for him on his return from
Libya. Mkulo, who said the real problem was between Tanesco (the
Tanzanian energy parastatal) and the tax authorities, promised to
sort it out.


DAR ES SAL 00000428 002.2 OF 002



8. (U) Deputy Secretary Lew cleared this cable.

ANDRE