AMBASSADOR TALKS ELECTIONS, U.S. COOPERATION WITH

C O N F I D E N T I A L SECTION 01 OF 05 LILONGWE 000122

SIPDIS

LONDON FOR AFRICA WATCHER

E.O. 12958: DECL: 03/05/2019
TAGS: PREL EAID KPKO MI
SUBJECT: AMBASSADOR TALKS ELECTIONS, U.S. COOPERATION WITH
PRESIDENT MUTHARIKA

REF: LILONGWE 36

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Classified By: Classified by Ambassador Peter W. Bodde for reasons 1.4
(a),(b),and (d).


1. (C) Summary: Ambassador had a lengthy one-on-one
meeting with President Mutharika on Monday, March 2nd. The
cordial and wide-ranging discussion covered expanded U.S.
assistance for economic development, particularly
agriculture; Malawi,s Millennium Challenge Corporation
compact status; USG support for Malawi,s upcoming
peacekeeping deployment, ongoing USG HIV/AIDS and malaria
eradication programs; enhancing family planning programs;
encouraging private investment, and Malawi,s upcoming
national elections. On all these issues, the USG and
President Mutharika are on the same page. The President's
willingness to engage in the discussion was an indication of
his desire to maintain a positive working relationship with
the United States. This is particularly significant given
the Ambassador's recent, acrimonious meeting with Mutharika
on elections. Despite its challenges, Malawi holds the
potential to become an notable African success over the next
several years. End Summary


2. (SBU) The Ambassador met President Mutharika on Monday,
March 2nd to discuss a wide variety of ongoing USG programs
supporting Malawi,s development and young democracy. The
meeting was at the request of the Ambassador. The exchange
was frank and cordial and enabled the Ambassador to elicit
President Mutharika,s feedback on a number of ongoing USG
efforts in Malawi.

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Deepening Partnerships on AIDS and Malaria
--------------


3. (SBU) The Ambassador opened the meeting with a quick
review of ongoing USG efforts in the HIV area. He noted that
Malawi was selected to receive an additional 20 million
dollars per year over the next five years to help prevent and
treat HIV/AIDS. The bulk of these funds would be used to
enhance the Government of Malawi,s capabilities in this
regard. The President explained to President Mutharika the
need to negotiate and sign a new partnership framework
between the two governments in order to facilitate the
increased expenditures. Ambassador further noted that he
wished to get this framework completed before June 1, which
would be difficult in light of the upcoming Malawi campaign
season. President Mutharika responded that he understood the
urgency and would do his utmost to ensure that it happened.


4. (C) The Ambassador then provided President Mutharika with
an update on our ongoing Presidential Malaria Initiative
(PMI) efforts in Malawi. He noted that the USG was ready and
able to do more but that additional actions on our part would
require a substantial increase in focus by the Government of
Malawi. The Ambassador asked that President Mutharika
increase the level of attention and resources that the GOM is
currently dedicating to this issue. USG experts had told him
that the eradication of malaria in Malawi was a distinct
possibility should current programs be expanded and greater
cooperation exist between Malawi and its affected neighbors.
Mutharika responded that he understood the seriousness of the
problem and the dramatic impact malaria had on public health
as well as its devastating negative impact on Malawi,s
economy. He indicated he would engage on the issue.

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Wealth Creation Through Private Investment
--------------


5. (SBU) The Ambassador highlighted the USG's current plans
to expand US assistance in the economic growth area. He
noted that while our health and humanitarian assistance was
critical, we had to now focus on sustainability, which would
only be possible if Malawi could sustain rapid economic
growth. Malawi had reached the point where it was necessary
not to focus not just on poverty alleviation, but also on
wealth creation. The Ambassador shared President
Mutharika,s views that this would only be possible through
the development of a viable commercial, agricultural sector.
This is where the USG intended to provide more assistance for
economic growth.


6. (SBU) President Mutharika responded that he welcomed this
development and noted that he had consistently argued that

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all of the donors' efforts in combating HIV/AIDS would only
be sustainable with concurrent spending to promote economic
growth. He talked about his efforts to enhance food security
in Malawi by providing access to subsidized fertilizer for
farmers. The challenge now was how to make this sustainable
on a commercial basis. He and the Ambassador agreed that
this could only be done by developing Malawi,s
private/commercial agricultural sector. The Ambassador then
noted that he shared President Mutharika,s vision of a
"green belt" surrounding Lake Malawi, drawing on its waters
to provide managed and ecologically sound irrigation.

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Traditional Leaders Key to Family Planning
--------------


7. (C) The Ambassador suggested that Malawi would not reach
its goal to become the bread basket for southern Africa until
it successfully dealt with its explosive population growth.
Mutharika agreed that population growth and family planning
had become a critical issue that needed immediate attention.
He felt that most Malawian families now understood that
having six or seven children substantially reduced their
standard of living as well as their ability to provide for
their families. The relatively small land holdings of most
family farms could not provide for large families. The time
was right for a concerted effort to deal with family
planning, Mutharika said, but added several notes of caution.
He recalled how the colonial powers had "made a few clumsy
efforts" in this regard, but they have been complete failures
because they were viewed as a disguised campaign to keep
Malawians in their place. He noted that times had changed
and Malawians would welcome access to family planning if the
programs were well managed and seen as Malawian. He further
noted that it was essential to seek the assistance and
approval of the traditional leaders in the village
communities throughout Malawi. He believed his government
could do this. The Ambassador thanked the President for his
insights said he would relay this to program implementers.

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Human Capacity Issues
--------------


8. (SBU) The Ambassador noted his concern regarding the
overwhelming human capacity deficit facing Malawi. He
described the problem of a "circle of 200": anytime the USG
the GOM or other donor partners seek to hire either a
technical expert or a senior program manager, they are all
competing with each other from the same limited circle of
approximately 200 professional Malawians. That shortage of
talent impacted virtually all of our assistance efforts and
seemed to be limiting factor in the GOM's efforts to improve
governance in Malawi as well. He shared his frustration that
he did not have any easy or timely solutions to offer the
President.


9. (SBU) President Mutharika responded that human capacity
shortfall remained a major issue that overshadowed all of his
government's development and governance programs. Any real
solution would have to rely first on Malawian institutions
and, to the extent necessary, southern African institutions
of higher education in neighboring countries. The President
raised the possibility of creating an inventory of the skill
sets available throughout the Malawian Diaspora located
primarily in the UK and the US. This group was a talented
one that would likely be willing to return when asked on a
short-term basis to provide training and other practical
assistance to both the private and public sector. COMMENT:
Post believes President Mutharika's idea has merit and will
be exploring ways of creating such a data base comparable to
that used by the International Executive Service Corp. We
also agree that the best solutions to this issue are
strengthening local institutions and taking advantage of
existing higher education opportunities in neighboring
countries. Post would like to re-prioritize some of our
resources to immediately address this issue. We have already
identified the problem in both USAID planning documents and
the Mission strategic plan. END COMMENT.

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MCC: A Long Road
--------------


10. (C) The Ambassador provided President Mutharika with an
update on the progress made towards a compact between the

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Millennium Challenge Corporation and the GOM. He indicated
that the GOM,s MCA team had made good progress on its
concept papers, which should be submitted in the next few
weeks for review by the MCC. The target date for a signed
compact was June 2010. President Mutharika responded by
gently venting his frustration at the lengthy time line
necessary for completing a compact. NOTE: While the
Ambassador did not discuss the future of MCC funding levels
with the president, post is greatly concerned that the
lengthy process -- or USG budget constraints -- could
eventually result in a compact funded at levels far below
those needed or those expected. We understand that this
issue is much larger than Malawi, but want to note for the
record that we see a potential train wreck both in terms of
policy and public diplomacy if funding for the compact falls
far short. END NOTE.

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Making Private Investment Easier
--------------


11. (C) The Ambassador briefed President Mutharika on the US
mission's efforts to encourage private sector investment in
Malawi. He noted that while the GOM welcomed such investment
in principle, its policies and practices were still
cumbersome and in fact discouraged some investments. The
Ambassador compared Malawi,s half-hearted efforts with the
pro-active and highly developed program the Government of
South Africa had already put in place to promote investment.
He proposed using some of the increased economic development
funding Malawi was scheduled to receive to help in this
endeavor. He asked President Mutharika,s concurrence in
helping the GOM develop a one-window investment approval
procedure that would facilitate FDI in Malawi. The
Ambassador said he had been approached by representatives of
the USG-sponsored Southern African Development Fund seeking
to increase their limited investments in Malawi. He added
that the Mission planned to cosponsor a symposium to increase
the number of manufacturers taking advantage of AGOA
legislation that allowed for duty free access to US markets
for virtually all goods produced in Malawi.


12. (C) Mutharika thanked the Ambassador for his efforts in
this regard and welcomed any and all suggestions to increase
Malawi,s industrial base. The most promising areas in his
view included food processing and exports of food stuffs. He
described how he had told manufacturers that they would have
to do more to ensure quality in order to increase sales in
the United States or Europe. He noted that the concept of
marketing and developing products for export markets was
virtually unknown in Malawi. That said, he felt that with
the right partners and foreign investors, significant
progress could be quickly made that would substantially
increase Malawi,s export income.

--------------
ACOTA Training for MDF Deployment to Chad
--------------


13. (SBU) The Ambassador also briefed on the ongoing,
U.S.-funded training of 800 Malawi Defense Force troops for
UN peacekeeping operations. Ambassador explained that the
USG had been able to respond positively to a short-notice
request to support the MDF,s deployment to the UN Mission in
Chad/CAR. The USG's ACOTA program had set up relevant
training and limited equipment provision in a matter of
weeks. The Ambassador noted that while we were happy to
provide such training, it would be helpful for President
Mutharika to reiterate to all responsible ministries just how
high a priority he himself placed on MDF forces being engaged
in UN peacekeeping operations. The Ambassador noted that it
was essential that the trained troops remain together as a
unit and continue to train even after they return from their
scheduled deployment, which begins in October. President
Mutharika responded that he appreciated the update about the
training because he had not been fully briefed on the
deployment. He made a note to officially thank the United
States for its assistance in this regard.

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Upcoming Elections
--------------


14. (C) The Ambassador reported that he had highlighted in
recent speech President Mutharika,s clearly stated objective
of a peaceful election. The Ambassador had called on all

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stakeholders to take a proactive steps to ensure peaceful
elections and publicly announce their commitment to the same.
President Mutharika responded that while he was grateful for
the Ambassador's public support in this regard, peaceful
elections were not enough. He and his government were
committed to free, fair and credible elections. It was his
goal to have as many international election observers as
possible present on election day, but that in order for these
observers to truly make a difference they should arrive early
and spend as much time in Malawi as possible. The Ambassador
underscored the steps the Mission had taken to support
elections. The Ambassador noted that it was likely that the
National Democratic Institute (NDI) would provide technical
assistance in the election process. President Mutharika
welcomed this development, and remarked that NDI was a known
quantity in Malawi. Their work was respected, he added. The
Ambassador further noted that despite its recent accounting
problems, the Malawi Electoral Commission (MEC) had made
substantial progress in managing the electoral process. He
indicated that the USG would continue to support its efforts
and that NDI might assist the MEC as well as local NGOs
observing the election.


15. (C) President Mutharika responded that he was grateful
for all the assistance we had provided to the MEC thus far.
He understood that the MEC might still be short of funding
and that the donor community might indeed expect requests for
additional funding. Mutharika reiterated his commitment to a
free, fair and credible election by stating that, as Head of
State it was his personal responsibility to see that this
indeed happened. He noted that in accordance with requests
from African Union representatives former Presidents Kufour
and Chissano, he would meet with the opposition candidates.
He had already agreed to do so and that this meeting was
likely to take place the following weekend. He stated that
he had always welcomed such a meeting and did not know why it
was an issue.


16. (C) President Mutharika then expressed his exasperation
at the large number of independent candidates. He stated
that he believed it was the weak nature and lack of
discipline within the opposition parties that led to a
disproportionate number of independent candidates. As an
example, he cited James Nyondo, a religious leader with a
great deal of support from church communities in the United
States. Mutharika complained about the level of foreign
funding Nyondo was receiving and said the high number of
independent candidates posed a threat to Malawi,s
multi-party democracy. He bemoaned that fact that many
Malawian politicians were not motivated by a sense of public
service, but rather but by a desire for access to public
monies.

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COMMENT
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17. (C) This frank and productive exchange was a useful
reminder for President Mutharika of the broad range of
assistance that the USG provides to Malawi, and of the
importance of our bilateral relationship. The President's
willingness to engage in the discussion was an indication of
his desire to maintain a positive working relationship with
the United States. This is significant given the
Ambassador's last meeting with Mutharika, when the Ambassador
was summoned with other donor partners (reftel) for an
acrimonious and unproductive meeting about donor involvement
in the election. This week's friendly, frank session had a
very different feel, and provided feedback that will
facilitate progress on a number of key issues -- particularly
if President Mutharika wins another term.


18. (C) The USG has a tremendous opportunity in Malawi. As
a young democracy, its institutions are being challenged and
the social problems it faces are significant. Despite all
this, Malawi,s problems are all tractable With a concerted
effort, we can help the GOM hold a free, fair and credible
election. If post receives planned increases in FY 2010
funding for economic growth, we can assist Malawi to generate
wealth and prosperity for its citizens. Two additional areas
we need to prioritize are family planning and human capacity
development. Without a reinvigorated, serious approach on
these fronts, our success in other areas will be limited at
best. Despite its challenges, including contentious
elections this month, Malawi holds the potential to become an
notable African success over the next several years. We

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should not miss this limited window of opportunity. End
Comment.
BODDE