ZIMBABWE: BITI'S APRIL 30 MEETINGS IN LONDON

C O N F I D E N T I A L SECTION 01 OF 02 LONDON 001077

SIPDIS

DEPARTMENT FOR AF/S

E.O. 12958: DECL: 05/06/2019
TAGS: PREL PGOV EAID ZI UK
SUBJECT: ZIMBABWE: BITI'S APRIL 30 MEETINGS IN LONDON

Classified By: Political Counselor Richard Mills, reasons 1.4 (b/d).


1. (C) Summary. Zimbabwean Minister of Finance Tendai Biti
met with UK Foreign Secretary Miliband and Foreign Office
Minister for Africa Lord Malloch-Brown separately on April

30. Biti described the Spring IFI meetings in Washington as
"helpful," gave an overview of the economy and the Government
of Zimbabwe's fiscal position, discussed the GNU's
"progress," and expressed his desire to move forward with
Article 8 (and later Article 96) talks to normalize relations
with the EU, according to FCO Zimbabwe Desk Officer Fiona
Robertson. Both Miliband and Malloch-Brown congratulated
Biti on the progress thus far, but encouraged Biti to push
for the Government of National Unity (GNU) to operate
according to the agreements made. Malloch-Brown noted that
it was not for outsiders to impose their requirements on the
GNU, but for the GNU to be "rigorous in its own scrutiny."
The GNU, he suggested, needed to establish its own roadmap
for recovery. Biti agreed, noting that it would likely help
rally U.S. support, which he characterized as "reticent about
engagement," according to Robertson. Miliband underscored
that more needed to be done until "full international
engagement would be possible." End summary.


2. (C) Zimbabwean Minister of Finance Tendai Biti,
accompanied by Zimbabwean Ambassador to the UK and ZANU PF
supporter Gabriel Machinga met separately with UK Foreign
Secretary Miliband and Foreign Office Minister for Africa
Lord Malloch-Brown on April 30. According to FCO Zimbabwe
Desk Officer Fiona Robertson, similar themes emerged in both
meetings.

Spring IFI Meetings
--------------


3. (C) Biti said the meetings on the margins of the Spring
IFI meetings in Washington had been "helpful." He had
received "supportive" messages. He had been assured efforts
would be made to restore Zimbabwe's voting rights and had
received guidance on how to deal with the GoZ's USD 1.1
billion in arrears to the African Development Bank and the
World Bank. The IMF, Biti had been told, would consider at
its May 4 meeting the GoZ's request for technical assistance,
which would focus on reforming central banking structures,
parastatals, public management systems, and utilities. Biti
understood, however, that the meeting would be the beginning
of a long process, possibly longer than a year, toward full
IFI re-engagement, culminating he hoped in settlement of
arrears and provision of new finance.

The Zimbabwean Economy
--------------


4. (C) Biti reported the GoZ's monthly expenditure was
approximately USD 100 million. He planned to carry out a
major review of the Reserve Bank of Zimbabwe to pare down its
powers, put a cap on borrowing, and remove its right to issue
foreign currency. Biti said resources remained extremely
limited and argued that more than humanitarian assistance was
vital. Biti understood it would be a long and complex
process for Zimbabwe to receive World Bank International
Development Association (IDA) status. He offered that a
multi-donor trust fund would be a "safe and transparent"
mechanism for the international community and also suggested
that Embassies in Harare could hold development funds, to
which the GoZ could request payment for priority projects.

The GNU
--------------


5. (C) Biti conceded that the Government of National Unity
(GNU) was not functioning in accordance with all of the
agreements that had been made, but argued that "progress" was
being made. There was generally peace and stability in
Zimbabwe; the Short Term Emergency Recover Program (STERP)
had produced a budget; inflation had fallen and food was
available; and civil servants were at work. Farm seizures
and media restrictions, however, impeded progress, and the
international community was right to continue raising these
issues.


6. (C) Both Miliband and Malloch-Brown congratulated Biti on
the progress thus far, but encouraged Biti to push for the
GNU to operate according to the agreements made.
Malloch-Brown noted that it was not for outsiders to impose
their requirements on the GNU, but for the GNU to be
"rigorous in its own scrutiny." The GNU needed to establish
for itself a timeline and roadmap for recovery that would

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satisfy IFI requirements. Such a move on the GNU's part
would win the international community's confidence for
re-engagement, Malloch-Brown suggested. Biti agreed, noting
that it would likely help rally U.S. support, which he
characterized as "reticent about engagement," according to
Robertson. Miliband underscored that more needed to be done
until "full international engagement would be possible."

EU and Regional Engagement
--------------


7. (C) Biti told Miliband and Malloch-Brown that he looked
forward to further discussions on normalizing relations with
the EU, identifying Article 8 talks that lead to Article 96
procedures as a desirable step. Biti said he had recently
had good discussions with EU Commissioner Michel, who Biti
understood was likely going to invite him to Brussels for the
May 18 EU meeting. Biti also noted that GNU Prime Minister
Morgan Tsvangirai plans to visit Europe in June.
Malloch-Brown affirmed that the UK would take a leading role
in the EU and working with SADC to support Zimbabwe.
Malloch-Brown said he had already spoken to the newly elected
government in South Africa about assistance for Zimbabwe. He
welcomed the South African and Botswanan support to the GNU
and suggested Biti could request international assistance in
purchasing electricity bought from Mozambique and South
Africa.



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