Identifier
Created
Classification
Origin
09LUANDA107
2009-02-17 18:29:00
CONFIDENTIAL
Embassy Luanda
Cable title:  

CONCERNED OVER ECONOMY, DOS SANTOS PRAISES

Tags:  PREL PGOV EAIR MARR ECON ETRD EFIN EAID AO 
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O 171829Z FEB 09
FM AMEMBASSY LUANDA
TO SECSTATE WASHDC IMMEDIATE 5336
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
HOMELAND SECURITY CENTER WASHDC
DEPT OF COMMERCE WASHDC
FAA NATIONAL HQ WASHINGTON DC
DEPT OF EDUCATION WASHINGTON DC
HQ USAFRICOM STUTTGART GE
DEPT OF TRANSPORTATION WASHDC
SECDEF WASHINGTON DC
DEPT OF TREASURY WASHDC
C O N F I D E N T I A L LUANDA 000107 


STATE PASS TO USAID, USTR, EX-IM BANK AND PEACE CORPS

E.O. 12958: DECL: 02/17/2019
TAGS: PREL PGOV EAIR MARR ECON ETRD EFIN EAID AO
SUBJECT: CONCERNED OVER ECONOMY, DOS SANTOS PRAISES
BILATERAL PROGRESS AND SEEKS FURTHER U.S. ASSISTANCE

Classified By: Ambassador Dan Mozena for Reasons 1.4 (b) and (d).

C O N F I D E N T I A L LUANDA 000107


STATE PASS TO USAID, USTR, EX-IM BANK AND PEACE CORPS

E.O. 12958: DECL: 02/17/2019
TAGS: PREL PGOV EAIR MARR ECON ETRD EFIN EAID AO
SUBJECT: CONCERNED OVER ECONOMY, DOS SANTOS PRAISES
BILATERAL PROGRESS AND SEEKS FURTHER U.S. ASSISTANCE

Classified By: Ambassador Dan Mozena for Reasons 1.4 (b) and (d).


1. (C) Responding to remarks made by Ambassador Mozena during
a February 17 call, President Jose Eduardo Dos Santos agreed
that the U.S. and Angola have made significant progress over
the past year in strengthening our bilateral ties, especially
in the areas of health and military-to-military cooperation.
The President said much remains to be done, however, and
singled out finalizing the U.S.-Angola Trade and Investment
Framework Agreement (TIFA) as a key next step. Dos Santos
said the global economic crisis makes for tough times in
Angola, just when the country needed economic stability. Dos
Santos strongly appealed for U.S. technical assistance for
the Ministry of Finance and the Central Bank, especially in
the areas of debt management and budgeting. The Ambassador
asked for the President's assistance in securing permission
for Delta Airlines to fly into Angola and in moving forward
the U.S.-Angola Memorandum of Understanding on Military
Cooperation. The Ambassador also raised the possibility of a
Peace Corps program in Angola to teach English in secondary
schools. The President acknowledged Angola's need for
increased English-language training and said he would ask the
Minister of Foreign Affairs to look into the possibility of
requesting a Peace Corps program in Angola. The Ambassador
expressed his hope that the new government in Zimbabwe will
bring relief to the Zimbabwean people; he urged that Angola
press Mugabe to abide by the power-sharing arrangement. Dos
Santos agreed, adding that Angola is looking to South Africa
for immediate economic assistance for Zimbabwe, which could
lead to regional and international support. End Summary.

--------------
Looking Sharp - Very Engaged
--------------



2. (C) The February 17 meeting was cordial and comfortable,
allowing for an exchange of views on improving the bilateral
relationship. The President looked to be in great health,
and, despite the grim economic news swirling around the
country, he was relaxed, engaging, and offered considered
thoughts on all issues raised by the Ambassador. Dos Santos
was accompanied by a notetaker and translator, though he
required no translation from the Ambassador's English. Dos
Santos did not take notes himself, but after the Ambassador's
remarks, the President responded to each of the Ambassador's
key points, explaining policy and committing to undertakings
as appropriate, with an impressive attention to the
interdependence of issues related to diversifying Angola's
economy and improving the standard of living for Angolans.
There was no reference at all to the civil war or previous
chapters of the bilateral relationship that were more
challenging than others. This was a very forward-leaning
meeting with a President on top of his political game.

--------------
Dos Santos Thankful
--------------


3. (C) Dos Santos thanked Ambassador Mozena for his work with
the GRA toward our countries' shared vision of an Angola that
is peaceful, prosperous, secure, healthy and democratic. The
President praised President Bush for his administration's
efforts in Africa to fight malaria and HIV/AIDS and expressed
hope that the new American administration would expand on
these initiatives. Dos Santos said he supported the efforts
to establish an office of the Foreign Commercial Service in
Angola and noted the work of the U.S. Ex-Im Bank and others
toward the GRA's goal of building one million houses by 2012,
a goal he admitted was beyond reach, but useful to aim for.

--------------
Economy a Weighing Concern
--------------


4. (C) Dos Santos told the Ambassador that tough times are
ahead for Angola and that his administration will soon be
facing difficult decisions. Leaning eagerly forward in his
very big chair, Dos Santos asked the Ambassador how long he
thought it likely will take for the Obama administration's
stimulus package to turn around the U.S. economy, adding that
if the global crisis lasts for more than six months, Angola
will be very hard pressed. The Ambassador responded that
while U.S.-based economists suggest it may take a year or
more to recover from the current slowdown, Angola is more
fortunate than most other African countries given its
resource wealth and foreign reserve fund. Dos Santos was
rather dismissive of that consolation, saying his country was
"praying" for a fast recovery. The President asked the
Ambassador for an update on the signing of the TIFA, adding
that the agreement will be an important step toward
increasing and diversifying bilateral trade.

--------------
Ambassador Requests Help for Delta Airlines
--------------


5. (C) Linking direct air service to increased and more
diverse bilateral economic opportunities, the Ambassador
asked for Dos Santos's help in securing permission for Delta
airlines to serve the Atlanta-Luanda market with twice weekly
service beginning in June or September. The Ambassador
explained that tying Delta's approval to granting TAAG U.S.
operating authority would significantly delay Delta's service
and postpone the associated economic benefits of beginning
direct U.S. flights on America's largest carrier. Dos Santos
said he would ask the Minister of Transportation and the
Director of the National Institute for Civil Aviation
(INAVIC) to provide a report to him concerning Delta's case.
The President said he shared the Ambassador's hope that
someday TAAG would fly to the U.S. safely and asked if the
U.S. FAA could help TAAG and INAVIC move toward eventual
Category I compliance.

-------------- --------------
Angola Needs English Language - Maybe Peace Corps Can Help
-------------- --------------


6. (C) Ambassador Mozena told the President that, while the
Embassy has a growing English-language program, Angolans
continue to reach out for additional assistance in learning
English. Dos Santos agreed that Angola needs more
English-language training, pointing out Angola's position in
SADC, where lack of English skills can sometimes be a
significant barrier. The Ambassador suggested that Peace
Corps volunteers could teach English at the secondary level
in Angola, and on the side could help in the fight against
malaria and HIV/AIDS. The President said Peace Corps in
Angola is not a new concept, adding that his government's
ministers viewed the program skeptically when the issue was
raised during the 80's. Noting that times have changed, Dos
Santos said he would ask the Minister of Foreign Relations to
review the possibility of Angola's participation in Peace
Corps, suggesting the focus on English language training is a
different angle than previously considered. The Ambassador
offered to provide additional information to Minister Dos
Anjos and suggested that perhaps GRA officials could visit a
Peace Corps operation in a neighboring country - an idea
supported by the President.

-------------- --------------
Dos Santos Pleased With Expanded Military Cooperation
-------------- --------------



7. (C) Dos Santos told the Ambassador he was pleased with the
improvement of the U.S.-Angola bilateral military
relationship. He opined that Minister Paihama's proposal to
move forward with a bilateral Memorandum of Understanding on
Military Cooperation will lead to a more robust relationship.
Repsonding to the Ambassador's comments, he expressed
appreciation for U.S. military participation in providing
English-language training, ship visits, and assistance in
fighting HIV/AIDS. Dos Santos said he was also pleased the
U.S. is developing programs to assist Angola in enhancing its
maritime and airspace security, as suggested by the Angola's
Chief of Military Staff Gen. Francisco Furtado during the
visit of AFRICOM Deputy Commander Mary Yates. Dos Santos
committed to inquire with the Ministry of Defense about the
status of the MOU.

--------------
Zimbabwe
--------------


8. (C) When the Ambassador expressed his hope that the new
government in Zimbabwe might bring some relief to the people
of Zimbabwe, Dos Santos said, "This is a time of
expectations." Dos Santos added that economic recovery for
Zimbabwe is a key concern for SADC and that South Africa will
be a leader in helping Zimbabwe get back on its feet. As the
Zimbabwean government demonstrates results, Dos Santos said
the international community will be able to help speed
Zimbabwe's recovery. The Ambassador emphasized that Angola
could play a very constructive role in pressing Mugabe to
comply with the power-sharing arrangement. Dos Santos agreed
and said Angola will remain engaged on the Zimbabwe crisis.

--------------
Comment
--------------


9. (C) Dos Santos was impressive in his command of the issues
and the discipline of his message. That he undertook to
learn more about Delta airlines, the military-to-military
MOU, and the Peace Corps is encouraging, as his involvement,
judging by prior applications of presidential interest,
generally leads to more speedy action in this government.
Our homework is important as well. Dos Santos all but begged
for a U.S. Department of the Treasury Resident Advisor - a
request the USG should approve as quickly as possible, given
the dire need and potential benefits to both governments of
having a U.S. expert(s) inside the Ministry of Finance and/or
Central Bank. We should move forward quickly, as well, on
signing the TIFA. Dos Santos views the TIFA as the starting
point for an expanded trade relationship - despite
considerable Angolan foot-dragging at the onset of
negotiations, the ball is now in our court. End Comment.


MOZENA