PRESIDENT GUEBUZA DISCUSSES ECONOMY WITH AMBASSADOR

C O N F I D E N T I A L SECTION 01 OF 02 MAPUTO 000139 SIPDIS E.O. 12958: DECL: 02/16/2020 TAGS: PREL PGOV KMCA ECON EAID MZ SUBJECT: PRESIDENT GUEBUZA DISCUSSES ECONOMY WITH AMBASSADOR REF: MAPUTO 129 MAPUTO 00000139 001.2 OF 002 Classified By: Ambassador Leslie Rowe for Reasons 1.4 (b+d) ¶1. (C) SUMMARY: Following the February 10 accreditation Ceremony (reftel),the Ambassador met February 12 with President Armando Guebuza for an initial 20-minute courtesy call. Guebuza described U.S.-Mozambican bilateral relations as "excellent" and provided perspectives on the challenges of piracy and narco-trafficking, Mozambique's role among Lusophone and SADC countries, and the importance of economic development to reduce absolute poverty in Mozambique. The Ambassador agreed that the bilateral relationship was strong and noted that the United States intends to continue its assistance programs, particularly in health and economic development. She highlighted the importance of attracting foreign direct investment from the United States in order to provide Mozambique with greater economic independence. The Ambassador also said that she looked forward to working with Guebuza's Cabinet on some of the challenging issues faced by Mozambique. The meeting was a cordial one that highlighted important areas of bilateral engagement and established a good foundation for the Ambassador's future interactions with Guebuza. END SUMMARY. -------------- -------------- UNITED STATES AND MOZAMBIQUE ENJOY EXCELLENT RELATIONS -------------- -------------- ¶2. (C) A cordial and engaged President Armando Guebuza met with the Ambassador, DCM, and Poloff on February 12 for twenty minutes, two days after her February 10 accreditation ceremony (reftel). Guebuza welcomed the Ambassador on behalf of the Mozambican people, saying that bilateral relations between the two governments and peoples were excellent. He stated that the Government of Mozambique (GRM) takes great pleasure in its interactions with the U.S. Embassy at all levels. A nostalgic Guebuza remembered fondly how in Mozambique's post-independence time of need, when the country suffered under great poverty and extreme famine, the United States provided the most assistance to his struggling nation. -------------- -------------- GUEBUZA ACKNOWLEDGES PIRACY AND NARCO-TRAFFICKING -------------- -------------- ¶3. (C) Guebuza said that Mozambique's intention was to continue to build on this partnership and work together towards Mozambique's development. He said that his intention was to respond to challenges, use the past as a lesson, and look towards the future. Regarding country-to-country partnerships, Guebuza expressed his conviction that he believes it is very important to have frank discussions, and to both listen and be heard. Guebuza mentioned that there are some geo-political challenges for Mozambique including Somali piracy and narco-trafficking, challenges which would need to be met if the country were to rise out of poverty. -------------- -------------- STRONG TIES IN SADC AND AMONG LUSOPHONE COUNTRIES -------------- -------------- ¶4. (C) Turning to multilateral organizations, Guebuza explained that Mozambique maintains strong relations with Lusophone nations, evidenced by the planned March arrival of Portuguese Prime Minister Jose Socrates. He also outlined strong ties with Brazil, Angola, Sao Tome, Cabo Verde, and East Timor. Guebuza expressed pride in Mozambique's "strong efforts" in SADC, and its good relationships with neighboring countries, with the exception of Madagascar. He mentioned that he would receive later that day an AU delegation to discuss Madagascar. Guebuza expressed his strong conviction that Madagascar must return to constitutional rule. -------------- -------------- POVERTY REMAINS A MAJOR CONCERN, EDUCATION NEEDED -------------- -------------- ¶5. (C) Guebuza then turned to the economy, saying that Mozambique needs to take better advantage of AGOA. He expressed great frustration that despite its natural resources and agricultural potential, Mozambique is still importing rice. Guebuza said that he and his country were impatient to end poverty. Waxing philosophically, he explained that he was born poor, grew-up poor, and remains poor, but does not want to see his children, among them 20 MAPUTO 00000139 002.2 OF 002 million Mozambicans, dogged by poverty. Guebuza hoped that resource wealth would free the country from poverty, and appealed to the United States and other donors to help raise the country out of poverty. ¶6. (C) On education in general, Guebuza said his people are improving, but management of people and resources is weak. He said that Mozambique is particularly lagging behind in technical education, which is needed to raise productivity levels in the country. For example, following the turn-over of Cahora Bassa Dam (HCB) to Mozambique in 2007, a successful technical school was established in the nearby town of Songo to provide technical education in the energy sector. He called for assistance in developing additional opportunities for technical education, including partnerships with U.S. institutions. Guebuza also expressed interest in providing financial support for young entrepreneurs whose university projects could be submitted to banks for funding, for example. -------------- -------------- BILATERAL GOVERNMENT & PRIVATE SECTOR PARTNERSHIP TO GROW -------------- -------------- ¶7. (C) The Ambassador responded that President Obama often refers to African leaders as partners, and that the United States wants to continue its partnership in Mozambique in areas such as health and economic development. Regarding international assistance, she observed that over the past decade, Mozambique attracted considerable donor resources inspired by confidence in direction of the country. Equally important, she continued, was attracting foreign private sector investment, noting the potential for U.S. companies in Mozambique, like Anadarko Petroleum and Chiquita Brands International, to bolster the country's economic development and allow for greater economic independence. Commending Guebuza for opening the 2009 U.S. Trade and Investment Conference in Maputo, the Ambassador mentioned that promoting trade, both bilaterally and regionally, would also be a focus. Alluding to the ongoing negotiations with the G-19 donors on troubling democracy issues, the Ambassador stated that the United States shares many of the concerns of other donors and she is interested in working on them with Guebuza's Cabinet. -------------- COMMENT: GUEBUZA READY TO GET TO WORK? -------------- ¶8. (C) In a telling moment, a reflective Guebuza said that he only had four years and 11 months remaining in his presidential term to help Mozambique rise out of poverty. He seemed genuinely appreciative of U.S. assistance and ready to work with the Embassy on a wide range of topics. The meeting was a cordial one and established a good foundation for the Ambassador's future interactions with Guebuza. With the commencement of Guebuza's second term, a new cabinet (even if most of the Ministers remained unchanged),and a newly-arrived U.S. Ambassador, there should be new opportunities for constructive bilateral engagement even as the G-19 Donor Group, of which the United States is part, prepares to negotiate with the GRM on the more difficult questions such as democracy and governance. ROWE