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

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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.

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UNITED STATES AND MOZAMBIQUE ENJOY EXCELLENT RELATIONS
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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.


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GUEBUZA ACKNOWLEDGES PIRACY AND NARCO-TRAFFICKING
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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.

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STRONG TIES IN SADC AND AMONG LUSOPHONE COUNTRIES
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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.

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POVERTY REMAINS A MAJOR CONCERN, EDUCATION NEEDED
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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

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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.

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BILATERAL GOVERNMENT & PRIVATE SECTOR PARTNERSHIP TO GROW
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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.

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COMMENT: GUEBUZA READY TO GET TO WORK?
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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