VZCZCXYZ0000
RR RUEHWEB

DE RUEHLC #0139/01 0960950
ZNR UUUUU ZZH
R 060950Z APR 09
FM AMEMBASSY LIBREVILLE
TO RUEHC/SECSTATE WASHDC 1045
INFO RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS LIBREVILLE 000139 
 
DEPT ALSO FOR AF/C LISA KORTE 
TREASURY FOR BILL REMINGTON AND CARLOS CORREA 
DEPT PASS TO MCC MALIK CHAKA 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EFIN ETRD ECON KMCA TP
SUBJECT: SAO TOME & PRINCIPE - UPDATE ON MILLENNIUM CHALLENGE 
THRESHOLD PROGRAM 
 
REF: LIBREVILLE 0128 
 
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Summary 
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¶1.  (SBU) Senior political leadership in Sao Tome and Principe 
(STP), including the president and prime minister, remain committed 
to the Millennium Challenge Corporation (MCC) threshold program but 
frustrated over what they perceive as a lack of progress.  MCC 
Threshold Programs Director Malik Chaka traveled to STP in late 
March to assess progress on the three-year, $8.66 million program. 
Chaka also sought to more clearly identify blockages stalling the 
program and decide on the best way forward.  Sustained pressure and 
continued close coordination will be required for the current 
threshold program to succeed.  We also recommend consideration of a 
Stage II Threshold Program for STP.  END SUMMARY. 
 
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Meeting the President 
And the Prime Minister 
---------------------- 
 
¶2. (SBU) Chaka's March 18 meeting with President Fradique de Menezes 
was cordial, but dealt mainly with the history of the MCC program in 
Sao Tome.  Although the President seemed discouraged at the lack of 
demonstrable progress, he brightened noticeably when Chaka called 
him the ?father of the MCC program in Sao Tome?, indicating that the 
President's early commitment to democracy had been a key factor in 
Sao Tome's selection as a threshold country.  De Menezes alluded to 
constitutional changes and a protracted political gridlock that have 
diminished his ability to influence government actions, but said he 
remains committed to the MCC program and hopeful that the current 
threshold program will lead someday to a full MCC Compact.  Chaka 
said this is a worthy goal, which should be pursued quickly and 
diligently.  Embassy Libreville Econoff accompanied Chaka on the 
visit. 
 
¶3. (SBU) Prime Minister Rafael Branco, the president's one-time 
rival who is now in charge of day-to-day governance in STP, also 
voiced continued support for the threshold program.  He encouraged 
Chaka and Embassy Libreville to remain engaged and build on positive 
momentum generated by the visit.  The MCC program was ?very 
important?, Branco emphasized, and he was committed to pushing it 
through to successful completion.  Branco told the Ambassador the 
same thing in February (reftel), and appears to have conveyed this 
message successfully to Minister of Plan and Finance Angela Viegas 
and other government officials. 
 
¶4. (SBU) In any event, Chaka found a more positive attitude from 
Minister Viegas and other officials than in recent visits.  In 
addition to the Minister of Plan and Finance, we met a half-dozen 
other key government figures, including the Ministers of Justice and 
Foreign Affairs, the directors of the Tax and Customs departments, 
and the director of the Maritime Institute.  Chaka consulted 
extensively throughout the visit with Department of Treasury Office 
of Technical Assistance (OTA) staff, and OTA staff participated in 
most of the meetings.  OTA is MCC's prime implementing partner for 
the threshold program. 
 
----------------------------- 
Assessment--and a Way Forward 
----------------------------- 
 
¶5. (SBU) The visit gave all parties a chance to discuss reasons for 
the recent lack of progress on the threshold program.  Several 
themes emerged.  These include an incomplete understanding of the 
MCC process, less than optimal communications on both sides, and 
some changes that had been made to the original threshold program 
without the full knowledge of MCC headquarters staff.  By week's 
end, all sides were able to air their concerns, and agreed on a 
framework to help push the process along more rapidly. 
 
¶6. (SBU) It was agreed that there will be regular meetings between 
relevant OTA staff and appropriate STP government officials, 
including the government's official MCC coordinator.  OTA staff and 
STP officials agreed to regular monthly meetings between OTA staff 
and relevant ministers.  At the meetings, OTA staff will provide a 
monthly work plan and a list of action items that would require 
attention.  STP officials also told us that at their request, 
retired U.S. Foreign Service Officer Jan Hartman, a former long-term 
resident of STP, would return to STP to help the STP government 
facilitate this process. 
 
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Public Outreach 
--------------- 
 
 
¶7.  (U) Another purpose of the visit was to increase broader public 
awareness in STP of the importance of the MCC program.  Director 
Chaka visited the Port of Sao Tome and met with officials there, and 
also led a public information session for more than 100 people at 
the Brazilian Cultural Center.  Both events received positive 
coverage in the local media. 
 
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Comment 
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¶8. (SBU) While we made important progress during the visit, the STP 
threshold program still faces serious obstacles.  It is clear that 
OTA and the government of STP will need to redouble their efforts to 
work together to achieve the program's goals.  The agreement for 
monthly meetings at senior levels, with an agreed workplan and a 
list of action items, is an important initiative.  We should insist 
that the STP government keep its promise to coordinate regularly at 
the senior level.  Both MCC headquarters and Embassy Libreville 
should support these efforts.  Another alternative worth considering 
is a Stage II Threshold Program.  Like other threshold programs, the 
objective of a Stage II threshold program is to assist a country to 
become eligible for MCA Compact funding by supporting improved 
performance on the MCC selection criteria.  If the STP government is 
both amenable and motivated, MCC could initiate a process to assist 
STP develop a proposal (in partnership with MCC and other U.S. 
agencies) that would significantly increase the prospects of STP 
fully qualifying for MCA Compact assistance.  END COMMENT. 
 
¶9.  (U) MCC Threshold Programs Director Malik Chaka reviewed this 
cable prior to transmission. 
 
REDDICK