This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 001277 
 
SIPDIS 
 
LONDON, PARIS FOR AFRICA WATCHER 
 
E.O. 12958: DECL: 10/03/2014 
TAGS: PREL PGOV DJ
SUBJECT: CONVERSATION WITH OPPOSITION PRESIDENTIAL CANDIDATE 
 
REF: DJIBOUTI 1250 
 
Classified By: Ambassador Marguerita D. Ragsdale. 
For reasons 1.4 (b) and (d). 
 
¶1. (U) SUMMARY: In a statement to the press 30 August 2004, 
Mohamed Daoud Chehem, president of opposition Djiboutian 
Party for Development (PDD), declared his candidacy for the 
presidential race to take place in April/May 2005.  Chehem 
visited Ambassador Ragsdale 29 September as a courtesy call 
to explain his position.  Chehem's party is aligned with 
three other opposition parties in the Union for Democratic 
Alternance coalition.  Chehem explained that his candidacy 
was for his party alone and there are likely to be candidates 
from the other parties. END SUMMARY. 
 
¶2. (C) Mohamed Daoud Chehem, President of opposition 
political party PDD, paid a call September 28 on Ambassador 
Ragsdale to clarify the intent behind his 30 August 
announcement of his candidacy for president of Djibouti. 
Pol/Econ (notetaker) and Pol Assistant sat in on the meeting. 
 Chehem stated at the outset that he would like to clarify 
what his announcement means for the opposition coalition.  He 
continued that the opposition has the intent of presenting 
more than one candidate for next year's presidential race in 
order to reduce the chance of Ismail Omar Guelleh being 
re-elected.  Chehem explained that in Djibouti, people follow 
their tribe in voting.  If only one candidate is presented by 
the opposition there is no chance to use tribal alignments to 
the opposition's advantage.  Chehem explained that his 
announcement only concerned his own party and the other 
parties in the coalition would likely present their own 
candidates.  He assured Ambassador that he would defer to the 
opposition candidate with the most votes for the second round 
of voting. 
 
¶3. (C) In Djibouti's election procedures, if no candidate 
receives more than 50 percent of the vote, a run-off election 
must take place.  Chehem stated that by splitting the 
opposition in the first round, the possibility existed of 
pulling more Somali votes from Guelleh.  After the first 
round, the opposition would unite again against Guelleh. 
 
¶4. (C) Chehem then turned the topic of conversation to his 
thoughts on the state of governance in Djibouti.  In plain 
words, Chehem said, there is no state in Djibouti. Rather, 
the state consists of one man.  He continued that the 
disparity between rich and poor in Djibouti grows.  Chehem 
said that Guelleh and he "do not have the same concept of 
serving the state."  On Guelleh's rule, he offered the view 
that there is too much corruption and total impunity.  There 
are laws on the books, but no one enforces them.  "When 
Hassan Gouled was in power, Chehem added, there was at least 
a pretense of governance." 
 
¶5. (C) In Chehem's opinion, lack of money is not a problem in 
Djibouti.  He repeatedly said: "we have the money, we have 
the resources, they are mismanaged, they go into the pockets 
of different people."  For Chehem, it is  the government that 
has created poverty in Djibouti.  Resources have been 
increased, but services decreased.  Chehem was adamant that 
many problems could be improved by better managing the 
state's income.  He continued that there needs to be more 
motivation for people to do better and severity and sanctions 
when people do wrong.  Chehem commented that there formerly 
existed a service to maintain and clean the city, in the 
capital and in the districts.  He continued that the 
resources to employ people for that service are still there 
but are not being used or funds for the service are being 
diverted.  Chehem stated that official fiscal assets for the 
state in the first six months of this year was 13.5 billion 
DF (approx. 76 million USD), and double that for the full 
year's budget.  This figure does not include aid funding from 
the French or the U.S., which adds another 40 billion DF 
(approx. 226 million USD), according to Chehem. (Note: Chehem 
did not detail what the annual output for payment of state 
obligations was for FY 2004. Without that balance post cannot 
comment on Chehem's claim of money mismanagement. End Note.) 
 
¶6. (C) When asked about economic projects that Guelleh has 
introduced, Chehem was extremely negative.  He stated that 
the project at Port of Doraleh is a private project that does 
not benefit the people.  Rather, its profits go to three 
people: businessman Abdourahman Boreh, President Guelleh and 
the state of Dubai.  He continued that 70 percent of the 
workers are foreigners and that Djiboutians are not happy 
with that.  Chehem did say that it is necessary to expand the 
port, but that this particular venture was a monopoly. 
 
¶7. (C) In response to Ambassador's question regarding whether 
Chehem perceived a desire by Djibouti to look northwards 
toward the Arab world or southwards toward Africa, Chehem 
stated "We are an African country and we consider ourselves 
African."  He explained that Djibouti has stronger ties with 
Ethiopia and Somalia.  Somalia joined the Arab League to put 
more pressure on France to give Djibouti independence, and 
that once gained, Djibouti felt compelled to also join.  He 
commented that there formerly was business with Rwanda, 
Uganda and Zaire (Democratic Republic of Congo) at the port. 
Djibouti is ready to do resume such business, but there is no 
justice.  Chehem agreed that there was not a high volume of 
business from Africa at present, but in order to promote it, 
greater protections for the investors in the judicial system 
would be needed. 
 
¶8. (C) BIO: Chehem is an Afar from the northern region of 
Djibouti.  He was Director of the Cabinet for the Prime 
Minister in 1978 and served three years as Finance Minister. 
Chehem was a member of the armed faction of FRUD, the 
opposition party that rebelled in the early 1990's resulting 
in ten years of civil war. Chehem was jailed in 1990 for his 
involvement in FRUD. After his release he went to Ethiopia, 
but was extradited back to Djibouti in 1998. 
 
¶9. (C) COMMENT: Common opinion of Chehem in Djibouti is that 
he is fairly even minded and not predisposed to favor his 
clan over any other.  Reportedly, during his time as Finance 
minister, he tried to govern by the book and to accomplish 
change.  This is also the reported reason as to why he was 
removed from that position.  Chehem's demeanor is very 
congenial but he lacks the charisma of a leader.  His ideas 
seem honestly conveyed and he appears genuinely to desire 
change, but he lacks an explanation on how he would 
accomplish any of his goals.  Post cannot yet comment on the 
extent of support for Chehem in the Djiboutian community. 
END COMMENT. 
RAGSDALE