VZCZCXYZ0003
RR RUEHWEB

DE RUEHLC #0192/01 0831336
ZNY CCCCC ZZH
R 241336Z MAR 06
FM AMEMBASSY LIBREVILLE
TO RUEHC/SECSTATE WASHDC 8916
INFO RUEHKI/AMEMBASSY KINSHASA 1240
RUEHLI/AMEMBASSY LISBON 0629
RUEHLO/AMEMBASSY LONDON 0280
RUEHFR/AMEMBASSY PARIS 0772
RUEHYD/AMEMBASSY YAOUNDE 0604

C O N F I D E N T I A L LIBREVILLE 000192 
 
SIPDIS 
 
SIPDIS 
 
LONDON AND PARIS FOR AFRICA WATCHERS 
KINSHASA PASS BRAZZAVILLE 
 
E.O. 12958: DECL: 03/23/2016 
TAGS: PGOV GB TP
SUBJECT: GABON AND SAO TOME MISCELLANY 16-22 MARCH 
 
Classified By: POLITICAL OFFICER GLENN FEDZER FOR REASONS 
1.4 (B) AND (D) 
 
¶1.  (C)  GOG Boosts Fuel Prices. 
 
Gabon announced an increase in retail fuel prices of 5.5 
percent May 15, satisfying demands from fuel distributors but 
angering taxi drivers.  Distributors were concerned their 
margins were being squeezed because of price caps at the 
pump; taxi drivers for their part are concerned it may be 
difficult to pass on the increases to public.  The increase 
did nothing to address the IMF's concern (Libreville 167) 
that price controls for products leaving the refinery cost 
the government 130 million dollars in 2005 and may cost 180 
million in 2006, but provided benefits mostly to Gabon's 
wealthier citizens. 
 
¶2.  (C)  Ambassador to US center of controversy between Sao 
Tome President and Government. 
 
The Sao Tome Government announced to the press March 10 its 
dissatisfaction with the appointment of former Foreign 
Minister Olvideo Pequeno to be Sao Tome's new Ambassador to 
the United States, and the opening of embassies in Washington 
and Abuja.  According to the statement, the moves did not 
follow proper procedure.  The government also complained that 
funding for the two embassies and the ambassador was not in 
the budget approved by the National Assembly.  (This echoes 
complaints made when funds donated by the government of 
Morocco were spent outside budgetary processes.)  Prime 
Minister Maria do Carmo Trovoada told the Embassy that 
article 82 of the constitution did give the president the 
authority to appoint ambassadors, but only following a 
proposal from the Government; instead, President Menezes 
arranged everything quietly and without authorization.  Asked 
why she raised the issue now (in the middle of an election 
campaign) rather than when the nomination was made months 
ago, Trovoada claimed she never saw a request from the 
Foreign Ministry or a response from the U.S. Government.  She 
said she had told the President there were no funds to cover 
expenses at these two posts.  (Note: The Embassy understands 
that Taiwan has provided start-up funding for both 
embassies.) 
 
¶3.  (U)  Disgruntled Military Retirees Torch Trucks and Cars. 
 
Military retirees set fire and destroyed at least four 
logging trucks and damaging others on Gabon's major road to 
the interior March 7, and are likely behind the burning of 
six vehicles in Libreville March 20.  The retirees have been 
periodically staging demonstrations (including blocking the 
main road into Libreville February 13) to push for greater 
benefits from the government.  Security forces arrested 21 
demonstrators March 8, and Government spokesman Rene Ndemezo 
Obiang called on demonstrators to give the government time to 
resolve the problems; the retirees, for their part, demanded 
the release of their comrades, noting that resorting to 
barricades was the sole means to make oneself heard in Gabon. 
 Violence broke out again March 20 in Libreville, with 
culprits damaging shop windows as well as burning cars.  The 
attacks occurred in the district containing opposition leader 
Pierre Mamboundou's Libreville residence.   Police later 
sealed off Mamboundou's compound and confiscated computers 
and files; Mamboundou fled to the South African Embassy 
(septel). 
 
¶4.  (U)  Gabon Checking Dead Birds for Avian Flu. 
 
Ndjole residents reported finding dead birds in their town 
the evening of 18 March.  Without any clear explanation for 
the deaths, the residents decided to report their discovery 
to the Ministry of Health.  The ministry dispatched a team to 
initiate a process to verify if the deaths were an outbreak 
of Avian Flu.  Coincidentally, Gabon is hosting a regional 
conference on Avian Flu sponsored by the World Health 
Organization (WHO) that started Monday 20 March. 
Participants in the conference do not appear to consider the 
funding of dead birds in Gabon a cause for particular 
immediate concern. 
 
¶5.  (SBU)  Opposition Members Demand Joint Meeting With 
President. 
 
Leaders of six opposition parties, including Presidential 
Candidate Zacharie Myboto of the UGDD, are pressing demands 
for a joint meeting with the President to discuss 
irregularities with the electoral system.   The group, which 
notably does not include Pierre Mamboundou, has also demanded 
the presence of international mediators.  The Government has 
refused the demands,  offering instead for the President to 
meet with opposition leaders separately and without 
international mediators.   The story was given fairly 
prominent coverage on page three of the Government-controlled 
daily "L'Union."   A representative of the UGDD asserts that 
Mamboundou is not a signatory because he is more interested 
in creating "big spectacles" in public. 
 
¶6.  (U)  Oil Block Agreements Signed 
 
Sao Tome is set to receive $28.5 million in signature block 
bonuses (out of a total of $200 million) from blocks two, 
three, and four of the Joint Development Zone (JDZ). 
Although Sao Tome normally receives 40% of revenues from the 
JDZ, Environmental Remediation Holding Company (ERHC) is 
exempt from paying signature bonuses; the amount ERHC would 
normally pay is deducted from Sao Tome's share.  This is a 
consequence of the renegotiation of a 1997 agreement between 
Sao Tome and ERHC. 
 
              Block Two Block Three  Block Four   Total 
 
Block Price: $70 million $40 million $90 million   $200 
million 
 
Nigeria      $42 million $24 million $54 million   $120 
million 
 
Sao Tome      $7 million $8 million  $13.5 million $28.5 
million 
 
ERHC       $  21 million $8 million  $22.5 million $51.5 
million 
(non-payment lost to Sao Tome) 
WALKLEY