VZCZCXRO9912
OO RUEHLMC
DE RUEHAN #1425 3541229
ZNY CCCCC ZZH
O 201229Z DEC 06
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4070
INFO RUEHNR/AMEMBASSY NAIROBI 0338
RUEHFR/AMEMBASSY PARIS 0772
RUEHSAJ/AMCONSUL JOHANNESBURG 0084
RUEHLMC/MILLENNIUM CHALLENGE CORP
RUCPDOC/USDOC WASHDC

C O N F I D E N T I A L ANTANANARIVO 001425 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF/EPS AND AF/E 
USDOC FOR RASHIDA PETERSEN 
JOHANNESBURG FOR SCO 
NAIROBI FOR SCO 
PARIS FOR AFRICA WATCHER D'ELIA 
 
E.O. 12958: DECL: 12/20/2016 
TAGS: EAGR ETRD KTDB PGOV AGOA MA
SUBJECT: PRESIDENT OFFERS LITTLE IN RESPONSE TO SEABOARD 
DEMARCHE 
 
REF: A. A) STATE 196979 
 
     ¶B. B) ANTANANARIVO 1291 
 
Classified By: AMBASSADOR JAMES D. MCGEE FOR REASONS 1.4 B AND D 
 
¶1. (C) Ambassador delivered points (Ref A) about Seaboard's 
investment difficulty in Madagascar to President Ravalomanana 
December 19.  The President interrupted the short demarche to 
blame the whole problem on Seaboard's Madagascar Director 
Armando Lopez.  He claimed Lopez botched a deal in Angola 
with Seaboard and is "doing the same in Madagascar." 
President Ravalomanana insisted that his company (TIKO) and 
Seaboard cooperate well in South Africa, made no commitment 
to investigate or act on Seaboard's claims, and insisted one 
of his foreign advisors (Paul Porteus, who is on leave until 
mid-January) is handling the problem. 
 
¶2. (C) In response to the Ambassador's insistence on the 
urgency of this matter, the President said he was willing to 
speak directly to the head of Seaboard (CEO Steve Bresky). 
Ravalomanana concluded with a request for "concrete proof" 
that Seaboard is being disadvantaged. 
 
¶3. (C) It is critical to note Ravalomanana has been nearly 
impossible to reach since the December 3 Presidential 
election.  Unofficial results have him as a first round 
victor; Post expects the High Constitutional Court to confirm 
as much December 23.  During the same call, the Ambassador 
also confirmed the President's participation at a ceremony to 
announce Madagascar's selection for the President's Malaria 
Initiative and discussed potential high-level USG 
participation at the expected January 19 Presidential 
inauguration. 
 
COMMENT: 
-------- 
 
¶4. (C) Post assesses the President's response to reflect 
either profound ignorance or indifference to the real 
situation between U.S. firm Seaboard and his own company TIKO 
at the Port of Tamatave.  Moreover, the President seems not 
to grasp the nuanced argument that even the perception of 
corruption -- that the Port and GOM are forcing out Seaboard 
to create a monopoly for TIKO in wheat milling -- should be 
avoided.  While Lopez is aggressive and Seaboard could 
possibly have done more due diligence on their Malagasy 
partner, the reality -- as confirmed by our World Bank and 
IMF colleagues in addition to Seaboard -- is that publicly 
financed bulk offloading equipment will serve only TIKO if 
Seaboard ceases to be an operator in Tamatave. 
 
¶5. (C) Post suggests three explanations for President 
Ravalomanana's response:  1) He is aware TIKO is getting a 
monopoly at Seaboard's expense and does not believe there 
will be consequences; 2) He thinks there might be minor 
consequences he can tolerate; 3) He is genuinely ignorant of 
the facts and what is at stake because his staff is not 
giving him honest and prudent counsel.  Whatever the 
President's thinking, Post will continue to lobby him and his 
Government vigorously to ensure a level playing field for a 
significant U.S. investor.  END COMMENT. 
McGEE