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FM AMEMBASSY LUANDA
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INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

C O N F I D E N T I A L SECTION 01 OF 04 LUANDA 000056 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF AND AF/S 
 
E.O. 12958: DECL: 01/23/2017 
TAGS: PREL PGOV ECON EAID PHUM AO
SUBJECT: SCENESETTER FOR DAS CAROL THOMPSON'S VISIT TO 
ANGOLA 
 
REF: STATE 07409 
 
Classified By: Ambassador Cynthia G. Efird for Reasons 1.4 (b) and (d) 
 
¶1. (C) DAS Thompson, I want to warmly welcome you to Angola. 
Your visit follows the highly successful 2006 visits of 
General Ward, A/S Lowenkron and then-PDAS Pittman.  Your 
visit, which will be followed by the February ship visit of 
the USS Kaufmann, starts 2007 positively towards the USG goal 
of reinforcing our bilateral relationship and strengthening 
high-level engagement with the GRA.  Angola is at a pivotal 
juncture in its development and reconstruction: uniquely 
blessed with natural resources, but emerging from 
twenty-seven years of civil war following its independence 
after centuries of colonial rule.  The war not only destroyed 
the physical infrastructure: transportation routes, 
agricultural land, and industry; but also kept Angolan human 
capital development at the low colonial level with little 
professional training or even basic schooling. 
 
¶2. (C)   The GRA is striving to use the resources generated 
by extractive industries to strengthen and in many cases 
develop institutions for the first time.  They have achieved 
some important milestones in the second half of 2006: the 
final internal conflict in Cabinda was brought to a 
negotiated resolution in August and almost 1,000,000 Angolans 
registered to vote in the first month of the electoral 
registration campaign, bringing Angola one important step 
closer to its first elections since 1992.  President dos 
Santos and the leaders of opposition parties represented in 
Congress also agreed on a recommendation for legislative 
elections in 2008 and presidential elections in 2009.  The 
GRA is also increasing transparency, especially in the oil 
sector.  However, systems that ensure transparency, 
accountability and inclusiveness still remain in their 
nascent stages and GRA efforts to jump-start this process are 
hindered by a lack of human capital to carry out the 
necessary reforms as well as a political culture more focused 
on personal survival rather than on the greater good.  As we 
increase our engagement, the GRA also seeks closer ties with 
the USG and US investors.  We hope that your visit will help 
reinforce our desire to see a Trade and Investment Framework 
Agreement (TIFA) concluded quickly.  Your visit will also 
focus on many of our USAID collaborations in public-private 
partnerships, reinforcing the message that US businesses 
bring not only excellent quality goods and services, but 
equally important provide community oriented projects to help 
improve the lives of Angolans.  End summary. 
 
Politics and Elections 
---------------------- 
¶3. (C) The first phase of voter registration ran from 
November 15-December 15, 2006 and was highly successful, 
registering almost one million eligible voters.  While not 
without glitches, these were noted and remedied, with 
opposition party and NGO observers accompanying the process. 
Voter registration began again on January 15, and will 
continue through June 15, 2007.  In late December, the 
President convoked the Council of the Republic whose 
membership includes civil society leaders and the presidents 
of all opposition parties represented in Congress.  The 
Council recommended legislative elections in 2008 and 
presidential elections in 2009 (Note: At its last meeting in 
2004, the Council recommended elections no later than 2006 
End Note.)  We hope that your visit can help convince the 
Angolans of the need to make this recommendation official and 
part of a Council of Ministers approved timetable for 
elections.  Immediately thereafter, the government announced 
that the 2008 date for legislative elections was due to the 
post-registration procedures (posting and vetting lists, 
legally-mandated waiting periods, etc).  Regarding the 2009 
date, many of our interlocutors evince skepticism that 
presidential elections will occur before 2010, a year in 
which Angola will host the African soccer championship and 
hold the chairmanship of the AU.  US-funded NGOs, such as 
International Republican Institute (IRI), National Democratic 
Institute (NDI), and Search for Common Ground, have been very 
active at the provincial and municipal level in political 
party strengthening, building elections capacity, and working 
with conflict resolution, respectively.  President dos Santos 
has made no formal announcement whether he will run for 
President when elections are held. 
 
¶4.  (SBU)  A recent poll by IRI showed the vast majority of 
Angolans support the government's economic performance and 
plan to participate in elections.  Poll results indicate a 
clear electoral advantage and public support for the ruling 
MPLA party, but also show possible areas of weakness on which 
opposition parties could develop campaign strategies. 
Opposition parties focused on results that seemed to fly in 
 
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the face of popular perceptions, refusing to accept the 
validity of key data indicating weak support (Luanda 31). 
 
¶5. (C) In general, the opposition political parties have not 
been able to articulate individual party identities and 
platforms, other than to say that they are not the MPLA. 
They are still learning how to hold the government 
accountable for its promises and programs and often attempts 
to do so are handled more astutely by the MPLA and backfire 
on the opposition.  NGOs have helped deliver the message that 
elections need not end in violence, and we expect this 
message to figure heavily into the GRA,s electoral civic 
education campaign.  However, all parties could be more vocal 
in reassuring the population that the importance of the 
election is in the institutionalization of democratic 
processes and all will abide by the results of a free and 
fair election.  Large numbers of weapons remain throughout 
the countryside.  Through PM/WRA, we are supporting small 
weapons destruction programs.  Opposition parties also 
recognize that they may lose significant sources of federal 
funding post elections depending on the results as funding is 
based on the number of seats a party holds in the Parliament. 
 UNITA, in particular, is concerned that a potential drop in 
congressional representation will directly affect its party 
coffers. 
 
Human Rights Improvements but 
GRA Challenged by a Lack of Capacity 
------------------------------------ 
 
¶6. (SBU) The government's human rights record showed 
improvements in 2006 but problems remain in areas of the 
overburdened judicial system; arbitrary arrests and 
detention, lengthy pretrial detention, and a lack of due 
process.  Prisons are overcrowded with harsh conditions, 
especially in the provinces. In the last year we have seen 
fewer acts of violence by governmental security forces due to 
internal investigations and a commitment at higher levels to 
curb police brutality.  However, private security forces have 
become responsible for an increasing number of violent 
actions.  The Minister of the Interior pledged to develop 
laws to regulate the private security forces.  The GRA 
appointed an Ombudsman for Human Rights, and after many 
months, delay in implementing the legislation to 
institutionalize the office, it has now begun to function.  A 
revision of the penal code is in draft which will include 
regulations against domestic abuse.  Following a high-profile 
spousal murder case in December 2006, the GRA has announced a 
new program of &Zero Tolerance8 for domestic abuse. As in 
many sectors, government progress is challenged by the lack 
of trained personnel, and computerization and data collection 
capacity.  The NGO movement is still nascent, but there are 
some indigenous organizations tracking human rights abuses 
and working with the GRA to train the national police on 
human rights issues. 
 
¶7. (SBU) USG-funded programs have helped train police through 
the ILEA Gaborone facility and on specific issues such as 
trafficking in persons and child rights though our 
international organization partners in Angola.  The USG, in 
conjunction with the Government of Portugal, is carrying out 
a project of court automation with the Ministry of Justice. 
Angola,s participation in SADC and its regional programs has 
also forced it to focus more extensively on issues such as 
human rights, police training, trafficking, and child labor. 
The press covers these issues occasionally, but especially 
when tied to international conferences or training events. 
 
¶8. (SBU) The signing of the Memorandum of Understanding for 
Peace and Reconciliation in Cabinda is also seen as a major 
step for bringing peace to all of Angola and in bringing 
about greater representation for the people of Cabinda.  As 
part of the agreement FLEC military combatants were 
assimilated into the Angolan Armed Forces (FAA) with a 
significant number of command positions at year's end.  In 
addition, Cabindans will be given designated numbers of vice 
ministerial and other positions in the Angolan government. 
 
US Assistance: Making a Difference 
---------------------------------- 
¶9. (SBU) While Angola shows signs of growth and development - 
you,ll see many construction cranes on the Luanda skyline - 
the country still has some of the lowest development 
indicators in the world.  Sixty-eight percent of the 
population lives in poverty, 26 percent in abject poverty. 
Life expectancy is forty-seven years, more than 30 percent 
lower than the average for developing nations; infant 
mortality and other measures of the quality of life are among 
the worst in the world.  A cholera outbreak, which claimed 
almost 2000 lives across Angola in 2006 could resurface 
 
LUANDA 00000056  003 OF 004 
 
 
during the current rainy season, although most observers 
predict that 2007 cholera outbreaks should be less severe 
given measures the government has taken.  A country with a 
developed health infrastructure could have prevented the high 
death rate during the epidemic.  In general, institutional 
capacity to treat diseases of all kinds is hindered by a lack 
of capacity of trained medical professionals, to educate 
young people, and deliver the range social services needed. 
Further, attacking the conditions which allow the disease to 
flourish - lack of potable water and sewage treatment - is a 
long-term process. 
 
¶10. (SBU) Nevertheless, many of the Western donors have 
scaled back aid to Angola since the end of the war period. 
The USG program has been growing steadily.  Our flagship 
program is the President,s Malaria initiative (PMI).  The 
Angolan government, in particular the Health Ministry, has 
been closely involved in the program and collaboration with 
other donors is strong. In the first year of implementation, 
PMI mobilized the spraying of over 125,000 houses (reaching 
over 500,000 Angolans) and the distribution of over 800,000 
bednets. 
 
¶11. (SBU) The USG is also highly visible in the fight against 
HIV/AIDS.  Angola presents a unique opportunity to combat the 
spread of HIV/AIDS.  According to CDC data, Angola has a 
relatively low prevalence rate.  It is generally agreed that 
the low rate is due to the country,s isolation during the 
civil war, but high rate of male circumcision could also be a 
factor. Still, many of the factors conducive with a spike in 
the rate are in place: the early age of sexual debut; the 
common occurrence of multiple partners, and improved 
transportation routes, which encourages greater interaction 
with its neighbors.   Already frontier provinces show higher 
rates of prevalence than the rest of the country.  The USG -- 
CDC, USAID, DOS and DOD -) is working closely with the 
Angolan Ministry of Health and private partners to implement 
the national plan against HIV-AIDS. 
 
¶12. (SBU) Angola,s path to transformational development will 
be a long and winding one unless transparent, accountable, 
participatory and effective governance can be realized and a 
broad swath of the population empowered economically.  The 
USG is putting into place a strong program to reinforce 
Angolan efforts to further good governance in areas such as 
supporting free and fair elections, decentralization and 
civil society development. All USG activities also focus on 
at least one of the following: improving the quality of 
dialogue between government and civil society, promoting 
transparency and accountability, and strengthening the 
linkages among the municipal, provincial and national levels 
of government. 
 
¶13. (SBU) Under our small but robust economic growth programs 
we have worked with Chevron to establish a bank catering to 
micro and small enterprises that, two years after opening, 
has already extended USD 20 million in loans. Our agriculture 
development and finance program which began in late FY06 has 
attracted support from both Chevron and Chiquita.  Our work 
with the Ministry of Finance has led the Ministry to ask the 
USG to coordinate donor efforts.  We have likewise 
established a strong relationship with the Angolan Central 
Bank, most recently co-sponsoring a highly successful 
conference on monetary issues. 
 
¶14. (SBU) Angola also remains one of the most heavily 
land-mined countries in the world and USG assistance provides 
nearly USD 6 million to support humanitarian landmine 
clearance.  We also support capacity building within the 
Angolan National Demining Commission, in order that the 
Angolans will one day be able to take over the major role 
played by international NGOs in landmine clearance.  We have 
also contributed significantly to the efforts to repatriate 
Angolans displaced by the civil war.  The GRA has stepped up 
its support and in early January began providing flight 
support for the current campaign designed to repatriate 5,000 
refugees from Zambia. 
 
¶15. (SBU) USAID/Angola is a pacesetter for missions worldwide 
when it comes to Global Development Alliances.  In FY06 it 
had partnerships valued at approximately USD 5 million with 
Chevron, Exxon Mobil, Lazare Kaplan Intl, and Banco de 
Fomento Angola, a Portuguese based bank.  In addition, we 
received in-kind contributions from Odebrecht(a Brazilian 
construction company), Exxon Mobil, Chevron, Coca-Cola, 
Alcatel-Lucent, Sistec (a local firm) and Open Society 
Institute (OSI) for the Junior Achievement Program. Beyond 
its corporate partners, USAID has also formed partnerships 
with the Dutch government and the OSI. 
 
 
LUANDA 00000056  004 OF 004 
 
 
Economic Front: Opportunities for US Businesses 
--------------------------------------------- -- 
¶16. (C) Angola is changing its policy towards the United 
States.  While some resentment occasionally surfaces at the 
working level over our support of UNITA during the civil war, 
the government has shown itself eager to embrace closer 
economic and international political ties with the United 
States.  The dos Santos government is moving on some issues 
of importance to us: it ratified the Cape Town convention and 
Article 98, has paid its arrears to us, and is working in 
fits and starts with the IMF and the World Bank on 
transparency issues.  It is also negotiating with the Paris 
Club to repay all bilateral creditors.  TAAG, the national 
airline, took delivery of five Boeing jets in November, 2006 
) the featured event in the government,s National Day 
celebrations.  Over the last six months, we have noted a 
dramatic increase in the number of US companies visiting 
Luanda to look at export opportunities presented by 
infrastructure rebuilding, to explore establishing a local 
presence, and to successfully conclude contracts. 
 
¶17. (C) Angola,s oil production is expected to reach almost 
2 million barrels per day (bpd) by the end of 2007, up from 
its current production of 1.4 million bpd (Note. Given the 
increasing level of production, Angola agreed to join OPEC in 
late 2006, and the GRA believes that production quotas it 
hopes to receive soon will reflect this continued increase in 
production.  End Note)  Despite its economic potential, 
Angola remains one of the most difficult countries in the 
world in which to conduct business (Angola ranked 142 of 163 
in Transparency International's 2006 rating).  It takes an 
average of 124 days to start a business despite government 
attempts to streamline the process.  Costs remain high due to 
the lack of infrastructure, corruption, high input costs, a 
cumbersome regulatory environment, and a limited pool of 
individuals with professional skills.  The private banking 
system is rapidly expanding and bank regulatory arrangements 
are being improved, but credit remains difficult despite NGO 
and GRA programs to encourage micro-financing, especially in 
agriculture and for teachers and health workers. 
 
Military to Military Cooperation 
-------------------------------- 
 
¶18.  (C)  During EUCOM D/Commander Ward's visit late in 2006, 
the GRA expressed interest in strengthening military-to 
military ties with the U.S.  Gen Ward discussed the creation 
of a joint working group to discuss our cooperation plans and 
we hope to hold such meetings in the first quarter of 
calendar year 2007.  In regional terms, the military is large 
(over 100,000) and well-financed.  we are working to engage 
the Angolans in peace-keeping through ACOTA, but recent 
events surrounding the AU's request for Angolan assistance in 
a Somalia peace-keeping force reinforce the cautious nature 
of the GRA in projecting its troops beyond immediate borders. 
 On January 19, the GRA announced that it would not lend 
troops to amy peace keeping operation, stating instead that 
it would need troops to help develop domestic infrastructure 
and programs (septel). 
 
 
EFIRD