R 021825Z APR 08
FM AMEMBASSY PRAIA
TO SECSTATE WASHDC 1390
INFO ECOWAS COLLECTIVE
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MILLENNIUM CHALLENGE CORP
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TAGS: OVIP PREL EAID MARR CV
SUBJECT: CODEL FRANK ON-POINT WITH GOVERNMENT OF CAPE VERDE 
 
¶1. Summary:  During two one-day visits during the week of March 
24, Congressman Barney Frank and seven accompanying Members of 
Congress met with local and senior officials, conveying 
continued USG interest in and support for Cape Verde.  Despite 
unfortunate Sunday afternoon timing, the GOCV scheduled meetings 
that included the President of Parliament, the President of the 
Republic, and the Prime Minister.  Far from mere courtesy calls, 
all the senior officials granted extended meetings and broached 
sensitive topics of concern in the bilateral relationship, 
notably how to guarantee successful completion of the MCC 
program in Cape Verde, how to deal constructively with the 
effects of increased criminal deportees from the United States, 
and how to improve maritime security.  Following a rapid 
succession of senior USG official visits, including a Codel led 
by Senator James Inhofe, a CoDel led by Representative Patrick 
Kennedy, and the recent visit of AUSTR Florie Liser, this visit 
confirmed for the GOCV the durable USG interest in our bilateral 
relationship.  End Summary. 
 
¶2. One of the largest Congressional delegations in recent memory 
to visit Cape Verde arrived on April 24, consisting of eight 
Members of Congress led by Congressman Barney Frank. During this 
first of two programmed visits that week, the delegation visited 
the windward island of Sal, where they called on the Mayor and 
visited an Africa Development Foundation Project.   The Mayor of 
Sal Island, Dr. Jorge Eduardo Figueiredo, stressed to the 
delegation how tourism has spurred economic development of the 
island and his long-term plans for managed growth.  If reelected 
in this spring's parliamentary elections, Figueiredo plans to 
continue with his action plan, most notably to improve health 
services on the island and expand a local program that provides 
home-buying assistance for the poorest citizens of the island. 
Congressman Frank noted the importance of passing tourism 
revenues on to the citizens of the island, and not remaining 
only in the hands of foreign resort owners. 
 
¶3. Following this insightful conversation, the Mayor escorted 
the delegation on a visit to an USG-sponsored Africa Development 
Foundation Hydroponics Project.  The project was started with 
USD 248,000 in USG financial assistance, with a view towards 
diversifying agricultural production away from traditional corn 
and sugar cane, and towards higher value-added vegetable crops. 
These crops, including tomatoes, lettuce, green beans, and bell 
peppers are now being sold to the many tourist resorts located 
on the southern tip of Sal Island where they cater to a largely 
European (British and Italian) market.  The delegation was 
impressed with the efficient use of resources, particularly 
water, and with the economic push towards a more sustainable 
economy through diversification.  (Note:  Cape Verde currently 
imports an estimated 90 percent of its food needs, implying a 
large unsatisfied market for value added crops, not just for 
tourists but also for the local population.  However, low 
purchasing power among ordinary Cape Verdeans, transportation 
challenges, scarce resources, and steep initial financing 
requirements have thus far impeded the market's development. 
End note.) 
 
¶4. Following visits to several other African countries, on April 
30 CoDel Frank again visited Cape Verde, this time to the 
leeward island of Santiago, home to the capital city, Praia.  In 
a clear demonstration of the importance the GOCV places on the 
Cape Verde - U.S.  relationship, despite it being a Sunday 
afternoon the delegation was received by the President of 
Congress, the President of the Republic, and early Monday 
morning, by the Prime Minister. 
 
¶5. Following a briefing from Ambassador, the Millennium 
Challenge Corporation (MCC), and the International Agriculture 
Fund (IFAD), the delegation went on to meet with Aristides 
Raimundo Lima, President of Parliament and Mario Gomes 
Fernandes, Member of Parliament.  Lima is a member of the ruling 
PAICV party, while Fernandes is from the opposition MpD party, 
and their competitiveness was on display in this meeting, only 
six weeks before municipal elections in Cape Verde.  During the 
meeting Lima raised topics including the pressure criminal 
deportees from the United States place on Cape Verde.  Lacking 
any agency or standing capacity to absorb these deportees into 
society, he noted, they are largely left to their own devices. 
Many, with violent tendencies and a proven criminal inclination, 
go on to commit crimes in Cape Verde.  The delegation was 
sympathetic to these challenges, and noted that there are 
cooperative arrangements in place between the U.S. Department of 
Homeland Security, local law enforcement in New England, and the 
government of the Azores that might serve as a useful model for 
GOCV engagement.  The GOCV plans to attend a meeting on this 
program in the Azores in April 2008.  (Note:  Though the total 
volume of criminal deportees from the U.S. to Cape Verde is 
 
quite low -- less than 50 persons per year -- the effect of 
inserting sometimes violent criminals into a very small society 
that is unprepared psychologically or legally to deal with them 
has proven to be quite disruptive.  End note.) 
 
¶6. Following this meeting, Congressman Frank and Parliamentary 
President Lima spoke to six television and print journalists 
about the purpose of the visit and about their conversation. 
Mr. Lima stressed the U.S. support to Cape Verde's development 
through the Millennium Challenge program.  Congressman Frank 
described his strong connection to Cape Verde and his continued 
support for economic development of the country.  The press 
praised Congressman Frank for his attention to the people of 
Cape Verde, and highlighted the recent visits of Congressmen 
Inhofe and Kennedy as further proof that Cape Verde is on the 
radar of leadership in the USG.  The visit was the top story on 
the evening news, in two newspapers, and the evening national 
radio news broadcast. 
 
¶7. The delegation also met with President of the Republic Pedro 
Pires, who was in an uncharacteristically expansive mood and 
spoke for nearly an hour.  In addition to touching on 
immigration and deportation issues, Pires highlighted GOCV 
concerns about the Millennium Challenge Corporation compact with 
Cape Verde.  That compact is somewhat behind schedule, owing to 
longer than anticipated start-up as both MCC and the GOCV were 
forced to learn by doing.  (Note:  Cape Verde was among the 
first countries in the world to receive an MCC compact, and has 
been a guinea-pig for many untested early MCC procedures. End 
note.)  The program is now moving ahead smartly, but most 
experts estimate it will need an additional year beyond its 
programmed 2010 expiration date to complete its projects, 
especially the works upgrading the port of Praia.  The other 
significant concern, also beyond the control of the GOCV, is the 
impact on the value of the compact of the continued sharp 
deterioration of the exchange rate.  Because the compact is 
denominated in U.S. dollars, but disbursed in Cape Verdean 
escudos -- which are pegged to the Euro -- the real value of the 
compact has fallen by nearly 35 percent since it was originally 
negotiated.  Consequently, portions of the program have had to 
be canceled, not because they are unworthy of funding, but 
merely because they were made unaffordable within the 
constraints of the compact.  Delegation members took this 
information on board, and undertook to investigate both the 
potential for an extension of the duration of the compact and 
additional funding, whether through MCC or another USG agency 
such as USAID.   (Note:  Congressman Patrick Kennedy made a 
similar commitment during his February visit.  End note.) 
Pires also discussed cultural and educational exchanges, citing 
the recent visit of the replica of the slave ship Amistad and a 
budding relationship between the University of Cape Verde and 
several U.S. institutions, including Bridgewater State College 
in Massachusetts.  Pires also pushed for increased sports 
exchanges, mentioning the U.S. influence, through Cape 
Verdean-American athletes, on Cape Verde's National basketball 
team. 
 
¶8.  Just prior to their March 31 departure, the delegation 
shared an early morning breakfast hosted by Prime Minister Jose 
Maria Neves, and also attended by the Minister of Defense. 
Neves knows Congressman Frank well, and the two quickly moved to 
talk of weighty issues including immigration and deportation, 
the Millennium Challenge compact with Cape Verde, Cape Verde's 
prospects for sustained economic growth, and USG engagement with 
the islands.  Delegation members were favorably impressed with 
efforts to diversify the economy, but some questioned whether 
agriculture, even high value added crops, is a realistic 
long-term growth strategy.  Neves pointed to tourism, as well as 
other services as other areas of interest for the GOCV.   Neves 
spoke also about maritime security challenges and the threats of 
transnational crime, including narcotics trafficking. 
Congressman Frank undertook to investigate how the United States 
might be more helpful in this area.  Congressman Watt inquired 
whether the lack of a legal agreement or framework was an 
impediment to increased cooperation in this area.  Minister of 
Defense Fontes responded that the U.S. and Cape Verde are 
working on completing a Status of Forces Agreement (SOFA) but 
that their constitution requires parliamentary action rather 
than an agreement by exchange of Diplomatic Notes, which was 
causing a delay.  They have similar agreements with Spain and 
Portugal, and are very willing to enter into an agreement with 
the United States as well. 
 
¶9. Comment:  This visit was terrifically valuable, both 
symbolically and substantively.  Press coverage of such a large 
Congressional delegation visiting two different islands and 
meeting with both local actors and the most senior leadership 
 
clearly conveyed the shared bilateral interests.  Discussions 
were warm and informal, and broached a number of sensitive 
topics in a constructive manner.  As a result of this visit, 
both governments have rededicated themselves to working towards 
resolution of serious issues including U.S. bilateral 
assistance, maritime security, and immigration and deportation 
concerns.  End Comment. 
 
¶10. The delegation was composed of: 
 
Chairman Barney Frank (D-MA) 
Rep. Maxine Waters (D-CA) 
Ambassador Sidney Williams (Rep. Waters' spouse) 
Rep. Gregory Meeks (D-NY) 
Mrs. Simone-Marie Meeks 
Rep. Lacy Clay (D-MO) 
Mrs. Ivie Clay 
Rep. Kenny Marchant (R-TX) 
Rep. Gwen Moore (D-WI) 
Rep. Devin Nunes (R-CA) 
Rep. Mel Watt (D-NC) 
Mrs. Sandra Watt 
Jeanne Roslanowick, Staff Director, Financial Services Committee 
Daniel McGlinchey, Staff, Financial Services Committee 
Steven Adamske, Staff, Financial Services Committee 
Larry Lavender, Minority Staff, Financial Services Committee 
Justin Underwood, Minority Staff, Financial Services Committee 
Dr. Ramiro Gutierrez, House Attending Physician 
CAPT Joe McClain, Director House Liaison, Navy OLA 
LT Bill Wellman, Liaison Officer, Navy OLA 
LCDR Ron Valencia, Liaison Officer, Navy OLA 
 
¶11.  The delegation did not have the opportunity to clear this 
cable. 
 
PIERCE