VZCZCXRO6988
OO RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #1060 3380558
ZNR UUUUU ZZH
O 030558Z DEC 08
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3761
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 2466
RUEHDS/AMEMBASSY ADDIS ABABA 2591
RUEHRL/AMEMBASSY BERLIN 1084
RUEHBY/AMEMBASSY CANBERRA 1860
RUEHDK/AMEMBASSY DAKAR 2215
RUEHKM/AMEMBASSY KAMPALA 2640
RUEHNR/AMEMBASSY NAIROBI 5068
RUEAIIA/CIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/EUCOM POLAD VAIHINGEN GE
RHEFDIA/DIA WASHDC
RUEHGV/USMISSION GENEVA 1732
RHEHAAA/NSC WASHDC

UNCLAS HARARE 001060 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR B.WALCH 
DRL FOR N. WILETT 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
STATE PASS TO USAID FOR E. LOKEN AND L. DOBBINS 
STATE PASS TO NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN 
 
E.O. 12958: N/A 
TAGS: PGOV ASEC PHUM ZI
SUBJECT: FRUSTRATED SOLDIERS ATTACK MONEY CHANGERS 
 
¶1.  (SBU) Soldiers frustrated by inadequate wages and 
inability to withdraw money from their bank accounts sparked 
a riot in central Harare on Monday, December 1.  About 100 
unarmed, uniformed soldiers attacked money changers (and 
indiscriminately nearby civilians) in an attempt to get cash 
that had been denied them at banks.  Bystanders threw rocks 
and bottles at the soldiers; soldiers and bystanders looted 
several shops.  Riot police using tear gas broke up the melee 
and arrested a number of the soldiers. 
 
¶2.  (SBU) On Thursday, November 27 we received reports of 
about 200 soldiers rioting in a bank after being unable to 
withdraw money.  This incident reportedly occurred after a 
mobile teller brought to the soldiers' base ran out of money. 
 The soldiers were told they could withdraw 10 million 
Zimbabwe dollars at the bank.  (The official withdrawal limit 
was 500,000 Zimbabwe dollars; at the time the unofficial 
street exchange rate was about 2 million Zimbabwe dollars to 
the U.S. dollar.)  At the bank, they learned the withdrawal 
would not be permitted and became disorderly.  The bank 
summoned military police who arrived with AK-47 rifles. 
Soldiers and police fought and bank windows were broken.  On 
Friday, November 28, we received reports of soldiers 
assaulting money changers at a Harare market. 
 
¶3.  (SBU) COMMENT:  The soldiers' actions are a result of 
frustration both because of their own circumstances and also 
their knowledge that military with the rank of colonel and 
above are now being paid in U.S. dollars.  The soldiers also 
know that money changers often work on behalf of the Reserve 
Bank of Zimbabwe which buys forex for the benefit of regime 
insiders. 
 
¶4.  (SBU) COMMENT CONTINUED: These incidents are potentially 
significant because they reveal splits within the military 
(between high-level officers and others), and because they 
resulted in a clash of security forces (army and police).  An 
increase in the withdrawal limit to 100 million Zimbabwe 
dollars should temporarily reduce pressure, but the 
government is ultimately incapable of satisfying the economic 
demands of the soldiers.  It remains to be seen whether these 
incidents will spread or whether the government, using riot 
police, will be able to keep the lid on.  Post will keep a 
close eye on the situation and report as necessary.  END 
COMMENT. 
 
McGee