VZCZCXRO4113
PP RUEHMR
DE RUEHMR #0370/01 3462047
ZNR UUUUU ZZH
P R 112047Z DEC 08
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC PRIORITY 3948
INFO RUEHMR/AMEMBASSY MASERU 4369

UNCLAS SECTION 01 OF 02 MASERU 000370 
 
SIPDIS 
 
DEPT FOR AF/S TO PLEASE PASS TO A/S FRAZER 
 
E.O. 12958: N/A 
TAGS: KJUS PGOV KDEM LT
SUBJECT: SCENESETTER FOR A/S FRAZER'S DECEMBER 19-VISIT TO LESOTHO 
 
1.(SBU)   Ambassador Robert Nolan warmly welcomes your visit to 
the mountain Kingdom of Lesotho.  Our Mission is prepared to do 
all it can to make your trip fruitful and productive.  Your 
visit comes at a high point in the United States-Lesotho 
bilateral relationship, reflecting mutual cooperation and shared 
values, successful foreign assistance programs, and Lesotho's 
substantial progress in important political and economic areas. 
Following the visit in of Millennium Challenge Corporation CEO, 
Ambassador John Danilovich in November 2007 and by Global AIDS 
Coordinator, Ambassador Mark Dybul in January 2008, the presence 
of the A/S will further consolidate and strengthen the existing 
bonds of friendship between the U.S. and Lesotho. 
-------------------------------- 
The Rugged Mountain Kingdom 
-------------------------------- 
 
¶2. (U) Lesotho is a highly mountainous nation, roughly the size 
of the state of Maryland, and is completely landlocked by South 
Africa.  A nearly mono-ethnic state, Lesotho became a British 
protectorate in 1868 and gained its independence in 1966. 
Lesotho is an emerging democracy.  Following its tumultuous 
birth as an independent nation, Lesotho was governed by the 
leader of the Basotho National Party who effectively seized and 
remained in power for twenty years by suspending the second 
national elections in 1970 and declaring a state of emergency. 
Military leaders ruled the country between 1986 and 1993. 
Democratic elections were held in 1993 when a new constitution 
was formed which established Lesotho as a constitutional 
monarchy.  In 1998, Lesotho experienced violent post-election 
protests and an army mutiny.  National riots led to a Southern 
African Development Community (SADC) military intervention 
caused considerable damage to the country's infrastructure, its 
economy, and the national psyche. 
 
¶3.  (U)  Lesotho's February 2007 national elections reaffirmed 
the leadership of the Lesotho Congress for Democracy (LCD), 
which has governed since 1998.  Local and international 
observers declared the 2007 elections largely free and fair. 
However, persistent political disagreements concerning the 
purported manipulation of the country's Mixed Member 
Proportional (MMP) parliamentary system marred the post-election 
political environment.  Following these elections, a political 
impasse developed between the governing LCD and opposition 
parties, primarily regarding the distribution of parliamentary 
seats.  SADC appointed former Botswana President Quett Masire to 
mediate ongoing talks between governing and opposition parties 
aimed at resolving the impasse.  The dialogue process succeeded 
in bringing the two sides together, although progress has been 
limited to a small number of process modalities and tightly 
referenced issues. Although the talks remain deadlocked, the 
past year of 2008 was one of increased stability.  The Embassy 
has constantly stressed the need for the country to refrain from 
violence and settle its disputes amicably. 
 
¶4. (U) Lesotho's Prime Minister Pakalitha Mosisili is head of 
government and has executive authority.  King Letsie III wields 
minimal constitutional power.  Rather, the King serves a largely 
ceremonial function and is the symbol of national unity. 
 
¶5. (U) Lesotho is ranked by the World Bank among the world's 
least developed nations.  Its primary industries are textiles 
and apparel manufacturing, mining, the Lesotho Highlands 
Development Authority, and subsistence agriculture.  The GOL's 
revenues are based largely on transfer payments from the South 
African Customs Union (SACU), which account for more than 50% of 
all government financing. 
 
--------------------------------------- 
The U.S.-Lesotho Bilateral Relationship 
--------------------------------------- 
 
¶6. (U) The United States and Lesotho have had a long-standing 
and close relationship.  The U.S. established one of the first 
foreign diplomatic missions in Lesotho in 1966 immediately after 
independence.  It remains one of the few continuous diplomatic 
presences in the Kingdom. 
 
¶7. (U) In September 2008, Lesotho signed an entry-into-force 
agreement for the innovative Millennium Challenge Corporation 
(MCC) Compact of $362.6 million to reduce poverty and increase 
economic growth.  Lesotho has taken ownership of this program 
that focuses on increasing the provision of water supplies for 
industrial and domestic use ($164 million), improving health 
outcomes ($122.4 million), and removing barriers to foreign and 
local private sector investment ($36.1 million).  During the 
five-year scope of the compact, the broad scope of MCC projects 
is expected to impact a majority of Lesotho's 1.88 million 
people. 
 
¶8. (U)  The PEPFAR program in Lesotho is currently expanding. 
Successful conclusion of a compact agreement (expected around 
April 2009) will result in the doubling of Lesotho's PEPFAR 
 
MASERU 00000370  002 OF 002 
 
 
resources with an additional $15 million available each year 
above the current $13.2 million funding.  Through the PEPFAR 
program, the United States is partnering with the GOL, other 
donors, and dozens of NGOs and universities to help the Mountain 
Kingdom address the HIV/AIDS pandemic.  Lesotho has the world's 
third highest prevalence rate of HIV/AIDS, infecting 
approximately 23% of the country.  This rate is considerably 
higher among high-risk populations, including the nation's 
youth.  The disease impacts all spheres of life in Lesotho, 
including lost productivity, constant and expensive by-elections 
to replace deceased politicians, and a national population that 
has essentially declined over the past ten years. 
 
¶9. (U) Lesotho is one of the great success stories of the 
African Growth and Opportunity Act (AGOA), which helped create 
over 40,000 jobs and facilitates exports to the U.S. valued at 
nearly $400million dollars annually.  NGOs estimate that 
Lesotho's textile and garment mills, largely owned by Taiwanese 
companies, indirectly support over 350,000 individuals in the 
Mountain Kingdom.  Embassy Maseru is now working with the USAID 
Trade Hub to diversify and expand the benefits of AGOA beyond 
purely the textile industry. 
 
¶10. (U) Lesotho's Peace Corps program has operated continuously 
for 40 years, during which more than 2,000 Peace Corps 
Volunteers have worked in the education, health, and community 
development sectors in all ten districts in the country.  At 
present, there are nearly ninety volunteers working in the 
Kingdom.   The October 2008 visit by Director of the United 
States Peace Corps Ronald Tschetter, underscored the Peace 
Corps's continuing commitment to Lesotho. 
 
¶11. (U) The PM's first-ever bilateral visit to the United States 
in 2007 offered an opportunity to congratulate Lesotho on its 
achievements vis-a-vis the Millennium Challenge Account and its 
progressive efforts as a developing nation.  Most recently the 
CEO of the Millennium Challenge Account-Lesotho met with 
President Bush and spoke about Lesotho's Compact at the White 
House. 
ANDERSON