VZCZCXRO3941
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHAN #0193/01 0781412
ZNR UUUUU ZZH
R 191412Z MAR 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 2223
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHBS/USEU BRUSSELS
RHMFISS/CDR USAFRICOM STUTTGART GE
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 ANTANANARIVO 000193 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/E-MBEYZEROV 
 
E.O. 12958: N/A 
TAGS: PGOV MA
SUBJECT: CUTTING NON-HUMANITARIAN AID TO MADAGASCAR 
 
¶1. (SBU) SUMMARY: Post strongly supports suspending all 
non-humanitarian aid to Madagascar in the wake the recent 
unconstitutional transfer of power.  In doing so, in order to 
continue to support the impoverished Malagasy people to the largest 
extent possible while still sending an unmistakable signal to new 
leadership about what they need to do to re-establish constitutional 
rule, we suggest distinguishing between direct 
government-to-government programs, which should be terminated or 
suspended immediately (e.g. MCC, DOD, law enforcement training), and 
the far larger humanitarian portion represented by USAID and other 
agencies at post.  Maintaining the assistance that directly benefits 
the impoverished people of Madagascar, while cutting aid to an 
undemocratic government, would be consistent with U.S. values and 
maintain our warm and enduring relations with the people of 
Madagascar, while delivering on our promise that there would be 
consequences for pursuing an extra-constitutional path.  Post 
believes that the USG can continue to positively impact the lives of 
millions in one of the world's poorest countries, without 
compromising on important principles in the process. END SUMMARY. 
 
CUTTING DIRECT ASSISTANCE TO THE GOM 
------------------------------------ 
 
¶2. (SBU) We propose terminating or suspending programs in which the 
USG directly finances GOM programs, or provides training or 
resources to government entities or personnel.  We have identified 
the following three programs as falling into this category: 
 
¶3. (SBU) THE MILLENNIUM CHALLENGE ACCOUNT:  Madagascar is patently 
no longer an "MCA country" and this program should be terminated 
immediately.  The MCC compact in Madagascar works directly with the 
ministries of Land Tenure Reform, Finance, and Agriculture in the 
implementation of the program. In addition, the Compact's Steering 
Committee, which is responsible for overall program oversight, 
consists of the Ministers from these three ministries.  The $110 
million program is in the fourth year of implementation, has 
disbursed roughly $65 million, and has committed over $80 million. 
 
 
¶4. (SBU) Immediate termination of the Compact will have a sharply 
negative impact.  Over 230 land offices that have secured land 
rights for roughly 20,000 families will be shut down.  The program's 
6 Agricultural Business Centers, currently providing technical 
assistance to over 14,000 farmers, will need to be closed.  The 
installation of the national inter-bank payment system, which was 
worth $12 million and planned to be completed in mid-2009, will need 
to be discontinued.  In addition, the possibility of securing or 
transferring program assets in a manner that would allow for future 
use and benefit by the country's citizens is problematic, as these 
assets would normally go to the government entity responsible for 
the sustaining the program's activities. 
 
¶5. (SBU) Although it would be possible to suspend the Compact for a 
period of up to 3 months, anything past this period would result in 
termination of contracts by contractors and insufficient time to 
finish the program activities.  If the decision is made to terminate 
the Compact, contractors will be notified of termination and all 
program activities will be immediately ceased.  Complete 
administrative and financial close-out of the program will take an 
estimated 4 months. 
 
¶6. (SBU) ALL DEFENSE PROGRAMS: All DOD assistance should be 
suspended. 
 
¶7. (SBU) LAW ENFORCEMENT TRAINING:  This program also should be 
suspended.  Around 60 candidates have been identified for training 
on drug interdiction, false document recognition and controlled 
substance delivery methods through ICE with funding through AFRICOM. 
Ten candidates from the Police, Gendarme, and Customs were selected 
for a management skills training at ILEA Roswell, New Mexico, and 
the FBI Academy in Quantico approved long term training (of six 
months) to two police candidates. 
 
¶8.  (SBU) Peace Corps:  Already suspended. 
 
KEEPING NON-GOVERNMENTAL ASSISTANCE TO THE PEOPLE OF MADAGASCAR 
------------------------------ -------------------------------- 
 
¶9. (SBU) Outside MCC, the bulk of USG assistance in Madagascar does 
not have a direct connection to the national government, and could 
and, in our view, should be maintained if possible.  The mission's 
work in malaria prevention, food aid, disaster relief, health 
improvement, and rural development is the foundation of our 
relationship with the people of Madagascar, benefitting literally 
millions of people. 
 
¶10. (SBU) US AGENCY FOR INTERNATIONAL DEVELOPMENT: Because of its 
 
ANTANANARI 00000193  002 OF 002 
 
 
essentially humanitarian and people-to-people (rather than 
govt.-to-govt.) character, we propose maintaining as much as 
possible of the USAID program in Madagascar.  This program 
critically assists the most vulnerable of Madagascar's 20 million 
people.  FY 2009 foreign assistance is projected to be about $51 
million.  This includes $15 million in PL 480 Title II food aid, 
$29.4 million in Child Survival and Health, and $6.6 million in 
Development Assistance.  USAID programs support alternative 
livelihoods for farmers to help reduce pressure on Madagascar's 
fragile ecosystems and improve food security, especially in areas 
affected by cyclones and drought.  USAID's health assistance 
supports integrated program to save lives and improve health status 
by combating malaria and promoting health services in family 
planning, prevention of sexually transmitted infections, and 
improving maternal and child health. Madagascar is a President's 
Malaria Initiative (PMI) country with an estimated FY 2009 PMI 
budget of $17.  The PMI program has a target population of 12 
million people, including pregnant women and children under five, 
and is designed to reduce malaria mortality by 50 percent.  If a 
policy decision is taken to maintain all humanitarian aid to 
Madagascar without working with or through the national government 
(working instead with NGOs, implementing partners, local entities, 
etc.), USAID would have to ensure, through restructuring as 
necessary, that all its activities maintain that separation from the 
government. 
 
¶11. (SBU) PUBLIC AFFAIRS: Cultural and Exchange programs will not be 
directly affected, but Post will carefully screen exchange grantees, 
particularly International Visitor's Leadership Program (IVLP) 
participants, to ensure that GOM officials do not participate. 
 
¶12. (SBU) US DEPARTMENT OF AGRICULTURE: USDA provides financial 
support to various NGOs in Madagascar.  One of these, Land O'Lakes, 
receives funding through USDA's Food for Progress Program.  This 
funding is used to provide educational workshops for community 
leaders to increase knowledge about agricultural practices.  Land 
O'Lakes also uses the funding to purchase agricultural equipment for 
farming communities. 
 
¶13.  (SBU) THE SPECIAL SELF-HELP PROGRAM: The Self-Help program 
funds small development projects around Madagascar.  These projects 
are community-based, locally initiated, and must include 
contributions from the communities.  All funding from the Special 
Self-Help program goes towards the purchase of materials for 
developmental work and towards workshops that teach life skills. 
 
 
MARQUARDT