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RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0467/01 1561440
ZNR UUUUU ZZH
R 051440Z JUN 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4569
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2299
RUEHAR/AMEMBASSY ACCRA 2866
RUEHDS/AMEMBASSY ADDIS ABABA 2985
RUEHRL/AMEMBASSY BERLIN 1424
RUEHBY/AMEMBASSY CANBERRA 2248
RUEHDK/AMEMBASSY DAKAR 2615
RUEHKM/AMEMBASSY KAMPALA 3033
RUEHNR/AMEMBASSY NAIROBI 5474
RUEHGV/USMISSION GENEVA 2157
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000467 
 
SIPDIS 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR MICHELLE GAVIN 
TREASURY FOR D. PETERS 
STATE PASS TO USAID FOR LDOBBINS AND JHARMON 
COMMERCE FOR BECKY ERKUL 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM EAGR ECON EFIN ZI
SUBJECT: ZIM NOTES 06-05-09 
 
---------------------------- 
SUMMARY - Topics of the week 
---------------------------- 
 
- Some Issues Resolved, SADC Asked to Help 
- Another MDC MP Charged With Rape 
- The Herald Spins Secretary ClintonQs Comments 
- Political Violence Resurface 
- Not Your Average American Farm 
- WOZA Trial Start 
- 2 Protest Marches, 0 Arrests 
- Germans Announce Humanitarian-Plus Package 
- More Indications of Return to Economic Normalcy 
- Government Urged to Get Mining Policy Right 
- Cereal Shortage Projected for 2009/10 
- Business Uptick 
- But Credit Scarce 
- Air Zimbabwe Struggling 
- Quote of the Week 
 
----------------------------- 
On the Political/Social Front 
----------------------------- 
 
¶1.  Some Issues Resolved, SADC Asked to Help... On May 21 Prime 
Minister Morgan Tsvangirai announced the three parties had 
resolved some of the outstanding issues, including governorships, 
permanent secretaries, and ambassadorships.  However, Reserve Bank 
Governor Gideon Gono and Attorney General Johannes Tomana continue 
to be sticking points, and the MDC-T 
has called on SADC to review their appointments. See Harare 431. 
 
¶2.  Another MDC MP Charged With Rape... Kwekwe Central MP Blessing 
Chebundo was arrested on May 19 on accusations of raping a 
13-year-old girl in January. Chebundo has been an MP since 2000 and 
is a member of the MDC executive council. At least two other MDC MPs 
have been arrested on rape charges in the last year; none of the 
cases have held up in court.  Separately, MP Mathias Mlambo remains 
in jail in Chipinge pending a bail hearing that was rescheduled from 
May 15 for May 22. 
 
¶3.  The Herald Spins Secretary ClintonQs Comments... In an interview 
earlier this week with South AfricaQs SABC news, Secretary of State 
Hillary Clinton said that MugabeQs departure would be Qin the best 
interests of everyone.Q The ZANU-PF mouthpiece paper, The Herald, 
put a positive spin on the story with a front-page article titled 
QU.S. acknowledges GovernmentQs progress.Q The article included the 
SecretaryQs remark that QweQre encouraged by the new unity 
governmentQ but omitted her quote on Mugabe. 
 
¶4.  Political Violence Resurfaces... ZANU-PF supporters attacked MDC 
followers in two separate incidents this week. In Bulawayo, 15 MDC 
youths were arrested after ZANU-PF youths attempted to violently 
block elections to the Provincial Youth Council. ZANU-PF youths 
expected to win numerous seats to the Youth Council, officially part 
of a youth advisory council to government, but reportedly launched a 
violent campaign to stop the election when they realized they were 
outnumbered and likely to lose. Riot police arrived at the 
Mhlanlandlela government complex where the fighting broke out and 
arrested 15 MDC youths.  Separately, about 60km north of Harare, 
several MDC supporters were taken from their homes on May 18 and 
beaten by suspected CIO operatives after attending a memorial 
Qbeaten by suspected CIO operatives after attending a memorial 
service. One victim was hospitalized for his injuries. The service 
commemorated the one year anniversary of a brutal incident of 
election violence in May 2008 that killed five MDC supporters. 
After the ceremony on May 16, 2009, a suspected CIO agent ordered 
everyone who had attended to surrender their MDC t-shirts. 
 
 
HARARE 00000467  002 OF 003 
 
 
 
¶5.  Not Your Average American Farm... Senate President Edna Mazongwe 
recently seized a productive multi-million-dollar-a-year citrus farm 
in central Zimbabwe and has reportedly turned the farm over to her 
daughter, who is an American citizen by birth.  During the violent 
seizure, several farm workers were seriously injured, including one 
who was shot in the knee. See Harare430. 
 
¶6.  WOZA Trial Starts... On May 19, eight women and two lawyers with 
Zimbabwe Lawyers for Human Rights (ZLHR) faced trial for 
allegedly disturbing the peace on February 10. All were arrested in 
downtown Harare during Women of Zimbabwe Arise (WOZA)Qs annual 
ValentineQs Day march. During the trial, police Superintendent 
Lawrence Chinhengo testified that none of the 
women were hit when they were arrested because officers QdidnQt have 
time.Q The trial will continue on May 28. 
 
¶7.  2 Protest Marches, 0 Arrests... On Monday, over 1000 members of 
Women of Zimbabwe Arise (WOZA) and Men of Zimbabwe Arise (MOZA) held 
a march in Bulawayo to articulate their demands from the 
transitional government. On Tuesday in Harare, 50 lawyers marched to 
the Ministry of Justice to present a petition to Minister Chinamasa 
to protest government-sponsored intimidation and harassment of 
lawyers. The protest followed the arrest of Alec Muchadehama, who 
was granted US$100 bail on May 15. To both groupsQ pleasant 
surprise, police did not interfere and no one was arrested in either 
march. 
 
¶8.  Germans Announce Humanitarian-Plus Package... On May 19, Germany 
announced 10 million eurosQ5 million for water and 
sanitation, 2 million for human rights, conflict, and 
democratization, and 3 million for other projectsQin new support to 
Zimbabwe.  The water and sanitation assistance will include 
infrastructure repair in urban centers. Also this week, various 
newspapers have reported that the World Bank has approved US$22 
million in small grants for Zimbabwe. The World Bank has refuted the 
report. 
 
-------------------------- 
Economic and Business News 
-------------------------- 
 
¶9.  More Indications of Return to Economic Normalcy... British 
American Tobacco (BAT) noted that the local market has moved 
back from QstickQ sales of individual cigarettes that prevailed in 
the last couple of years to the Qpack marketQ in an early indication 
of slightly rising disposable income. In a further signal of the 
return of normalcy, several oil companies are recalling their fuel 
coupons, as fuel is now adequately and legally available for hard 
currency cash. Fuel coupons had become a surrogate currency as the 
Zimbabwe dollar swooned in value last year. 
 
¶10.  Government Urged to Get Mining Policy Right... Presenters at a 
conference organized by the Chamber of Mines of Zimbabwe 
on May 7 urged government to implement prudent policies to attract 
investment in mining and restore the sector to its former position 
Qinvestment in mining and restore the sector to its former position 
of contributing close to 7 percent to GDP and over half of total 
exports.  Speakers advocated pursing indigenization through joint 
ventures with foreign investors rather than through legislation. 
However, even under good policies, ZimbabweQs mining industry faces 
the immense constraint of electric power shortages. See Harare 417. 
 
 
¶11.  Cereal Shortage Projected for 2009/10... Preliminary results 
from the Crop and Food Supply Assessment Mission (CFSAM) 
conducted by FAO, WFP, and the Ministry of Agriculture from May 3-11 
reveal a cereal shortage of 0.47 MT for 2009/2010 (based on a 
population of 12 million). Field work confirms an estimated national 
 
HARARE 00000467  003 OF 003 
 
 
yield of 1.51 million MT of maize and small grains, short of the 
projected requirement of 2.18 million MT. Although seed houses are 
well stocked, there are few buyers due to lack of liquidity 
especially in the A2 and large-scale farming sector. On the positive 
side, maize cereal prices have dropped 
from $.50/ kg a few months ago to $0.12 to $0.23/kg. The final CFSAM 
report will be released in early June. 
 
 
 
 
¶12.  Business Uptick... CFI Holdings reported improved availability 
and falling prices of stock feed since the liberalization of grain 
marketing. Capacity utilization at its major miller Victoria Foods 
has crept up to 30 percent with the wheat line running at 50 
percent; at its stock feed manufacturer Agrifoods, capacity 
utilization is 24 percent and rising. Cement manufacturer Lafarge is 
running at 70 percent capacity, up from 62 percent last year with 
output evenly split between exports and domestic sales. Retention of 
100 percent of export 
proceeds and the end of price controls hugely benefitted the group. 
However, the liquidity crunch continues to suppress demand. 
 
¶13.  But Credit Scarce... Working capital remains scarce as 
individuals and companies fail to maintain significant bank account 
balances due to a lack of disposable income/reserves, as well as 
weak confidence in the banking sector. The Zimbabwe 
Independent reported today that the bulk of bank deposits in 
Zimbabwe, which total only US$263 million, was only available 
short-term at a time when industry sorely needs long-term credit. 
 
¶14.  Air Zimbabwe Struggling... The national airline is incurring 
US$4 million in losses every month and cannot meet its operating 
costs, according to Air Zimbabwe CEO Peter Chikumba in oral evidence 
before the Parliamentary Portfolio Committee on 
Transport and Infrastructure. The airline, operating at 40 percent 
capacity, has a foreign debt of US$28 million, not counting US$50 
million to suppliers of its Chinese MA60s aircraft. The Civil 
Aviation Authority of Zimbabwe is reported to be US$150 million in 
the red. 
 
¶15.  Quote of the Week: 
 
QOn several occasions, the distinguished minister (Tendai Biti) has 
accused me of killing this economy through printing money...I have 
suffered and continue to suffer abuse and ridicule at a time when 
you as prime minister have been telling the nation that by-gones are 
by-gones and that we need to move forward 
 
 
-- Reserve Bank Governor Gideon GonoQs plea to Prime Minister Morgan 
Tsvangirai in a 15-page letter dated May 11 in 
which he also asked for immunity from future prosecution. On May 21, 
TsvangiraiQs office said they had never received the 
letter, which was first published in the Zimbabwe Times. The entire 
letter is at: http:// 
www.thezimbabweindependent.com/index.php/loca l/ 
22666-biti-has-personal-vendetta-againsts-me- gono 
 
MCGEE