VZCZCXRO6284
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHDR #0428/01 1870502
ZNR UUUUU ZZH
R 060502Z JUL 09
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC 8656
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHJB/AMEMBASSY BUJUMBURA 2918
RUEHKM/AMEMBASSY KAMPALA 3449
RUEHLGB/AMEMBASSY KIGALI 1374
RUEHNR/AMEMBASSY NAIROBI 1313
RUEHLMC/MCC WASHINGTON DC
RHMFIUU/CJTF HOA
RUEWMFC/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000428 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON PGOV PREL TZ BY CG KE SO
SUBJECT: DEPUTY SECRETARY LEW'S MEETING WITH PRESIDENT KIKWETE 
 
DAR ES SAL 00000428  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY. President Kikwete, meeting with Deputy Secretary 
Lew June 30 immediately before departing for the African Union 
meeting in Libya, expressed satisfaction with U.S. assistance 
programs, in particular MCC, PEPFAR, and PMI, and the U.S. approach 
to assistance.  Kikwete described Tanzania's response to the global 
economic situation and was optimistic about recovery.  On Zanzibar, 
he said he was again engaging with the parties.  Kikwete touched on 
regional issues, noting concern about Somalia.  Finally, on the APR 
tax dispute, Kikwete turned to his Minister of Finance to ensure a 
quick resolution.  END SUMMARY. 
 
U.S. ASSISTANCE TO TANZANIA 
--------------------------- 
¶2. (SBU) President Kikwete thanked the Deputy Secretary for his 
visit to Tanzania, saying it strengthened relations.  He expressed 
satisfaction with U.S. assistance programs, in particular with the 
paradigm of partnership and Tanzanian ownership rather than 
"dictation" and a commitment to "mutuality, open discussion and the 
exchange of ideas."  He cited the Millennium Challenge Compact as a 
model, where the only limiting factor was the resources the U.S. was 
willing to commit.  Kikwete hoped President Obama or Secretary 
Clinton would visit to see the bulldozers in action building roads 
as soon as November.  Turning to other programs, Kikwete praised 
PEPFAR for helping Tanzania to build capacity.  He cited U.S. 
support in providing test kits for the nationwide voluntary 
counseling and testing campaign, which had reached five million 
people and reduced stigma.  He called the Presidential Malaria 
Initiative a "great success" that had appropriately targeted 
assistance.  Kikwete did not take up the Deputy Secretary's request 
to identify ways the U.S. could improve its assistance programs. 
 
TANZANIA AND ECONOMIC CRISIS 
---------------------------- 
¶3. (SBU) Kikwete noted the global economic crisis had reached 
Tanzania through its effect on exports, as market declines 
accompanied falling prices.  He said the GOT was taking measures to 
help traders, such as through bank guarantees for credit to purchase 
from farmers.  Kikwete was confident Tanzania would recover, that 
the situation would not get worse.  He noted coffee prices were 
already starting to recover. 
 
ZANZIBAR 
-------- 
¶4. (SBU) President Kikwete said he had started the process of 
reinitiating talks between the parties, although he was getting 
attacked both by opposition CUF and within his own party.  With the 
short time remaining before the next election, "we can't do all we 
planned," in particular holding a referendum on power-sharing. 
Kikwete said the important thing before the 2010 elections was to 
make arrangements for "new political dispensations," without which 
"I don't know how it will end."  He remarked on the "hairline 
finish" that characterizes all Zanzibar elections.  Kikwete said 
both he and Vice President Shein (a Zanzibar native) were "quite 
committed" to progress on Zanzibar. 
 
REGIONAL ISSUES: SOMALIA, KENYA, BURUNDI, DR CONGO 
--------------------------------------------- ----- 
¶5. (SBU) President Kikwete said the situation in Somalia was "almost 
getting out of hand."  Tanzania was concerned about the Islamist 
factor in Somalia, the potential for support of Islamic extremists 
in other countries.  While Tanzania itself "essentially" doesn't 
have extremists, the situation in Kenya was more worrisome.  Kikwete 
remarked that Somalis were using money from piracy to buy property 
in Kenya, spending in Nairobi because there was nothing to buy in 
Somalia.  Kikwete added that Kenya's domestic situation was to have 
been discussed on the margins of the Great Lakes Summit; however, 
Kenya as chair of the summit had repeatedly postponed meetings. 
 
¶6. (SBU) Kikwete touched briefly on Burundi, saying the country was 
"on course," and on the DR Congo, where although the guns were 
silent, the ex-FAR/Interahamwe/FDLR were still on the loose, looting 
and raping. 
 
APR ENERGY 
---------- 
¶7. (SBU) Deputy Secretary Lew thanked Kikwete for his attention to 
the ongoing tax dispute involving U.S.-based APR Energy and 
emphasized the importance of its speedy resolution.  Kikwete 
expressed surprise that the issue remained active and asked Minister 
of Finance Mkulo to have a report ready for him on his return from 
Libya.  Mkulo, who said the real problem was between Tanesco (the 
Tanzanian energy parastatal) and the tax authorities, promised to 
sort it out. 
 
 
DAR ES SAL 00000428  002.2 OF 002 
 
 
¶8. (U) Deputy Secretary Lew cleared this cable. 
 
ANDRE