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R 130941Z JUL 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4709
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2342
RUEHAR/AMEMBASSY ACCRA 2943
RUEHDS/AMEMBASSY ADDIS ABABA 3061
RUEHRL/AMEMBASSY BERLIN 1490
RUEHBY/AMEMBASSY CANBERRA 2324
RUEHDK/AMEMBASSY DAKAR 2691
RUEHKM/AMEMBASSY KAMPALA 3109
RUEHNR/AMEMBASSY NAIROBI 5552
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 2239
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000577 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR 
STATE PASS TO USAID FOR L.DOBBINS AND J. HARMON 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
 
SUBJECT: ZIM NOTES 07-10-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- Kimberley Team Urges Ban on Chiadzwa Diamonds... 
- Cabinet Presses Ministers on Outstanding Issues... 
- Constitutional All Stakeholders Conference to Kick-Off Monday... 
- Another MDC-T MP Convicted... 
- Swine Flu in Zimbabwe? 
- MIC Maintaining Journalist Accreditation Authority... 
- Well-Connected Brit Gets Off... 
- Zimbabweans Are World's Unhappiest People... 
- Cost of Living Rises Sharply in June 2009... 
- Zimbabwe's Horticulture Industry Affected by Global Recession... 
- Investment Conference Sends Mixed Signals... 
- Panning More Lucrative Than Ever... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  Kimberley Team Urges Ban on Chiadzwa Diamonds...  A delegation 
from the Kimberley Process Certification Scheme has called for an 
immediate ban on trade in diamonds from Zimbabwe's Marange fields 
after unearthing gross human rights violations and other illegal 
activities at the notorious diamond fields.  The delegation said 
their final report and recommendations (which could include 
Zimbabwe's suspension from the Kimberley Process) will take into 
account measures the GOZ implements over the two weeks following the 
visit.  The Liberian team leader made a powerful rebuke of the 
state-sponsored violence when he compared the atrocities to those 
that occurred in his own country.  The GOZ's initial public response 
pledged phased demilitarization of Chiadzwa, but did not include 
immediate suspension of mining. 
 
¶3.  Cabinet Presses Ministers on Outstanding Issues...  In a 
contentious Cabinet meeting this week, MDC ministers pressed all 
three principals --Mugabe, Tsvangirai, and Mutambara-- for 
resolution of outstanding issues.  With agreement apparently reached 
on the appointment of governors, ambassadors, and permanent 
secretaries, and the swearing-in of Roy Bennett as Deputy Minister 
of Agriculture to be implemented in August, the remaining unresolved 
issues are the continued presence of Gideon Gono as Governor of the 
Reserve Bank of Zimbabwe and Johannes Tomana as Attorney General. 
The ministers demanded that the principals report back to them at 
next week's Cabinet meeting.  Separately, Tsvangirai plans to travel 
to SADC capitals within the next couple of weeks to urge an 
extraordinary SADC summit to deal with these issues. 
 
¶4.  Constitutional All Stakeholders Conference to Kick-Off Monday... 
 4,000 delegates representing a cross-section of Zimbabwe's populace 
are scheduled to converge on Harare on Monday to kick-off the first 
All Stakeholders Conference (ASC).  The conference is charged with 
establishing thematic sub-committees that will direct a four-month 
nationwide consultative program to extract Zimbabwean's views on 
constitutional issues such as checks on executive authorities, 
control of the military, and potentially a Bill of Rights.  The 
constitutional process has been progressing on schedule, but is 
Qconstitutional process has been progressing on schedule, but is 
threatened by political infighting, disagreements over the role of 
the Kariba Draft, and attempts by ZANU-PF to delay the process.  See 
Harare 570. 
 
¶5.  Another MDC-T MP Convicted...  A Chipinge magistrate sentenced 
the MP for Chipinge South, Meki Makuyana, to 18 months in prison on 
charges of kidnapping.  He was sentenced along with three other MDC 
members, Hardwork Masaiti the counselor for ward 26 in Chipinge 
South, Simon Chaya and Wedzerai Gwenzi.  According to an MDC 
statement, this brings to seven the number of MDC-T MPs who have 
 
HARARE 00000577  002 OF 003 
 
 
been convicted or face trumped-up charges this year. 
 
¶6.  Swine Flu in Zimbabwe?  The lead article in the Herald on July 9 
warned of the country's first two cases of the deadly H1N1 swine flu 
virus.  Neither case has resulted in a fatality.  One victim was a 
visiting Asian man recently arrived from London, while the other was 
a Zimbabwean who had just returned from South Africa.  Zimbabwe 
lacks the ability to test for the disease locally, indicating that 
most likely the diagnoses occurred overseas. 
 
¶7.  MIC Maintaining Journalist Accreditation Authority...  The Media 
Information Commission --a body that a High Court judge in June 
ruled no longer had accreditation powers-- insisted that journalists 
wishing to cover this week's International Investment Conference 
would have to be vetted and accredited by the MIC. 
 
¶8.  Well-Connected Brit Gets Off...  British property tycoon, 
Nicholas van Hoogstraten, has been cleared of illegal currency 
dealing and possession of pornography charges by a Zimbabwean court. 
 The case was thrown out this week after judges said police had 
broken the rules when they raided his home.  The 64-year-old, who 
appeared in court using his new surname von Hessen and owns about 
200 properties in Zimbabwe, is reported to have good relations with 
President Mugabe. 
 
¶9.  Zimbabweans Are World's Unhappiest People...  In a recent survey 
by a U.K.-based think tank, the New Economics Foundation, Zimbabwe 
ranked last out of 143 nations surveyed over the happiness of its 
citizens.  The think tank attempted to measure life expectancy, 
personal satisfaction, and the natural environment to develop the 
"Happy Nation Index".  Low life expectancy in Zimbabwe is cited as 
one of the core reasons for Zimbabwe's poor showing.  Zimbabwean men 
are expected to live just 37 years, while women on average live only 
¶34. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶10.  Cost of Living Rises Sharply in June 2009...  The Consumer 
Council of Zimbabwe calculated that the cost of living for a family 
of six rose by 15 percent from US$438 in May to US$502 in June 2009. 
 Much of this increase was accounted for by a 24 percent increase in 
the price of food and rent.  The figures highlight the inadequacy of 
the US$100 allowance given to civil servants. 
 
¶11.  Zimbabwe's Horticulture Industry Affected by Global 
Recession... The Horticultural Promotion Council (HPC) of Zimbabwe 
says the industry has been adversely affected by the global 
recession.  The flower sector has been the biggest loser with prices 
falling by as much as 35 percent.  As a result, small-scale flower 
growers have gone under due to viability problems.  The HPC is 
urging members to diversify their businesses by exploring the 
Australian, New Zealand, South African, and South East Asian markets 
in addition to their traditional European markets. 
 
¶12.  Investment Conference Sends Mixed Signals...  The GOZ organized 
Q12.  Investment Conference Sends Mixed Signals...  The GOZ organized 
an international investment conference running from July 9 to 10, 
2009 to market a more positive image of the country despite the 
economic and social realities on the ground.  Mugabe opened the 
conference, but dampened spirits when he said the British will have 
to compensate farmers who lost their land during the chaotic land 
reform.  At this point commercial farmers in attendance got up and 
left, while the remainder of the audience appeared more subdued. 
Only a handful of international investors attended the conference. 
 
¶13.  Panning More Lucrative Than Ever...  Since dollarization and 
the release of gold price controls earlier this year, irregular 
panning has become more lucrative than ever in Penhalonga near 
Metallon Gold's Redwing gold mine.  Metallon closed the mine in 2008 
 
HARARE 00000577  003 OF 003 
 
 
due to flooding caused by power blackouts.  Residents of the mining 
settlement told us that ZANU-PF bigwigs pass through regularly and 
pay up to US$20 per gram (US$568/oz) cash for gold which is trading 
on the world market this week at around US$930/oz. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶14.  "I am from Liberia, Sir I was in Liberia throughout the 15 
years of civil war, and I have experienced too much senseless 
violence in my lifetime, especially connected to diamonds.  In 
speaking with some of these people, Minister, I had to leave the 
room. This has to be acknowledged and it has to stop." -- An excerpt 
from the Kimberley Team report provided to GOZ officials this week. 
Liberian Kimberley Process Team Leader Kpandel Fayia describes his 
reaction to state-sponsored violence in the Chiadzwa diamond 
fields. 
 
 
DHANANI