VZCZCXRO9922
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHAN #0697/01 2750831
ZNR UUUUU ZZH
R 020831Z OCT 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 2898
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RHMFISS/CDR USAFRICOM STUTTGART GE
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ANTANANARIVO 000697 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR AF/E - MBEYZEROV AND FOR OES/ENV 
DOC FOR RTELCHIN 
TREASURY FOR FBOYE 
PARIS FOR WBAIN 
LONDON FOR PLORD 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON MA
SUBJECT: ANTANANARIVO POL/ECON WEEKLY UPDATE (10/02/2009) 
 
REF: A) ANTANANARIVO 692 B) ANTANANARIVO 693 
 
¶1. (U) SUMMARY: This is U.S. Embassy Antananarivo's Weekly Update 
for September 28 - October 2, an unclassified review of major 
political, economic, and commercial events and information from the 
U.S. Mission to Madagascar and the Comoros. 
 
POLITICAL (paras 2-4) 
- Rajoelina's Return from UNGA 
- Political Demonstrations 
- Human Rights Working Group on Media 
 
ECONOMIC AND COMMERCIAL (paras 5-8) 
- Local Chamber of Commerce Concerned About AGOA 
- Precious Wood Under Assault 
- Automotive Fair 
- Shipping Dispute 
 
END SUMMARY 
 
-------- 
POLITICS 
-------- 
 
¶2. (SBU) RAJOELINA'S RETURN FROM UNGA: Rajoelina spoke to the press 
upon his arrival Sept 30 after the controversial ban from speaking 
at UNGA (ref A) and a four-day stay in Paris. He stated that while 
considered a failure, his attendance at the UNGA can be seen as a 
success in that his presence - as the accepted Malagasy Head of 
State - did not leave Madagascar's UN seat empty, and he could still 
represent the country and the Malagasy people by signing several 
international agreements. He denounced lobbying by an 
"ill-intentioned Malagasy rich man" (a likely reference to 
Ravalomanana) who used his money to lobby against the HAT leaders, 
which according to TGV has resulted in the loss of aid to the 
Malagasy people.  He further stated that the UNGA ban was not really 
an action by SADC as a whole, but mainly a maneuver by some African 
leaders who fear that what happened in Madagascar - that Malagasy 
people could "overthrow dictatorship" - could be taken as a model by 
various African opposition movements.  He ended his remarks by 
saying that a rapid organization of elections is the only solution 
to the current crisis.  He is rumored to have met with opposition 
leader Zafy Albert Oct 1 to discuss a resolution of the political 
crisis. 
 
¶3. (SBU) POLITICAL DEMONSTRATIONS: Around 500 supporters of the 
three opposition entities attempted to hold a gathering to discuss 
the Maputo agreements at a downtown stadium Sept 26, despite 
authorization only being granted by the city to meet at a stadium on 
the outskirts of town (too far for most who come on foot).  The 
demonstrators clashed with law enforcement, resulting in eight 
injured, including one woman shot by a "drunken military element," 
and 17 arrests.  One woman, arrested after having insulted the law 
enforcement officers, has been released.  Law enforcement has blamed 
the demonstrators for not respecting the terms of the city's permit, 
while the three entities have condemned the fact that law 
enforcement is still being used as a force of repression.  City 
officials have decreed that political demonstrations are banned in 
the capital until further notice, but the opposition have renewed 
their request to hold a meeting at the downtown stadium this 
Saturday, Oct 3. 
 
¶4. (U) HUMAN RIGHTS WORKING GROUP ON MEDIA: Post hosted its monthly 
Human Rights Working Group on September 30, which featured two 
speakers on the role of the media during the current political 
crisis and in repairing the social fabric.  The speakers pointed out 
that Malagasy media are often biased because some journalists are 
paid and corrupted by politicians.  Politicians view reporters as 
adversaries if they refuse payment for promoting a one-sided point 
of view and subsequently deny them access to information, while some 
journalists race to publish news stories without verifying their 
accuracy.  Almost one hundred participants from NGOs, international 
organizations, embassies, universities, and the media participated 
actively in Q&A and debate following the speeches. 
 
----------------------- 
ECONOMIC AND COMMERCIAL 
----------------------- 
 
¶5. (SBU) LOCAL CHAMBER CONCERNED ABOUT AGOA: The director general of 
the Chamber of Commerce of Antananarivo told Emboff Oct 1 that the 
Chamber was considering sending a delegation of businessmen and 
 
ANTANANARI 00000697  002 OF 002 
 
 
workers to the U.S. to meet with the U.S. Chamber of Commerce and 
others to lobby for the continuation of AGOA benefits for 
Madagascar.  Emboff encouraged him to pressure the Malagasy 
authorities to take prompt steps to implement the rule of law to 
avoid the massive unemployment and likely upheaval in the capital 
city that would follow the suspension of AGOA.  Separately, Adidas 
representatives, who source from Madagascar, also expressed their 
concern regarding factory closures and job losses if AGOA were 
suspended. 
 
¶6. (U) PRECIOUS WOOD UNDER ASSAULT: Following the rampant, illegal 
felling of precious wood in and around national parks in the North 
of Madagascar, the ministries of environment, finance, and commerce 
issued a decree on September 21 authorizing the export of precious 
woods that have already been cut through November 30. Around 13 
operators have been authorized to export 25 containers each, but 
must in return pay Ar 72 million (USD 37,000) per container;  Ar 60 
Million will go to the public treasury and Ar 12 Million to a new 
fund "Action contre la Degradation de l'Environnement" (which does 
not yet have a legal existence and is unknown by the donor 
community).  Some operators claim that this decree undermines the 
competitiveness of formal exporters, whereas it legalizes the 
smuggling from informal ones and will likely enrich current 
political leaders. In response to the decree, environmental NGOs are 
advocating an export ban on precious woods in order to stop the 
prevailing anarchy, including further illegal logging, and propose 
the creation of a national task force to prevent a worsening 
environmental disaster.  According to a Global Witness report, much 
of the illegally-cut wood is making its way to Germany, China, and 
to the U.S. (through China). 
 
¶7. (U) AUTOMOTIVE FAIR: The 2009 automotive fair will be held on 
October 1-4 at the international conference center of Ivato.  This 
fair is organized by the GCAM (Groupement des concessionaires 
automobiles de Madagascar) grouping, the main distributor of 
vehicles in the country.  Motorbike vendors, spare parts 
distributors, banks, and oil distributors will participate as well. 
 
¶8. (U) SHIPPING DISPUTE: On September 11, Mediterranean Shipping 
Company (MSC) was sentenced to pay Ariary 615 million (USD 315,000) 
to a local company called Intertrade because the importing company, 
Saravana from India, refused to pay for the 14 tons of black pepper 
transported by MSC.  MSC has accused Intertrade of swindling them 
and declared that the company might leave the country if it has to 
pay this fine.  If MSC, and Maersk which is also facing legal 
harassment, both were to pull out of Madagascar, it could mean a 
halt of 80 percent of shipping in and out of the country (see ref 
B). 
 
 
MARQUARDT