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RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHAN #0779/01 3171229
ZNR UUUUU ZZH
R 131229Z NOV 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 3016
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 03 ANTANANARIVO 000779 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR AF/E MARIA BEYZEROV 
DOC FOR RTELCHIN 
TREASURY FOR FBOYE 
PARIS FOR WBAIN 
LONDON FOR PLORD 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ECPS EINV MA
SUBJECT: ANTANANARIVO POL/ECON WEEKLY UPDATE (13-NOV-2009) 
 
REF: 09 ANTANANARIVO 767 
 
¶1. (U) SUMMARY: This is U.S. Embassy Antananarivo's Weekly Update 
for November 2-13, an unclassified review of major political, 
economic, and commercial events and information from the U.S. 
Mission to Madagascar and the Comoros. 
 
POLITICS (Paragraphs 2-4) 
- Transition Government: Still a Work in Progress 
- Election Timeline 
- French Ambassador Presents Credentials 
 
ECONOMIC AND COMMERCIAL (Paragraphs 5-10) 
- Macarthur Foundation Calls for Resumption of USAID Environment 
Program 
- High Speed Internet at Last 
- Ambassador Speaks to Amcham 
- Special Self-Help Projects Visit 
- China-Madagascar Cooperation 
- SADC Assistance in the Fishing Sector 
 
COMOROS (Paragraphs 11-12) 
- Fishermen on Strike 
- Resumption of Direct Air Links with France 
 
END SUMMARY 
 
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POLITICS 
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¶2. (SBU) TRANSITION GOVERNMENT: STILL A WORK IN PROGRESS: The four 
political movements have made progress in implementing the Charter 
of the Transition and the Addis Addendum (see ref A).  Most of the 
ministerial nominations have been determined, the president and 
co-presidents held their first joint meeting, and Eugene Mangalaza 
formally took over the position of Prime Minster on November 13. 
Difficulties remain: several key ministries remain hotly contested, 
and the presidential triumvirate is already finding cohabitation 
difficult.  The French and US ambassadors are calling together on 
former President Zafy on November 13 to press him to agree today to 
form a new government; he is, ironically (given his relative 
political weight), proving the most difficult of the four leaders. 
The looming pressure of EU aid and US trade (AGOA) remains a strong 
motivating factor, however, and the international community remains 
cautiously optimistic that the transition government will be 
finalized shortly.  The international community issued a joint 
communiqu on November 13 applauding the progress to date but 
encouraging the implement6ation of the Addis and Maputo agreements 
as soon as possible. 
 
¶3. (SBU) ELECTION TIMELINE: Following the first meeting of the 
Transition Presidential Council, Co-President Fetison Rakoto 
Andrianirina announced their decision to hold presidential elections 
by June 26, 2010 in order to have a new president by the 50th 
anniversary of the Malagasy Independence.  The Addis Ababa addendum 
to the Charter of the Transition stipulates that the National 
Independent Electoral Commission is to be set up by the end of the 
year, following a national conference to discuss changes to the 
constitution (slated for early December).  Transition officials plan 
to hold the constitutional referendum in January, despite concerns 
over the impact of cyclone season (January through April). 
Presidential and legislative elections may be held as early as 
April, perhaps simultaneously, followed by regional and municipal 
elections later in the year.  A more precise calendar will be 
available following upcoming assessments by international election 
experts. 
 
¶4. (SBU) FRENCH AMBASSADOR PRESENTS CREDENTIALS: French Ambassador 
Jean-Marc Chataigner presented his credentials to the HAT Minister 
of Foreign Affairs on November 9, and Transition President Rajoelina 
on November 10, without the presence of the two co-presidents. 
Predictably, Rajoelina supporters called it the first step to 
official international recognition of the Malagasy Transition (and, 
logically, its president).  Rajoelina's opponents, however, quickly 
called it "concrete proof" that Rajoelina has been a French puppet 
all along, and that France is pushing to advance its economic and 
political interests in the country.  Most ambassadors, including the 
U.S. ambassador, are awaiting the formation of a new government 
before starting calls on newly-named officials. 
 
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ANTANANARI 00000779  002 OF 003 
 
 
ECONOMIC AND COMMERCIAL 
----------------------- 
 
¶5. (SBU) MACARTHUR FOUNDATION CALLS FOR RESUMPTION OF USAID 
ENVIRONMENT PROGRAM:  Newly-named MacArthur Foundation President Bob 
Gallucci, on his first overseas trip in his new position, visited 
Madagascar November 6-11.  His focus was on MacArthur's many grants 
over the past two decades to NGOs and other groups promoting 
conservation in Madagascar.  Over dinner hosted by the ambassador, 
Gallucci indicated that he will write to the Obama administration 
encouraging an immediate resumption of USAID's suspended environment 
program.  His visit included field visits to marine and land 
conservation sites around the island. 
 
¶6. (SBU) HIGH SPEED INTERNET AT LAST: The director of Orange 
Madagascar told Emboff November 12 that Orange has already begun 
providing high speed internet services in the coastal town of 
Tamatave, where Madagascar's first undersea fiber optic cable "LION" 
landed last June.  LION, a USD 49.1 million investment by Orange 
Madagascar, France Telecom, and Mauritius Telecom, connects 
Madagascar to other Indian Ocean islands and on to Asia.  Prices for 
1 mbps internet connections in Tamatave have been reduced by about 
70 percent.  Despite contradictory information from the telecoms 
regulator OMERT, the director claimed that Orange is authorized by 
its license not only to provide cellular service, but also to 
provide internet service to PCs, and that this has been confirmed by 
the telecoms ministry.  The company does not yet have the 
authorization to sell capacity of its broadband network to other 
operators, but argued that the legal snag could be remedied merely 
by the passage of implementing decrees for the existing 2005 
telecoms law.  He explained that Orange has received assurances from 
transition President Rajoelina that reforms would be made to 
liberalize the sector.  The company launched its broadband services 
in Tana November 7, which it has already sold to the French Embassy, 
but is unable to roll them out more widely until it is granted 
additional frequencies from OMERT.  Two other submarine fiber optic 
cables are due to reach Madagascar by 2011 - the Orange line from 
Mombasa to the North and the Telma line (EASSy) from South Africa to 
the East. 
 
¶7. (SBU) AMBASSADOR SPEAKS TO AMCHAM:  The Ambassador spoke to a 
group of around 50 members of the American Chamber of Commerce of 
Madagascar November 12 about the current political situation.  He 
noted that the power-sharing agreement reached November 7 in Addis 
Ababa was a breakthrough, but now it was important to see concrete 
measures, including the installation of the transition cabinet and 
formation of the independent electoral commission.  In response to 
questions, he explained that the primary function of the transition 
government would be to organize elections, likely to be held in 
seven months, and that Madagascar should look to SADC, of which it 
is a member, for successful models of independent electoral 
commissions.  He clarified that the US plans to support the 
electoral process, but will not fully engage with Madagascar until 
there is an elected government in place.  Many participants again 
expressed concern about the possibility that Madagascar might lose 
eligibility for African Growth and Opportunity Act (AGOA) trade 
benefits. 
 
¶8. (U) SPECIAL SELF-HELP PROJECTS VISIT: Emboff visit two 
successfully completed Special Self-Help projects from FY 2008 on 
the east coast of Madagascar last week.  In Tamatave, Sanitec 
received USD 7,000 to purchase a ball mill that produces ceramic 
water filters.  The filters will be sold at a subsidized price to 
provide safe drinking water for 20,000 families in the surrounding 
community.  Association Mitsinjo in Mananara-Nord received USD 5,500 
to complete a library with solar energy and a latrine in this very 
isolated village. 
 
¶9. (U) CHINA-MADAGASCAR COOPERATION: During an interview, Mr. Zhou 
Mangsheng, Commercial and Economic Officer of the Chinese Embassy 
declared that China will fund the construction of a hydroelectric 
facility in the Mahajanga area, an investment totaling USD 140 
million.  The work will begin once technical conditions and the 
environmental impact survey are completed. 
 
¶10. (U) SADC ASSISTANCE IN THE FISHING SECTOR: Mr. Stuart Martin, in 
charge of the development sector at SADC, met with the Minister of 
Fisheries on November 10 to discuss the management of fish stock in 
the SADC region.  The organization will soon set up a network to 
fight illegal exploitation of fish by foreign companies.  In 
addition, SADC will create a data bank to assess the potential 
reserves of its members. 
 
ANTANANARI 00000779  003 OF 003 
 
 
 
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COMOROS 
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¶11. (SBU) COMORAN FISHERMEN ON STRIKE: Comoran fishermen launched a 
general strike on Thursday after negotiations with government 
officials broke down over the price of kerosene and electricity. 
The union is encouraging their allies in Anjouan and Moheli to 
follow suit.  Union plans to block access to the markets appeared to 
have been successful, with supplies running low on November 6.  It 
is not clear how long the fishermen can maintain their collective 
action, as most have little or no savings and depend on daily fish 
sales to earn a living, but it is indicative of mounting discontent 
among Comorans over their increasingly difficult economic 
conditions. 
 
¶12. (U) RESUMPTION OF DIRECT AIR LINKS WITH FRANCE: Abdillah 
Mouigni, SG of the Transport and Tourism Ministry, announced on 
November 6 that French airline Air Austral will start direct flights 
between Paris and Moroni in January 2010.  This follows on the heels 
of a recent visit to Comoros by Gerard Etheve, Managing Director of 
Air Austral, during which the remaining "technical and operational 
constraints" were eliminated.  The flight will depart Moroni every 
Tuesday with a stop-over at Marseille (designed to appeal to heavy 
demand from the Comoran diaspora in France, over 100,000 of whom 
live in or near Marseille), and return Wednesday.  This can only be 
good news for a nation that has long suffered due to its extreme 
isolation from the rest of the world economy. 
 
 
MARQUARDT