VZCZCXRO4678
RR RUEHMR
DE RUEHMR #0400/01 3141627
ZNR UUUUU ZZH
R 101627Z NOV 09
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC 4470
INFO /MCC COLLECTIVE
RUEHMR/AMEMBASSY MASERU 4904

UNCLAS SECTION 01 OF 02 MASERU 000400 
 
SIPDIS 
 
DEPARTMENT FOR AF/S; INR/AF 
 
E.O. 12958: N/A 
TAGS: PGOV LT
SUBJECT: DISCUSSION WITH OPPOSITION PARTY LEADERS CLEARS UP LAND BILL 
CONFUSION 
 
REF: A) Maseru 388; B) Maseru 394 
 
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Summary 
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¶1. On Thursday, November 5, Ambassador Rob Nolan invited 
representatives of Lesotho's leading opposition political 
parties to a discussion at his residence.  Ten political leaders 
-- the majority of opposition parties represented in Parliament 
-- were in attendance.  The discussion centered around the 
controversial land bill, particularly the United States role 
through the Millennium Challenge Account (MCA) - Lesotho, which 
has been widely misunderstood.  At the outcome of the meeting, 
Post attendees felt that opposition politicians had gotten the 
information they needed to clear up any misunderstanding, and it 
was agreed that the negative comments which have been prevalent 
on the radio and in the written press concerning the U.S. role 
in the Land Bill should be diminished thanks to this meeting. 
 
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Ambassador and MCC Country Director clarify the MCC process 
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¶2. The Ambassador opened the meeting by stressing that the 
United States does not want to interfere in Lesotho's domestic 
political affairs.  He then turned the meeting over to 
Millennium Challenge Corporation (MCC) Country Director, Gene 
MacDonald.  The Country Director presented a very concise and 
informative overview of the MCC compact process.  She 
highlighted the fact that in designing the MCC Compact, the need 
for land reform was identified by the Government of Lesotho as 
one of the obstacles to sustainable economic growth to reduce 
poverty.  She stressed that consultations were undertaken 
throughout the entire process which involved the public, the 
government, and other stakeholders such as non-governmental 
organizations.  She clarified that MCA is a parastatal overseen 
by MCC, but which has a mandate to make its own decisions. 
Finally, opposition politicians had been under the impression 
that if the Land Bill is not passed, the United States would 
terminate the entire $363 million MCC compact.  The Country 
Director assured the gathering that only the $20 million 
involved in the Land Reform activity of the MCC compact would be 
at stake if the Land Bill is not passed. 
 
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Opposition party leaders make their concerns known 
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¶3. Opposition party leaders responded to the Ambassador and 
Country Director by thanking them for the invitation and giving 
a list of their concerns.  Chiefly, they pointed out that land 
is a very sensitive cultural subject for Basotho, who lost much 
of their land heritage when Dutch settlers moved west into the 
current South African Free State.  This issue is still raw for 
Basotho, who call the lost land the "conquered territory".  The 
leaders stressed that they are not against American aid in 
principle, and that they are very grateful for everything that 
the United States has given to fight HIV/AIDS.  Opposition 
leaders agree that land reform is needed, but they are not happy 
with the current bill, which they feel does not give adequate 
protection to the poor and about which they did not feel they 
had adequate input.  They are also very angry with the ruling 
party for making it seem that if the current Land Bill does not 
pass, the United States will cancel the MCC Compact.  They were 
also adamant that there had not been enough consultations with 
the people, and that the current bill reflects the will of the 
ruling party, not the will of the Basotho people.  Finally, the 
MCC country director clarified that there is no MCC requirement 
that foreigners be allowed to own land in Lesotho. 
 
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Comment 
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¶4. Embassy staff came away from this meeting feeling that the 
opposition was relieved to hear the U.S. side of the story, and 
that it was unlikely they would continue to spread negative and 
false information about U.S. involvement in the Land Bill. 
While it is unclear what the outcome of the Land Bill vote will 
be at this moment, we view the current debate in the country as 
a positive development.  The Embassy is pleased with the debate 
and will continue to encourage all open political debate as a 
sign of a healthy democracy at work.  We are concerned, however, 
that the ruling party's heavy majority in the Legislature means 
that for the foreseeable future it is that one party which 
controls which laws get passed, and in what form, regardless of 
opposition or public opinion.  In this case, it appears that the 
strong feelings on the part of the public, fueled by rhetoric 
from opposition politicians, may have managed to change the 
ruling party's drive to pass the bill.  What remains to be seen 
 
MASERU 00000400  002 OF 002 
 
 
is whether in the next few weeks, changes can be made which will 
incorporate the major concerns of the public and opposition 
parties.  We will continue to encourage healthy political debate 
in the Kingdom, and will keep the Department posted on any 
developments that effect the U.S. or our policy on this matter. 
NOLAN