VZCZCXRO7075
RR RUEHBZ RUEHDU RUEHMR RUEHRN
DE RUEHTO #0050/01 0131558
ZNY CCCCC ZZH
R 131558Z JAN 10
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 1185
INFO RUEHXQ/EU COLLECTIVE
RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLO/AMEMBASSY LONDON 0595
RUEHOT/AMEMBASSY OTTAWA 0001
RUEHBS/USEU BRUSSELS
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L SECTION 01 OF 03 MAPUTO 000050 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 01/12/2020 
TAGS: PGOV PREL KDEM KCOR EAID MZ
SUBJECT: GRM RESPONDS HARSHLY TO DONOR CONCERNS ON 
GOVERNANCE 
 
REF: 09 MAPUTO 1396 
 
MAPUTO 00000050  001.2 OF 003 
 
 
Classified By: Charge d'Affaires Todd Chapman, Reasons 1.4(b+d) 
 
¶1.  (C) Summary: International donors have spent recent weeks 
coordinating a response to the GRM's flawed October 28 
elections process, with several nations contemplating 
reductions in assistance to the central government.  The G-19 
Donor Group sent a letter to the GRM in December laying out 
specific concerns and calling for a concrete timeline for the 
government to show improvement in democracy and government 
indicators.  Despite the international community's calls for 
constructive dialogue, GRM Ministerial response was extremely 
negative to the letter--but President Guebuza's reaction was 
even more so in interactions with diplomats.  Not 
surprisingly, the GRM has enlisted state media to launch 
attacks on the international community.  While these 
exchanges portend a difficult patch in Mozambican relations 
with donors, it is clear that USG efforts in coordination 
with other international partners have paid dividends: our 
message on democracy has certainly struck a chord, and the 
GRM is now expressing a desire, albeit begrudgingly, to find 
a way to move forward.  End Summary. 
 
---------------------------------- 
Donors Express Governance Concerns 
---------------------------------- 
 
¶2.  (C) In the aftermath of Mozambique's flawed October 28 
presidential and legislative elections, the G-19 Donor Group 
(comprised mostly of Europeans, Canada, and World Bank, with 
the United States and UNDP as associate members) debated on a 
course of action.  The British, Canadian, Swiss, and Swedish 
Ambassadors all noted their willingness to reduce direct 
budget support assistance to the GRM by at least 10 percent 
in 2010.  The other Nordics and the Netherlands noted they 
were studying the possibility of a similar response.  Several 
countries discussed the possibility of withholding 
disbursements pending positive GRM action.  After much 
deliberation--essentially to overcome objections by the 
Portuguese, Spanish, and Italians--the Finnish Ambassador, as 
chair of the donor group, sent a letter to the GRM's Minister 
of Planning and Development on December 8 which highlighted 
donor concerns about governance and electoral issues, 
requested meetings with the GRM to discuss these concerns, 
and noted that a resolution of these discussions by mid-March 
2010 was important so as to influence governments' decisions 
on disbursements.  (Note: See text of letter in para 9.  End 
Note)  On December 9 the G-19 fowarded a more detailed letter 
outlining donor concerns on political inclusiveness and 
political reform, transparency in economic governance, and 
corruption. 
 
-------------------------- 
Ministers React Viscerally 
-------------------------- 
 
¶3.  (C) The GRM reacted harshly to these letters.  The EU had 
its regularly-scheduled political dialogue with the GRM on 
December 15 with Foreign Minister Oldemiro Baloi, who noted 
surprise at the donors' actions.  Baloi said that the GRM 
would not respond to threats from the international community 
and wished that resident ambassadors would stop mis-informing 
their capitals about Mozambique.  On December 16, the Charge 
met with Minister of the Presidency Antonio Sumbana to 
underscore USG support for the G-19 efforts and ongoing USG 
concerns about the deteriorating trends in Mozambique's 
democratic development.  Minister Sumbana launched into an 
oft-repeated recounting of Mozambique's difficult history and 
the need to preserve peace in the country, above all else. 
Such pressure as exerted by the donor community, said 
Sumbana, "only reminds us that we are poor and dependent, and 
we do not need to be reminded."  He said that it was 
humiliating for the government to be treated this way and in 
public.  The Charge, noting that it was the GRM and not the 
donors which made the G-19 letters public, encouraged a more 
constructive response. 
 
¶4.  (C) The G-19 Leadership Group, led by Finland and 
including the UK, Ireland, the World Bank and European 
Commission, met December 16 with a group of six ministers, 
led by Minister of Planning and Development Aiuba Cuereneia. 
 
MAPUTO 00000050  002.2 OF 003 
 
 
It was a tense meeting filled with testy exchanges. 
According to Finland's written record of the meeting, 
Minister Cuereneia's initial response was one of indignation 
and disbelief.  He stressed the importance of understanding 
Mozambique's history, the low starting point for the 
country's economic recovery following the end of the civil 
war, and that the GRM was addressing the concerns raised by 
the donors.  He was surprised to hear that most disbursements 
for 2010 would only take place after the conclusion of the 
consultations on democracy and governance issues and 
questioned the rationale of a tight deadline.  Finance 
Minister Manuel Chang stressed the importance of budget 
support and the devastating effects reductions in support 
would have on the country's reform efforts.  Minister of 
State Administration Lucas Chomera, taking a different 
approach, appealed for patience.  Minister Chomera compared 
the current situation with that of a student that was very 
good but suddenly was seen as very bad solely for having 
flunked in one subject. 
 
------------------------------------- 
Donors Urge for Constructive Dialogue 
------------------------------------- 
 
¶5.  (C) The Finnish Ambassador responded that the dialogue 
with the GRM had been positive and recognized achievements 
made.  The UK Ambassador noted the relationship between party 
and state as a main concern and wondered how the distinction 
between the two could be made clearer.  The World Bank 
representative commented that the G-19's concerns expressed 
during political dialogues were a soft form of rating, which 
market forces would do in a much more brutal form.  The EU 
representative noted that expectations at headquarters 
regarding governance are now higher and that concrete results 
are necessary. 
 
------------------------------------- 
President Guebuza's Scathing Diatribe 
------------------------------------- 
 
¶6.  (C/NF) On December 18 UK Ambassador Andrew Soper 
(strictly protect) and DFID representative met with President 
Guebuza at the President's request.  Purportedly to follow up 
on bilateral UK assistance issues, Guebuza instead accused 
the international community of humiliating him, his 
government and his country.  Though not shouting, Guebuza was 
visibly angry and aggressive in tone.  Soper described the 
experience as being "dressed down by the President, and that 
if I were a Mozambican, I would definitely be intimidated by 
Guebuza," whose reputation for ruthless action (especially as 
Interior Minister immediately after independence) remains but 
is rarely witnessed by the diplomatic community.  Guebuza 
told Soper:  "I will not be humiliated.  I know what it is 
like to be humiliated.  I was imprisoned by PIDE (the 
Portuguese security service during colonial times) and forced 
to drink my own urine.  I will not go through that 
humiliation again."  Soper told Guebuza that the G-19 had 
intentionally not gone public with its communication to the 
GRM and hoped to be able to have a constructive dialogue. 
Later on December 18, Guebuza hosted the diplomatic corps at 
his residence for a year-end reception.  Unlike the two 
previous years, in which Guebuza was friendly and interacting 
with diplomats, this year he was serious throughout and did 
not greet anyone except the Swazi Ambassador in his role as 
acting dean. 
 
-------------------------------------- 
State Media Criticizes Int'l Community 
-------------------------------------- 
 
¶7.  (C) As expected, press reaction from 
government-controlled media to the G-19's actions has been 
harsh, with numerous end-of-year editorials decrying 
international meddling in Mozambique's internal affairs. 
Some braver independent commentators have noted that the 
concerns expressed by the G-19 are shared by many in 
Mozambique, but few dare to express them.  Some FRELIMO 
sycophants suggest that the GRM, based on its resounding 
electoral victory, should discount the discordant views from 
"only a few Western countries" and continue with its 
programs, even if there is a small decline in international 
assistance.  Once Mozambique emerges from its post-holiday 
 
MAPUTO 00000050  003.2 OF 003 
 
 
break on January 18, the press debates are expected to resume 
with earnest. 
 
------------------------------------------- 
Comment: GRM Finally Takes Donors Seriously 
------------------------------------------- 
 
¶8.  (C) Any doubts the GRM may have had about the seriousness 
of international donor community concerns about democracy and 
governance issues have been dispelled.  As demonstrated by 
the Ministers' and the President's strong reactions to 
resident Ambassadors, the messages delivered and the linkages 
made with assistance levels are challenging the GRM to 
re-think its policies and to re-evaluate its approach on 
issues of greatest interest to donors.  Working in close 
collaboration with our European and Canadian colleagues to 
express these concerns jointly is clearly paying off.  At 
this juncture, all eyes are on the announcement of President 
Guebuza's new Cabinet, expected shortly after his 
Presidential Inauguration on January 14.  Meanwhile, 
jockeying has already started as one of the President's 
advisors already informally approached the U.S. Embassy 
requesting for a meeting on January 18 to hear in detail our 
concerns and proposals for a way forward.  We will work in 
close consultation with the G-19 donor group, but maintain 
these direct channels as well to maximize communication and 
USG influence. 
 
------------------------------------ 
Addendum: Text of G-19 Letter to GRM 
------------------------------------ 
 
¶9.  (U) Text of December 8 G-19 letter to GRM from Finnish 
Ambassador: 
 
I wish to formally advise the Government of Mozambique of the 
G-19's serious concerns on governance and electoral issues. 
Prompted by the lack of progress on the matters raised before 
the elections by Heads of Mission with His Excellency the 
President, the pre-existing concerns of the Group have been 
significantly underlined.  They relate to serious governance 
shortcomings, essentially those identified in the previous 
political dialogues, and also in the reports of the EU 
Elections Observation Mission and the African Peer Review 
Mechanism.  A paper setting out our concerns will follow. 
 
Based on this, there is a view, for many, that a breach may 
have occurred of the Underlying Principles of the MoU.  To 
address these concerns, we wish to initiate an early dialogue 
with the GoM.  I should add that even those G19 members, 
whose position in the MoU and the Underlying Principles is 
reserved, share a desire to see these issues fully resolved 
within the limits of their reservations. 
 
There is a strong desire on the part of the partners we 
represent to sustain the heretofore excellent relationship 
with the GoM and to ensure that disbursements for 2010 are 
influenced by a positive outcome to these deliberations.  We 
have calculated that an outcome reached no later than 
mid-March might facilitate this. 
 
We look forward to your response and to beginning our 
discussions as quickly as possible. 
 
End text. 
CHAPMAN