Cablegate: U.S. Assistance for Land Reform

This record is a partial extract of the original cable. The full text of the original cable is not available.

271036Z Apr 00

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FM AMEMBASSY HARARE
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INFO AMEMBASSY ROME
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SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

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ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

REFS: (A) 98 HARARE 7612, (B) 98 HARARE 5986, (C) HARARE 1609,

(D) HARARE 2221,(E) HARARE 2205

1. SUMMARY: THIS CABLE PROVIDES A BRIEF HISTORY OF THE
BACKGROUND AND RATIONALE FOR U.S. INVOLVEMENT IN LAND REFORM IN
ZIMBABWE, THE STATUS OF ZIMBABWE'S CURRENT SECOND PHASE OF ITS
LAND REFORM AND RESETTLEMENT PROGRAMME (LRRP II), USAID AND
OTHER DONOR ASSISTANCE FOR LRRP II, AND THE STATUS OF THAT
ASSISTANCE AS A RESULT OF THE PRESENT FARM OCCUPATION PROBLEM IN
ZIMBABWE. THIS IS AN UNCLASSIFIED DOCUMENT AND MAY BE SHARED
WITH THE U.S. CONGRESS. END SUMMARY.

ZIMBABWE'S LAND REFORM AND RESETTLEMENT PROGRAM

2. IN JUNE 1998, THE GOVERNMENT OF ZIMBABWE (GOZ) RELEASED A
DRAFT "POLICY FRAMEWORK AND PROJECT DOCUMENT" FOR PHASE II OF
THE LAND REFORM AND RESETTLEMENT PROGRAMME (LRRP II) SETTING
FORTH THE GOVERNMENT'S PROPOSED POLICIES AND PLANS FOR PURSUING
A SECOND MAJOR PHASE OF LAND REFORM IN ZIMBABWE. (COMMENT:
WHILE DEFINITIONS MAY VARY, THE FIRST 'PHASE' OF ZIMBABWE'S LAND
REFORM PROGRAM PROCEEDED SPORADICALLY SINCE INDEPENDENCE, WITH
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ONLY ABOUT 71,000 FAMILIES RESETTLED ON ABOUT 3.5 MILLION
HECTARES (HA) OF LAND. THIS CURRENT SECOND PHASE OF THE PROGRAM
WAS LAUNCHED AT LEAST PARTIALLY IN RESPONSE TO THE GOVERNMENT'S
FAILED ATTEMPT TO COMPULSORILY ACQUIRE 1,471 COMMERCIAL FARMS IN
1997. AS A RESULT OF GOVERNMENT'S INABILITY TO ADHERE TO THE
LEGAL REQUIREMENTS ASSOCIATED WITH THIS PROPOSED ACTION, THE NET
RESULT OF THIS EFFORT, ASIDE FROM THE CONSIDERABLE ECONOMIC
UNCERTAINTY THIS ACTION CAUSED, WAS THE IDENTIFICATION OF 118
FARMS WHICH WERE UNCONTESTED BY THE OWNERS FOR PROGRAM
ACQUISITION/USE (REF A). END COMMENT.) AS DESCRIBED IN THIS
PROGRAM DOCUMENT, LRRP II IS AN AMBITIOUS FIVE-YEAR PLAN FOR THE
RESETTLEMENT OF 91,000 FAMILIES (UP TO 550,000 PEOPLE, PLUS AN
UNSPECIFIED NUMBER OF SECONDARY 'SPIN OFF' BENEFICIARIES) ON
FIVE MILLION HECTARES (HA) OF LAND IN THE COUNTRY'S LARGE-SCALE
COMMERCIAL FARMING SECTOR, AT AN ESTIMATED COST OF US$ 1.9
BILLION.

INTERNATIONAL DONORS' CONFERENCE ON LAND REFORM

3. THE GOZ CONVENED AN INTERNATIONAL DONORS CONFERENCE ON LAND
REFORM IN ZIMBABWE ON SEPTEMBER 9-11, 1998 TO ADDRESS DONORS'
EXPRESSED INTEREST AND CONCERNS REGARDING LRRP II (REF B). THE
CONFERENCE WAS ATTENDED BY SENIOR REPRESENTATIVES OF ALL MAJOR
INTERNATIONAL, MULTILATERAL AND BILATERAL DONORS TO ZIMBABWE, AS
WELL AS KEY ZIMBABWEAN NON-GOVERNMENTAL, CIVIL SOCIETY, FARMERS'
UNIONS AND PRIVATE SECTOR STAKEHOLDERS. AT THE CONFERENCE,
DONORS UNANIMOUSLY ENDORSED THE NEED FOR LAND REFORM IN ZIMBABWE
FOR PURPOSES OF POVERTY ALLEVIATION (FOR THE POOR INDIGENOUS
MAJORITY WITHIN THE COUNTRY'S CONGESTED COMMUNAL AREAS), AND
ECONOMIC GROWTH AND STABILITY. THE DONORS' MAJOR RESERVATIONS
REGARDING THE PROPOSED PROGRAM INCLUDED THE: (1) LACK OF
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CAPACITY OF THE GOVERNMENT TO IMPLEMENT SUCH A MASSIVE PROGRAM;
AND (2) A STRONG NEED/DESIRE FOR A MORE OPEN, TRANSPARENT AND
CONSULTATIVE LAND REFORM PROCESS IN ZIMBABWE (INCLUDING THE
POSSIBILITY OF MORE BOTTOM-UP, PARTICIPATORY AND MARKET-ORIENTED
APPROACHES TOWARDS PROGRAM IMPLEMENTATION, RATHER THAN SIMPLY
RELYING ON THE MORE TOP-DOWN AND DIRECTIVE GOVERNMENT-
ADMINISTERED APPROACHES OF LAND REFORM WHICH HAVE YIELDED POOR
RESULTS IN ZIMBABWE AND ELSEWHERE).
IN RESPONSE TO THESE
CONCERNS, THROUGH A JOINT COMMUNIQUE ISSUED AT THE END OF THE
CONFERENCE, GOVERNMENT AND DONORS AGREED TO AN INITIAL 24-MONTH
"INCEPTION PHASE" OF LRRP II TO BE PURSUED ACCORDING TO THE
FOLLOWING MAJOR PRINCIPLES AND OBJECTIVES:

-IMMEDIATELY IMPLEMENT RESETTLEMENT BEGINNING WITH THE 118
UNCONTESTED FARMS ON OFFER;

-IMPLEMENT CURRENT GOZ RESETTLEMENT MODELS AND PROVIDE
OPPORTUNITIES FOR TESTING ALTERNATIVE APPROACHES;

-UNDERTAKE ONGOING MONITORING DURING THE INCEPTION PHASE WITH AN

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UNCLAS SECTION 02 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

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LONDON FOR PFLAUMER

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E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

EVALUATION AT THE END;

-INTEGRATE THE LRRP II INTO THE NATIONAL MACRO-ECONOMIC POLICY
AND POVERTY ALLEVIATION PLANS. POLICY REFORMS WOULD INCLUDE THE
INTRODUCTION OF AN AGRICULTURAL LAND TAX, STREAMLINING
SUBDIVISION REGULATIONS AND OPERATIONALIZING IMPROVED LAND
TENURE ARRANGEMENTS;

-UNDERTAKE CONSULTATIONS WITH STAKEHOLDERS AND LEARN FROM
EXTERNAL EXPERIENCES;

-PROVIDE EQUAL ACCESS AND OWNERSHIP OF LAND BY MEN AND WOMEN AND
INVOLVE WOMEN IN PLANNING AND IMPLEMENTATION;

-IMPLEMENT THE PROGRAM IN A TRANSPARENT, FAIR AND SUSTAINABLE
MANNER, WITH REGARD TO RESPECT FOR THE LAW, AND TO BROADENED
STAKEHOLDER AND BENEFICIARY PARTICIPATION; AND

-ORGANIZE AND MANAGE THE LRRP II IN WAYS THAT INCLUDE
CONSULTATIONS AND PARTNERSHIPS OF THE GOZ WITH ALL STAKEHOLDERS,
THE BENEFICIARIES AND CIVIL SOCIETY (INCLUDING THE NATIONAL
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ECONOMIC CONSULTATIVE FORUM, COMMERCIAL FARMERS' UNION (CFU),
ZIMBABWE FARMERS' UNION (ZFU), INDIGENOUS COMMERCIAL FARMERS'
UNION (ICFU), WOMEN'S ORGANIZATIONS AND OTHER NON-GOVERNMENTAL
ORGANIZATIONS).

4. MARKET-BASED APPROACHES: AMONG THE MORE SIGNIFICANT
ACHIEVEMENTS OF THE DONORS' LAND CONFERENCE WAS GOZ ACCEPTANCE
TO ALLOW ALTERNATIVE RESETTLEMENT MODELS AND TO PROCEED WITH
WORK ON LAND POLICY ISSUES THAT WOULD PAVE THE WAY FOR LAND
TENURE REFORM. ACCEPTANCE OF THE NEED TO WORK ON POLICY ISSUES,
SUCH AS LAND TAXATION, SUBDIVISION, FARM SIZE LIMITATIONS, LAND
TENURE, ETC., THAT WOULD STIMULATE A LAND MARKET AND CREATE
INCENTIVES FOR EFFICIENT LAND USE REPRESENTED A SIGNIFICANT
POLICY BREAKTHROUGH FROM PAST GOZ POSITIONS ON THIS SUBJECT.
DESPITE THE POLITICAL RHETORIC, GOZ TECHNICAL COUNTERPARTS
UNDERSTAND AND SUPPORT THESE CONCEPTS AND, IN FACT, PROGRESS IS
BEING MADE ON THESE ISSUES. IN THIS REGARD, UNDER THE NEW LAND
POLICY FRAMEWORK COMPLETED IN FALL 1999, A NEW PROGRESSIVE LAND
TAX HAS BEEN APPROVED BY CABINET FOR LEGISLATIVE ACTION, DRAFT
REGULATIONS ON FARM SIZE LIMITATIONS HAVE BEEN COMPLETED, NEW
REGULATIONS ON LAND SUBDIVISION ARE ACTIVELY BEING PURSUED AND
LONGER-TERM PLANS FOR ADDRESSING WOMENS' AND MORE GENERAL LAND
TENURE RIGHTS ARE UNDER DEVELOPMENT. COMMENT: AS DESCRIBED
BELOW (SEE PARA 13.B.), USAID ASSISTANCE FOR THIS PROGRAM HAS
BEEN DESIGNED SPECIFICALLY TO PROVIDE SUPPORT ON THESE KEY
POLICY ISSUES. END COMMENT.

5. THE U.S. GOVERNMENT, REPRESENTED BY AMBASSADOR MCDONALD,
ISSUED A FORMAL STATEMENT AT THE CONFERENCE EXPRESSING OUR
STRONG SUPPORT FOR "A LAND REFORM AND RESETTLEMENT PROCESS THAT
IS TRANSPARENT, FAIR AND DOES NOT HARM THE IMPORTANT
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AGRICULTURAL SECTOR OF THE ECONOMY - IN ORDER TO CREATE THE
ENABLING ENVIRONMENT FOR SUSTAINABLE AND EQUITABLE ECONOMIC
GROWTH - AS A MATTER OF SOCIAL JUSTICE." IN ADDITION, WHILE
ACKNOWLEDGING OUR FUNDING LIMITATIONS (AT THE TIME, THE USAID
MISSION TO ZIMBABWE WAS STILL SCHEDULED TO CLOSEOUT IN FY2003)
AND THE USG'S INABILITY TO FINANCE COMPULSORY LAND ACQUISITION,
THE STATEMENT PLEDGED OUR DESIRE TO "REMAIN A REAL PLAYER IN
ZIMBABWE'S LAND REFORM PROGRAM" THROUGH THE PROVISION OF
UNSPECIFIED "TECHNICAL ASSISTANCE IN WAYS THAT THE COGNIZANT
AUTHORITIES DEEM USEFUL." COMMENT: IN ADDITION TO FUNDING AND
MANAGEMENT CONSTRAINTS, POSSIBLE USG ASSISTANCE FOR THIS PROGRAM
WAS LIMITED TO 'TECHNICAL ASSISTANCE' AS A MORE CAUTIOUS INITIAL
APPROACH TOWARD PROGRAM INVOLVEMENT. WE CONSIDERED THIS
APPROACH PRUDENT AT THAT TIME, IN VIEW OF THE CONSIDERABLE
POLITICAL RHETORIC ASSOCIATED WITH THE SUBJECT OF LAND REFORM IN
ZIMBABWE. WE ALSO BELIEVED IT WAS IMPORTANT TO ALLOW SUFFICIENT
TIME TO OBSERVE AND LEARN FROM THE PROGRESS AND RESULTS OF THE
PILOT INCEPTION PHASE BEFORE MAKING ANY MORE SUBSTANTIVE U.S.
FUNDING COMMITMENTS. ON THE OTHER HAND, THE USG POSITION DID
NOT PRECLUDE THE POSSIBILITY OF SIGNIFICANT ADDITIONAL U.S.
FINANCIAL SUPPORT FOR LRRP II SHOULD THE INCEPTION PHASE PROVE

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FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 5877
INFO AMEMBASSY ROME
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AMEMBASSY PARIS
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DEPTTREAS WASHDC
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UNCLAS SECTION 03 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

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ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

SUCCESSFUL IN MEETING ITS IMPORTANT INITIAL PROGRAM TARGETS.
END COMMENT.

INCEPTION PHASE

6. ON NOVEMBER 1, 1999, THE GOZ ISSUED THE PILOT "INCEPTION
PHASE FRAMEWORK PLAN -1999-2000" DOCUMENT, CALLING FOR THE
RESETTLEMENT OF 33,800 FARM FAMILIES (PLUS SOME 85,000 NON-FARM
FAMILY SECONDARY 'SPIN OFF' BENEFICIARIES) OVER AN INITIAL 24-
MONTH PERIOD ON ONE MILLION HA OF LAND. THIS INCEPTION PHASE
DOCUMENT DULY INCORPORATED ALL OF THE AGREEMENTS REACHED AT THE
DONORS' LAND CONFERENCE, INCLUDING A FAIR, JUST, TRANSPARENT AND
HIGHLY CONSULTATIVE PROCESS; ALTERNATIVE AS WELL AS GOVERNMENT-
ADMINISTERED APPROACHES; AND WOMENS' LAND RIGHTS AND
PARTICIPATION; ETC.). ACCORDINGLY, IT RECEIVED WIDESPREAD
SUPPORT FROM ALL KEY LRRP II STAKEHOLDERS (INCLUDING ALL THREE
OF THE FARMERS' UNIONS - CFU, ICFU, ZFU).

INSTITUTIONAL FRAMEWORK

7. DUE TO ITS PARAMOUNT IMPORTANCE, LRRP II HAS A WIDE VARIETY
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OF STAKEHOLDERS LOCATED IN SEVERAL DIFFERENT INSTITUTIONAL
STRUCTURES. ON THE GOVERNMENT SIDE, THE KEY INSTITUTIONAL
STRUCTURE IS THE CABINET COMMITTEE ON RURAL RESETTLEMENT AND
DEVELOPMENT (CRD), CHAIRED BY VICE-PRESIDENT JOSEPH MSIKA, AND
CONSISTING OF THE MINISTERS OF LANDS AND AGRICULTURE; LOCAL
GOVERNMENT AND NATIONAL HOUSING; RURAL RESOURCES AND WATER
DEVELOPMENT; NATIONAL AFFAIRS, EMPLOYMENT CREATION AND
COOPERATIVES; FINANCE; MINES, ENVIRONMENT AND TOURISM; TRANSPORT
AND ENERGY; AND THE NATIONAL ECONOMIC PLANNING COMMISSION. THIS
CABINET-LEVEL, DECISION-MAKING GROUP IS SUPPORTED BY A 'WORKING
PARTY' OF THE CRD, COMPOSED OF PERMANENT SECRETARIES OF THE
ABOVE MINISTRIES, WHICH IN TURN IS SUPPORTED BY THE INTER-
MINISTERIAL COMMITTEE ON RURAL RESETTLEMENT AND DEVELOPMENT
(IMCRD), COMPOSED OF HEADS OF PARTICIPATING GOVERNMENT
DEPARTMENTS.

8. THE KEY STRUCTURE FOR NON-GOVERNMENTAL INPUT INTO THE LAND
REFORM PROCESS IS THE LAND REFORM, RURAL RESETTLEMENT AND
DEVELOPMENT TASK FORCE (LAND TASK FORCE) OF THE NATIONAL
ECONOMIC CONSULTATIVE FORUM (NECF). THE NECF LAND TASK FORCE IS
COMPOSED OF SENIOR REPRESENTATIVES OF MOST KEY NON-
GOVERNMENTAL/CIVIL SOCIETY STAKEHOLDERS IN LAND REFORM IN
ZIMBABWE, INCLUDING ALL MAJOR FARMERS' AND FARM WORKERS' UNIONS,
WOMENS' GROUPS, UNIVERSITY/ACEDEMIC INTERESTS, AND OTHER
CONCERNED PRIVATE/NON-GOVERNMENTAL INTERESTS. GOVERNMENT IS
ALSO REPRESENTED ON THE NECF LAND TASK FORCE AT THE WORKING
PARTY (PERMANENT SECRETARY) LEVEL OF THE CRD NOTED ABOVE.

9. DONOR AGENCIES "ACTIVELY ENGAGED IN SUPPORTING LRRP II" ARE
REPRESENTED THROUGH A JOINT CONSULTATIVE COMMITTEE OF GOVERNMENT
AND DONORS ON LAND REFORM ADMINISTERED THROUGH THE UNITED
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NATION'S DEVELOPMENT PROGRAM (UNDP).

10. FINALLY, A NEW TECHNICAL SUPPORT UNIT (TSU) IS NOW ALMOST
FULLY ESTABLISHED, RESPONSIBLE FOR THE DAY-TO-DAY MANAGEMENT OF
LRRP II, WHICH WILL INTERACT WITH ALL OF THESE INSTITUTIONAL
STAKEHOLDERS AT THE WORKING LEVEL TO FACILITATE THE EFFECTIVE
PLANNING, IMPLEMENTATION, COORDINATION AND MONITORING OF PROGRAM
ACTIVITIES. IN ACCORDANCE WITH THIS IMPORTANT PROGRAM MANDATE,
ALL AGREED THAT THE TSU MERITED PRIORITY DONOR SUPPORT.

11. ALL OF THESE DIFFERENT INSTITUTIONAL MECHANISMS MEET
PERIODICALLY, AS REQUIRED, TO DISCUSS LRRP II POLICY, PLANS,
PROGRESS, ISSUES AND CONSTRAINTS. RECOMMENDATIONS FOR PROGRAM
POLICY AND/OR IMPLEMENTATION CAN, AND DO FLOW IN ALMOST ANY
DIRECTION AMONG THESE VARIOUS INSTITUTIONS, WITH FINAL DECISIONS
REFERRED TO THE CRD (AND EVENTUALLY TO PARLIAMENT FOR THOSE
ACTIONS REQUIRING LEGISLATION). ALTHOUGH SOMEWHAT CUMBERSOME,
WHEN GIVEN THE CHANCE, THESE INSTITUTIONAL ARRANGEMENTS HAVE
FUNCTIONED REASONABLY WELL IN THE PAST. THE MAJOR PROBLEMS HAVE
OCCURRED WHEN GOVERNMENT IGNORES THIS ESTABLISHED STRUCTURE,
GENERALLY FOR POLITICAL PURPOSES AS IN THE CURRENT FARM

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FM AMEMBASSY HARARE
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INFO AMEMBASSY ROME
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UNCLAS SECTION 04 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

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ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

OCCUPATION CRISIS. COMMENT: A NEW INSTITUTIONAL FRAMEWORK
(E.G., INDEPENDENT LAND COMMISSION, ETC.) IS ONE OF THE MAJOR
TOPICS ON THE PROGRAM'S POLICY REFORM AGENDA. END COMMENT.

U.S. ASSISTANCE FOR LRRP II

12. IN AGREEMENT WITH ITS CONFERENCE PLEDGE, THE USG, THROUGH
USAID, HAS SIGNED TWO AGREEMENTS FOR SUPPORT TO LRRP II IN KEY
AREAS WHERE WE BELIEVE WE CAN EXERT A SIGNIFICANT POSITIVE
INFLUENCE ON THE COURSE OF GREATER PROGRAM IMPLEMENTATION.
THESE AREAS INCLUDE PROGRAM MANAGEMENT AND COORDINATION, AND
LAND POLICY FORMULATION AND IMPLEMENTATION. BOTH OF THESE
ACTIVITIES ARE DESCRIBED BRIEFLY BELOW:

A. THE FIRST OF THESE TWO ACTIVITIES IS UNDP PROJECT NO.
ZIM/98/008 FOR SUPPORT FOR THE ESTABLISHMENT AND INITIAL
OPERATIONS OF THE TECHNICAL SUPPORT UNIT (TSU - NOTED ABOVE) -
THE KEY MANAGEMENT ENTITY FOR LRRP II IMPLEMENTATION. (NOTE: THE
USG FUNDS ONE QUARTER OF THE TOTAL US$ 920,000 COST OF THIS
MULTI-DONOR PROJECT. TOTAL ACTIVITY COSTS ARE FUNDED THROUGH
CONTRIBUTIONS OF US$ 230,000 FROM EACH OF FOUR DONORS - SWEDEN,
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THE NETHERLANDS, NORWAY AND THE U.S.). SINCE THIS PROJECT'S
INCEPTION, SEVERAL OTHER DONORS, INCLUDING THE WORLD BANK AND
FRANCE, HAVE ALSO AGREED TO PROVIDE SUPPLEMENTARY ASSISTANCE TO
THE UNIT OUTSIDE OF THIS UNDP AGREEMENT IN RECOGNITION OF ITS
KEY ROLE IN SUCCESSFUL LRRP II IMPLEMENTATION. END NOTE.) THE
UNDP PROJECT PROVIDES FOR TSU STAFFING AND OPERATIONAL SUPPORT,
AND ASSOCIATED TECHNICAL ASSISTANCE AND TRAINING FOR LRRP II
POLICY ANALYSIS AND IMPLEMENTATION; PROGRAM PLANNING, PROCEDURAL
DEVELOPMENT AND IMPLEMENTATION; PROGRAM COORDINATION,
INFORMATION DISSEMINATION AND PUBLIC RELATIONS; AND PROGRAM
MONITORING AND EVALUATION. THIS MULTI-DONOR PROJECT IS
ADMINISTERED BY THE UNDP THROUGH ITS UMBRELLA 'BILATERAL'
AGREEMENT WITH THE GOZ, WITH INDIVIDUAL AGREEMENTS BETWEEN EACH
OF THE FOUR PARTICIPATING DONORS AND UNDP. THE UMBRELLA
AGREEMENT BETWEEN THE GOZ AND UNDP WAS SIGNED ON MAY 19, 1999;
THE USAID-UNDP AGREEMENT WAS SIGNED ON AUGUST 2, 1999. THE
PROJECT COMPLETION DATE IS MAY 31, 2001, IN ACCORDANCE WITH THE
INCEPTION PHASE'S TWO-YEAR TIMEFRAME.

B. THE OTHER USAID ACTIVITY - THE LAND POLICY REFORM
PROJECT (NO. 613-0249) - CONSISTS OF A US$ 1.5 MILLION
COOPERATIVE AGREEMENT BETWEEN USAID AND THE UNIVERSITY OF
WISCONSIN (MADISON)'S LAND TENURE CENTER (LTC) TO PROVIDE
TECHNICAL ASSISTANCE, TRAINING, CAPACITY BUILDING AND
RESEARCH IN SUPPORT OF LRRP II POLICY ANALYSIS AND
IMPLEMENTATION, AND PROGRAM MONITORING AND EVALUATION. THE
GOZ SPECIFICALLY REQUESTED U.S. ASSISTANCE IN THIS AREA IN
RECOGNITION OF LTC'S PRE-EMINENT EXPERIENCE IN LAND REFORM
FOLLOWING OVER 30 YEARS OF WORK IN THIS AREA THROUGHOUT THE
WORLD. IN AGREEMENT WITH ITS CAPACITY-BUILDING OBJECTIVES,
THIS ACTIVITY IS BEING IMPLEMENTED WITH MAXIMUM ZIMBABWEAN
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PARTICIPATION THROUGH A PARTNERSHIP ARRANGEMENT WITH THE
UNIVERSITY OF ZIMBABWE'S CENTER FOR APPLIED SOCIAL SCIENCES
(CASS). THE AGREEMENT WITH LTC WAS SIGNED ON SEPTEMBER 29,
1999, INCLUDING PROVISION OF THE INITIAL US$ 800,000
TRANCHE OF FUNDS. THE SECOND TRANCHE OF INCREMENTAL
FUNDING OF US$ 700,000 IS PLANNED FOR FY2000, THEREBY FULLY
FUNDING THE $ 1.5 MILLION LTC AGREEMENT. THE ACTIVITY
COMPLETION DATE IS SEPTEMBER 30, 2002.

13. ACKNOWLEDGING THE HIGH POLITICAL STAKES AND SENSITIVITY
SURROUNDING LRRP II, THE AGREEMENTS FOR BOTH OF THESE ACTIVITIES
PROVIDE "ESCAPE" CLAUSES, WHERE CONTINUING PROJECT ASSISTANCE
CAN BE REVIEWED, SUSPENDED OR EVEN TERMINATED SHOULD THE PROGRAM
NOT PROCEED IN ACCORDANCE WITH THE COMMUNIQUE AGREEMENTS REACHED
AT THE DONORS' LAND CONFERENCE (SEE PARA 3. ABOVE). HOWEVER,
BEFORE ANY UNILATERAL ACTION IS TAKEN, THE UNDP PROJECT
AGREEMENT CALLS FOR A TRI-PARTITE MEETING BETWEEN THE GOZ,
DONORS AND UNDP TO "IDENTIFY THE BEST WAY FORWARD - SHOULD ONE
OF THESE FACTORS CEASE TO PERSEVERE." THE LTC COOPERATIVE
AGREEMENT INCLUDES NO SUCH MEETING REQUIREMENT, AND ACTION CAN
BE TAKEN UNDER THIS LATTER AGREEMENT AS DEEMED APPROPRIATE.

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NFAT-00 SAS-00 /004W
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INFO AMEMBASSY ROME
AMEMBASSY LONDON
AMEMBASSY PARIS
DEPT OF COMMERCE WASHDC
DEPTTREAS WASHDC
SECDEF WASHINGTON DC

UNCLAS SECTION 05 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

PAGE 02 HARARE 02271 05 OF 07 271034Z
ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

OTHER DONOR ASSISTANCE

14. IN ADDITION TO THOSE COUNTRIES CONTRIBUTING TO THE ABOVE
UNDP/TSU PROJECT, THE WORLD BANK AND THE FRANCE ARE THE ONLY
OTHER COUNTRIES CURRENTLY PROVIDING SIGNIFICANT ASSISTANCE TO
LRRP II. ALTHOUGH NOT YET FULLY OPERATIONAL, THE WORLD BANK
(WB) HAS SIGNED A US$ 5 MILLION 'LEARNING AND INNOVATION' LOAN
WITH THE GOVERNMENT TO SUPPORT INCEPTION PHASE IMPLEMENTATION,
WHICH INCLUDES ADDITIONAL STAFFING SUPPORT FOR THE TSU AS WELL
AS SIGNIFICANT FUNDS FOR ALTERNATIVE RESETTLEMENT ACTIVITIES
(BUT NOT FOR LAND ACQUISITION COSTS). THE BANK HAS ALSO
INDICATED ITS WILLINGNESS TO USE FUNDS FROM ITS EXISTING US$ 60
MILLION COMMUNITY ACTION PROJECT (CAP) FOR LRRP II RESETTLEMENT
PURPOSES. FRANCE IS ALSO PROVIDING ASSISTANCE TO THE TSU IN THE
FORM OF LONG-TERM TECHNICAL ADVISORY SERVICES FOR PROGRAM
PLANNING, AND MONITORING AND EVALUATION, AS WELL AS A SMALL
AMOUNT OF FUNDS FOR RESETTLEMENT ACTIVITIES IN MASHONALAND
PROVINCE.

15. BRITAIN AND THE EUROPEAN UNION (EU) HAVE STATED THEIR
UNCLASSIFIED

PAGE 03 HARARE 02271 05 OF 07 271034Z
INTENTION TO PROVIDE SUBSTANTIAL ASSISTANCE FOR LRRP II, AND
BOTH HAVE PREPARED PRELIMINARY PROJECT PROPOSALS FOR THIS
PURPOSE. SIGNIFICANTLY, BRITAIN WAS THE ONLY DONOR CONSIDERING
FUNDING LAND ACQUISITION COSTS. HOWEVER, WITH THE RECENT
TURBULENT DIPLOMATIC RELATIONS - EXACERBATED GREATLY BY THE NEW
CONSTITUTIONAL AMENDMENT OBLIGING BRITAIN, AS THE FORMER
COLONIAL RULER, TO PAY FOR LAND ACQUISITION COSTS AND THE RECENT
FARM INVASIONS - BOTH OF THESE DONORS' PLANS FOR LRRP II SUPPORT
HAVE NOW BEEN PUT ON HOLD, PENDING THE OUTCOME OF IN-COUNTRY
DEVELOPMENTS AND DIALOGUE ON THIS SUBJECT.

PROGRESS TO DATE

16. AS A RESULT OF BOTH INTERNAL AND EXTERNAL FACTORS, PROGRESS
IN IMPLEMENTING BOTH OF THE USAID-ASSISTED ACTIVITIES, AS WELL
AS ALL OTHER DONOR SUPPORT FOR LRRP II, HAS BEEN SLOW TO DATE.
MAJOR INTERNAL FACTORS INCLUDE DELAYS IN RECRUITING KEY STAFF
(FOR THE UNDP/TSU ACTIVITY) AND MEETING PROGRAM CONDITIONALITY
REQUIREMENTS (FOR THE WORLD BANK LOAN). MAJOR EXTERNAL PROBLEMS
HAVE BEEN CAUSED BY PERIODIC GOZ RHETORIC AND/OR ACTIONS RELATED
TO THE LRRP II, SUCH AS SIGNIFICANT AND HIGHLY QUESTIONABLE LAND
ALLOCATIONS TO FAVORED BENEFICIARIES UNDER THE COMMERCIAL
RESETTLEMENT SCHEME, AND PROPOSED CONSTITUTIONAL AMENDMENTS
PROVIDING FOR LAND ACQUISITION WITHOUT DUE COMPENSATION. AS A
RESULT, FEW DONOR FUNDS HAVE BEEN DISBURSED TO DATE FOR LAND
ACQUISITION OR ACTUAL RESETTLEMENT PURPOSES, DESPITE SIGNIFICANT
PRIOR COMMITMENTS (NOTABLY AT THE DONOR CONFERENCE DISCUSSED
ABOVE) TO MAKE FUNDS AVAILABLE TO SUPPORT THESE MORE TANGIBLE
ASPECTS OF LRRP II.

17. AS A RESULT OF THESE DELAYS, PROGRESS HAS BEEN SLOW IN
UNCLASSIFIED

PAGE 04 HARARE 02271 05 OF 07 271034Z
MEETING INCEPTION PHASE TARGETS, WITH ONLY 59 FARMS (ABOUT
90,000 HA) ACQUIRED WITH NOW-EXHAUSTED GOZ FUNDS AND 1,700
FAMILIES SETTLED (WITHOUT ADEQUATE INFRASTRUCTURE) TO DATE.
THIS PROGRESS CONTRASTS WITH A FIRST YEAR TARGET FOR THE
INCEPTION PHASE OF ACQUIRING 250,000 HA. OF LAND, OR ABOUT 150
FARMS. SINCE DONOR FUNDING IS FOCUSED LARGELY ON ALTERNATIVE
MODELS FOR LAND REFORM AND RESETTLEMENT, AND FEW DONOR FUNDS
HAVE BEEN DISBBURSED, THE BULK OF THE RESETTLEMENT UNDERTAKEN TO
DATE HAS BEEN ACCORDING TO THE MORE REGRESSIVE AND TOP-DOWN
GOVERNMENT-ADMINISTERED APPROACHES TO PROGRAM IMPLEMENTATION
NOTED ABOVE. THEREFORE, LITTLE PROGRESS HAS BEEN ACHIEVED IN
TESTING AND PROMOTING THE MORE DESIRABLE ALTERNATIVE APPROACHES
FOR THIS CRITICAL AREA OF NATIONAL DEVELOPMENT.

18. AS MIGHT BE EXPECTED, THIS SITUATION HAS CAUSED INCREASING
FRUSTRATION AMONG KEY GOZ DECISION-MAKERS AND COUNTERPARTS,
ESPECIALLY AS PARLIAMENTARY ELECTIONS DRAW NEAR. DESPITE ALL OF
THE RHETORIC ON THIS SUBJECT, HOWEVER, ALL FARMS ACQUIRED UNDER
THE PROGRAM TO DATE HAVE BEEN THROUGH CASH PAYMENT UP FRONT OF
FAIR MARKET VALUE FOR THE LAND AND IMPROVEMENTS. AS OF MARCH
2000, APPROXIMATELY Z$ 200 MILLION, OR US$ 5 MILLION OF GOZ

UNCLASSIFIED

UNCLASSIFIED PTQ8350

PAGE 01 HARARE 02271 06 OF 07 271034Z
ACTION AID-00

INFO LOG-00 NP-00 AF-00 AGRE-00 ACQ-00 CIAE-00 COME-00
DOTE-00 DS-00 EB-00 EUR-01 FAAE-00 UTED-00 FDRE-01
TEDE-00 INR-00 IO-00 NSAE-00 NSCE-00 DSCC-00 DRL-02
NFAT-00 SAS-00 /004W
------------------507B77 271035Z /38
P 271036Z APR 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 5880
INFO AMEMBASSY ROME
AMEMBASSY LONDON
AMEMBASSY PARIS
DEPT OF COMMERCE WASHDC
DEPTTREAS WASHDC
SECDEF WASHINGTON DC

UNCLAS SECTION 06 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

PAGE 02 HARARE 02271 06 OF 07 271034Z
ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

FUNDS HAD BEEN SPENT TO PURCHASE 59 FARMS TOTALING APPROXIMATELY
90,000 HA. THE GOZ HAS ALSO RELEASED 45 ADDITIONAL FARMS
(APPROXIMATELY 125,000 HA), ACQUIRED PREVIOUSLY THROUGH A
VARIETY OF MEANS, FOR LRRP II PURPOSES.

CURRENT STATUS

19. AS REPORTED IN REF (C), UNDP RESIDENT REPRESENTATIVE
(RESREP) CARLOS LOPES CHAIRED A MEETING ON MARCH 14 OF ALL
DONORS CURRENTLY INVOLVED IN THE UNDP/TSU PROJECT TO DISCUSS AN
APPROPRIATE PROJECT AND DONOR RESPONSE TO THE CURRENT FARM
INVASIONS OCCURRING THROUGHOUT ZIMBABWE'S LARGE-SCALE COMMERCIAL
FARMING AREAS (REFS D AND E). AS A RESULT OF GOVERNMENT'S LACK
OF ANY EFFECTIVE RESPONSE TO THIS SITUATION, ALL DONORS INVOLVED
ARE INCREASINGLY CONCERNED ABOUT THE PROSPECTS FOR SUCCESSFUL
PROJECT (AND GREATER LRRP II) IMPLEMENTATION. AS A RESULT, ALL
PRESENT AT THE MEETING, INCLUDING AMBASSADOR MCDONALD,
UNANIMOUSLY RESOLVED THAT UNDP WOULD DRAFT A LETTER TO THE GOZ
INDICATING OUR JOINT CONCERN REGARDING THIS SITUATION, OUR
UNDERSTANDING THAT THESE ACTIONS (AND/OR LACK THEREOF)
CONSTITUTED A BREACH OF THE AGREED UPON COMMUNIQUE AGREEMENTS
UNCLASSIFIED

PAGE 03 HARARE 02271 06 OF 07 271034Z
(ESPECIALLY REGARDING THE 'RULE OF LAW'), AND OUR JOINT DECISION
TO FREEZE PROJECT FUNDS, WITH NO NEW MAJOR PROJECT COMMITMENTS,
UNTIL THIS SERIOUS LAND INVASION SITUATION IS DISCUSSED AND
SUCCESSFULLY RESOLVED. THE LETTER ALSO REQUESTS A TRI-PARTITE
MEETING, AS CALLED FOR IN THE PROJECT AGREEMENT, TO DISCUSS THIS
DECISION AND SITUATION WITH THE GOVERNMENT AND IDENTIFY A WAY
FORWARD. THE TWO-WEEK DEADLINE INCLUDED IN THIS LETTER EXPIRED
ON APRIL 11, WITH NO RESPONSE RECEIVED TO DATE FROM THE GOZ.

20. IN ACCORDANCE WITH THIS DECISION, USAID SUBSEQUENTLY ALSO
NOTIFIED LTC, BOTH VERBALLY AND IN WRITING, OF OUR DECISION TO
EFFECT A SIMILAR FREEZE OR SUSPENSION OF ASSISTANCE UNDER THE
LTC COOPERATIVE AGREEMENT UNTIL THIS SITUATION IS PROPERLY
ADDRESSED. LTC HAS CONSENTED TO COMPLY WITH THIS REQUEST UNTIL
SUCH TIME AS THEY ARE NOTIFIED OTHERWISE. THE INTENT OF THESE
ACTIONS IS TO SEND A STRONG JOINT SIGNAL TO GOVERNMENT OF THE
DONORS' SERIOUS CONCERN REGARDING THIS SITUATION, WITHOUT AT
THIS TIME EFFECTING ANY ACTIONS WHICH WOULD SERIOUSLY UNDERMINE
OUR ABILITIES TO CONTINUE OUR LONGER-TERM SUPPORT FOR LRRP II,
IF/WHEN THIS SITUATION IS PROPERLY RECTIFIED. THIS IS THE
PROGRAM'S CURRENT STATUS. THE MISSION WILL INFORM OF ANY NEW
DEVELOPMENTS AS THEY OCCUR.

21. COMMENT: ALTHOUGH PROGRESS HAS BEEN SLOW TO DATE, WE BELIEVE
THE INCEPTION PHASE, AS AGREED TO IN THE JOINT DONORS' LAND
CONFERENCE COMMUNIQUE (SEE PARA 3.), REMAINS NOT ONLY RELEVANT,
BUT ALSO CRITICAL FOR LONG-TERM LRRP II SUCCESS. BY TESTING
ALTERNATIVE POLICIES AND APPROACHES TO LAND REFORM AND
RESETTLEMENT IN ZIMBABWE, IT HAS THE POTENTIAL TO EXERT
SIGNIFICANT POSITIVE IMPACTS ON THE COURSE OF GREATER LRRP II
IMPLEMENTATION. GIVEN THE MASSIVE SCALE OF THIS PROGRAM AND ITS
UNCLASSIFIED

PAGE 04 HARARE 02271 06 OF 07 271034Z
POTENTIAL FOR SIGNIFICANT LONG-TERM SOCIO-ECONOMIC AND
ENVIRONMENTAL IMPACTS, IT IS IMPERATIVE FOR ZIMBABWE'S FUTURE
PROSPERITY THAT THIS PROGRAM IS IMPLEMENTED PROPERLY. FOR THIS
REASON (AND CONSIDERING GOVERNMENT'S PAST FAILED EFFORTS IN THIS
AREA), MISSION FIRMLY BELIEVES THAT THE ORIGINAL PILOT RATIONALE
FOR THE INCEPTION PHASE REMAINS VALID AT THIS TIME.

22. DESPITE THE START-UP PROBLEMS AND DELAYS EXPERIENCED IN
INCEPTION PHASE IMPLEMENTATION TO DATE, FOR ANYONE TO DECLARE
FAILURE AT THIS TIME IS PREMATURE. MOST OF THE KEY DONOR
ASSISTANCE FOR INCEPTION PHASE IMPLEMENTATION WAS ALMOST IN
PLACE (INCLUDING THE CRITICAL MISSING LAND ACQUISITION
INGREDIENT WHICH WAS IN FINAL PREPARATION BY BRITAIN) WHEN THE
CURRENT FARM INVASION CRISIS BEGAN. IN ADDITION, KEY TECHNICAL
ZIMBABWEAN GOVERNMENT AND NON-GOVERNMENTAL COUNTERPARTS KNOW
WHAT SHOULD BE DONE FOR SUCCESSFUL PROGRAM EXECUTION AND, IF
GIVEN THE CHANCE TO WORK WITH DONORS, WOULD PROBABLY DO IT WELL.
FINALLY, DESPITE THE CURRENT NEGATIVE DIALOGUE ON THIS SUBJECT,
MOST DONORS CONTINUE TO SUPPORT THE PROGRAM'S FUNDAMENTAL NEED
AND RATIONALE. HENCE, WITH A SATISFACTORY RESOLUTION OF THE
CURRENT INVASION CRISIS AND SUCCESSFUL ENSUING INCEPTION PHASE

UNCLASSIFIED

UNCLASSIFIED PTQ8351

PAGE 01 HARARE 02271 07 OF 07 271035Z
ACTION AID-00

INFO LOG-00 NP-00 AF-00 AGRE-00 ACQ-00 CIAE-00 COME-00
DOTE-00 DS-00 EB-00 EUR-01 FAAE-00 UTED-00 FDRE-01
TEDE-00 INR-00 IO-00 NSAE-00 NSCE-00 DSCC-00 DRL-02
NFAT-00 SAS-00 /004W
------------------507B7A 271035Z /38
P 271036Z APR 00
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 5881
INFO AMEMBASSY ROME
AMEMBASSY LONDON
AMEMBASSY PARIS
DEPT OF COMMERCE WASHDC
DEPTTREAS WASHDC
SECDEF WASHINGTON DC

UNCLAS SECTION 07 OF 07 HARARE 002271

SIPDIS

AIDAC

A/AID FOR R. MCCALL; AFR/SD FOR D. WELLER;
AFR/SA FOR N. NEWMAN, C. REINTSMA, W. JEFFERS

DEPT FOR AF A/S SUSAN RICE, AF DAS POWELL, AF
DAS SCHNEIDMAN, AF/S RENDER BOOTH, AND GURNEY

NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH

UNCLASSIFIED

PAGE 02 HARARE 02271 07 OF 07 271035Z
ROME PLEASE PASS TO FODAG

LONDON FOR PFLAUMER

PARIS FOR BISA WILLIAMS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ZI
SUBJECT: U.S. ASSISTANCE FOR LAND REFORM

RESULTS, THERE IS EVERY REASON TO BELIEVE THAT SUBSTANTIAL
ADDITIONAL DONOR SUPPORT FOR THIS PROGRAM WOULD BE FORTHCOMING
IN THE FUTURE (INCLUDING FOR LAND ACQUISITION PURPOSES).

23. THE MISSION CONTINUES TO BE CONVINCED THAT THE PRIMARY
IMPETUS FOR THE CURRENT FARM CRISIS IS POLITICS, NOT LAND.
THEREFORE, WHEN THE UPCOMING ELECTIONS ARE COMPLETED, MOST
DONORS REMAIN HOPEFUL THAT THE SITUATION WILL RETURN TO SOME
SEMBLANCE OF NORMALITY. AT THAT TIME, THE INCEPTION PHASE WILL
BE AS NECESSARY (IF NOT MORE SO) THAN IT ALWAYS HAS BEEN, IN
ORDER TO LAY THE PROPER GROUNDWORK FOR A TRULY SUSTAINABLE
SOLUTION TO THIS MOST DIFFICULT PERENNIAL NATIONAL ISSUE. END
COMMENT.

MCDONALD

UNCLASSIFIED

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