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Cablegate: Mcc Ceo Paul Applegarth's Visit To

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

UNCLAS SECTION 01 OF 02 MAPUTO 001445

SIPDIS
SENSITIVE
AIDAC
STATE FOR AF/S, AF/EPS, AND EB/IFD
USAID FOR AFR/SA
MCC FOR APPLEGARTH, HEWKO, HARRINGTON, AND
HERING MCC ALSO FOR BRIGGS AND GAULL
E.O. 12958: N/A
TAGS: EAID EINV MZ MCC OPIC
SUBJECT: MCC CEO PAUL APPLEGARTH'S VISIT TO
MOZAMBIQUE, 20-24 OCTOBER 2004


Sensitive but Unclassified - Handle Accordingly.
Not for Internet Distribution.

1. (U) SUMMARY: DURING A FOUR-DAY VISIT,
MILLENNIUM CHALLENGE CORPORATION CEO PAUL
APPLEGARTH AND HIS TEAM MET WITH PRESIDENT
CHISSANO, SENIOR GOVERNMENT OFFICIALS, PRIVATE
SECTOR LEADERS, AND THE PRESS IN AN EFFORT TO
BECOME MORE FAMILIAR WITH MOZAMBIQUE AND RAISE
AWARENESS OF THE MILLENNIUM CHALLENGE ACCOUNT
(MCA). THE MCC DELEGATION ALSO TRAVELED NORTH TO
THE PROVINCES OF CABO DELGADO AND NAMPULA, THE
GEOGRAPHIC FOCUS OF MOZAMBIQUE'S MCA PROPOSAL.
THE VISIT WAS A SUCCESS, AND MOZAMBICANS AND POST
LOOK FORWARD TO WORKING WITH MCC STAFF AS
EVALUATION OF MOZAMBIQUE'S PROPOSAL CONTINUES.
END SUMMARY.

2. (U) MCC CEO PAUL APPLEGARTH TRAVELED TO
MOZAMBIQUE OCTOBER 20-24 WITH MCC VICE PRESIDENT
JOHN HEWKO, SENIOR ADVISOR MAUREEN HARRINGTON, AND
PRESS OFFICER KRISTEN HERING. THE TEAM'S VISIT
INCLUDED MEETINGS AND SITE VISITS IN AND AROUND
MAPUTO AND AN OVERNIGHT TRIP TO THE NORTHERN
PROVINCES OF CABO DELGADO AND NAMPULA. MCA
TECHNICAL GROUP CHAIR IN THE MINISTRY OF PLAN AND
FINANCE, PEDRO COUTO, AND THE GROUP'S PRIVATE
SECTOR REPRESENTATIVE, SERGIO CHITARA, ACCOMPANIED
THE TEAM ON THE TRIP NORTH.

3. (U) THE MCA TECHNICAL GROUP HAD TASKED CHITARA,
EXECUTIVE DIRECTOR OF THE CTA - THE CONFEDERATION
OF MOZAMBICAN BUSINESS ASSOCIATIONS, WHICH IS THE
PREEMINENT BUSINESS GROUP IN MOZAMBIQUE - WITH
PRIMARY DRAFTING RESPONSIBILITIES FOR MOZAMBIQUE'S
MCA PROPOSAL. MOZAMBIQUE SUBMITTED ITS PROPOSAL
O/A 23 SEPTEMBER. THE PROGRAM DETAILED IN THE
DOCUMENT IS FOCUSED ON INFRASTRUCTURE,
AGRICULTURE/AGRIBUSINESS, AND TOURISM IN THE
NORTH, PRIMARILY IN THE PROVINCES OF CABO DELGADO,
NIASSA, AND NAMPULA WITH A SECTION OF NORTHERN
ZAMBEZIA.

4. (SBU) THE MCC DELEGATION'S VISIT COINCIDED WITH
THE FIRST WEEK OF THE CAMPAIGN PERIOD FOR WHAT
PROMISE TO BE HISTORIC NATIONAL ELECTIONS.
PRESIDENT CHISSANO'S AGREEMENT TO MEET WITH THE
DELEGATION DURING THIS TIME REFLECTS THE
IMPORTANCE THE MOZAMBICAN GOVERNMENT PLACES ON THE
MCA AND HIS PERSONAL SUPPORT FOR ITS PRINCIPLES.
BECAUSE MOST SENIOR MEMBERS OF THE GRM WERE IN THE
PROVINCES CAMPAIGNING, THE ONLY OTHER MEETINGS
WITH GOVERNMENT LEADERS WERE WITH MINISTER OF
TOURISM SUMBANA AND GOVERNOR JOSE PACHECO OF CABO
DELGADO PROVINCE.

5. (SBU) IN THE MEETING, PRESIDENT CHISSANO
EXPRESSED HIS STRONG SUPPORT FOR THE MCA AND
SHOWED HIMSELF TO BE WELL-BRIEFED ON THE SUBJECT.
CEO APPLEGARTH COMPLIMENTED CHISSANO FOR
IMPLEMENTING THE POLICIES THAT HAD ENABLED
MOZAMBIQUE TO QUALIFY. CHISSANO SAID HE BELIEVED
STRONGLY IN THE IDEAS BEHIND THE MCA AND INTENDED
TO CONTINUE HELPING MOZAMBIQUE MAKE PROGRESS IN
EACH OF THE MILLENNIUM DEVELOPMENT GOALS AFTER
LEAVING OFFICE IN A FEW MONTHS. CEO APPLEGARTH
CONFIRMED THAT MOZAMBIQUE'S NATIONAL ELECTIONS (1-
2 DECEMBER) WOULD PLAY A ROLE IN MCC CONSIDERATION
OF MOZAMBIQUE FOR FY05 ELIGIBILITY AND FUNDING,
NOTING THAT MOZAMBIQUE NEEDED TO DEMONSTRATE FULLY
TO ALL THAT THE ELECTIONS WERE TRANSPARENT.
(COMMENT: THIS WAS A REFERENCE TO THE ONGOING
DISPUTE BETWEEN THE EU AND THE NATIONAL ELECTIONS
COMMISSION OVER ELECTION OBSERVER ACCESS TO
PROVINCIAL AND NATIONAL-LEVEL VOTE COUNTING. END
COMMENT.)

6. (U) THE MEETING WITH PRESIDENT CHISSANO WAS
ONLY ONE OF THE HIGHLIGHTS OF THE VISIT. OTHERS
INCLUDED:
-- MINISTER OF TOURISM FERNANDO SUMBANA. THE
MINISTER MET WITH THE TEAM PRIOR TO THEIR
DEPARTURE FOR THE NORTH. HE DESCRIBED
MOZAMBIQUE'S TOURISM STRATEGY AND EXPRESSED HIS
PLEASURE THAT MOZAMBIQUE'S MCA PROPOSAL INCLUDED
THE TOURISM SECTOR AND RELATED INFRASTRUCTURE
PROJECTS. HE ALSO ATTENDED A DINNER IN CEO
APPLEGARTH'S HONOR HOSTED BY THE AMBASSADOR.
-- PRIVATE SECTOR. THE TEAM DISCUSSED THE
POTENTIAL FOR AND CONSTRAINTS TO POVERTY-REDUCING
ECONOMIC GROWTH IN MOZAMBIQUE WITH INDIVIDUALS
REPRESENTING THE PRIVATE SECTOR IN A VARIETY OF
SETTINGS: A MEETING IN MAPUTO WITH MEMBERS OF
CTA'S INFORMAL "STEERING COMMITTEE" FOR THE
PROPOSAL; THE DINNER HOSTED BY AMBASSADOR LA LIME;
A LUNCH IN MAPUTO; A DINNER IN PEMBA THAT INCLUDED
THE GOVERNOR OF CABO DELGADO; AND LUNCH ON ILHA DE
MOZAMBIQUE. PARTICIPANTS FOR THESE EVENTS
INCLUDED MEMBERS OF CTA'S LEADERSHIP AND
REPRESENTATIVES FROM BUSINESS SECTORS SUCH AS
AGRICULTURE/AGRIBUSINESS, TOURISM (INCLUDING GAME
RESERVES), AQUACULTURE, BANKING, LAW, AND PRIVATE
CONSULTING.
-- DONORS. DURING A DONOR BREAKFAST, CEO
APPLEGARTH NOTED THE MCC'S WILLINGNESS TO WORK
WITH OTHER DONORS, INCLUDING POSSIBLY CO-FUNDING
OTHER DONOR PROGRAMS.
-- SITE VISITS. ALL OF THE SITE VISITS WERE TIED
IN SOME WAY TO MOZAMBIQUE'S PROPOSAL AND OFFERED
THE TEAM INSIGHT INTO THE PROPOSED PROGRAM'S
OPPORTUNITIES AND CONSTRAINTS. WHILE IN THE
NORTH, THE TEAM VISITED TWO OF MOZAMBIQUE'S
POSSIBLE TOURISM DESTINATIONS, IBO ISLAND AND ILHA
DE MOZAMBIQUE. ALSO ON THE AGENDA WAS A TOUR OF
NACALA PORT AND AIRPORT - THE PORT IS PROPOSED AS
THE SITE OF AN EXPORT PROCESSING ZONE, AND THE
AIRPORT IS ONE OF SEVERAL AIRSTRIPS SLATED FOR
UPGRADES - AND A VISIT TO THE MIRANDA CASHEW
PROCESSING PLANT. WHILE IN MAPUTO, THE TEAM
TOURED MAPUTO PORT, AND HEWKO AND HARRINGTON
VISITED CITRUM, A CITRUS FARM THAT, LIKE MIRANDA,
IS EXPORTING TO EUROPEAN AND OTHER MARKETS.
-- PRESS EVENTS. POST ARRANGED A NUMBER OF PRESS
EVENTS DURING THE VISIT. A PHOTOGRAPHER FROM THE
PORTUGUESE-LANGUAGE ECONOMIC MONTHLY "TEMPO"
ACCOMPANIED THE TEAM ON THE TRIP NORTH. ON THE
EVENING OF 21 OCTOBER, THE INDEPENDENT TELEVISION
CHANNEL STV AIRED NINETEEN MINUTES OF A ONE-ON-ONE
INTERVIEW WITH CEO APPLEGARTH DURING ITS WEEKLY
BUSINESS ROUNDUP "ECONOMIC PERSPECTIVES." THE
CONTENT INCLUDED AN EXPLANATION OF THE MCC, THE
PURPOSE OF THE VISIT, AND ELIGIBILITY AND FUNDING
CRITERIA. THE PROGRAM HAS A LARGE LEAD-IN
AUDIENCE AND TARGETS THE PRIVATE SECTOR AND MIDDLE
CLASS. CEO APPLEGARTH HELD A BREAKFAST WITH
SEVERAL JOURNALISTS ON OCTOBER 24 AND LATER GAVE A
FOLLOW-UP INTERVIEW TO STV. STATE TELEVISION
(TVM) INCLUDED COVERAGE OF THE TEAM'S VISIT TO
NAMPULA PROVINCE, AIRING A BRIEF INTERVIEW DURING
THE TOUR OF THE MIRANDA CASHEW PLANT.
-- POST Q AND A. A STAFF BRIEFING FOR THE TEAM
EVOLVED INTO A QUESTION AND ANSWER SESSION THAT
WAS CONTINUED LATER ON THE FIRST DAY OF THE VISIT
AT CEO APPLEGARTH'S REQUEST. THIS ADDED GREATLY
TO POST'S UNDERSTANDING OF MCC ISSUES.

7. (U) COMMENT: CEO APPLEGARTH SUCCEEDED IN
INCREASING MCC FAMILIARIZATION WITH MOZAMBIQUE,
BROADENING MOZAMBICANS' UNDERSTANDING OF THE MCA
AND MCC, AND RAISING PUBLIC AWARENESS OF THE
COUNTRY'S PROPOSAL. MOZAMBICANS AND POST LOOK
FORWARD TO WORKING WITH MCC STAFF AS EVALUATION OF
MOZAMBIQUE'S PROPOSAL CONTINUES. END COMMENT.
LA LIME

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