US embassy cable - 00HARARE6191

C O N F I D E N T I A L SECTION 01 OF 02 HARARE 006191 
 
SIPDIS 
 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
 
LONDON FOR CHARLES GURNEY 
 
PARIS FOR BISA WILLIAMS 
 
PASS USTR FOR ROSA WHITAKER 
 
E.O. 12958: DECL: 11/02/10 
TAGS: PGOV, ECON, EAGR, PREL, PINR, ZI, Land Reform 
SUBJECT:  PROMINENT ZIMBABWEAN BUSINESS LEADERS TRYING 
TO ENCOURAGE A SOLUTION TO THE LAND PROBLEM AND URGE 
POLITICAL PARTIES TO WORK OUT THEIR DIFFERENCES 
 
REFTEL: HARARE 5983 
 
CLASSIFIED BY AMBASSADOR TOM MCDONALD FOR REASONS 1.5 
(B) AND (D). 
 
1.  (C) SUMMARY: THE CEO OF A MAJOR ZIMBABWEAN 
CORPORATION TOLD AMBASSADOR NOVEMBER 2 THAT HE AND OLD 
MUTUAL INSURANCE COMPANY ARE ARRANGING A PRIVATE CREDIT 
FACILITY TO PURCHASE 300 TO 400 COMMERCIAL FARMS TO HELP 
BREAK THE LOGJAM ON LAND REFORM.  THE CEO ALSO STATED 
THAT HE AND OTHER BUSINESS LEADERS ARE ENCOURAGING THE 
RULING ZANU-PF AND OPPOSITION MDC TO IRON OUT THEIR 
DIFFERENCES THROUGH THIRD-PARTY MEDIATION.  HE IS HAVING 
AN INTERMEDIARY APPROACH FORMER ZAMBIAN PRESIDENT 
KENNETH KAUNDA TO DETERMINE IF HE WOULD SERVE AS 
MEDIATOR.  END SUMMARY. 
 
2.  (C) THE AMBASSADOR SPOKE NOVEMBER 2 WITH PATRICK 
ROONEY (PROTECT), THE CEO OF DELTA CORPORATION, A 
ZIMBABWEAN CORPORATION THAT IS CONTROLLED BY OLD MUTUAL 
AND SOUTH AFRICAN BREWERIES, AND IS IN THE BEVERAGE AND 
TOURISM BUSINESSES IN ZIMBABWE.  ROONEY IS A WELL- 
CONNECTED WHITE ZIMBABWEAN WHO IS POLITICALLY ASTUTE AND 
MOVES EASILY IN A VARIETY OF BUSINESS AND GOVERNMENT 
CIRCLES.  ROONEY TOLD THE AMBASSADOR THAT HE AND OLD 
MUTUAL ARE ARRANGING A CREDIT FACILITY FOR THE GOZ TO 
PURCHASE 300 TO 400 COMMERCIAL FARMS CURRENTLY 
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DESIGNATED FOR ACQUISITION.  PART OF THE PROPOSAL WOULD 
ALLOW WAR VETERANS OCCUPYING FARMS TO BE RELOCATED TO 
THE NEWLY PURCHASED PROPERTIES.  ROONEY STATED THAT HE 
HOPES THIS MOVE WILL HELP BREAK THE LOGJAM ON LAND 
REFORM AND REMOVE THE LAWLESS ELEMENTS, NAMELY THE WAR 
VETERANS, FROM THE LAND RESETTLEMENT PICTURE, THEREBY 
DEMONSTRATING TO THE INTERNATIONAL COMMUNITY THAT LAW 
AND ORDER IS RETURNING TO ZIMBABWE. 
 
3.  (C) ROONEY CONTINUED THAT THIS PROPOSAL WOULD SOON 
BE PUT TO PRESIDENT MUGABE, BUT IT WAS UNCLEAR TO HIM 
WHETHER THE PRESIDENT WOULD ACCEPT IT.  THE CEO SAID 
THAT VICE-PRESIDENT MSIKA HAD ENDORSED THE PROGRAM, BUT 
BELIEVED THAT MINISTER OF STATE FOR INFORMATION AND 
PUBLICITY JONATHAN MOYO, MINISTER FOR LOCAL GOVERNMENT 
IGNATIUS CHOMBO, AND MINISTER FOR LANDS, AGRICULTURE AND 
RESETTLEMENT JOSEPH MADE COULD STILL SCUTTLE THE EFFORT. 
ROONEY STATED THAT THE COMMERCIAL FARMER'S UNION (CFU) 
HAS NOT BEEN ABLE TO GET ITS ACT TOGETHER IN NEGOTIATING 
WITH THE GOZ.  HE SAID THAT THE CFU IS NOT INVOLVED IN 
THE DEAL, NOTING THAT IT WAS STRICTLY A PRIVATE BUSINESS 
PROPOSAL. 
 
4.  (C) ON A SEPARATE SUBJECT, ROONEY INFORMED THE 
AMBASSADOR THAT HE AND OTHER BUSINESS LEADERS ARE 
ENCOURAGING THE RULING ZANU-PF AND OPPOSITION MDC TO 
WORK OUT THEIR DIFFERENCES AND ARE SEEKING A MEDIATOR TO 
HELP THEM.  THERE IS CURRENTLY A SHORT LIST OF POTENTIAL 
MEDIATORS, AT THE TOP OF WHICH IS FORMER ZAMBIAN 
PRESIDENT KENNETH KAUNDA.  KAUNDA IS A GOOD POSSIBILITY 
BUT MAY BE A PROBLEM WITH MUGABE BECAUSE OF HIS PRIOR 
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SUPPORT OF JOSHUA NKOMO.  THERE ARE NO SOUTH AFRICANS ON 
THE SHORT LIST, ROONEY CONTINUED.  THE AMBASSADOR TOLD 
ROONEY THAT THE USG WELCOMES BOTH THESE INITIATIVES AND 
ENCOURAGES ALL THE PARTIES INVOLVED TO KEEP THE CHANNELS 
OF DIALOGUE OPEN.  THE AMBASSADOR ASKED ROONEY TO KEEP 
US APPRISED OF ANY DEVELOPMENTS IN THESE NEGOTIATIONS. 
 
5.  (C) COMMENT: WE BELIEVE ROONEY TO BE A VERY CREDIBLE 
SOURCE AND WHAT HE TOLD US REPRESENTS A PROLIFERATION OF 
BEHIND-THE-SCENES ATTEMPTS TO GET THE GOVERNMENT AND 
OPPOSITION TALKING.  IT TRACKS PARTICULARLY WELL WITH 
WHAT BUSINESSMAN AND MDC SUPPORTER CLIVE PUZEY TOLD US, 
IN THAT THE PRESIDENT'S OFFICE HAD BEEN TALKING TO THE 
MDC ABOUT A PRIVATELY-FUNDED LAND DEAL AS PART OF A 
RETIREMENT PACKAGE FOR MUGABE (REFTEL).  ROONEY'S 
REMARKS ABOUT ENCOURAGING THE PARTIES TO SEEK MEDIATION 
COULD ALSO BE AN INDICATION THAT ATTEMPTS BY ZANU-PF AND 
MDC TO NEGOTIATE HAVE STALLED.  IT IS DIFFICULT TO 
PREDICT WHETHER ANY OF THESE DISCUSSIONS WILL AMOUNT TO 
ANYTHING AND HEAD OFF A MORE PUBLIC CONFRONTATION 
BETWEEN OPPOSITION SUPPORTERS AND THE POWERS-THAT-BE. 
WE ARE ENCOURAGED NEVERTHELESS THAT THE STAKEHOLDERS DO 
SEEM TO BE TALKING OFF-STAGE EVEN AS THEIR ON-STAGE 
THEATRICS BECOME MORE VITRIOLIC.  THE AMBASSADOR WILL 
CONTINUE TO ENCOURAGE ROONEY'S EFFORTS.  END COMMENT. 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ4360 
 
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ACTION AF-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      COME-00  CTME-00  DINT-00  DODE-00  DOTE-00  SRPP-00  DS-00 
      EB-00    EUR-00   EXIM-01  E-00     FAAE-00  FBIE-00  VC-00 
      FRB-00   H-01     TEDE-00  INR-00   ITC-01   L-00     VCE-00 
      AC-01    NSAE-00  OMB-01   OPIC-01  PA-00    PM-00    PRS-00 
      ACE-00   P-00     SP-00    SSO-00   STR-00   TRSE-00  USIE-00 
      PMB-00   DSCC-00  DRL-02   G-00     NFAT-00  SAS-00     /009W 
                  ------------------9A0625  021653Z /38 
O 021652Z NOV 00 
FM AMEMBASSY HARARE 
TO SECSTATE WASHDC IMMEDIATE 7511 
INFO NSC WASHDC IMMEDIATE 
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 
AMEMBASSY NAIROBI 
 
C O N F I D E N T I A L SECTION 02 OF 02 HARARE 006191 
 
SIPDIS 
 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
 
LONDON FOR CHARLES GURNEY 
 
PARIS FOR BISA WILLIAMS 
 
PASS USTR FOR ROSA WHITAKER 
 
E.O. 12958: DECL: 11/02/10 
TAGS: PGOV, ECON, EAGR, PREL, PINR, ZI, ZA 
                       CONFIDENTIAL 
 
PAGE 02        HARARE  06191  02 OF 02  021653Z 
SUBJECT:  PROMINENT ZIMBABWEAN BUSINESS LEADERS TRYING 
TO ENCOURAGE A SOLUTION TO THE LAND PROBLEM AND URGE 
POLITICAL PARTIES TO WORK OUT THEIR DIFFERENCES 
 
MCDONALD 
 
                       CONFIDENTIAL 
 
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