US embassy cable - 04HARARE1308

UNCLAS SECTION 01 OF 02 HARARE 001308 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/S 
USDOC FOR AMANDA HILLIGAS 
TREASURY FOR OREN WYCHE-SHAW 
PASS USTR FLORIZELLE LISER 
STATE PASS USAID FOR MARJORIE COPSON 
USDOL FOR ROBERT YOUNG 
STATE FOR MARINDA HARPOLE 
 
E. O. 12958: N/A 
TAGS: ELAB, EAID, BTIO, EINV, ECON, PGOV, ZI 
SUBJECT: ASIAN INDIANS WEIGH PROSPECTS IN ZIMBABWE 
 
  1.   (SBU) Summary:  Can Indian-Zimbabweans escape the 
wrath that the Mugabe government has showered upon 
whites? EconOff spoke with Zimbabweans of Indian descent 
("Asians" in local vernacular) and an Indian Embassy 
representative about conditions in Zimbabwe. Some are 
hopeful while others are less optimistic about their 
future in Zimbabwe. End summary. 
 
ASIANS IN ZIMBABWE 
------------------- 
2. (SBU)  Indians came to Zimbabwe three or more 
generations ago, mostly engaging in commerce. In the 
latter days of Rhodesia, Asians formed strong ties to 
Zanu-PF and its leadership to combat discrimination. They 
assisted monetarily and otherwise the then-rebel ZANU-PF. 
Asians are now Zimbabwe's largest minority, accounting 
for nearly 1 percent of the population. 
3. (SBU) The Asian community built its own society with 
separate schools, religious worship centers, sports 
clubs, etc. Interaction with indigenous Zimbabweans is 
limited to business transactions and general social 
encounters. Since land reform began, Asians have kept low 
profiles while quietly funding and supporting GOZ. They 
hope to retain their possessions and positions by 
publicly staying away from politics. Many attribute the 
white commercial farmers' sudden downfall to their public 
and defiant support for the opposition. 
 
RAMISH KEWADA: A ZANU-PF SUPPORTER 
----------------------------------- 
4. (SBU) Kewada owns a paint and plastics retail shop in 
downtown Harare. He claimed that his family had close 
ties to the ruling party. Kewada expressed faith in 
President Mugabe and GOZ's ability to better the economy. 
 
5. (SBU) Kewada believes that commercial farmers are 
partly to blame for their fate- they were stubborn about 
land reform and overly confident about their ability to 
control events. Kewada believes Mugabe protected the 
commercial farmers after independence but finally had to 
balance land ownership. He says that the British and 
Americans reneged on their monetary and political 
support, so Mugabe did it himself. Kewada did acknowledge 
that political expediency also played a role in Mugabe's 
land reform implementation. 
 
6. (SBU) Kewada believes Mugabe is not corrupt but is 
surrounded by corrupt advisors who do not provide him 
with the information he needs to make proper decisions; 
Mugabe is unaware of the level of corruption around him 
and always says something when he is made aware of it. 
 
7. (SBU) Kewada does not understand why the West "wants 
to get Mugabe". He asked whether the West was afraid of 
Mugabe as an intelligent black man. EconOff told him that 
the West welcomes honest intellectual debate as part of 
its core free speech principles. Rather, it is repressive 
policies that the West dislikes. Kewada admitted there 
had been mistakes, but attributed them to corrupt 
advisors' mal-adherence to Mugabe's policies. 
 
8. (SBU) Kewada says that Asians keep a low profile and 
support the ruling party. As a minority, it is their only 
option. Although the youth leave the country for higher 
education, Kewada believes they will return because this 
is their home and they cannot live the same luxurious 
life in the UK or USA. 
 
VAS NAYEE: TRYING TO SURVIVE IN A SINKING ECONOMY 
--------------------------------------------- ----- 
9. (SBU) Mr. Vas Nayee owns a blue jeans manufacturing 
concern in Harare. He also runs the Jaipur restaurant at 
the Sunrise Club (the mostly-Asian sports club). Nayee 
expressed concern about the fate of Asians and business. 
 
10. (SBU) Nayee's blue jeans business used to supply 
Target stores, but now survives on local and South 
African orders. Target shifted business to AGOA-compliant 
countries. At the same time, labor wants a living wage 
that he cannot afford. He hopes wage negotiations will 
produce a more modest proposal. In an hyper-inflationary 
and random government interventionist environment, 
businesses cannot plan any type of short, medium, or long- 
term strategy. 
 
11. (SBU) Nayee feels there is not an historic tension 
between locals and Asians in Zimbabwe. However, recently, 
general resentment of Asians' quality of life has 
increased. Nayee has personally felt this walking into 
stores where people glare at him- although no one has 
actually physically or verbally abused him. He can just 
feel the suspicion and resentment in their glaring eyes. 
 
12. (SBU) Nayee described how when the Joshi brothers 
fled, many Asians suddenly felt vulnerable. The Joshis 
were supposedly so connected that they were protected 
from anything as long as Zanu-PF remained in power. Now, 
they wonder if it is not such a large leap from farms to 
commerce. So, Asians keep a low profile in the hopes of 
weathering the storm. The youth are studying higher and 
secondary education abroad and will likely not return. 
 
K. JEEVA SAGAR: AN OUTSIDE PERSPECTIVE 
--------------------------------------- 
13. (SBU) Mr. Sagar is the Indian Embassy's second in 
charge. He stated that Asians maintain a low profile with 
their own schools, places of worship, etc. Their small 
numbers and self-enforced isolation has kept them safe. 
Asians' heavy involvement in the independence struggle 
and subsequent support for Zanu-PF and Mugabe has bought 
them protection. But loyalty could run out, especially 
when indigenous Zimbabweans generally believe that the 
Asian community takes advantage of business opportunities 
without giving back to the community. 
 
14. (SBU) Sagar believes Mugabe's personal loyalty to the 
Asian community runs too deep for any backlash to emerge. 
Particular individuals, such as the Joshi brothers, may 
be targeted, but not the community. However, a new 
government (Zanu-PF, MDC, or other) may feel differently. 
All the elements for a backlash exist: an easily 
recognizable minority who enjoy an higher standard of 
living than the local population, who keep to themselves 
and do not contribute to the local society. 
 
COMMENT 
---------- 
15. (SBU) Despite Kewada's optimism, there is a general 
uneasiness among Asians. As the youth leave the country 
for higher education, they are unlikely to return after 
establishing lives elsewhere. Kewada himself appeared as 
if he were trying to convince himself. 
 
16. (SBU) the low profile and financial support strategy 
may prove shortsighted. While Mugabe has refrained from 
targeting Asians, the leap is not that great from farms 
to other sectors (as the recent grab for conservancies 
illustrates). Eventually, when the land reform promises 
fall short, a new scapegoat will emerge. 
 
17. (SBU) Once a government begins demonizing part of 
society, the madness may not stop until brother fights 
against brother. Asians are distinct in race, color, 
religion, and dress. They also isolate themselves from 
the general society. This makes them easy targets if Zanu- 
PF chooses. Sagar may be correct that Mugabe's loyalties 
run too deep, but he is 80 years old and there is no 
guarantee that the next Zanu-PF or other government would 
uphold those loyalties. The local Asian community should 
seek to build bridges and connect with the general 
society rather than retreat. 
 
WEISENFELD