US embassy cable - 04MAPUTO1447

UNCLAS SECTION 01 OF 02 MAPUTO 001447 
 
SIPDIS 
SENSITIVE 
STATE FOR AF/S, MCC FOR GAULL 
E.O. 12958: N/A 
TAGS: PGOV, PREL, MZ, ZM, Electricity 
SUBJECT: MUGABE VISITS MOZAMBIQUE, CLAIMS ZIMBABWE IS ON 
THE MEND 
 
 
Sensitive but Unclassified - Not for Internet Distribution 
 
1. (SBU) Summary: Zimbabwean President Mugabe visited 
Mozambique on October 10 - 12, with stops at Cahora Bassa Dam 
and the resort town of Vilankulos. Mugabe told reporters his 
country was overcoming its political and economic crisis and 
announced that Zimbabwe was paying back its USD 8.5 million 
debt to the dam operating company. President Chissano 
accompanied Mugabe to the dam, praising GOZ efforts on 
electoral reform and what he said were recent economic 
improvements. Although GRM officials and mainstream press 
put a positive spin on the visit, independent press articles 
were critical, and some journalists privately described it as 
a staged effort by Chissano to create an impression of 
increased stability in Zimbabwe and by Mugabe to secure 
continued Mozambican support after Chissano leaves office. 
End Summary. 
 
Zimbabwe Makes Payments Despite Crisis 
-------------------------------------- 
2. (U) Zimbabwean President Mugabe visited Mozambique on 
October 10 - 12. He was accompanied by President Joaquim 
Chissano on a visit to the Cahora Bassa Dam, after which he 
traveled to the Indigo Bay tourist center in the resort town 
of Vilankulos, Inhambane. During the three-day visit, Mugabe 
told reporters that his country was overcoming its political 
and economic crisis and that it was paying its overdue debts 
to both the Mozambican port and rail company, CFM, and HCB, 
the concession that operates the Cahora Bossa Dam. 
 
3. (SBU) HCB currently supplies 170 megawatts of electricity 
to Zimbabwe and has transmission capacity to send up to 500 
megawatts. According to local press reports, Mugabe pledged 
that the Zimbabwean electricity company (ZESA) would comply 
with the timetable for paying off its debt to HCB, which 
stands at approximately USD 8.5 million. ZESA intends to pay 
USD 2.25 million a month to HCB. According to an October 11 
press report, HCB confirmed that regular payments had been 
made by ZESA. At least one newspaper has reported in the 
past that the GOZ would like to purchase 25 percent of HCB 
once the GRM buys the Portuguese government's 82 percent 
stake. (Comment: Whether or not Zimbabwe could pay for a 
quarter of the dam may be a moot point, as the GRM does not 
appear to be making headway in its effort to buy the 
Portuguese stake before Chissano leaves office in January. 
The sticking point is reported to be HCB's $2 billion debt to 
the Portuguese government. End Comment.) 
 
4. (U) Accompanying Mugabe on his visit to the dam, President 
Chissano praised Zimbabwe for meeting its obligations to 
Mozambique despite the enormous difficulties it has been 
facing. He congratulated the Zimbabwean government on what 
he called its improved economic and political outlook. 
Chissano also stated that he was pleased with the reform of 
electoral laws in Zimbabwe, which he asserted were in keeping 
with the spirit of the Southern African Development Community 
guidelines and principles on elections. 
 
5. (SBU) Although GRM officials put a positive spin on the 
visit, some journalists commented privately that the visit 
was orchestrated by Chissano, a close friend of Mugabe, and 
aimed at perpetuating a false impression of stability in 
Zimbabwe. They also asserted that the visit was an effort by 
Mugabe to secure Mozambique's continued support and sympathy 
in a post-Chissano FRELIMO government. Some independent 
newspapers carried articles harshly critical of the GRM's 
lenient stance towards Mugabe. Articles cited Chissano's 
support of the Zimbabwean government in the face of electoral 
violations and economic policies, including agrarian reform, 
that have "destroyed the economy that, not long ago, was the 
most prosperous in Africa." 
 
Comment 
------- 
6. (SBU) Mugabe's visit came during Chissano's prolonged 
farewell to his country and his international friends. The 
two men share a history of struggle against colonialism that 
has made Chissano reluctant to acknowledge or address 
Mugabe's shortcomings. Although we do not believe ruling 
party presidential candidate Armando Guebuza shares 
Chissano's personal history and identification with Mugabe, 
we doubt he would be eager to pressure the GOZ. End comment. 
LA LIME