US embassy cable - 02HARARE1820

UNCLAS HARARE 001820 
 
SIPDIS 
 
AIDAC 
 
AID FOR DCHA RWINTER, WGARVELINK 
DCHA/FFP FOR LLANDIS, JBRAUSE, DSKORIC 
DCHA/OFDA FOR MCCONNELL, SKHANDAGLE, MMARX 
AFR FOR CNEWMAN, MWILLIAMS, CWTHAGELMAN, KPOE, MCOPSON 
STATE FOR AF, PDAS BELLAMY, AND AF/S SDELISI, MRAYNOR 
NSC FOR JDWORKIN AND SENIOR DIRECTOR FRAZER 
USDA FOR MCHAMBLISS 
NAIROBI FOR RSENYKOFF, PRILEY AND FAS FKESSEL 
MAPUTO FOR SBLISS 
LUSAKA FOR KNEGASH, HGUNTHER 
LILONGWE FOR DSMITH 
PRETORIA FOR KFICKENSCHER AND FAS RHELM 
GABORONE FOR JDORMAN 
ROME FOR FODAG 
 
E.O 12958: N/A 
TAGS: EAID, EAGR, PREL, PGOV, ZI 
SUBJECT:  AGREEMENT ON USE OF U.S. TITLE II MAIZE GRAIN IN 
ZIMBABWE 
 
THIS IS AN ACTION REQUEST.  SEE PARA 4. 
 
1. (U) SUMMARY OF AGREEMENT:  VERBAL AGREEMENT HAS BEEN 
REACHED AMONG USAID, WORLD FOOD PROGRAM (WFP) AND GOVERNMENT 
OF ZIMBABWE (GOZ) ON AN ARRANGEMENT THAT WILL ALLOW ENTRY OF 
17,500 MTS OF USG YELLOW WHOLE MAIZE GRAIN CURRENTLY STORED 
IN DURBAN, THAT MAY CONTAIN GENETICALLY MODIFIED ORGANISMS 
(GMO), TO ENTER ZIMBABWE FOR THE BENEFIT OF WFP 
BENEFICIARIES SUFFERING FROM THE CURRENT FOOD SECURITY 
CRISIS.  THE AGREEMENT CALLS FOR A ONE-TO-ONE SWAP OF US- 
DONATED (GMO) WHOLE KERNEL MAIZE WITH GOZ-IMPORTED (NON-GMO) 
WHOLE KERNEL MAIZE THAT IS ALREADY IN COUNTRY.  THE FORMER 
WOULD BE MILLED BY GOZ AND MARKETED BY THEIR GRAIN MARKETING 
BOARD (GMB), AND THE LATTER WOULD BE DISTRIBUTED AS GRAIN BY 
WFP TO ITS BENEFICIARIES IN USAID-MARKED BAGS.  THIS 
ARRANGEMENT RESOLVES THE IMPASSE CREATED BY GOZ CONCERNS 
THAT GMO GRAIN COULD POTENTIALLY "CONTAMINATE" LOCAL MAIZE 
SEED VARIETIES.  THE AGREEMENT ALSO AVOIDS THE NEED FOR 
EITHER PARTY TO PAY FOR THE EXTRA MILLING COSTS THAT 
OTHERWISE WOULD HAVE BEEN NECESSARY. 
 
2. (U) DETAILS OF SWAP:  AGREEMENT CALLS FOR A ONE-TO-ONE 
SWAP OF GOZ-IMPORTED WHOLE MAIZE GRAIN FOR USAID-DONATED 
YELLOW WHOLE MAIZE GRAIN.  THE USAID MAIZE CURRENTLY STORED 
IN DURBAN WOULD BE BAGGED IN DURBAN PORT USING GOZ-PROVIDED 
BAGS, AND DELIVERED TO GMB DEPOT IN GWERU.  GMB WOULD 
IMMEDIATELY MILL IT UPON RECEIPT AND DISTRIBUTE THROUGH ITS 
NORMAL MARKETING CHANNELS.  THE GOZ-IMPORTED MAIZE WOULD BE 
BAGGED (AT GOZ COST) IN USAID-MARKED BAGS (BROUGHT IN FROM 
DURBAN BY THE WFP), AND COLLECTED BY WFP FROM GMB DEPOTS IN 
THE HARARE AREA FOR DISTRIBUTION TO ITS BENEFICIARIES. 
 
3. (U) MEMORANDUM OF UNDERSTANDING:  A MEMORANDUM OF 
UNDERSTANDING (MOU) AMONG USAID, WFP AND GOZ HAS BEEN 
DRAFTED (BY WFP AND USAID) AND SENT TO FFP/W FOR WASHINGTON 
REVIEW.  THIS MOU PROVIDES MUCH DETAIL ABOUT THE LOGISTICAL 
ARRANGEMENTS FOR THE SWAP AND BAGGING ARRANGEMENTS, AS WELL 
AS DETAILED COMMODITY QUALITY STANDARDS THAT MUST BE MET BY 
BOTH PARTIES. 
 
4. (U) RECOMMENDATION FOR ACTION:  POST ENDORSES THIS 
AGREEMENT AS A WIN-WIN RESOLUTION THAT WILL HELP USAID AND 
WFP TO MEET THE URGENT FOOD NEEDS OF MILLIONS OF POOR RURAL 
ZIMBABWEAN HOUSEHOLDS, WHILE ALLAYING GOZ CONCERNS REGARDING 
POTENTIAL GMO CONTAMINATION OF LOCAL MAIZE VARIETIES.  POST 
REQUESTS WASHINGTON TO PROVIDE ITS CONCURRENCE FOR THIS 
PROPOSED SWAP URGENTLY.  ONCE CONCURRENCE RECEIVED, POST 
WILL REQUEST WFP TO IMMEDIATELY INITIATE PLANS TO SEND A 
LIMITED QUANTITY (NO MORE THAN 800 MTS) TO ZIMBABWE AS AN 
INITIAL TRANCHE. 
WHITEHEAD