US embassy cable - 05HARARE1352

C O N F I D E N T I A L SECTION 01 OF 02 HARARE 001352 
 
SIPDIS 
 
AF/S FOR B. NEULING, STATE PASS USAID FOR M. COPSON, NSC 
FOR SENIOR AFRICA DIRECTOR C. COURVILLE, TREASURY FOR J. 
RALYEA AND B. CUSHMAN, USDOC FOR ROBERT TELCHIN 
 
E.O. 12958: DECL: 09/29/2015 
TAGS: ECON, EFIN, PGOV, PHUM, ZI, Agriculture, Economic Situation 
SUBJECT: RESERVE BANK GOVERNOR IN THE SEARCH OF AN OPENING 
 
REF: HARARE 1346 
 
Classified By: Ambassador Christopher Dell for reasons 1.4 B/D 
 
(1) (C) Summary:  Commercial Farmers Union (CFU) President 
Doug Taylor-Freeme related that Reserve Bank of Zimbabwe 
(RBZ) Governor Gideon Gono asked him what the international 
community's minimum requirements would be for re-engaging 
with Zimbabwe in the agricultural sector.  The farm union 
president viewed Gono,s outreach as a last-ditch attempt by 
a small group of reform-minded forces in the GOZ to reverse 
Zimbabwe's economic decline. He understood that Gono was 
willing to appeal directly to Mugabe, but needed some results 
to gain the old man,s support. The Embassy response to 
Taylor-Freeme was that nothing short of a comprehensive 
political and economic reform package and the restoration of 
due process and the rule of law could open the door to 
re-engagement. Taylor-Freeme described how the CFU was 
helping commercial farmers to establish themselves throughout 
Africa as part of the CFU strategy to keep expertise on the 
continent while it waits to "outsurvive" Mugabe. End Summary. 
 
--------------------------------------------- --- 
Gono Seeks "Carrot" from International Community 
--------------------------------------------- --- 
 
2.  (C)  GOZ rabble rousing on farm takeovers, recent 
isolated cases of violent farm invasions, and orders issued 
to ten commercial farmers to cease farming (reftel) spurred 
CFU President Doug Taylor-Freeme to enter into a lengthy 
discussion on September 26 with Reserve Bank of Zimbabwe 
(RBZ) Governor Gono on the dire state of the sector and new 
threats to operation.  In the course of their meeting, Gono 
asked Taylor-Freeme what the minimum principles or minimum 
requirements would be that would influence the international 
community,s readiness to re-engage with the GOZ in the 
agricultural sector.  Taylor-Freeme told Gono the CFU's 
immediate minimum requirement was a moratorium on farm 
seizures. 
 
3.  (C)  Taylor-Freeme related to econoffs on September 27 
his sense that there was a small group in government, 
spearheaded by Gono and Minister of Finance Murerwa, keen to 
make a last ditch effort to address "the meltdown." 
Taylor-Freeme asked if there was room in U.S. policy for some 
&carrots8 for Gono. He said Gono was willing to appeal 
directly to Mugabe, but needed to have something to take to 
the old man to gain his support.  Gono allegedly told the 
farm president that, if he had no means to influence policy, 
he would resign.  (Taylor-Freeme opined to us it was not 
inconceivable that Gono could be used as a scapegoat for 
failed economic policies.) He also told Gono the CFU could 
deal a further blow to agricultural production by calling on 
its members to shut down or further draw down production. 
Econoff relayed to the farm union president the U.S. position 
that the only grounds for meaningful re-engagement with the 
GOZ were a commitment to the implementation of a 
comprehensive political and economic reform package and 
restoration of due process and the rule of law in Zimbabwe. 
The ball was in the GOZ's court and the USG had no "carrots" 
to offer Gono in the absence of concrete action to alter the 
course Zimbabwe is on. 
 
--------------------------------------------- ------ 
CFU - Extending its Influence in the Region 
--------------------------------------------- ------ 
 
4.  (C) Taylor-Freeme, who is also a member of Gono's 
so-called Public Advisory Board, explained that the aim of 
the CFU was to "outsurvive" Mugabe, protect agricultural 
assets (barns, irrigation systems and other infrastructure) 
and maintain farming expertise, if not in Zimbabwe, at least 
in the region, for a quick turnaround upon Mugabe's 
departure.  The CFU helped farmers get access to finance and 
had used Gono as an ally in this regard with some success. 
Gono had been able in the past to intervene to defend some 
farmers when a businessman was invading a farm, but not when 
a politician or member of the military was undertaking a 
seizure. 
 
5.  (SBU) Discussing the evolving role of CFU in Zimbabwe and 
in the region, Taylor-Freeme explained that the CFU existed 
to provide agricultural services to commercial farmers; it 
was not a political structure nor did it want to be pulled by 
either party into politics. He described the fresh 
"horsepower" the CFU was getting from the Southern African 
Confederation of Agricultural Unions, of which he is Vice 
President.  He related SACAU,s success in tapping into SADC, 
Africa Union, NEPAD and other African development 
institutions to promote commercial agriculture in Africa.  On 
behalf of SACAU, Taylor-Freeme has sought out farming 
opportunities across the continent from Sierra Leone to 
Madagascar for expropriated farmers, and worked out financing 
arrangements for start-up farms outside of Zimbabwe.  He 
recounted a recent 4-day trip to Nigeria, where he met twice 
with President Obasanjo, who told him that Zimbabwe's 
agricultural policy was "not good for Zimbabwe, not good for 
the region, and not good for Africa".  The Nigerian president 
said of Mugabe, although "my brother is not talking to me," 
he himself was "not giving up". 
 
------------------------------ 
Bio Notes ) Doug Taylor-Freeme 
------------------------------ 
 
6. (SBU)  Doug Taylor-Freeme is serving his third year as 
President of the Commercial Farmers Union.  In addition, he 
is Vice President of The Southern African Confederation of 
Agricultural Unions. Having trained in the U.K. as an 
agricultural engineer, he also runs a commercial farm in the 
area of Chinhoyi, northwest of Harare.  While he said he lost 
60 percent of his holdings under fast-track land reform, he 
still plants 400 hectares of soybeans, 200 hectares of maize, 
50 hectares of tobacco, and keeps 500 head of cattle. He 
spends about four days a week in Harare on CFU/SACAU business 
and travels widely across Africa for SACAU, leaving his 
farm's day-to-day operation in the hands of a farm manager. 
 
------- 
Comment 
------- 
 
7.  (C)  Gono clearly intended for Taylor-Freeme to float a 
trial balloon with the Embassy as part of his ongoing 
campaign to portray himself as the voice of moderation and 
reason within the GOZ.  While he always talks a good game, 
the truth is that both GOZ interference in the economy and 
the resulting economic crisis have grown on Gono's watch. 
Gono appears increasingly desperate to turn the economy 
around and it is typical of him to try to play both sides 
against each other to find a little more wriggle room.  Gono 
is obviously under growing pressure and we see no reason to 
give him any relief. 
DELL