Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05MAPUTO1481, MOZAMBIQUE: GOVERNMENT REVOKES CONCESSION FOR US

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05MAPUTO1481.
Reference ID Created Released Classification Origin
05MAPUTO1481 2005-11-10 11:56 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Maputo
VZCZCXRO4136
PP RUEHDU RUEHJO RUEHMR
DE RUEHTO #1481/01 3141156
ZNR UUUUU ZZH
P 101156Z NOV 05
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC PRIORITY 4623
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEAIIA/CIA WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEFDIA/DIA WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 MAPUTO 001481 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
STATE FOR AF/S - TREGER 
STATE FOR EB/IFD/OIA 
STATE PASS USTR FOR P.COLEMAN 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD EINV MZ
SUBJECT: MOZAMBIQUE: GOVERNMENT REVOKES CONCESSION FOR US 
TOBACCO COMPANY, ALARMS LOCAL BUSINESS COMMUNITY 
 
 
MAPUTO 00001481  001.2 OF 002 
 
 
1. (U) Summary: The Government of Mozambique's (GRM) recent 
decision to revoke a large tobacco concession held by a US 
company without transparency, documentation or the steps 
required by Mozambican law is causing considerable concern in 
Mozambique's business community and could damage Mozambique's 
reputation with foreign investors -- particularly if the 
original holder of the concession, DIMON, files an insurance 
claim, as threatened.  Additionally, the GRM,s actions may 
violate its Bilateral Investment Treaty with the US, which 
came into force in March.  End Summary. 
 
---------- 
BACKGROUND 
---------- 
 
2. (U) DIMON, an American corporation, was involved in the 
worldwide cultivation of loose-leaf tobacco.  On May 13, 
2005, DIMON merged with Standard Commercial Corporation to 
form Alliance One International, incorporated in Virginia and 
now one of the world's largest loose-leaf tobacco merchants. 
The merger of DIMON,s operations in Mozambique is still 
ongoing.  For this reason, this cable refers to DIMON and not 
Alliance One. 
 
3. (U) DIMON,s investment in Mozambique is extensive; it 
currently operates in Niassa, Nampula, Zambezia, Manica and 
Tete provinces, works with almost 60,000 farmer/producers and 
directly employs nearly 2,000 Mozambicans.  On May 24, 2001, 
the Mozambican Government granted DIMON a ten-year right to 
operate a tobacco concession area in Chifunde district in 
Tete province, with the option to renew for five years. 
 
------------------ 
CONCESSION REVOKED 
------------------ 
 
4. (U) Our understanding of the concession revocation, drawn 
from information provided by lawyers for DIMON in Mozambique 
and from local business associations in Maputo, is as follows: 
 
5. (U) Prior to the 2005/2006 season, which started in 
September, DIMON invested approximately USD five million in 
seeds, fertilizers and other inputs delivered to producers in 
the Chifunde area.  On August 5, 2005, the Minister of 
Agriculture, Tomas Frederico Mandlate, issued a decision 
revoking DIMON's concession rights in Chifunde district. 
Minister Mandlate gave the following reasons: 1) the illegal 
entry of "Stancom" (referring to DIMON's merger with Standard 
Commercial Corporation, mentioned in para 2) into the 
concession area; 2) the massive dismissal of employees; 3) 
the stoppage of tobacco trade; and 4) the illegal purchase of 
tobacco.  Mandlate also cited a decree issued by the Tete 
provincial governor against DIMON, along with a request for 
intervention by the Chifunde district government.  DIMON says 
it received no warning prior to the revocation and, despite 
repeated requests, still has not received any evidence or 
documentation supporting the alleged grounds. 
 
6. (U)  On August 15, DIMON filed an appeal of the August 5 
decision with the Minister of Agriculture.  Under Mozambican 
law, this appeal should have maintained the status quo 
pending a final decision from the Ministry or a competent 
court.  Despite this fact, the status quo was not maintained 
and on September 15, 2005, the Tete governor issued another 
decree officially granting another company, Mozambique 
Tobacco, the immediate right to operate the concession. 
Mozambique Tobacco is the implementing partner for Universal 
Leaf, another an American corporation. 
 
7. (U) However, under pressure from public complaints by the 
US-Mozambique Chamber of Commerce and the national business 
umbrella association, CTA, on October 11 Agriculture Minister 
Mandlate revoked his August 5 decision against DIMON and 
remanded the issue back to the Tete governor for further 
consideration.  As we understand it, the governor of Tete was 
supposed to allow a joint fact-finding investigation team, to 
include a legal representative of DIMON and one of CTA, to 
visit the Chifunde area to investigate the grounds of 
revocation.  The investigation did not occur as planned; 
instead, one government official conducted the investigation 
 
MAPUTO 00001481  002.2 OF 002 
 
 
and supported the governor's decision against DIMON. 
 
8. (U) DIMON is considering several courses of action in 
response to the loss of its concession in Chifunde, including 
withdrawing investments from all of its tobacco concessions 
in Mozambique, filing an insurance claim with its private 
insurer asking for an indemnity of approximately ten million 
USD and seeking recourse through international arbitration. 
DIMON lawyers suggested also that they are exploring filing 
for arbitration under provisions of Article IX of the 
Bilateral Investment Treaty. 
 
------- 
COMMENT 
------- 
 
9. (SBU) We have heard allegations that DIMON treated its 
employees badly and was strongly disliked by tobacco growers 
in the Chifunde area.  It is also noteworthy that DIMON has 
never approached the Embassy for our assistance over the 
dispute.  For these reasons, we suspect the GRM's ire against 
DIMON may have some merit.  However, whether DIMON is in the 
right or wrong, it appears that the GRM has acted arbitrarily 
by not following the law.  This has foreign investors here 
worried, particularly that it could mark the beginning of an 
anti-business trend by the new Guebuza government.  If DIMON 
files an insurance claim, as threatened, Mozambique's credit 
rating and reputation as an investment destination will 
surely suffer. 
La Lime