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Viewing cable 08PORTLOUIS365, OCTOBER 2 LETTER TO PRESIDENT GEORGR W. BUSH FROM

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Reference ID Created Released Classification Origin
08PORTLOUIS365 2008-10-20 09:41 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Port Louis
VZCZCXYZ0002
PP RUEHWEB

DE RUEHPL #0365/01 2940941
ZNR UUUUU ZZH
P 200941Z OCT 08
FM AMEMBASSY PORT LOUIS
TO RUEHC/SECSTATE WASHDC 4240
INFO RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
UNCLAS PORT LOUIS 000365 
 
SENSITIVE 
SIPDIS 
 
AF/E FOR MARIA BEYZEROV 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON RFIN SE
SUBJECT: OCTOBER 2 LETTER TO PRESIDENT GEORGR W. BUSH FROM 
SEYCHELLES' PRESIDENT JAMES A. MICHEL 
 
1. (SBU) On October 20, Post received an original signed letter and 
official diplomatic note -- postmarked and dated on October 14 -- 
from President James A. Michel addressed to President George W. 
Bush.  The letter is a Government of Seychelles request for USG 
assistance during the early stage of their economic reform program 
as endorsed by the International Monetary Fund. On October 20, Post 
sent the official signed documents via diplomatic pouch to AF/E 
Seychelles Desk Officer, Maria Beyzerov.  Post also forwarded 
scanned copies to AF/E via email. 
 
2. (SBU) Following is the full text of President James A. Michel's 
letter in original form. Begin text: 
 
2nd October 2008 
 
H.E. Mr. George W. Bush 
President of the United States of America 
The White House 
Washington D.C. 
USA 
 
Dear Mr. President 
 
The Republic of Seychelles has recently approached the International 
Monetary Fund for endorsement of a wide-reaching reform programme 
which is set to restructure our country's economy. 
 
My country is currently facing many major economic challenges 
characterized by balance of payment shortfalls and a heavy debt 
burden.  The pressure from these challenges has been exacerbated by 
rising fuel and commodity prices as well as shocks in the 
international financial system. 
 
The programme under discussion will essentially address the 
following areas: 
--Complete debt restructuring through Paris Club negotiations 
--Floating of our national currency 
--Tightened monetary policy to control liquidity while also ensuring 
that savings and investment are incentivised 
--A more efficient Government through further downsizing 
--Further improvement in fiscal control both through increased 
revenue and curbing public expenditure 
 
As we implement these reforms, we are mindful of maintaining our 
country's social cohesion.  We must ensure that the more vulnerable 
segments of our society are protected through the establishment of 
an appropriate sustainable safety net. 
 
Seychelles has achieved a lot with the help of its partners, notably 
the United States.  We have graduated to the status of 
'middle-income country' thanks to our high ranking in terms of our 
Human Development Index (HDI) and we are also well on track towards 
achieving our Millennium Development Goals. 
 
Our relatively high ranking in terms of our HDI however does mean 
however that we are not among the countries eligible for direct 
development assistance. 
 
As we enter into these reforms, we are thus appealing to the United 
States of America to consider a special grant to assist us at the 
start of these reforms.  This grant will allow us to have the 
necessary cushion to take us through the difficulties of 
implementation at the early stage.  We are also open to discussion 
on any other means of support that you would consider appropriate. 
 
We are encouraged that the IMF has placed social stability as one of 
the core principles in the initial discussions we have had with 
them.  However, the very nature of the type of programme to be 
implemented will mean that my Government will have fewer resources 
to invest directly in crucial areas that have been the key to our 
success in the past.  The reform of our currency will also place 
pressures for possible investment flight, thus the need to establish 
a reserves cushion to ensure currency stability. 
 
We know that reforms are necessary, and we want to implement these 
reforms in such a way that everyone benefits and that our 
achievements are not put at risk- and we are asking for your support 
to be able to achieve this. 
 
The Republic of Seychelles stands on the cusp of a transformation 
that can truly allow our country's economy to take off, and we look 
forward to your continued support for the steps that lie ahead. 
 
Please accept, your Excellency, the assurances of my highest 
consideration. 
 
Signed 
James A. Michel 
 
End of text. 
 
3.  (SBU) Post stands ready to assist in delivery and/or creation of 
response as appropriate. 
 
BLASER