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 i  u. ?ninth 4.3.. 

BOTSWANA DEFENCE FORGE

d. I am sure that by now you will think that I am paranoia
about the Maybe I am, but I am glad to find that I am
not alone.

2. This morning I made my first call on the new Governor
of the Bank of Botswana, a very bright and able young
Botswana called FestUs Hogae. who has recently returned
after 4 years with the IMP. Before he went to Washington
he was Permanent Secretary at the Ministry of Finance and
Development Planning. In a review of the economic scene
since he left Botswana and I arrived, he said that he was
appalled at the setting up of the BDF. He had always opposed
it and when he went to Washington Ian Ehama commented to him
that it was good riddance for Botswana because now the BDF
would be set up. He confirmed what we have always believed,
which was that the EDF was set up solely because of Ian

Ehama's pressure, through his mother, on the late President
Khama.

3. Hegae comments that the is no a.monster absorbing
more of the nationil w?iItE E535 s??ja be iffaia?? and 
diverting funds projects. When_I asked him
what was the political weight behind the which enabled
them to achieve this he commented that in the final years

before President Ehama's death Ian had been able to get

Eisenhs_saatsd from his_?sther who was then a111ng_and

Masire the heavy expenditure
he had beanfoverfnled?by the President, who had imposed his
will on the Cabinet. The situation.now was that Ian Khama
and Herafhe had become extremely arrogant with hinisters

and officials. Presdentihasiremis known by Herafhe and

. Khama to be op?csed"to their ambitions (Hogae commented that

was H??lre

and Gaolathe, Permanent Secretary, Ministry of Finance I
:and Development Planning). For the present President Hasire
does not feel strong enough to oppose Ian Ehama partly because
of Ian Khama's position in the Bamangwato and Mogae_thought
it would take two years for the President to consolidate his
position enough to tackle the BDF.

fit.

CONFIDENTIAL