Cablegate: Protests Over Price Increases Lead to Clashes

VZCZCXRO6254
OO RUEHROV
DE RUEHKH #2046 2411549
ZNR UUUUU ZZH
O 291549Z AUG 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4318
INFO RUCNIAD/IGAD COLLECTIVE

UNCLAS KHARTOUM 002046

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E.O. 12958: N/A
TAGS: ECON PGOV PREL EAID EPET SU
SUBJECT: Protests Over Price Increases Lead to Clashes

Ref: A) Khartoum 2007, B) Khartoum 2009

1. Summary: Protesters and police clashed on August 28 during a
demonstration over recent price increases. Opposition parties plan
to present a memorandum objecting to the price increases to
President Bashir on Wednesday. The Council of Ministers has
endorsed the action of the Minister of Finance in raising prices,
but opposition parties are still seeking to debate the question in
the National Assembly. End Summary.

Police Move on Protesters
-------------------------

2. The prices of sugar, gasoline and diesel fuel increased
following a tax increase on sugar and reduction of subsidies for
fuel (reftels). On August 28, the Sudan Forum, a new grouping of
opposition parties, held a meeting at the University of Khartoum to
protest the price increases. Those attending the meeting included
leaders of the opposition parties such as Umma, DUP, Bathiest, Umma
Reform and Renovation, Sudanese Congress Party, and the Communist
Party, as well as University of Khartoum professors. Speakers at
the meeting reportedly demanded that the Minister of Finance and the
Minister of Energy and Mining explain in the National Assembly why
budget shortfalls occurred and why the price increases were
implemented. Following the meeting, participants staged a
demonstration in the street outside the meeting hall. Riot police
using sticks and tear gas moved to disperse the demonstrators.
Suliman El-Amin, Spokesman of the Sudan Forum, was reported to be
seriously injured and was taken to hospital.

March Planned for Wednesday
---------------------------

3. According to local press sources, the leaders of the main
opposition parties are planning a peaceful procession on the
afternoon of Wednesday, August 30, to march to the Palace and hand
over a 'memorandum' to the President explaining their rejection of
the price increases.

4. On Sunday, August 27, the Council of Ministers gave its
endorsement to the Minister of Finance's decision to raise prices.
Opposition party leaders, including SPLM members of Parliament, are
seeking to have the issue of price increases debated in the National
Assembly. However, the National Assembly is currently in recess.
The Council of Ministers' endorsement of the Minister of Finance's
decision further reduces the possibility that the National Assembly
debate could lead to a change in the decision to raise prices.

HUME

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