Moves towards renewed talks on setting election date between government and UNITA despite fears SPLA government hoping to delay till outside limit of 2006, as suggested by Council of Republic Presidential advisers; UNITA calling for 2005 date. Meanwhile, Angola signed up to regionally-backed African Peer Review Mechanism.

Luanda government launched $370 million social/economic plan for troubled Cabinda province 3 June, meeting with local scepticism. UNITA welcomed governing MPLA moves toward renewed dialogue on 2005 elections, but questioned conditions MPLA says must be fulfilled before ballot can go ahead.

President Dos Santos visited Washington D.C., insisting “there is no war” in Angola’s tiny but oil-rich Cabinda province, but sources on ground claim ongoing tension between as many as 30,000 Angolan troops and separatist FLEC-FAC forces. Opposition UNITA party walked out of talks on 2005 election 12 May, blaming government stalling. In positive move 20 May, Angola promised 45-day suspension of expulsion of illegal Congolese (DRC) diamond miners which had destabilised DR Congo/Angola relationship.

Security forces raping and killing illegal Congolese diamond miners and families, with tens of thousands expelled, according to UN Office for the Coordination of Humanitarian Affairs (OCHA). Expelled miners later attacked Angolan refugees in DR Congo. In positive move towards greater transparency, government agreed to share some oil revenue information with IMF.

Rebels in oil rich Cabinda peninsula claimed 4 March 47 government soldiers killed in clashes in prior weeks - government denied.

Government official said national elections may not be held for 2 years. Main opposition party, UNITA, accused government of deliberately delaying electoral process. Government set up new body to regulate loosely controlled diamond industry.

Human Rights Watch report claimed more than U.S.$4 billion in oil revenue disappeared from Angolan government coffers from 1997-2002, roughly equal to entire sum government spent on social programs in same period. Government rejected claims.

President dos Santos re-elected as head of ruling MPLA party – allowing him to run again in national elections to be held after 2004. Six Angolan workers for CARE killed by landmine 12 December.

Delivery of humanitarian assistance impeded by landmines, poor roads and approaching wet season. DR Congo and Congo-Brazzaville military chiefs offered full co- operation to Angola to deal with secessionists in oil rich province of Cabinda. Continued human rights abuses by Angolan army alleged in Cabinda, denied by government.

UN World Food Programme says Angola has moved from crisis mode to recovery, and that about 3.8m people have returned to their areas of origin.