Cablegate: Fsln Transition Team Seeks Social Investment,
VZCZCXRO4439
PP RUEHLMC
DE RUEHMU #2691/01 3472018
ZNY CCCCC ZZH
P 132018Z DEC 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 8434
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0866
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 002691
SIPDIS
SIPDIS
DEPARTMENT FOR WHA/CEN
E.O. 12958: DECL: 12/13/2016
TAGS: PREL PGOV PINR KDEM NU
SUBJECT: FSLN TRANSITION TEAM SEEKS SOCIAL INVESTMENT,
POVERTY ALLEVIATION, AND ECONOMIC/AGRICULTURAL DEVELOPMENT
ASSISTANCE
REF: A. MANAGUA 2673
B. MANAGUA 2624
C. MANAGUA 2611
Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D).
1. (U) Summary: Ambassador and country team members
recently presented an overview of USG programs and their
parameters to President-elect Daniel Ortega's transition
team. The Ambassador reiterated our commitment to working
with a democratic Nicaraguan government that supports open
markets and cooperates on security issues, noting that the
protection of U.S. citizens and investments in Nicaragua is
essential to ensuring bilateral cooperation. He also
explained that most of our aid programs are tied to
legislative requirements, for example, the annual 527
Property Waiver and Trafficking in Persons (TIP) reports.
Ortega transition team members were particularly interested
in USG support that promotes social investment, alleviates
poverty, and fosters economic and agricultural development.
The team members, who were surprised and enthused by the
reach and scope of our assistance in Nicaragua, will next
meet with the appropriate U.S. counterparts to discuss
specific program details. End Summary.
2. (C) On December 11, Ambassador presented a ninety-minute
overview of USG programs and their parameters and distributed
written materials to President-elect Daniel Ortega's
transition team. Representing the Sandinista National
Liberation Front (FSLN) were Rodolfo Delgado Romero, Paul
Oquist, Silvio Conrado, and Samuel Santos. Santos and Oquist
were clearly in command of the Ortega team, asking most of
the questions and offering constructive comments. In
addition to the Ambassador, the Embassy team included the
DCM, USAID director, regional agricultural attache,
Millennium Challenge Compact-Nicaragua (MCC) deputy director,
public affairs counselor, political counselor, acting
economic counselor, property office director, milgroup
attache, INL-Managua director, and Peace Corps country
director.
3. (U) The Ambassador reiterated our commitment to Nicaragua
and to continue our assistance programs as long as
Nicaragua's government remains democratic, supports open
markets, and cooperates on security issues of mutual concern.
Citing current cases involving a U.S. citizen who was almost
lynched by a mob, and a questionable court order on the
Atlantic Coast which has halted the exploration activities of
two U.S. oil firms, the Ambassador explained that the
protection of U.S. citizens and U.S. investments in Nicaragua
is essential to ensuring bilateral cooperation. He also
noted that Nicaraguan government cooperation is crucial to
the success and viability of our health and education
programs.
4. (U) Remarking that USG support for Nicaragua averages USD
50 million per year, plus the MCC's USD 175 million that will
be disbursed over a five-year period, the Ambassador
explained that most of our aid programs are tied to
legislative requirements, for example, the annual 527
Property Waiver, and Human Rights, Trafficking in Persons
(TIP), Religious Freedom, and counternarcotics reports.
Additionally, the MCC is bound by 16 specific indicators; a
participating country must remain within these parameters to
remain eligible. The Ambassador added that U.S. taxpayers
provide USG assistance funds, and therefore, we must account
for their use and the results produced. The Ambassador
further mentioned that we boost Nicaragua's development
through our substantial financial contributions to the OAS,
IDB, UN, and the World Bank.
5. (U) Embassy presenters highlighted the successful
outcomes in the annual TIP report and 527 property waiver as
key markers for a large part of our non-humanitarian,
non-commercial assistance programs. Polcouns explained that
Nicaragua had been placed on the TIP watch list in 2004, but
after the GON made considerable progress in addressing
Nicaragua's trafficking problems, it was raised back to
Category 2. Embassy's property officer shared our concern
over the new Nicaraguan property institute, National Reformed
Urban and Rural Property Institute (INPUR), which transfers
property resolution authority from the Executive to an
independent entity and in the process, could slow or
complicate property resolutions.
6. (U) Ortega transition team members were particularly
interested in USG support that promotes social investment,
alleviates poverty, and fosters economic and agricultural
development. Team members requested assistance in addressing
Nicaragua's energy crisis and in helping Nicaragua take
better advantage of CAFTA. They also inquired whether the
MCC could be expanded or additional funds provided. The
USAID director and the acting economic counselor mentioned a
USAID consultant and OPIC projects that may help Nicaragua
address its short-term and mid-term energy needs. Regarding
CAFTA, presenters highlighted the technical, environmental,
and labor support programs the USG provides to Nicaragua and
other CAFTA countries.
7. (U) The Ambassador related how a U.S. consultant working
with Nicaragua's Tax Authority (DGI) was instrumental in the
DGI's ability to modernize its tax collection system and
substantially increase revenues. He also mentioned the role
of the resident U.S. Treasury advisor who works with the
Central Bank and Finance Ministry to assist Nicaragua in
developing a sustainable Treasury bond system. Regarding the
MCC, the Ambassador shared that the U.S. Congress is
currently reviewing a proposal that would allow eligible
countries to sign concurrent compacts.
BIOS
- - -
8. (U) Rodolfo Delgado Romero: Delgado is a founder and the
current director of FSLN-associated think tank, the Institute
of Nicaraguan Studies (IEN). He received an MBA from the
Central American University (UCA) and has written extensively
on public administration. Delgado served on the board that
was charged with liquidating the assets of the failed
Sandinista-associated Interbank.
9. (U) Paul Oquist Kelley: Oquist is a UNDP development
consultant who renounced his U.S. citizenship in the 1980s,
joined the Sandinista revolution and became a Nicaraguan
citizen. He expects to retire from the UNDP within a year
and has requested a transfer to Managua so he can assist the
new Ortega government. Along with Delgado, Oquist is a
founding member of the IEN and still serves on its board of
directors. He received a PhD from UC Berkeley in political
science and was a Fulbright scholar in Chile.
10. (C) Silvio Conrado: Conrado is a long-time financial
adviser to the FSLN and former Central Bank board member. In
2003, he was charged, but acquitted by a Sandinista judge, of
rape and child molestation. He was a Fulbright scholar at
Rice University where he received a graduate degree in
Economics. Conrado studied high school at the Christian
Academy in Berkley, California. (Comment: Conrado, whose
alleged engagement in child molestation and rape was
mentioned in our 2003 Human Rights report, appeared a bit
wary, likely because he knows that we are familiar with his
case. End Comment.)
11. (U) Samuel Santos Lopez: Santos is the FSLN's Foreign
Affairs Secretary and a candidate for foreign minister. See
Ref. C for more information.
COMMENT
- - - -
12. (U) The assistance overview was a cordial step in our
efforts to build a constructive bilateral relationship. On
December 13, Santos told us that following the meeting,
transition team members met to assess its outcome. They
concluded the meeting was a great success and were enthused
by the cooperation and assistance opportunities we presented.
Santos recounted that they were surprised and pleased by the
reach and scope of our assistance in Nicaragua and will next
meet with the appropriate U.S. counterparts to discuss
specific program details.
TRIVELLI