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Cablegate: Update On Economic Costs of Hurricane Dean In

VZCZCXRO1049
OO RUEHCD RUEHGD RUEHHM RUEHHO RUEHJO RUEHMC RUEHNG RUEHNL RUEHPOD
RUEHRD RUEHRS RUEHTM
DE RUEHME #4554 2391226
ZNR UUUUU ZZH
O 271226Z AUG 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8585
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHXI/LABOR COLLECTIVE PRIORITY
RUEHBE/AMEMBASSY BELMOPAN PRIORITY 0017
RUEHKG/AMEMBASSY KINGSTON PRIORITY 0384
RUEHPU/AMEMBASSY PORT AU PRINCE PRIORITY 0345
RHMFIUU/CDR USNORTHCOM PRIORITY
RHMFIUU/CDR USSOUTHCOM MIAMI FL PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS MEXICO 004554

SIPDIS

SENSITIVE
SIPDIS

STATE FOR A/S SHANNON
STATE FOR WHA/MEX, WHA/EPSC, EEB/IFD/OMA, EEB/IFD/OIA, AND
DRL/AWH
STATE FOR EEB/ESC MCMANUS AND IZZO AND GRIFFIN
USDOC FOR 4320/ITA/MAC/WHA/ONAFTA/GERI WORD
USDOC FOR ITS/TD/ENERGY DIVISION
TREASURY FOR IA (ALICE FAIBISHENKO)
DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH AND ALOCKWOOD
NSC FOR RICHARD MILES, DAN FISK
STATE PASS TO USTR (EISSENSTAT/MELLE)
STATE PASS TO FEDERAL RESERVE (CARLOS ARTETA)
USDOC PASS TO EXIM AND OPIC

E.O. 12958: N/A
TAGS: ECON EAID EAGR ENER PGOV MX
SUBJECT: UPDATE ON ECONOMIC COSTS OF HURRICANE DEAN IN
MEXICO

REF: MEXICO 4512

Energy
------

1. (U) Pemex has reported that it should complete the
inspection of its installations today, August 24. After
having examined most of its offshore facilities yesterday,
Pemex had not found major damage. Oil and gas production in
the Campeche Sound restarted on August 23, and as of 19:00
that day, Pemex had produced 342 thousand barrels of crude in
that area. Officials expect production to increase in the
coming days. Pemex has reported that it expects to have the
18,197 employees who were evacuated back at their posts on
August 24. Mexico reopened the Dos Bocas port on August 23.

Tourism
-------

2. (U) Hurricane Dean had a minimal effect on the tourist
zones of the Yucatan peninsula. Beaches, particularly those
that had not yet been reclaimed since Hurricane Wilma, were
further eroded by Dean. The government-run National Tourism
Development Investment group (FONATUR) has been put in charge
of cleanup in the tourist zones. Secretary of Tourism
Rodolfo Elizondo toured the state of Quintana Roo and
announced plans for a promotion campaign to encourage
tourists to continue visiting the area. He said tourist
infrastructure is at 100% and ready to receive the usual
number of visitors. Elizondo also announced discussions with
the Secretariat of Economy to extend credit to small- and
medium-sized tourism enterprises affected by the storm.

Agriculture
-----------

3. (U) Official reports on the damage to the agricultural
sector are still pending. On August 23, the Governor of
Veracruz said publicly that agricultural areas sustained the
most damage. There are approximately 48,000 hectares of
planted oranges, 12,000 hectares of Persian limes, and 2,500
hectares of grapefruit in the affected area. However, there
is currently no official damage estimate. The state of
Quintana Roo also reported agricultural damage to citrus,
bananas, and sugar cane. According to initial reports,
nearly 1,000 hectares of sugar cane were affected by the
hurricane. Approximately, 25,000 hectares of sugar cane are
planted in the region.


Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North American
Partnership Blog at http://www.intelink.gov/communities/state/nap /
GARZA

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