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Cablegate: Response From Amembassy San Jose to Request From

VZCZCXYZ0025
OO RUEHWEB

DE RUEHSJ #0688 2252050
ZNR UUUUU ZZH
O 132050Z AUG 09
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1118
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SAN JOSE 000688

SIPDIS
SENSITIVE

DEPT FOR EEB/EPPD FOR NSMITH-NISSLEY

E.O. 12958: N/A
TAGS: KSEP AMGT BEXP ECON ELAB ETRD SENV PREL PGOV
CS
SUBJECT: RESPONSE FROM AMEMBASSY SAN JOSE TO REQUEST FROM
EEB - ACTING, ASSISTANT SECRETARY NELSON: DUE DILIGENCE ON
NOMINEES FOR THE SECRETARY OF STATE'S 2009 AWARD FOR
CORPORATE EXCELLENCE

REF: SECSTATE 78538

1. Please see responses from AMEMBASSY SAN JOSE to action
request (reftel).

2. Question: Are there possible negatives or risks of U.S.
embarrassment that could result from the potential selection
of your post's nominee (Intel Costa Rica)? Answer: No.

3. Question: Do you have any information concerning job
creation in the United States resulting from the operations
of the company you nominated (Intel Costa Rica)? Answer:
Intel Costa Rica imports input parts from the United States
as well as exports final product to the United States. U.S.
producers and consumers hire U.S. employees (therefore
creating jobs) whom are integral parts of the Intel Costa
Rica supply chain.

4. Question: What is your assessment of the company's (Intel
Costa Rica) trade and investment activities with regard to
helping stimulate economic growth in the U.S. and increasing
American exports (what is the U.S. content of its products)?
Answer: The percentage of U.S. content in Intel Costa Rica
products is unavailable. However, Intel Costa Rica does use
raw materials and other inputs from the United States.

5. What is the state of labor conditions in the company's
(Intel Costa Rica) facilities and are workers unionized?
Answer: Intel Costa Rica has an Employee Association
(Asociacion Solidarista de Empleados de Componentes Intel de
Costa Rica in Spanish) which was founded in 1997. There are
2,073 members which represents about 93 percent of Intel
Costa Rica's employees. The employee association offers
loans, savings options, insurance, credit cards, discounts,
and other benefits to its members. We are told that Intel's
employment practices rate in the upper echelon of the Costa
Rican system. Employees that leave Intel often request (or
initiate) labor practices that replicate Intel's work
environment.

6. Are you aware of any litigation pending in local courts
involving the company (Intel Costa Rica)? Answer: No. Intel
Costa Rica is required to report any material litigation as
part of their ongoing U.S. Securities and Exchange Commission
(SEC) reporting requirements. Intel Costa Rica currently
does not have any litigation that triggers this reporting
requirement. Intel Costa Rica currently has two cases
matriculating in the Costa Rican courts and both of them are
private (not government related). Since both are open cases,
Intel Costa Rica's lawyers were not at liberty to disclose
additional details about the cases.

7. Question: Please confirm that the Chief of Mission and
others involved in the nominating process do not hold shares
of stock or have other financial interests in the company.
Answer: The three main players involved in the selection
process, CDA Peter Brennan, Economic Officer Mark Kissel, and
Economic Specialist Anna Sparks, do not hold stock in Intel.

8. Thank you for the opportunity to respond. We look forward
to the final results of the selection process.
BRENNAN

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