DOMINICAN PRESIDENT-ELECT LOOKS FORWARD TO CLOSE

C O N F I D E N T I A L SECTION 01 OF 03 SANTO DOMINGO 003004

SIPDIS

SENSITIVE

STATE FOR WHA, WHA/CAR, WHA/PPC AND DRL
NSC FOR SHANNON AND MADISON
LABOR FOR ILAB
TREASURY FOR OASIA-LAMONICA
USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION
USDOC FOR 3134/ITA/USFCS/RD/WH
DHS FOR CIS-CARLOS ITURREGUI; SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/19/2014
TAGS: PGOV DR
SUBJECT: DOMINICAN PRESIDENT-ELECT LOOKS FORWARD TO CLOSE
RELATIONS WITH U.S.


Classified By: Ambassador Hans Hertell. Reason: 1.5 (b) and (d).


1. (SBU) Summary. Dominican President-elect Leonel
Fernandez assured the Ambassador on May 19 that he
anticipated close and collaborative relations with the United
States. Economic issues will occupy much of his time.
Dominican relations with Cuba are a relatively low priority
for him. Fernandez will discourage Venezuela's Hugo Chavez
from using anti-U.S. rhetoric. He will have "zero tolerance"
for corruption and narcotics trafficking. In his second term
he will have a better understanding of what the United States
has to offer. Fernandez asked whether the USG could provide
expert advice on "governability." End summary.


2. (SBU) On May 19 President-elect Leonel Fernandez received
the Ambassador, DCM and EcoPol counselor at his offices at
the Foundation for Global Development (FUNGLODE). Fernandez
was friendly and appeared rested and relaxed. The meeting
lasted for more than an hour (despite the crowd of party
members, officials, and press waiting in the foundation and
outside). Fernandez thanked the Ambassador for helping
assure the presence of a large number of international
observers for the May 16 election. He said that without
their presence and vigilance, the governing PRD of President
Mejia would have been able to use fraud and intimidation to
push the elections into a second round.


3. (C) The Ambassador expressed USG satisfaction at the
conduct of the elections and at the positive role played by
observers. He described events leading up to the emotional
press comments in mid-evening of Msgr. Agripino Nunez, head
of the Elections Monitoring Committee ("Comision de
Seguimiento")(septel). Fernandez commented that by evoking
the three-month election stalemate of 1978, Nunez had helped
forestall PRD meddling in the results of the first round.


4. (C) The Ambassador noted for Fernandez the concern of the
USG about the possible evolution of Dominican relations with
Cuba and with Venezuela. He left Fernandez a copy of the
executive summary of the recent Commission for Assistance to
a Free Cuba. Fernandez commented that his energies would be
devoted immediately to economic issues, in the hopes that a
bad 2004 could be followed by a better 2005. Relations with
Cuba would be far down his list of priorities. "I understand
your sensitivities about Cuba. The United States is the most
important partner of the Dominican Republic." As for
Venezuela, he said he needs to engage Chavez because pursuant
to the San Jose accords, Venezuela supplies almost all of the
fuel for power plants in the Dominican Republic. He hopes to
secure the continuation or improvement of terms for purchase
of Venezuelan petroleum. Fernandez commented that he would be
suggesting to Venezuelan President Chavez that he refrain
from anti-U.S. rhetoric. "He owes me one," smiled Fernandez,
referring to his own mediation between Chavez and the Carter
Center in early 2002.


5. (C) Fernandez said that he would have "zero tolerance" for
corruption and for any involvement with narcotics
trafficking. During his practice as a criminal lawyer, he
said, he never accepted any clients accused of narcotics
offenses. He confirmed his interest in receiving briefings
on law enforcement cooperation and appeared receptive to the
Ambassador's offer to vet with U.S. databases the names of
prospective nominees for sensitive positions. Fernandez said
that his administration would work closely on law enforcement
matters with the USG. He mentioned his concern about lax
controls in airports and ports, and the Ambassador outlined
for him the current DHS "90-day letter" notification to the
Dominican authorities of the requirement to raise security
standards at Las Americas Airport in Santo Domingo


6. (C) He has no plans to travel to Washington, but he will
go to the New York area during the summer to accept an
honorary doctorate at the Stephens Institute of Technology.
He expects to meet economist Jeffrey Sachs and hopes to call
on New York mayor Michael Bloomberg.

Economics and Governability


7. (SBU) Fernandez stressed his interest in working with the
econ staff of the Embassy and checked to see that the Embassy
had received a copy of the report commissioned from the
Economist Intelligence Unit. The most pressing priority for
him, he said, is taking action to reduce the quasi-fiscal
deficit constituted as certificates of deposit at the Central
Bank. His advisors are suggesting early action to sell state
assets so as to pay down the amount of debt outstanding.
Fernandez mentioned assets acquired in the Baninter
liquidation process but otherwise was not specific. He
believes that reducing the short-term debt burden will
increase confidence and help increase the value of the peso
in exchange markets with positive effects on prices. He made
no specific comments about the IMF program or sovereign debt
issues.


8. (SBU) Fernandez spoke of plans to reinforce the "brand" of
the Dominican Republic by organizing international broadcasts
of baseball and cultural events (an idea drawn from the EIU
study). "It will be fun, being president." He commented
that in his second term he will have a much clearer idea of
the possiblities of U.S. cooperation and support. He wants
to work closely with U.S. governors of states with
significant Dominican populations (New York, New Jersey,
Florida and Illinois) and with other large U.S. states
(California and Texas).


9. (U) The President-elect mentioned a USAID-financed study
on issues of "governability" done for President Sanchez
Lozada of Bolivia by Dr. Eduardo Gamara of Florida
International University. Considering the delicate state of
politics and the economy, he is very interested in finding
out whether he can obtain USG technical assistance for a
similar study.

- - - - - - - - - - - -
Taking Mejia's measure
- - - - - - - - - - - -


10. (C) Fernandez considers that despite his intelligence,
President Meja is simply not a conceptual thinker. Mejia's
intuitive, energetic populist character makes him vulnerable
to clever manipulators about him, such as economic advisor
Andres Dauhajre, Junior. (In contrast, Fernandez has great
respect for Mejia's Technical Secretary Carlos Despradel.)
Fernandez believes that PRD manipulators were on their way to
disrupting the vote count, a scheme that Mejia forestalled by
conceding the election at 11:40 when only 2.8 percent of
polling stations had succeeded in notifying results to the
Central Elections Board (JCE).

11. (C) He said he was surprised by Mejia's public comment
yesterday that Mejia would not attend the May 28 regional
summit in Monterrey and the suggestion that Fernandez or a
Fernandez representative represent the Dominican Republic.
Mejia is president for three more months, Fernandez stressed,
and Mejia needs to fulfill his responsibilities. Fernandez
takes the report as a sign that Mejia is worn down after the
months of energetic campaigning.


12. (C) Fernandez emphasized that he has no intention of
instituting legal action against Mejia. "In the United
States there is great respect for the institution of the
Presidency," he commented, "and this recent history in Latin
America of prosecuting presidents as soon as they leave
office is wrong and undignified." He expects to work with
Mejia's officials toward a smooth transition. Fernandez did
not mention any further arrangments in this regard.


13. (U) In closing, Fernandez accepted the Ambassador's
offer to host meetings between the incoming administration
team and senior staff of the Embassy. He again stressed the
importance in his eyes of relations with the United States,
recalling his previous remark that Dominican relations are
based on key geographical points: Puerto Rico, Miami, New
York, and Madrid.


HERTELL