MEDIA REACTION ON CAFTA, NOVEMBER 5, 2004

UNCLAS TEGUCIGALPA 002509 SIPDIS DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES DEPT. FOR EB/TPP DCLUNE, WHA/EPSC AND WHA/CEN DEPT. PASS USTR E.O. 12958: N/A TAGS: OIIP KPAO ETRD HO USTR SUBJECT: MEDIA REACTION ON CAFTA, NOVEMBER 5, 2004 ¶1. Editorial in San Pedro Sula-based liberal daily "Tiempo" on 11/5, entitled "CAFTA to Congress." "The Executive has sent the text of CAFTA to Congress for its approval, which may be subject to a wide process of consultation with different sectors of Honduran society." "With the reelection of President Bush, the odds of its approval in the U.S. Congress have evidently improved, especially after the Republicans consolidated their control over the House of Representatives and the Senate." "Meanwhile, it's important for Hondurans and for all Central Americans to adopt a positive and realistic attitude towards CAFTA, creating a suitable environment to take advantage of this new trade scheme." "For Honduras, it will be crucial to establish new economic and financial policies, which is a very difficult task at this moment. With a depreciating currency, a weak financial system, a collapsing agricultural sector, the disappearance of medium and small enterprise, constant labor disputes, and a lack of national leadership, there's no way we can increase the dynamism and competitiveness of the Honduran private sector and our national economy." Palmer