SCENESETTER FOR ACTING U/S BEARDSWORTH VISIT TO EL

UNCLAS SECTION 01 OF 02 SAN SALVADOR 002429

SIPDIS

SENSITIVE

FROM AMBASSADOR BARCLAY TO U/S BEARDSWORTH
DHS FOR KEVIN KELLY

E.O. 12958: N/A
TAGS: ES PGOV PREL
SUBJECT: SCENESETTER FOR ACTING U/S BEARDSWORTH VISIT TO EL
SALVADOR SEPTEMBER 1-3



1. (SBU) Acting Under Secretary Beardsworth, I look forward
to your delegation's visit to El Salvador from September 1 to
3 to meet with Salvadoran officials and attend the inaugural
graduation of the ILEA. The following background information
may be useful for your preparations.

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El Salvador-U.S. Relations
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2. (SBU) El Salvador is one of our strongest allies in the
Western Hemisphere, and remains the only Western Hemisphere
nation besides the U.S. with troops serving with coalition
forces in Iraq. The U.S. operates a Cooperative Security
Location (CSL) that is colocated with a Salvadoran Air Force
base at El Salvador's principal airport at Comalapa. The FBI
will soon open an office at the Embassy for the purpose of
exchanging intelligence with the GOES on street gang
organizations. Embassy officers have unfettered access to
the highest echelons of GOES officials.

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Domestic Political Overview
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3. (SBU) President Elias Antonio "Tony" Saca of the
governing Nationalist Republican Alliance (ARENA) party
assumed office June 1, 2004 after winning a hotly-contested
presidential race. President Saca's ARENA party holds only
29 of 84 seats in the Legislative Assembly, but, through
alliances with smaller parties, regularly passes legislation
requiring a simple majority. ARENA's major political
opposition is the leftist Farabundo Marti National Liberation
Front (FMLN),which has been weakened recently by internal
struggles and defections. Human rights problems are minimal.
The Embassy continues to encourage the GOES to fully enforce
and enhance labor protections. In particular, there are
valid complaints regarding the difficulty of forming labor
unions, and allegations of "blacklisting" of labor
organizers. Attention is already focusing on municipal and
Legislative Assembly elections scheduled for March of next
year.

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Domestic Economic Overview
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4. (SBU) El Salvador's stable economy, the result of a broad
reform agenda implemented by three successive ARENA
governments, has earned El Salvador an investment-grade debt
rating from Moody's, and provided a measure of economic
predictability. Nonetheless, the economy has been growing at
a disappointing rate of about two percent per year since
1999, despite its excellent macroeconomic fundamentals.
President Saca's highest priorities are reinvigorating El
Salvador's economy, creating jobs, and improving the nation's
infrastructure. Roughly 40 percent of the population still
lives in poverty. El Salvador ratified CAFTA in December
2004, the first country to do so; U.S. passage of CAFTA has
raised hopes that increased trade can help jump-start the
nation's sluggish economic growth.

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El Salvador's Foreign Policy
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5. (SBU) El Salvador's postwar ARENA governments have been
reliable in their support for U.S. positions in international
fora such as the UN, including on issues such as UN reform,
human rights abuses in Cuba, and the Middle East peace
process. Beginning more recently during the Flores
administration, El Salvador has on occasion pursued a
somewhat more independent course, but has still proven
dependable on key matters of bilateral importance. El
Salvador has recently broadened its foreign relations to
include moderate Arab states such as Morocco and Qatar, and
is actively seeking a seat on the UN Economic and Social
Council (ECOSOC),and possibly one of the nonpermanent seats
on the UNSC.

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Terrorism and International Crime
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6. (SBU) El Salvador has been a consistently strong
supporter of the United States in the fight against terrorism
and international organized crime. El Salvador's geographic
position makes it vulnerable to trafficking in drugs, people,
and guns to or from the United States. Drug trafficking has
received significant GOES attention and cooperation; El
Salvador hosts the Cooperative Security Location (CSL) at
Comalapa Airport. This is one of three CSL's in the region,
and since 2001 has contributed to the seizure or disruption
of about 210 metric tons of cocaine. Trafficking in persons,
smuggling of aliens, and gunrunning remain problems due to
the porous borders in Central America. The government passed
new anti-trafficking legislation last year and is conducting
raids against those suspected of exploiting children. The
Border Police unit and Immigration service are working
closely with the Department of Homeland Security and the
Embassy to improve coordination with the U.S. and their
ability to limit the illegal movement of people through El
Salvador. Violent street gangs are a serious problem. Law
enforcement efforts against the gangs have been hampered by
the government's current inability to protect witnesses.

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Civilian-Military Relations
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7. (U) The Armed Forces of El Salvador (ESAF) are capable,
professional, and subordinate to civilian authority.
Currently, the ESAF has approximately 10,000 service members
and 2,500 administrative personnel. The military
consistently receives high approval ratings in public opinion
polls, reflecting its dramatic transformation since the
1980-1992 war. The fifth contingent of a 380-person
"Cuscatlan Battalion" task force that rotates every six
months departed for Iraq in August 2005; nearly 2,000
Salvadoran soldiers have now served with coalition forces in
Iraq. The Battalion has suffered two fatal casualties in
Iraq, one combat death in Najaf on April 4, 2004 and one
non-combat-related traffic death in Hilla on June 27 of this
year. The ESAF has performed admirably in humanitarian and
reconstruction efforts in support of the Iraqi people. They
have distributed supplies and provided key services, ranging
from food distribution and medical support, to the donation
of vehicles to the local police and hospital, to the
distribution of household items and toys for children.

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Migration Issues
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8. (U) About 2.5 million Salvadorans live in the United
States, most illegally. Since the 2001 earthquakes, between
250,000-280,000 Salvadorans have benefited from Temporary
Protected Status (TPS),and have been able to live and work
legally in the United States. The U.S. announcement in
January 2005 of a further 18-month extension of TPS was of
paramount importance to the Saca Administration; remittances
from Salvadorans living abroad make up approximately 16
percent of the GDP, and are an important source of income for
many Salvadoran families. Public opinion polls also show
that 7 out of 10 Salvadorans would immigrate to the United
States if given the chance. The GOES is focused on obtaining
permanent status for TPS recipients, claiming it cannot
absorb that number of returnees. The GOES has publicly
complained about an alleged lack of intelligence sharing
between U.S. law enforcement agencies and the GOES relative
to criminal deportees.
Barclay