AMBASSADOR, INL DAS FARRAR DISCUSS CRIME AND

C O N F I D E N T I A L SAN SALVADOR 002636

SIPDIS

E.O. 12958: DECL: 09/21/2015
TAGS: EINV ES KCRM KJUS PGOV PREL INL
SUBJECT: AMBASSADOR, INL DAS FARRAR DISCUSS CRIME AND
INVESTMENT WITH VICE PRESIDENT


Classified By: CDA Michael A. Butler for reasons 1.4(b) & (d)


1. (C) Summary: On September 20, the Ambassador and INL DAS
Jonathan Farrar discussed the relationship between crime and
economic development with Vice President Ana Vilma de
Escobar. Vice President Escobar outlined the government's
efforts to promote investment and economic growth,
emphasizing that El Salvador was "open for business", and
achieving success in attracting investment. The Ambassador
urged more attention on the part of both the GOES and private
sector at combating crime, which he identified as a serious
obstacle to economic development. While Escobar did not
appear to share USG views that crime was the major obstacle
to creating jobs and prosperity, she conceded that
gang-related crime is one of the most serious problems facing
the country, and added that the GOES is working on a plan to
combat the situation successfully. The Ambassador also
underlined the importance of enacting a judicial criminal
code of evidence. Escobar said she appreciated USG concern
and advice. End Summary.


2. (C) The Ambassador hosted a lunch for the Vice President
and visiting INL DAS Farrar to talk about the impact of crime
on investment decisions and growth, and GOES plans to address
the issue. Also present were DCM Michael Butler, USAID
director Mark Silverman, Economic Counselor Jessica Webster,
and National Investment Promotion Agency of El Salvador
(PROESA) executive director Patricia Figueroa. The
Ambassador opened the discussion by noting that security is
one of the barriers companies perceive regarding investing in
El Salvador. Escobar stated President Saca has the
connections with the private sector and leadership to promote
economic development, but the government is not as certain of
the right steps to take regarding crime. She added she
believes that investors make their preliminary determination
regarding security as one of the first steps in their
decision making. If investors reach the stage of visiting El
Salvador, few companies continue to see security as an
obstacle, having seen the reality of the situation.


3. (C) Escobar noted that the GOES has decided to focus
their investment efforts on companies in specific sectors:
auto manufacturers, textiles, and tourism, to increase the
rate of rural employment and diversify the economy. She
added that the Salvadoran banking system was focused on
commercial development, and that it was difficult to obtain
financing for industrial development projects like textile
mills.


4. (C) Escobar cited gangs as the number one crime problem
and affirmed that the situation is becoming increasingly
difficult because of the connections between gang members and
drug trafficking. She added that she is pleased with police
efforts against gangs, but acknowledged they lack the
resources to adequately combat the problem. She also stated
that the judiciary remains the weakest link in arresting,
prosecuting, and incarcerating gang members.


5. (C) The Ambassador suggested that crime, corruption and
the lack of resources for education and health are three
major problems facing El Salvador. He stated that the keys
to combating all three problems are increasing tax
collection, increasing GDP growth, and creating jobs. He
suggested the possibility of President Saca taking a more
active leadership in the anti-crime initiatives and
emphasized the importance of enacting a criminal code of
evidence. The Ambassador also stressed the need to develop a
viable witness protection program. Standardized rules of
evidence and witness protection would lead to more successful
convictions of gang members and other criminals.


6. (C) Escobar emphasized the need to change the culture of
the people of El Salvador, adding that people needed to
believe they would be safe if they came forward to testify,
and that Salvadorans need to participate more in the fight
against crime. The recent case of the killing of the
bodyguard of Elmer Charlaix, personal secretary to the
President, during an attempted robbery at his home could be a
catalyst. She mentioned the possibility of President Saca
trying to enlist the business community in becoming more
involved in community projects including crime prevention,
but she did not seem particularly emphatic regarding the
likelihood of any such initiative. Escobar further noted the
prior success of the involvement of the private sector in
combating kidnapping. She stated that the GOES needs to set
priorities regarding economic development and crime
prevention, but that the situation is under control. She
said that the GOES appreciates the U.S. interest in the
development of her country, and that our advice is valuable
to her government.


7. (U) DAS Farrar cleared cable before departure.
Butler