DOMINICAN OPPOSITION BRISTLES; FERNANDEZ BACKS OFF

UNCLAS SANTO DOMINGO 001026 SIPDIS SENSITIVE STATE FOR WHA/CAR, WHA/EPSC, WHA/USOAS, EB/TPP/BTA, EB/IFD/OMA; NSC FOR SHANNON AND MADISON;LABOR FOR ILAB; USCINCSO ALSO FOR POLAD; TREASURY FOR OASIA-LCARTER STATE PASS USTR FOR VARGO, RYCKMAN, MALITO, CRONIN USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI E.O. 12958: N/A TAGS: PGOV DR SUBJECT: DOMINICAN OPPOSITION BRISTLES; FERNANDEZ BACKS OFF ¶1. The Dominican Republic,s opposition, uncoordinated and quiescent since its resounding electoral defeat last year, ended its truce this week and mounted its first serious attack on the policies of President Fernandez since he assumed office six months ago. This awakening may not restore opposition unity or public support, but it suggests a bumpy road between Congress and the Palace on passage of urgent legislation. ¶2. Former President Hiplito Mejia on February 19 broke his silence and declared the post-inaugural truce to be over. He criticized the government,s "failed" economic policies and called on his party to take a more aggressive stance. Mejia,s barbs, delivered at a sympathizers, rally in the interior city of San Francisco de Macoris, drew sharp replies from three senior government officials about the financial mess they had inherited from Mejia. With this sortie, the PRD - - led by the former president,s "Institutional Current" faction - - tried to smooth over the party,s internal squabbles to target the common adversary. He spoke again in Santo Domingo on February 24, announcing plans to tour the country and moderate among PRD factions. Mejia,s hand in the party was strengthened by a Supreme Court decision February 23 declaring inadmissible a legal challenge to his leadership by PRD dissident leader Hatuey De Camps. ¶3. The opposition in Congress quickly followed Mejia,s lead, or appeared to do so. On February 22, 400 campesinos protested outside Congress over their evictions from lands granted them by the Mejia administration. Inside, the PRD,s Senate majority refused to consider bills authorizing domestic bonds to fund reforms required by the IMF agreement. The senators - - seconded by PRD secretary general "Fello" Subervi - - said they would block all government legislation until President Fernandez met with them to discuss their concerns, including dismissals of public doctors, agronomists, and teachers who had served under Mejia. Legislators of both opposition parties (PRD and PRSC) threatened to override a presidential veto of a bill providing equal allotments of public funds to the three big political parties. ¶4. Faced with headlines about the Senate,s "rebellion," Fernandez withdrew the veto and signed the party financing bill into law. He met with Senate President Andres Bautista (PRD) and Senator German Castro (PRSC) and promised to rescind the dismissals of doctors, to review other firings, and to name a commission to investigate the land tenure issue. Both sides made conciliatory statements. The president got mixed reviews for a sensible effort to work with the opposition-dominated Congress or, alternately, for being irresolute and weak. The Senate kept up the pressure by canceling the scheduled February 24 session, and Senate Vice President Cesar Augusto "Yayo" Matias announced that the chamber would not approve a bond issuance worth RD $8.3 billion (US $285 million) until the promises were fulfilled. - - (This piece and extensive other material can be consulted on our classified SIPRNET site http://www.state.sgov.gov/p/wha/santodomingo/ .) - - HERTELL