Honduras 2005 BFIF Program Summary

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002237

SIPDIS

GUATEMALA FOR COMATT: MLARSEN
EL SALVADOR FOR COMATT: DTHOMPSON
GUATEMALA FOR AGATT: SHUETE
STATE FOR EB/CBA, WHA/EPSC, WHA/CEN

E.O. 12958: N/A
TAGS: BEXP EINV ECON HO BFIF
SUBJECT: Honduras 2005 BFIF Program Summary

REF: STATE 189815


1. This is a summary on programmatic outcomes of Honduras'
use of 2005 BFIF program funds.


2. Embassy Honduras would like to thank EB/CBA for continued
financial support of our joint Commercial-Economic outreach
initiatives. Post worked closely with the Honduran-American
Chamber of Commerce (AMCHAM) and local Chambers of Commerce
in designing a "CAFTA Road Show" series of presentations
throughout Honduras, with particular focus on business
communities outside of the capital and commercial hubs. The
Foreign Agricultural Service (FAS),U.S. Foreign Commercial
Service (FCS),EconOff, and the AMCHAM have put together
presentations that highlight CAFTA's advantages, and also
their services available to assist Honduran importers of
U.S. goods and services. In addition to the `Road Show'
presentation, Econ/Comm representatives met with multiple
local businesses and business organizations.


3. From June through September 2005, Post presented to
Chambers of Commerce in nine regions, including: La Lima,
Choluteca, El Progreso, Villa Nueva, Puerto Cortes,
Comayagua, Choloma, Cortes, and Atlantida. Post provided
information on FCS and FAS services, and the elements of and
opportunities presented by CAFTA. EconOff then engaged
Chamber members in town hall style question and answer
sessions. Executive Directors of the Chambers were
appreciated the briefing on the services provided by FCS,
and will be including FCS product and event promotions in
their newsletters. Many Chamber Presidents also expressed
their appreciation for the outreach by the Embassy to their
region and look forward to continued information sharing
with Economics Section.

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A taste of results
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4. The President of the Chamber of Atlantida committed to
partnering with the FCS in recruiting for International
Buyer Program (IBP) shows, and hopes to jointly generate
success stories from their office. No companies from this
region have to date participated in IBPs, a statistic that,
following our presentation to them, the Chamber of Atlantida
has committed to changing.


5. In preparing for this series of presentations, Econ/Comm
section held planning and promotional meetings in San Pedro
Sula, Honduras' business center located three hours north of
the capital. A septel to follow will outline recent and
rapid growth and investment in this northern city. FCS and
EconOff have now established contacts in important business
communities throughout the country, which will increase
efficiency in FCS recruitment for tradeshows and enrich
EconOff reporting.


6. In the San Pedro area, Econoff and Commercial Specialist
met with multiple nearby Chambers of Commerce, the AMCHAM,
U.S. businesses and trade groups. In a meeting with the
Association of Manufacturers, the FCS Commercial Specialist
successfully used his presentation to recruit for an apparel
trade show ("MAGIC") in Las Vegas. In the three days
following that speaking engagement, he was contacted by 10
companies interested in more information on the Commercial
Service, and 6 registered and attended this tradeshow. This
was the first time textile maquilas participated in a
Honduran delegation to this show. Trade shows are by far
the number one generator of Export Success Stories for FCS
Tegucigalpa.


7. In every Chamber of Commerce presentation, EconOff heard
concerns about small businesses and their ability to compete
in an increasingly global world. In response to this need,
Econ/FCS capitalized on the visit to San Pedro Sula in
October of senior Small Business Administration (SBA)
officials and invited SBA's Assistant Administrator of
International Programs Manny Rosales to address Chamber of
Commerce members on the role of small business in the U.S.
and on the structure and philosophy of the SBA. Mr. Rosales
also met with and advised his counterpart within the
Honduran Ministry of Trade and Industry on possible areas of
partnership. In a subsequent editorial in the nationally
distributed daily newspaper La Prensa, Chamber of Cortes
Executive Director Raul Reina publicly thanked the SBA for
Mr. Rosales' offer for continued support and technical
assistance and challenged the Honduran government to use the
SBA's successful programs as models for their own small
business initiatives.

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Finances
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8. Per reftel request, Post reports that it spent
approximately USD 3,153.20 of the USD 3,600 provided for
CAFTA and Foreign Commercial Service (FCS) outreach. The
Commercial Service funded a portion of travel expenses for
San Pedro Sula programs, which allowed Post to leverage BFIF
funds and reach more cities. As requested, post will fax to
the attention of Gale Grey a copy of all travel vouchers and
receipts for a detailed accounting of all funds.


9. Post plans to use this year's program to further
leverage and consolidate the successes made possible by the
2005 BFIF program. Post looks forward to receiving
additional information on proposal submission guidelines for
the 2006 BFIF program. Finally, Post reiterates its
appreciation for EB/CBA 2005 support and for the highly
successful program made possible by those funds.

Williard