MEDIA REACTION ON DEBT FORGIVENESS, DECEMBER 22,

UNCLAS TEGUCIGALPA 002575 SIPDIS DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES DEPT. FOR PM AND EB/TRA DEPT. FOR WHA/EPSC, WHA/PPC AND WHA/CEN E.O. 12958: N/A TAGS: OIIP KPAO PGOV MASS EAID HO SUBJECT: MEDIA REACTION ON DEBT FORGIVENESS, DECEMBER 22, 2005 ¶1. On 12/22 an editorial in Tegucigalpa-based moderate daily "El Heraldo," titled "Debt Forgiveness and our Future." "The main success of the outgoing government is the forgiveness of our external debt as a result of the great sacrifices made by the majority of the people to achieve an agreement with the IMF." "We didn't see sacrifices by the government: there were no significant reductions in state expenses, their income increased due to excessive profit from fuel commerce, and they made sure that the salaried middle class didn't benefit by increasing the base for income taxes." "It is necessary that the new administration adopt all the necessary measures to reduce State expenses, except for the expenses toward health, education, security and the fight against poverty. If not, in a few more years we will be back on the Highly Indebted Poor Countries' list, defeating the efforts made by this current government and the sacrifices made by the people. We cannot continue to count on international sympathy and commiseration." Ford