MEDIA REACTION ON CAFTA, MAY 09, 2005

UNCLAS TEGUCIGALPA 000990

SIPDIS

DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES
DEPT. FOR EB/TPP DCLUNE, WHA/EPSC AND WHA/CEN
DEPT. PASS USTR

E.O. 12958: N/A
TAGS: OIIP KPAO ETRD HO USTR
SUBJECT: MEDIA REACTION ON CAFTA, MAY 09, 2005



1. On 05/07 the Tegucigalpa-based liberal daily "La Tribuna"
published an op-ed by Gautama Fonseca entitled "Customs
Union and CAFTA." "Juan Manuel Villasuso, Costa Rican
economist, published in the newspaper `La Republica' the
following: `Last's week Central American Customs Union is
clearly a objective of the governments of the region. But
CAFTA will affect negatively efforts so far.'"

"It will affect external customs, deviate commerce, change
commercial legislation and will cause subordination on
CAFTA's integration."

"Toward this reality, could we still be talking about
Central American integration after CAFTA's approval?"


2. On 05/09 "La Tribuna" carried an op-ed by Selim Kassis,
entitled "Mr. Maduro and CAFTA." "On July 1991, Mr. Maduro,
was President of the Central Bank, said: `Many businesses
that thought they would be affected expressed optimism that
a bigger market will bring them advantages.' This was said
reference to a multilateral agreement with Central American
countries. Also he said there will be stabilization and
price decreases."

"Fourteen years later we now hear that CAFTA will be good if
negotiated properly, but the previous experience was that he
didn't stabilize the economy. We are now at the edge of
misery."

"Either we are against or not for CAFTA, let's hope it will
be signed when Mel Zelaya is president so there is
transparency and real benefits to the Honduran people."

It also ran an editorial entitled "Duet." "Thanks to the
information given by Antonio Saca we found out that the May
12 meeting in Washington to will talk only about CAFTA."

"What is not clear is the convincing power of Nicaraguan and
Costa Rican presidents, when they haven't even convinced
their own Congresses."

"So the rest of the Central American presidents will have an
uncomfortable task to convince the U.S. Congress, with that
duo they are dragging. Let's see if they can convince anyone
there if they haven't been able to convince anyone here."

Pierce