SCENESETTER FOR AMBASSADOR MAISTO,S OCTOBER 18-20

C O N F I D E N T I A L GEORGETOWN 001065

SIPDIS

SOUTHCOM ALSO FOR POLAD
SIPDIS

E.O. 12958: DECL: 10/12/2016
TAGS: PGOV KDEM GY
SUBJECT: SCENESETTER FOR AMBASSADOR MAISTO,S OCTOBER 18-20
VISIT TO GEORGETOWN

Classified By: POLITICAL OFFICER JOHN EDWARD ZAK FOR REASON 1.4(D)


1. (U) We warmly welcome your visit to Georgetown. You are
arriving at an important historical moment, shortly after the
first peaceful elections in nearly a decade. In the run-up
to elections and during the victory celebrations, President
Jagdeo promised to widen political dialogue and to push
through crucial election, governmental, and broadcasting
reforms. As election fever subsides and Georgetown settles
down to business as usual, your visit can be a timely
reminder for Jagdeo to follow through on his commitments.


2. (U) In the August 28 elections, Jagdeo's ruling People's
Progressive Party (PPP) won 55% of the vote, increasing its
existing majority of seats in the National Assembly to 36.
The opposition People's National Congress Reform lost ground,
however, winning only 22 seats. The upstart Alliance For
Change (AFC) won 8 seats, with the two remaining seats going
to minor parties. As in the past, Guyanese voted largely
along ethnic lines, with Indo-Guyanese supporting the PPP,
and the minority Afro-Guyanese choosing the PNCR. The AFC
had some success with its campaign against ethnically based
politics.

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KEY ISSUES: POLITICAL DIALOGUE & LOCAL ELECTIONS
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3. (C) In his inaugural address, President Jagdeo
highlighted the need to open up dialogue between the PPP and
opposition parties - an agenda that had been continuously
encouraged by the donor communities throughout the national
elections. The government got off to a bad start, however,
when Jagdeo announced a commencement date for Parliament
beyond the constitutionally mandated time and further named
his Ministerial Cabinet in a constitutionally questionable
manner. While the Guyana High Court eventually upheld each
move, Jagdeo's lack of dialogue with the opposition parties
regarding these issues shows that he may not be fully
committed to the spirit of cooperation that he announced.


4. (C) The Government's abuse of state-controlled media
marred the fairness of the 2006 national and regional
elections. The PPP's use of the only licensed radio station,
one of the nation's leading newspapers, and the government
owned television station, gave them an unfair advantage in
media exposure. Ending the government monopoly on radio and
regularizing television broadcasting was one of the top items
on Cheddi Jagan's manifesto in 1992 and has been repeatedly
cited as a priority by President Jagdeo. Several versions of
a comprehensive Broadcast Bill have been tabled and forgotten
in Parliament over the last 14 years. We and the other major
donors (U.K., Canada, and E.U.) have targeted this issue.


5. (U) Local government elections, last held in 1994, were
constitutionally due in 1999. Both the government and the
opposition parties have been discussing the need to move
forward with local government elections. The main issue
revolves around whether much needed reforms to the electoral
system should be implemented before or after the local
government elections.


6. (C) The GoG will be sure to bring up U.S. assistance for
anti-narcotics measures, including a pending DEA presence
in-country. Guyana is a transshipment point for cocaine
destined for North America, Europe, and the Caribbean - it is
estimated that narco-traffickers earn US $150 million
annually. We have been working with the GoG to establish a
vetted DEA unit in Guyana - current plans have stalled,
however, over a number of issues. While Post has provided
recent funding for anti-narcotics training, as well as a
fast-boat for interception of drugs on Guyana's waters, GoG
forces have not made any significant drug trafficking arrests
this year, nor has the GoG responded to five outstanding
extradition requests.


7. (U) A large IDB loan was approved in June providing more
than US $15 million dollars for judicial reform. Included in
this loan are provisions for necessary reforms of both the
Guyana Defense Force and the Guyana Police Force. The U.K.
has also initiated a program utilizing its own law
enforcement personnel for both reform and training of the
Guyana Police Force.


8. (SBU) GoG officials may also ask about the status of the
Millennium Challenge Corporation's review of Guyana's
proposed Threshold Plan. Guyana has submitted a proposal for
US $11 million to address failing scores in the fiscal
deficit indicator. MCC staff are reviewing Guyana's
proposal, and a decision memo may go before the MCC
Investment Committee in the next week or two.


9. (C) President Jagdeo prides himself on his ability to
obtain debt relief for Guyana. Over the last five years, he
claims to have negotiated approximately US $900 million in
debt reduction from the donor community, IMF, and World Bank.
He will lobby for relief from the remaining US $470 million
owed to the IDB. Most major donors feel that forgiving the
debt before Jagdeo undertakes serious reform measures would
send the wrong signal.


10. (U) You will meet individually with President Bharrat
Jagdeo, Presidential Secretariat Roger Luncheon, and Foreign
Minister Rudy Insanally. We will also host meetings with
members of the opposition political parties, local media, and
the leaders from the international donor community. We look
forward to your visit.


ROBINSON