Identifier
Created
Classification
Origin
06MANAGUA2741
2006-12-21 16:12:00
CONFIDENTIAL
Embassy Managua
Cable title:  

DISCUSSIONS ON NEXT STEPS WITH FSLN INTERMEDIARY

Tags:  PGOV PINR PREL KDEM ECON ENGR MARR PTER NU 
pdf how-to read a cable
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C O N F I D E N T I A L SECTION 01 OF 04 MANAGUA 002741 

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CEN

E.O. 12958: DECL: 12/21/2016
TAGS: PGOV PINR PREL KDEM ECON ENGR MARR PTER NU
SUBJECT: DISCUSSIONS ON NEXT STEPS WITH FSLN INTERMEDIARY
SANTOS

REF: A. MANAGUA 2724

B. MANAGUA 2691

C. MANAGUA 2611

D. MANAGUA 2608

Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D).

C O N F I D E N T I A L SECTION 01 OF 04 MANAGUA 002741

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CEN

E.O. 12958: DECL: 12/21/2016
TAGS: PGOV PINR PREL KDEM ECON ENGR MARR PTER NU
SUBJECT: DISCUSSIONS ON NEXT STEPS WITH FSLN INTERMEDIARY
SANTOS

REF: A. MANAGUA 2724

B. MANAGUA 2691

C. MANAGUA 2611

D. MANAGUA 2608

Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D).


1. (C) Summary: During Sandinista National Liberation Front
(FSLN) Foreign Affairs Secretary Samuel Santos' recent
meeting with DCM and polcouns, he confirmed his appointment
as Foreign Minister and requested to meet with State
Department officials in Washington before President-elect
Daniel Ortega's inauguration. Underscoring the need for the
new government to ensure the security of U.S. citizens and
their investments in Nicaragua, the DCM noted that new
National Assembly reform bill (Ref. A.) allowing the
legislature to summon foreign individuals and entities to
testify, or face possible incarceration, counters this
interest and could discourage new U.S. investment. He added
that the bill's secret balloting provision signals a downturn
in Nicaragua's efforts to increase government transparency.
Santos downplayed rumors that Liberal Constitutional Party
(PLC) leader/convicted money launderer Arnold Aleman will be
soon be released, and noted our view that the FSLN would gain
credibility by returning Aleman to jail. End Summary.

REQUEST FOR WASHINGTON MEETINGS
- - - - - - - - - - - - - - - -


2. (C) Over lunch on December 19, FSLN Foreign Affairs
Secretary Samuel Santos shared with DCM and polcouns that
President-elect Daniel Ortega has chosen him to serve as
Foreign Minister, although the news is not yet public.
Santos commented that he has already started meeting with
Foreign Minister Norman Caldera and expects to retain all of
the Ministry's civil servants and perhaps even some of the
qualified political appointees. He requested to meet with
State Department officials before Ortega's inauguration on

January 10, noting that a Washington session would underline
that the "positive bilateral relations" initiated by
Assistant Secretary Shannon's recent visit to Nicaragua
continue on track. He offered that a Washington visit would
"balance" Ortega's recent trips to Cuba and Venezuela,
commenting that Ortega frequently refers to his meeting with
A/S Shannon in his discussions with third-country officials
and with the Sandinista leadership. (Note: On December 20,
Samuel Santos, who was recently granted a visa waiver for his
212(a)(3)(B) ineligibility, was issued a one-year, multiple
entry B1-B2 visa. End Note.)

INAUGURATION PLANS
- - - - - - - - -


3. (C) The DCM noted that the U.S. presidential delegation
attending the January 10 presidential inauguration will
likely comprise three to four principals and that we will
share the list once we receive it. Santos replied that the
entire U.S. delegation will be welcome to attend the events
under the new government's control, but that he cannot
intervene on those activities sponsored by the Bolanos
government. He added that the new government prefers a
modest ceremony because excesses would be inappropriate for
an impoverished country; he assured us, however, that there
will be "no cutting corners on security matters."

CONCERNS OVER THE NATIONAL ASSEMBLY REFORM BILL
- - - - - - - - - - - - - - - - - - - - - - - -


4. (C) The DCM reiterated the need for the incoming
Nicaraguan government to ensure that U.S. citizens, companies
and organizations, and their investments in Nicaragua are
duly protected. He remarked that the new ways and means law
(Organic Law) that will allow National Assembly committees to
summon foreign individuals and entities to testify on any
matter it deems relevant, or face possible incarceration, is
a draconian measure that could infringe on the rights of all
Nicaraguan residents, including U.S. citizens and companies.
He added that, if the law is implemented as it stands, U.S.
and other foreign investors may look elsewhere, suggesting
that companies like Dole, which has been embroiled for years
in the Nemagon suits filed against it, would likely never set
foot in Nicaragua if the law passes. Polcouns remarked that
the fact that the Public Prosecutor's (fiscal) office and the
judiciary are politicized makes the new law's provisions
especially worrisome, citing the pro-Aleman fiscal's refusal
to deliver the Panamanian court's summons to Aleman because
he wishes to protect him. Santos, who conceded that
Nicaragua's judiciary leaves much to be desired, urged us to
become more engaged with the judiciary as a means to reform
it.


5. (C) Santos, who claimed that President Bolanos had
reneged on his assurances that he would not veto the ways and
means bill, acknowledged that the secret ballot provision is
"not ideal" and that the Assembly's citation privilege could
be abused for political interests. He argued, however, that
the legislature requires some sort of mechanism to summon
individuals or entities possibly engaged in activities that
hurt national interests. (Note: President Bolanos vetoed the
National Assembly's ways and means bill ("Ley Organica") on
December 18. Taking advantage of the absence of Nicaraguan
Liberal Alliance (ALN)-affiliated Assembly President Eduardo
Gomez, the FSLN and PLC caucuses immediately called for two
extraordinary sessions on December 21 and 23 to override the
veto. End Note.)

PROTECTING OUR CITIZENS AND INVESTMENT INTERESTS
- - - - - - - - - - - - - - - - - - - - - - - - -


6. (C) The DCM then raised two cases involving U.S.
citizens, the first the near lynching of Eric Volz (protect),
who was arrested for his alleged involvement in the murder of
his girlfriend in San Juan del Sur (Rivas department).
Santos, who warned that he is unaware of the details of the
case, shared that he had heard that the American may have
been involved in an environmental NGO that had opposed a
development project that included U.S. investment. The
developers may have set up the American, suggested Santos.
He then inquired whether we have been in touch with Police
Chief Aminta Granera. DCM replied in the affirmative, adding
that she has been helpful; however we found it prudent to
issue a warden message to alert U.S. citizens in the area of
possible protests associated with the case and that the case
had drawn considerable U.S. Congressional interest.


7. (C) Santos grimaced, then reddened over news of our
warden message. He opined that the San Juan del Sur case is
likely "an isolated case," and urged us to avoid "unnecessary
alarm." Santos then moved on to the subject of police
support, urging us to support Aminta Granera's efforts to
modernize and professionalize Nicaragua's police forces
through equipment donations and training. The DCM replied
that we maintain constructive and cooperative relations with
Granera and work closely with her, noting that recently an
internal affairs consultant from the United States had
visited Nicaragua to help determine how the police could
improve their operations in this area. (Comment:
Nicaraguans, especially those like Santos who are involved in
the tourism industry, flinch over U.S. travel warnings or any
other messages that could deter potential travelers to
Nicaragua. Nonetheless, such warnings have at times have
quickly remedied the situation in question. For example,
soon after we issued a travel warning related to a wave of
violent, potentially lethal student demonstrations, the FSLN
called off the demonstrations. End Comment.)

8. (C) The DCM explained that the second case concerns stay
orders (amparos) filed by an FSLN-associated judge on the
Atlantic Coast against two U.S. firms who possess oil and gas
exploration licenses for offshore sites. According to these
firms, Sandinista and pro-FSLN Yatama politicians are also
involved in blocking the exploration activities. Santos, who
appeared alarmed over the situation, requested details on the
case and promised to follow through. (Note: We will provide
him with the necessary information. End Note.)

ALEMAN
- - - -


9. (C) To polcouns' reference to the growing chatter among
Nicaragua's political class that Liberal Constitutional Party
(PLC) leader/convicted money launderer Arnold Aleman will be
soon be released and her observation that releasing Aleman
would deal a serious blow to Nicaragua's anti-corruption
efforts and could possibly affect some of our programs in
Nicaragua, Santos was unequivocal: keeping Aleman in his
current status is in the FSLN's best interests. However, he
intimated that "surprises" are always a possibility and that
the PLC has "surprised" the FSLN before. (Comment: According
to ALN chief of staff Edmundo Leal, Ortega loyalist Manuel
Coronel recently related to him that Aleman would be "freed
in a few months" as part of Ortega's efforts to "reduce
political tensions and increase governability." Leal
remarked that Coronel is a member of Ortega's "camp", which
is more "radical" than future First Lady Rosario Murillo's
clique, whose members include Samuel Santos and Assembly
Deputy Edwin Castro. The FSLN is likely to couch any
eventual release of Aleman by blaming it on PLC machinations
that caught the Sandinistas off guard. End Comment.)


10. (C) Regarding additional cabinet appointments, Santos
confirmed that Horacio Brenes will be the next Minister of
Finance, Industry, and Commerce (MIFIC). To our concerns
that Lenin Cerna's wife, Marisol Castillo, who is mentioned
as a candidate for Defense Minister, was involved in
confiscations of properties owned by U.S. citizens and there
is now talk of placing intelligence under the Defense
Ministry, Santos clarified that while he has nothing to do
with the appointments to the Ministries of Defense and
Government, "Marisol is her own person" and independent from
Lenin. He also acknowledged, however, that appointing
Castillo would serve to "placate" Cerna. (Note: In April,
2002, Castillo was found subject to denial of a visa for
entry in the United States under section 2225 of the Foreign
Affairs Reform and Restructuring Act of 1998. End Note.)

ENERGY A HOT BUTTON ISSUE
- - - - - - - - - - - - - -


11. (C) Santos revisited the FSLN's interest in tackling
Nicaragua's energy crisis even before the inauguration and
mentioned that the new government will probably establish an
Energy Ministry to deal with the issue. He explained that
the new ministry would probably encompass a number of the
current disparate energy-related entities to resolve the
crisis and possibly serve to regulate the industry. Santos
also mentioned that the FSLN is negotiating with Venezuela to
construct an Atlantic Coast-Pacific Coast oil pipeline and a
refinery, most likely to be located on the Atlantic Coast.
(Comment: An Energy Ministry would consolidate Sandinista
power over the sector. We can expect the Ortega government
will solicit assistance from the Venezuelans to advance this
project in addition to their other joint energy initiatives.
End Comment.)

ABOUT CHAVEZ
- - - - - -


12. (C) On the topic of Ortega's relationship with
Venezuelan President Hugo Chavez, Santos claimed he was the
one who introduced Ortega to Chavez several years ago.
Santos insisted that while the Ortega government will
maintain close relations with Venezuela, it also seeks strong
ties with the United States and does not intend to allow
either relationship to affect the other. Acknowledging that
Venezuela was a smaller "elephant," he said, "We don't want
to get trampled between two elephants as we did in the past."
Nicaragua, he explained, is an impoverished country that
simply cannot afford to refuse the help of others. Of
course, it will accept assistance so long as it does not
interfere with Nicaragua's sovereignty, clarified Santos.
(Note: We are beginning to hear reports of the presence of
numerous Venezuelan advisors in the National Energy Institute
and the Rural Development Institute, as well as the visit of
GOV security officials linked to Chavez's visit to Managua
for Ortega's inauguration. End Note.)

MANPADS - DESTROY THE JUNK, NEGOTIATE THE OTHERS WITHIN A
REGIONAL SECURITY FRAMEWORK
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - -


13. (C) Regarding the status of further MANPADS destruction,
Santos opined that the MANPADS that are no longer in
operative condition should be destroyed. As for the
remainder, the new Nicaraguan government should negotiate
their destruction within a broader regional security
framework, he said.

COMMENT
- - - -


14. (C) A wealthy entrepreneur, Santos is among the more
moderate, pragmatic Sandinistas who do not want to risk their
business interests or return to the dark days of the
Sandinista era of the 1980s. He privately admits the
Sandinistas committed many errors in the past and claims his
share of "collective responsibility." Santos bends over
backwards to couch his words in a way he believes will be
palatable to our sensitivities and deftly tiptoes around
particularly contentious issues. Nonetheless, his
rationalizations over the imperfections of Nicaragua's
judiciary and indications that the Ortega government seeks to
control all aspects of government and potentially society at
large through draconian legislation, likely portend rougher
waters ahead.
TRIVELLI