FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL

C O N F I D E N T I A L PANAMA 002207

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CEN
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 11/08/2016
TAGS: PGOV PREL PHUM ETRD KCOR PM
SUBJECT: FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL
POLITICS

R...

C O N F I D E N T I A L PANAMA 002207
SIPDIS
SIPDIS
DEPARTMENT FOR WHA/CEN
SOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 11/08/2016
TAGS: PGOV PREL PHUM ETRD KCOR PM
SUBJECT: FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL
POLITICS
REF: STATE 182267
Classified By: AMBASSADOR WILLIAM EATON FOR REASONS 1.4 (B) AND (D).
SUMMARY
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1. (C) Panama will be a voice for all of Latin America on
the UN Security Council and is willing to help the USG spread
its message, Vice President and Foreign Minister Samuel Lewis
Navarro told the Ambassador November 8. He also addressed
corruption, saying the court system is the crux of Panama's
corruption problem and the GOP plans to increase the size of
the Supreme Court in an attempt to change the balance of
power within the court and battle increasing public
perceptions of corruption. Lewis also voiced his concerns
about the negative impact of Daniel Ortega's presidential
election in Nicaragua on that country's democratic
institutions. He also discussed a range of issues including
the planned Panamanian Coast Guard and the Free Trade
Agreement (FTA) with the United States. The Ambassador
delivered reftel talking points on UN country‐specific human
rights resolutions. Lewis agreed to pass the USG message to
the Panamanian UN delegation. END SUMMARY.
PANAMA AS UNSC MEMBER
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2. (SBU) Panama will take an active role in representing
Latin America on the UN Security Council, said Lewis. He
added that he plans to travel extensively throughout the
region to make sure Panama represents the GRULAC members'
opinions and concerns. "It is important for us to know what
the U.S. position is as well, so that we can help carry the
water for you," said Lewis. He said that the GOP will invite
the new UN Secretary General to Panama in June 2007 when
Panama hosts the OAS General Assembly. He hoped that
Secretary Rice could attend as well "to send a signal to the
SIPDIS
region" of the importance the United States places on
hemispheric relations.

3. (SBU) Lewis also said that Torrijos traveled to Guatemala
on November 8 to thank them for their support of Panama's
candidacy. Lewis is working with Venezuelan authorities to
schedule a similarly brief trip to Venezuela. The timing of
the Venezuela trip is sensitive, he said, since Panama wishes
to avoid internal Venezuelan electoral politics; Torrijos's
visit to Venezuela will be strictly to thank them for their
support.
THREE MORE SUPREME COURT JUSTICES?
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4. (C) Lewis brought up the corruption issue on his own,
noting a recent Transparency International survey that
indicated the public believes corruption in Panama was not
only high but getting worse. The GOP's tack, Lewis said, was
to reduce the perception problem while improving transparency
in government. The bottom line, he said, was that the court
system was the "rotten center" of Panama's corruption problem.

5. (C) Lewis revealed that the GOP's close‐hold plan was to
add three new slots to the current nine‐member Supreme Court.
"If President Torrijos appoints three respected jurists,
that would change the balance of power on the Court," said
Lewis. He agreed with the Ambassador's observation that such
a move could be seen as the GOP stacking the Court in favor
of the PRD (Revolutionary Democratic Party),and said the GOP
would have to roll out the change very carefully. Lewis said
the GOP's justification of the move would be the current high
backlog of Supreme Court cases. The public would understand
if the GOP could frame the move as a way to reduce backlog,
explained Lewis. The Ambassador noted that an even stronger
move to reform the Court would be if notoriously corrupt
justices would resign and/or face prosecution. Lewis agreed
but stated that this would never happen.

6. (C) In a related court issue, Lewis said that former
Presidents Perez Balladares and Mireya Moscoso were
conspiring to ensure that the Electoral Tribunal delegate
appointed by the court system would be loyal to them. This
is a big concern to the GOP, said Lewis, and Torrijos is
trying hard to prevent this move. (Comment: Emboffs have
also heard this reported by others. The person rumored to be
Perez Balladares and Moscoso's choice is Gerardo Solis,
currently an electoral prosecutor (fiscal). End Comment.)
"PANAMA IS NOT NICARAGUA"
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7. (C) Panama is concerned about Nicaragua's future
following the election of Daniel Ortega. "It is almost a
given that Ortega will try to subvert all democratic
institutions in the country to bring them under Sandinista
control," said Lewis. He agreed with the Ambassador's
suggestion that Panama can help encourage Nicaragua to
maintain its free market and democratic orientation and said
that Panama will watch the situation in Nicaragua closely.
(Comment: Given the PRD's past ties with the Sandinistas, it
is interesting to see Lewis distancing the GOP from the
Sandinista government. End Comment.)

8. (SBU) Lewis was also concerned that the Nicaraguan
election would have negative consequences for Panama. In
particular, he feared that some people in the United States
may equate Panama with Nicaragua and that Panama "would be
tarred with the same brush." He emphasized to the Ambassador
that it was important for Panama that the USG see Panama in a
different light from Nicaragua. "Panama is a friend of the
United States and welcomes foreign investors," he said.
COAST GUARD AND FTA
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9. (C) Lewis emphasized that the plan to form a Panamanian
Coast Guard was still going forward. The Ambassador
expressed two concerns: 1) that incoming Enduring Friendship
funds and equipment supplement rather than substitute for
Panama's own investment in its maritime and air services, and
2) that USG support for the Coast Guard be seen as an
investment in the institution, not individuals. Lewis
answered simply, "message received." (Comment: The
Ambassador's subtle message, clearly understood by Lewis, was
that we continue to have concerns regarding potential illegal
activity by National Maritime Service Director Traad. End
Comment.)

10. (SBU) Lewis reiterated Panama's support for the FTA as a
key anchor for a strong Panamanian economy, job creation, and
increased transparency. Panama is trying to figure out what
impact the U.S. midterm elections will have on FTA progress.
He thought the new U.S. political environment may be less
favorable to free trade, but thought with Panama's trade
deficit with the United States the FTA could be seen as a
market or investment opportunity for the United States.
GOP CONCERN WITH PUBLISHER
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11. (C) Lewis stated that Torrijos is increasingly concerned
about Abdul Waked, owner of the dailies La Estrella and El
Siglo. (Note: Since Waked's El Siglo group bought La
Estrella, both papers have been showing surprising
independence, which might be a matter of GOP concern. End
Note.) Waked is allegedly bribing National Assembly members
and Supreme Court justices to get the duty‐free concession at
Tocumen Airport and other commercial favors, said Lewis.
Torrijos doesn't understand "why Waked had regular contact
with the Embassy when the USG pulled his visa," he said. The
Ambassador said the Embassy was interested in maintaining
contact with the press as well as the Muslim community in
Panama. (Comment: It is unclear whether Torrijos's "concern"
is rooted more in an attempt to muzzle the anti‐GOP
editorials in Waked's papers, or if there is a legitimate
concern. Coincidentally, former Vice Minister of Commerce
Romel Adames told Econ Chief separately on November 2 that
the GOP pressured the daily La Prensa about two months ago to
drop his regular economic columns, allegedly because he was
critical of the Torrijos administration's economic policies.
He since began writing for La Estrella. End Comment.)
POLITICAL AMBITIONS
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12. (C) Lewis said Panama's UNSC seat "threw a monkey
wrench" into his own plans to begin "campaigning"
aggressively in the countryside in the run‐up to the 2009
presidential elections. He had planned to spend more time in
the interior of Panama to raise his profile among
Panamanians, but, because of Panama's UNSC seat, will now
have to focus on more regional travel and other duties.
Lewis refuted the rumor, however, that he would step down as
Foreign Minister. He said he hoped to get involved with
Panama's national development plan as a way to leverage his
political profile among the country's poor population.
Balancing his Foreign Minister duties and his political
ambitions will require a lot of time management, said Lewis.
COMMENT
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13. (C) The GOP's plan to add more Supreme Court justices
seems to be a superficial remedy that does not address the
core of the problem: that Panama cannot rid itself of the
corrupt justices already on the Court. Judicial reform is
clearly a key component of improving transparency in Panama,
but the GOP's plan merely sidesteps the real issue.
Furthermore, with widespread rumors of corruption within all
sectors of the GOP, it is unclear how much traction any of
the GOP's anti‐corruption measures can get.

14. (C) It is a hopeful sign that Panama offered to be a
voice for the United States in its UNSC role. But given
Panama's desire to be friends with everyone, it remains to be
seen whether Panama can indeed make the tough decisions when
the time comes to choose sides. END COMMENT.
EATON