PREVAL DISCUSSES SECURITY, INFRASTRUCTURE, AND THE

C O N F I D E N T I A L SECTION 01 OF 03 PORT AU PRINCE 001393

SIPDIS

SIPDIS

STATE FOR WHA/CAR
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
WHA/EX PLEASE PASS USOAS

E.O. 12958: DECL: 07/27/2016
TAGS: PGOV PREL HA
SUBJECT: PREVAL DISCUSSES SECURITY, INFRASTRUCTURE, AND THE
ECONOMY WITH A/S SHANNON


PORT AU PR 00001393 001.2 OF 003


Classified By: Janet A. Sanderson for reasons 1.4 (b) and (d).


1. (C) Summary. Assistant Secretary Shannon pressed
President Preval on July 25 to demonstrate ways the
Government of Haiti, with international assistance, could
address the lack of security in Port-au-Prince. Preval said
that Haiti needed to take control of its ports (where illegal
arms enter),fight drug trafficking, and pursue a national
dialogue on security to create a better environment for
economic development. Preval focused more on building a
national highway network, described as his "obsession,"
hopefully with USG cooperation. He also sought support for
HOPE trade legislation, debt relief, and technical assistance
for collection of customs duties. While clearly aware of the
immediate challenges facing his country on the security
front, Preval still appears hesitant to take firm public
action on this issue. End Summary.


2. (U) WHA A/S Shannon, together with Ambassador Sanderson,
met July 21 for 90 minutes with President Preval, his senior
advisor Bob Manuel, and economic counselor Gabriel Verret for
a wide-ranging discussion on security, economic, and regional
issues. WHA/CAR Director Brian Nichols and note takers also
attended.

Fighting Haiti's Rise in Violence



3. (C) A/S Shannon stressed to Preval that improvements in
security are critical to permit investment and economic
development. The lack of security threatens not just
stability and order but the government's plans for
development. Preval stated he thought Haiti was "on its
way to resolving the (security) problem." In his view, the
violence could be attributed to gangs, drug trafficking and
"political hands at work." To help bring order to the
country, Preval has named two new officials; a
Secretary of State for Public Security and a Secretary of

SIPDIS
State for Judicial Reform. Preval believes comprehensive
reform both in the police and judicial system were needed to
effect change. Preval hopes the new officials keep the
pressure on "violent elements." Preval also believes that
national dialogue is an important element in combating
violence in Haiti. Pointing to his handwritten notes in a
school book, he said he is thinking of convening a conference
with all sectors of society to discuss the
issues of contraband, corruption, and lack of security.


4. (C) Preval advisor, Bob Manuel, raised the issue of
counternarcotics, stating there was "no greater enemy to
Haitian democracy than drug dealers." Preval considered that
USG interest in countering drug traffic and drug transit
through Haitian ports appears to have diminished.
Ambassador Sanderson said counter narcotics was still
important, but third countries were finding other transit
ports. Shannon
affirmed that the USG would welcome ways to improve
collaboration in this area.


5. (C) To curb the flow of illegal arms into the country,
Preval hoped that MINUSTAH would patrol the
ports. The President noted the recent seizure of a
container of weapons in the port. Whether the weapons were
for political or criminal purposes, he recognized that his
administration "needed to get a handle on it." Preval
expressed disappointment over the fact that MINUSTAH would
not agree to port protection, as that was not part of its
mandate. According to Manuel, however, this may change as of
August 15th because he understands that the UN SYG would
recommend the new MINUSTAH mandate include language
authorizing it to "protect institutions." Manuel and Preval
both agree ports should be included as a public institutions.

Building Haiti's National Highways



6. (C) Preval stressed repeatedly during the meeting that
building a national highway network is a priority. When
asked how the international community could assist Haiti's

PORT AU PR 00001393 002.2 OF 003


democracy, Preval sprang from his seat and pulled out two
three-by-five foot maps from the adjoining room detailing his
vision of the national highway system, his self-described
"obsession." Various countries had already committed to
building portions of the national highway and he hopes other
countries might match France's commitment of building 100
kilometers of roads. The President jokingly told Shannon
there was easily 100 kilometers of road available for the
U.S. and the A/S could choose a name for this portion of the
highway. Preval himself dubbed the planned French-funded
segment from Hinche to Cap Haitien "the road of perfect
love."

Putting Haiti on the Right Track Economically



7. (C) Preval expressed interest in Governor Bush's proposal
that Haitian customs revenues be collected at the port of
embarkation in the U.S. Two weeks ago, he met with Swiss
company, Societe General de
Surveillance (SGS),which previously collected customs duties
for Haiti in Miami. SGS told Preval that
monitoring the flow of imports is difficult because of the
firm's poor access to customs documentation. Preval
considers these duties an important source of revenue for
Haiti and hoped to improve access to this information. He
pressed for this program, noting that he could not rely on
Haitian customs to produce revenue; he believes controls are
better in the United States. Shannon stated that he would
discuss the proposal with DHS in Washington, if needed, but
first the Ambassador would follow up with the Governor's
office to determine the status of implementation.


8. (C) Preval raised the issue of HOPE trade legislation for
Haiti, noting that a trade agreement with Oman had recently
been approved and that legislation concerning Peru would soon
be considered by the Ways and Means Committee. He said he
understood prospects were good for HOPE's passage. Shannon
cautioned that passing trade legislation had become more
difficult in the current political environment in Washington.
Preval looked disappointed and somewhat surprised. Shannon
added that while trade legislation was a particularly
sensitive issue (especially during an election year),if
trade
legislation for Peru succeeded it would be a good sign for
Haiti.


9. (C) Preval's economic advisor, Gabriel Verret, raised the
issue of debt relief for Haiti. Verret stated that the
Inter-American Development Bank (IDB) board had met ten days
earlier to consider debt relief for Haiti, Bolivia, and
Nicaragua. Although the GOH had some problems with the
proposal (which he said would limit Haiti's future borrowing
to USD 30 million per year),the GOH was eager for
forgiveness of USD 700-800 million in debt to the IDB,
resulting in potential future savings of USD 20-30 million
per year in debt service payments. Verret sought USG support
for the IDB plan. Shannon reassured him
that the effort to expand the G-8 debt relief proposal to the
IDB was in fact a USG initiative.


Comment
- - - - - - - - - -


10. (C) Preval clearly has a strategic framework for
addressing Haiti's problems that includes a structured
partnership with the international community and building
support among key domestic constituencies. However, Preval's
inherent political caution may prevent him from moving with
the speed necessary to resolve the most pressing issues.
Preval appears to realize that he can no longer postpone more
decisive action on security and will likely ask MINUSTAH and
the Haitian National Police to take a tougher line in the
coming days. Nevertheless, his reticence to speak out
forcefully on security issues will leave those organizations
alone and exposed if security operations go poorly. End
Comment.


PORT AU PR 00001393 003.2 OF 003



11. (U) A/S Shannon has cleared this cable.
SANDERSON