DOMINICAN PRESIDENT LEONEL FERNANDEZ'S INVITATION

S E C R E T SANTO DOMINGO 000919 SIPDIS SIPDIS FROM THE AMBASSADOR NSC FOR DAN FISK; DEPT FOR S, D, P, EB, EB/IFD, INL, INR, PM, WHA ASST SECRETARY SHANNON, WHA DAS DUDDY, WHA/CAR, WHA/AND, WHA/MEX, WHA/OAS; SOUTHCOM ALSO FOR POLAD; TREASURY FOR JLEVINE E.O. 12958: DECL: 03/14/2026 TAGS: DR ECON EFIN PGOV PREL SUBJECT: DOMINICAN PRESIDENT LEONEL FERNANDEZ'S INVITATION TO PRESIDENT BUSH FOR MAY 30-31 REGIONAL SUMMIT Classified By: Ambassador Hans H. Hertell. Reason: 1.4(b) and (d). ¶1. (C) I consider that the invitation to a Central American/Caribbean summit on May 31 hosted by President Leonel Fernandez offers the President the opportunity of a high profile event that will strongly support regional democracy and free trade, just before the General Assembly of the Organization of American States. Fernandez is a well regarded leader whose views and U.S. ties deserve strong USG recognition and support. President Leonel Fernandez - - - - - - - - - - - - - ¶2. (C) Leonel Fernandez is an orthodox, responsible academic who has moved his historically leftist party to the political center. In this term, begun in 2004, his concrete actions have focused on supporting democracy, free trade, and ties with the United States. ¶3. (C) In his first term, 1996-2000, under the sharp eye of aged hard-line leftist party leader Juan Bosch, Fernandez established the country's first diplomatic relations with Cuba. Bosch died in 2001. Since assuming office in 2004, Fernandez has limited relations with Cuba to little more than the annual meeting of a binational commission, scholarships for Dominican students, and Cuban assistance in literacy programs. Despite pressure from within his party, he declined to take Cuba's side at the 2005 Human Rights Commission, abstaining instead on the resolution. ¶4. (S) Fernandez received Hugo Chavez during Fernandez's first term, and Chavez tries aggressively to build on that relationship now. He is finding that Fernandez is not easily influenced. Fernandez has refused to support Chvez's anti-U.S., anti-free-trade line. At the Mar del Plata Summit of the Americas, Fernandez declined a direct appeal from Chvez for verbal support and shortly afterwards left the meeting. In June 2005 while accepting generous oil financing terms from Venezuela's Petrocaribe, Fernandez resisted urgings from Chavez and Castro to set up a state oil company. Fernandez,s Vision and U.S. Ties - - - - - - - - - - - - - - - - - - - - - - - ¶5. (SBU) His administration arrived in power at the height of an economic crisis. He has stabilized finances by adhering strictly to an IMF standby program, negotiating reschedulings with official and private creditors, and obtaining decisive tripartisan ratification of the CAFTA-DR trade agreement. This dramatic turnaround was recognized by the IMF, the international financial sector and by international media. As part of a full survey of the country on March 9 the Financial Times noted, "Fernandez, 52, has become the voice of reason, as far as business groups are concerned." (March 10) Regional professional magazine LatinFinance sponsored a full day conference in Santo Domingo on March 9 highlighting these successes. The professional periodical "The Banker" recently made the governor of the Dominican Central Bank its "banker of the year." The authorities have continued the criminal court actions against executives of all three of the banks that failed in 2003 due to fraud and triggered the country's financial crisis. They obtained a civil verdict and punitive damages from a U.S. court against one of those accused in the frauds. ¶6. (SBU) No populist, Fernandez articulates insistently the vision that the Dominican Republic must make itself more competitive in today,s globalized world. His close adviser Technical Secretary Temistocles Montas is in charge of a project to raise the country,s scores on the indicators used by the Millennium Challenge Corportation, both as his prospective legacy and to compete for MCC assistance funds. ¶7. (SBU) Bilateral cooperation between the United States and the Fernandez administration is strong. The U.S. ambassador TO PRESIDENT BUSH FOR MAY 30-31 REGIONAL SUMMIT is the only diplomatic envoy regularly received by President Fernandez. Embassy officers have immediate access to presidential staff and cabinet-ranked officials throughout the government. ¶8. (C) During the 2004 transition, President-elect Fernandez conferred with the Ambassador concerning the appointment of the foreign minister and accepted the Ambassador's advice to appoint Carlos Morales Tronocoso, an experienced strongly pro-U.S. businessman who had broken with his own party in order to support Fernandez in the presidential campaign. Morales Troncoso has effectively pursued policies and actions consonant with USG interests, responding positively, for example, on UN issues. ¶9. (S) Law enforcement and counter-terrorism cooperation is strong, based on effective U.S.-vetted units in the police, the intelligence service and the anti-drug agency. Fernandez welcomed and followed USG advice on key security appointments. He received in his office a high level USG intelligence briefing on the activities of the Chavez adminnistration. Following the Ambassador's advice last year, he removed an ineffective intelligence chief. ¶10. (U) Dominican authorities regularly extradite fugitives to the United States, including their own nationals. They are working closely with a USG-funded police advisor on a complete reform of police training to instill greater understanding and discipline on respect for procedures and for human rights. ¶11. (C) During the presidential campaign Fernandez sent key advisors to Washington to reassure the USG that he would favor pro-U.S. policies on CAFTA negotiation and law enforcement, and that he would not oppose Dominican support for Iraq. As president-elect, he sent 80 candidates for top government jobs to an all-day seminar at the U.S. Embassy to make sure they understood U.S. views and sensitivities. ¶12. (C) More recently, Fernandez asked Gen. Brantz Craddock of the U.S. Southern Command for a formal assessment of problems along the Dominican-Haitian border. Two weeks ago he convened the Dominican cabinet and military command for the Ambassador and Embassy staff to present the findings. He routinely asks for USAID analysis and advice. He has built exchanges with many U.S. state governments and major municipalities and has established educational exchanges with MIT, Columbia, NYU, Stevens Institute of Technology, and other U.S. universities. ¶13. (SBU) The Dominicans regularly host and participate in U.S. military exercises, including "Panamax" and "UNITAS." Currently they are hosting the three-month "New Horizons" exercise, which has brought a force of up to 450 U.S. troops to the impoverished southwest for construction and medical care activities. In the face of sporadic demonstrations organized by leftist elements there and in the capital , the civilian and military authorities have emphasized the benefits to the country of the combined exercises. ¶14. (C) Fernandez is active in hemispheric politics and eloquent in international forums, advocating market-friendly, socially responsible policies. In 2004 at U.S. request he mediated between Venezuelan and Colombian presidents when tensions rose after the kidnapping in Venezuela of a Colombian guerrilla leader. ¶15. (SBU) He promised his support to U.S.-favored candidate for OAS Secretary General Francisco Flores of El Salvador, opposed by Venezuela, and maintained that commitment until Flores decided to withdraw his candidacy. At an early date, Fernandez promptly accepted the Ambassador's request to support Colombian Luis Alberto Moreno for the post of president of the Inter American Development Bank, providing an advantage that proved decisive in the campaign. ¶16. (SBU) Fernandez urges international attention and assistance for Haiti. He visited Port au Prince in December 2005, in an effort to improve relations; Dominicans enthusiastically received Haitian President-elect Preval in Santo Domingo on March 3. The Event - - - - - - - - ¶17. (C) In January Fernandez's foreign minister proposed to bring together presidents from Central America, Mexico and Colombia as "friends of the United States" and collaborators in Mexico's proposal of a counter-Petrocaribe energy integration initiative. ¶18. (SBU) At their March 9 regional summit in Panama, Central America presidents endorsed the May 30-31 proposal. The Dominicans indicate they have informal confirmation of interest from the presidents of Mexico and Colombia, as well as several of the Central American presidents. Haiti,s new president may attend as well. ¶19. (C) The Dominicans expect to emphasize themes of free trade, regional integration and energy. They welcome any USG contribution of specific ideas for the agenda. Foreign Minister Morales Troncoso recommended the summit as a way to improve the chances that Chavez could not wreck the atmosphere at the General Assembly of the Organization of American States, to be held in the same venue three days later. OAS Secretary General Insulza is aware of the proposed summit and has accepted its timing. HERTELL