TALKING POINTS ON NICARAGUA DELIVERED TO TAIWAN

S E C R E T TAIPEI 002538 SIPDIS SIPDIS E.O. 12958: DECL: 07/27/2031 TAGS: PGOV TW SUBJECT: TALKING POINTS ON NICARAGUA DELIVERED TO TAIWAN REF: A. TC NOTE 25 JULY 2006 ¶B. TAIPEI 02480 Classified By: Acting AIT Deputy Director Charles E. Bennett, Reasons: 1.4 (b/d) ¶1. (S) AIT POL Chief conveyed ref A talking points on Nicaraguan presidential election to MFA Director General for Central and South American Affairs Jai-son Ko on July 27 (See para 4 for talking points). POL Chief strongly urged Taiwan not to provide funding to Rizo and the FLC. ¶2. (S) Ko reiterated Taiwan's concern that an Ortega administration would switch recognition from Taipei to Beijing, resulting in the loss of a key diplomatic ally in Central America for Taiwan. Such a development would be a "disaster" for Taiwan and could well have a domino effect, causing other allies in the region to recognize the PRC, Ko said. ¶3. (S) The Taiwan authorities have no jurisdiction over the activities of Taiwan businessmen in Nicaragua, Ko asserted, but would try to dissuade them from funding political campaigns. He further noted that anti-Sandinista parties have sought campaign donations from Taiwan, South Korean, and other businessmen and that Taiwan businessmen have been providing some form of funding to politicians to protect their economic interests and investments in Nicaragua. Talking Points Provided by WHA/CEN -------------- ¶4. (S) Begin Text of Talking Points: -- We appreciate and share your concerns that a divided Liberal camp gives Daniel Ortega a better chance to win the Presidency of Nicaragua. -- We are also concerned that democratic leadership, institutions and processes have been under siege by a corrupt pact between the FSLN and the PLC, under the control of former President and convicted felon Arnoldo Aleman. -- As long as Aleman remains in control of the PLC, the FSLN will enjoy influence over the PLC because of the pact. -- While we will not choose or support a specific candidate, we support the democratic process in Nicaragua. As long as Aleman controls the PLC, Rizo will be emblematic of the corrupt, anti-democratic, caudillo-style politics of Nicaragua's past, not of a democratic future. -- We urge the government of Taiwan to refrain from giving financial support to Rizo and the PLC. Just as important, we urge you to explain to Taiwanese companies the dangers of supporting Rizo financially. -- Rizo trails in the polls. If anyone should step down in support of anti-Sandinista unity, it is he. Taiwanese refusal to fund his campaign can help him come to this conclusion faster. End Text. YOUNG