LIBERAL DEPUTIES AGREE TO WORK ON JOINT

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 001113

SIPDIS

SIPDIS

DEPT FOR WHA/CEN

E.O. 12958: DECL: 04/27/2017
TAGS: PGOV PINR EINV KDEM NU
SUBJECT: LIBERAL DEPUTIES AGREE TO WORK ON JOINT
LEGISLATIVE AGENDA/OPPOSITION

REF: A. MANAGUA 1069

B. MANAGUA 1067

C. MANAGUA 1036 AND PREVIOUS

D. MANAGUA 0616

Classified By: Ambassador Paul Trivelli for reasons 1.4 (b and d)


1. (C) Summary: Liberal National Assembly deputies from the
Liberal Constitutional Party (PLC) and Nicaraguan Liberal
Alliance (ALN) recently pledged during a meeting with poloffs
to jump-start negotiations on a joint legislative agenda and
methods to coherently oppose objectionable proposals from the
Ortega administration. The deputies agreed not to resist
local efforts to form unity committees and select consensus
candidates for the 2008 municipal elections. The PLC
president of the Assembly's Economic Commission also
highlighted key legislation regarding coastal property and
water rights that could affect foreign investment in
Nicaragua. End Summary.


2. (C) Polcouns hosted a cocktail on April 26 for a small
group of deputies from the PLC and ALN to discuss methods to
form a unified opposition to the Sandinista National
Liberation Front (FSLN). Although we invited some deputies
known for publicly sniping at each other, the meeting was
cordial and productive. The PLC was represented by party
vice president Wilfredo Navarro and Economic Commission
president (and former Foreign Minister) Francisco Javier
Aguirre Sacasa. ALN caucus chief Maria Eugenia Sequeira also
attended with Chinandega deputy Luis Callejas. (Comment: The
PLC delegates, who arrived and left separately, took the
opportunity to sneak in jabs at each other. Before Navarro
arrived, Aguirre warned poloff that he is "too close to the
FSLN" and that the PLC deputies are "fed up" with Navarro's
public feud with fellow PLC legislator Enrique Quinonez. As
soon as Aguirre left, Navarro joked with us and the ALN
deputies about Aguirre's aristocratic affectations and
pompous behavior. End Comment.)

Deputies Agree to Pursue Joint Agenda and Respect Local Unity
Committees
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3. (C) After Navarro and Sequeira reached an initial
consensus that the Liberal caucuses should renew efforts to
coordinate a joint legislative agenda, polcouns commented
that the Foro Liberal is interested in funding a neutral
facilitator to run a workshop for participants for both
parties (ref A) and reminded them of their previous agreement
to try this arrangement (ref D). Navarro was initially
suspicious of the involvement of the Foro, which he regards
as pro-ALN, but came around when we explained that we had
identified the facilitator (a neutral foreigner),and the
Foro would only fund his expenses. The group agreed to meet
with PLC caucus chief Maximino Rodriguez when he returns from
the U.S. on May 6. (Note: Rodriguez is currently in the U.S.
on a special security and defense International Visitors'
Program with other Nicaraguan legislators and journalists.
End Note.)


4. (C) We asked the deputies how they planned to respond to
actions by Liberals at the local level to form joint
committees and seek consensus candidates for the 2008
municipal elections (ref C). Callejas responded that the
committees are already a fait accompli in many areas, and
Navarro and Sequeira agreed that the national leadership of
both parties should not interfere in the process.

Proposed Laws Could Hurt Investment
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5. (C) Francisco Aguirre, who arrived and left earlier than
the other guests, commented that pending legislation on
beachfront property rights and the use of rivers could have a
major impact on domestic and foreign investment. He reported
that his main priority is to ensure that these laws do not
damage Nicaragua's investment climate and mentioned that the
Superior Council for Private Business (COSEP) had agreed to
fund a technical advisor to assist him with these projects.


6. (C) When queried about the government's recent de-funding
of investment promotion agency ProNicaragua, Aguirre
acknowledged that ProNicaragua directors had contacted him
after the passage of the budget, but their lobbying efforts
were "too late." He faulted ProNicaragua's leaders for

MANAGUA 00001113 002 OF 002


failing to educate the public or the Assembly about the
benefits of their organization. (Note: UNDP Director Alfredo
Missair recently informed Econcouns that UNDP plans to fund
ProNicaragua in another four-year project beginning 2008. He
defended the administration's "mistaken" abandonment of the
organization as the result of efforts to free up funds from a
budget that was overly constrained by past IMF commitments.
End Note.)

Arnoldista Bishop Feels Jilted by PLC
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7. (C) While discussing the budget, Aguirre also mentioned
that Leon Bishop Bosco Vivas called him to complain about the
reduction of government assistance to the diocese of Leon,
which apparently fell from $1 million to $500,000. (Comment:
Bosco Vivas, a strong backer of PLC leader Arnoldo Aleman,
probably thought that his diocese was entitled to greater
largesse and responsiveness from PLC legislators as a reward
for his loyalty. End Comment.)

Comment: Does Opposition Unity Finally Have Traction?
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8. (C) We will continue to encourage opposition unity at all
levels by facilitating mediation efforts and supporting
anti-Aleman elements within the PLC. This process has been
advanced by Liberals of all stripes increasingly concerned
about the Ortega administration's secrecy and centralization
of power (ref B). Nevertheless, the success of developing a
joint legislative agenda will ultimately depend on the
commitment of a majority of Liberal deputies to work
together, and the PLC's willingness to ignore Aleman when the
call inevitably comes to support FSLN-sponsored projects
benefiting Ortega and/or the Ortega-Aleman pact.
TRIVELLI