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 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶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 - - - - - - - - - - - - - - - - - - ¶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 - - - - - - - - - - - - - - - - - - - ¶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? - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶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