PLC DEPUTIES FORM NEGOTIATING COMMITTEE WITH THE

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000175

SIPDIS

SIPDIS

DEPT FOR WHA/CEN

E.O. 12958: DECL: 01/19/2017
TAGS: PGOV PINR KDEM NU
SUBJECT: PLC DEPUTIES FORM NEGOTIATING COMMITTEE WITH THE
ALN, REFUSE TO DEFEND ALEMAN

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


1. (C) Summary: A group of National Assembly deputies from
the Liberal Constitutional Party (PLC) recently expressed a
willingness to work with the Nicaraguan Liberal Alliance
(ALN) on legislative issues and reported they have formed a
negotiating committee with the ALN. The deputies, including
the head of the PLC caucus, pledged that the party would
never support "totalitarian" reforms that would benefit the
Sandinista National Liberation Front (FSLN). When we
mentioned the presence of PLC leader and convicted
ex-President Arnoldo Aleman, smiling and happy, at President
Daniel Ortega's inauguration, the deputies declined to defend
him, possibly suggesting a shift away from the controversial
caudillo. End Summary.


2. (C) DCM hosted a cocktail on January 17 with the following
members of the PLC caucus in the National Assembly: Maximino
Rodriguez (Matagalpa, head of PLC caucus); Jose Pallais
(Leon); and Victor Manuel Duarte (RAAN). (Comment:
Rodriguez, himself new to the PLC leadership structure, was
eager to meet with us and invited newly-elected PLC deputies
Pallais and Duarte to the cocktail as well. End Comment.)

Seeking Rapprochement with the ALN
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3. (C) Rodriguez, Pallais, and Duarte agreed that Ortega won
the election because of "egos" and Liberal divisions, which
"must be healed" before the 2008 municipal elections if the
Liberals wish to continue as a viable political force in
Nicaragua. Rodriguez commented that the PLC has established
a negotiating committee with the ALN to discuss legislation
in the National Assembly and "build confidence" between the
two parties. The three committee members on the PLC side are
Rodriguez, Pallais, and Porfirio Castro; the ALN members are
ALN caucus head Maria Eugenia Sequeira, Alejandro Bolanos,
and Eliseo Nunez, Sr. Rodriguez requested that we intercede
with the ALN to prevent an extension of the Framework Law
(septel),which will prevent the National Assembly from
gaining more control over the Executive. DCM replied that we
will encourage the ALN negotiators to continue their efforts
to engage their PLC counterparts and seek common ground to
the benefit of Nicaragua.


4. (C) When we asked about the PLC position on FSLN-proposed
reforms to Law 290, which would transfer more authority from
the ministries and autonomous entities to the Presidency,
they pledged that the PLC would never support "totalitarian"
reforms. (Comment: The same evening, DCM called ALN
leader/former presidential candidate Eduardo Montealegre to
encourage his party's engagement with this group of PLC
lawmakers and PolCouns spoke with ALN caucus head Maria
Eugenia Sequeira to the same effect. Both were amenable to
our suggestion and encouraged by the fact that we had met
with the PLC deputies and that they had evinced interest in
mending their differences with their ALN colleagues for the
good of the country. Montealegre and Sequeira indicated that
they share the PLC's opposition to "fast-tracking" the FSLN's
proposed revisions to Laws 290 and 228. Nevertheless, the
ALN differs with the PLC over extending the implementation of
a number of constitutional reforms; the ALN believes the
extension is necessary to dampen the influence of the
FSLN-PLC pact, while Aleman seeks the implementation of these
reforms on 20 January because they entail, inter alia, the
establishment of regulatory agencies that the FSLN and PLC
will staff with their cronies. End Comment.)

Countering the Sandinista Hold on Civil Society
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5. (C) The PLC lawmakers voiced alarm over the Sandinista's
efforts to expand their participation at the grass roots
level and acknowledged that the Liberals are relatively
inexperienced in this area and unable to compete. Duarte
commented that the FSLN is already organizing support
committees in rural areas in the North Atlantic Autonomous
Region (RAAN) to gain favor in traditional rural strongholds.
The ALN and PLC must resolve their differences and jointly
rally to create socially-minded grass roots activities to
counter the FSLN-directed "co-ops" he said are sprouting up
throughout the area. Duarte agreed that the creation of
Venezuelan-style "citizen councils" (anticipated in the FSLN
reforms) would only undermine the municipal governments and
centralize decision-making under the President.


6. (C) The deputies only laughed and refused to defend their
"supreme leader" when we commented on Arnoldo Aleman's
presence, smiling and hobnobbing with senior FSLN officials,
at Ortega's inauguration. They did not disagree with the
statement that the PLC-FSLN political pact led by Aleman and
Ortega has damaged the PLC. Rodriguez commented that the
party is not "the personal property of an individual."


7. (C) Comment: The attitude of the PLC deputies signals a
shift from pre-election meetings with similar groups, who
would always hasten to defend Aleman and proclaim his
innocence (at least in the presnce of others). However,
these more moderate leaders do not represent the hard core
PLC militancy that remains loyal to Aleman -- at all apparent
cost. These new leaders may be able to move the party away
from its hostage-like relationship with the FSLN and towards
its natural ally, the ALN, but Ortega and Aleman, who have
certainly caught wind of these efforts, will do their utmost
to derail the rapprochement. Indeed, on January 18, Sequeira
told us that the PLC deputies, led by PLC vice president and
Assembly deputy Wilfredo Navarro, who met with Ortega earlier
in the evening, had apparently "betrayed" the PLC caucus'
earlier decision to oppose fast-tracking deliberations on Law
290, and instead, had offered to place the Law on the
Assembly's agenda for the following morning. Only the ALN's
objection and the FSLN's willingness to compromise postponed
the discussions until January 23 to allow for consultations,
she reported. We believe this incident demonstrates growing
divisions within the PLC ranks. We will continue to
encourage confidence building measures between the two
parties and a gradual rapprochement focused on common
interests -- without the harmful influence of Aleman.
TRIVELLI