SECRETARY LEAVITT,S MEETING WITH PRESIDENT-ELECT

C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 000202

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STATE PASS HHS FOR SECRETARY LEAVITT AND OFFICE OF GLOBAL
HEALTH AFFAIRS (STEIGER AND CORREA-DE-ARAUJO),
MCA FOR AMBASSADOR DANILOVICH,
DEPT FOR WHA A/S SHANNON AND WHA/CEN

E.O. 12958: DECL: 01/25/2017
TAGS: PGOV PINR KDEM NU PREL
SUBJECT: SECRETARY LEAVITT,S MEETING WITH PRESIDENT-ELECT
ORTEGA


Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D).


1. (C) Summary: On January 9, 2007, in a meeting at
Sandinista Party Headquarters, the U.S. Presidential
Delegation (Presdel),led by Health and Human Services (HHS)
Secretary Michael Leavitt, discussed with then

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President-elect Daniel Ortega a new regional health-care
training initiative, Nicaragua's Millennium Challenge Account
(MCA-N) program, debt forgiveness, the designation of
Nicaragua's Ambassador to the United States, and Ortega's
campaign approach and political platform. President-elect
Ortega said he was encouraged by his recent phone
conversation with President Bush. He expressed interest in
the health initiative and arranged for a meeting for the
Secretary with the new Nicaraguan Minister of Health the

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following day. End Summary.

Shared Concerns over Health Care
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2. (SBU) Responding to then-President-elect Ortega's opening
remark that his January 8, 2007 phone conversation with
President Bush was pleasant and positive and that they had
agreed to work together to combat poverty, Secretary Leavitt
noted that the President asked him personally to convey his
greetings to Ortega and to reiterate their shared commitment
to eliminate poverty, address health needs, and foster
economic freedom and well-being. The Secretary then offered
greetings from the American people and expressed his
particular commitment to work with Ortega and other Central
American Government leaders to improve the health conditions
of the region's citizenry - he shared the vision for a new
regional health initiative, whose centerpiece will be a
medical training center in Panama.


3. (SBU) The Secretary clarified that the health initiative
arose from a meeting in June 2006 of Central American
Ministers of Health, who expressed the need for a facility to
train hundreds of health workers each year from the region,
with an emphasis on nurses, technicians and community health
workers from poor, rural areas. Once trained, the workers
would return to their home areas to provide improved health
care. By providing the training in the region, rather than
abroad, health workers would be more likely to remain at
home, explained the Secretary, who added that while in
Nicaragua, he would meet with Heads of State and delegates
from Central American nations to discuss the initiative. He
noted that the next steps include drafting a Memorandum of
Understanding with the participation of interested countries,
visiting the countries to refine the details of the
initiative, and then possibly formalizing the agreement in an
official venue with the presence of Heads of State and Health
Ministers.


4. (SBU) Appearing pleased with the news of the initiative,
Ortega commented that health is a crucial sector for his
Government and suggested the Secretary meet with the incoming
Minister of Health, Maritza Quant, during his visit to
discuss details. (Note: The Secretary met with Quant on
January 10, 2007 septel.) Reiterating his desire to maintain
good relations with the United States and lauding the health
initiative as an example of the kind of cooperation he seeks,
Ortega then inquired about the status of the Millennium
Challenge Corporation Compact in Nicaragua (MCC-N).
Mentioning that he had last visited MCC departments of Leon
and Chinandega in September 2006, Ambassador Danilovich
replied that the MCC-N program is on schedule and has
disbursed about USD 5 million out of the $175 million
allocated. He attributed much of the MCC-N's success thus
far to the program's strong, quality local team.

In Search of Additional Millennium Challenge Account Funds
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5. (SBU) Ortega observed that Nicaragua could benefit from
additional MCC funds, similar to the amount designated for El
Salvador's MCA program. Asserting that Nicaragua offers the
best conditions for an MCA program in the region, Ortega
noted that additional funds would help further combat

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poverty, generate employment, build additional roads and
highways, and mobilize the country's productive forces -
including its agriculture and livestock sectors. Bolstering
MCA-N would also help correct the existing "asymmetries" in
CAFTA, enable Nicaraguans to comply with U.S. standards and
increase their exports to the United States. Further, argued
Ortega, increasing exports would make Nicaragua more
prosperous and, in turn, would help stem the tide of
Nicaraguan immigrants to the United States. Foreign
Minister-designate Samuel Santos added that he had raised the
idea of increasing the funding level for MCA-N during his
recent meeting with Assistant Secretary Shannon in
Washington. Ambassador Danilovich shared h
is interest in expanding the MCA program in Nicaragua, and
reminded Ortega that participation in the program requires
continued compliance with 18 eligibility indicators, and
strong ("benchmark") performance during implementation.

Debt Forgiveness and the Costa Ricans
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6. (SBU) Bayardo Arce, a former National Assembly Deputy who
was not re-elected but is serving as one of Ortega's economic
advisors, sought our assistance in convincing the Costa Rican
Government to forgive bilateral Nicaraguan debt and to be
supportive of efforts in the Inter-American Development Bank
(IDB) to forgive Nicaragua's debt. Assistant Secretary
Shannon noted that we are actively engaged with the Costa
Ricans and other countries concerning Nicaragua's debt with
the IDB and encourage them to vote in favor of debt
forgiveness for the region's poorest countries. Shannon
responded that he would follow up on the matter. After the
Secretary voiced his appreciation for Arce's "straight

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agenda," Arce jested that "this is the American style."

Arturo Cruz Designated Ambassador to the United States
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7. (C) The Ambassador noted he had heard Arturo Cruz, Jr.
could be Nicaragua's candidate to serve as Ambassador to the
United States, and added Cruz would be a good man for
Washington and someone with whom we could work well. Ortega
confirmed the designation. (Comment: Overall, Cruz would be
a good match, although given his closeness to the United
States, the Sandinistas are likely to watch him closely, and
his job will be difficult. Before the start of the bilat,
Cruz almost instinctively sat on our side of the table until
we gently reminded him that he was incorrectly positioned. A
political analyst, Cruz lived in the United States for years
and has served as a consultant to Salvadoran President Tony
Saca. We will meet with Cruz within the next few days to
discuss the agrement process and bilateral concerns and
priorities.)

Secretary and Ortega Share Election Campaign Experiences

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8. (SBU) Referring to his three successful campaigns for
Governor of Utah, the Secretary highlighted the importance of
his own wife's backing during the campaign and added he had
heard Ortega's wife had played a significant role in the
success of Ortega's presidential race. Ortega acknowledged
Rosario Murrillo's support and noted she is a poet and a
creative intellectual who set the tone of the campaign
platform and crafted its slogan of "work, peace, and
reconciliation," in an effort to heal both "internal and
external wounds." According to Ortega, the campaign this
time was different because of this approach; in most cases,
he said, people were more tolerant and less confrontational
than in previous elections. While at first he encountered
some resistance in the Sandinista political party base, whose
members were accustomed to a more adversarial campaign,
Ortega explained that most of his supporters came around to
the new approach.


9. (SBU) In Ortega's view, his message of reconciliation
served to calm the fears of many of those who opposed him in
the past, and pointed to accords he had reached with some of
them before the election (probably referring to retired

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Cardinal Obando y Bravo and former Contra Salvador Talavera,
who, while he won on the Nicaraguan Liberal Alliance (ALN)
ticket, signed a pre-election "peace and reconciliation"
agreement with Ortega). Further, since his electoral
victory, a number of others who opposed him have sought
rapprochement and inclusion, he claimed. Ortega assured the
Secretary he intends to continue his approach of

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reconciliation and to include all Nicaraguans, regardless of
a person's ideology or social position.

Rosario Speaks Up
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10. (SBU) Expanding on Ortega's observations, Rosario
Murillo commented that, as revolutionaries, the Sandinistas
must transform the conscience of the people and Nicaragua's
political culture. Nicaraguans are tired of conflict and
desire solidarity and reconciliation in a society "in synch
with the soul of the people" and where love and affection
predominate, she said. She explained that the FSLN campaign
slogan "United, Nicaragua triumphs," reflects this sentiment,
as the new government will seek to use Nicaragua's diversity
to unite its people.


11. (SBU) In closing, the Secretary conveyed his
appreciation for the opportunity to share such a historic
moment in Nicaragua's history and reiterated our commitment
to democracy, economic and political freedom, and the
Nicaraguan people.


12. (C) Participants:

FSLN Participants:
Daniel Ortega, President-elect
Rosario Murillo, Chief of Staff and Ortega spouse
Samuel Santos, Foreign Minister-designate
Bayardo Arce, outgoing National Assembly Deputy
Arturo Cruz, designated Nicaraguan Ambassador to the United
States
Muhamad Muhktar Muhamad Lashtar, note taker (incoming
PARLACEN alternate for FSLN. He is a former Libyan
intelligence chief assigned to Nicaragua who has since become
a Nicaraguan citizen. His presence created a strong
"undertow" that belied the overall cordial and collegial tone
of the meeting.)

U.S.:
Secretary Michael Leavitt

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MCC CEO John Danilovich
Assistant Secretary Tom Shannon
Ambassador Paul Trivelli
DCM Peter Brennan
HHS Special Assistant to the Secretary for International
Affairs William Steiger
Political Counselor Victoria Alvarado (notetaker)


13. (U) This cable was cleared by Secretary Leavitt, MCC
Danilovich, and A/S Shannon.
TRIVELLI