SECRETARY LEAVITT,S MEETING WITH GUATEMALAN

C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 000245 SIPDIS SIPDIS STATE PASS HHS FOR SECRETARY LEAVITT AND OFFICE OF GLOBAL HEALTH AFFAIRS (STEIGER AND CORREA-DE-ARAUJO) MCC FOR AMBASSADOR DANILOVICH DEPT FOR WHA A/S SHANNON AND WHA/CEN DHS FOR SECRETARY'S OFFICE (ADAM ISLES) E.O. 12958: DECL: 01/29/2017 TAGS: PGOV PINR KDEM NU PREL SUBJECT: SECRETARY LEAVITT,S MEETING WITH GUATEMALAN VICE-FOREIGN MINISTER ANDRADE Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D). ¶1. (C) Summary: On January 9, 2007, the U.S. Presidential Delegation (Presdel),led by Health and Human Services (HHS) Secretary Michael Leavitt, discussed with Guatemalan Vice Foreign Minister Luis Fernando Andrade a new regional health-care training initiative; the Guatemalan Government's (GOG) interest in participating in the Millennium Challenge Account (MCA); bilateral immigration concerns; and, popular perceptions of U.S.-Guatemalan relations. Andrade indicated Guatemala wishes to participate in the health initiative, even though the program must "catch up to the Cubans, who are ten years ahead." He requested Millennium Challenge Corporation (MCC) Chief Executive Officer (CEO) John Danilovich to visit Guatemala at the earliest opportunity to discuss the viability of Guatemala's participation in the MCA, while the Vice Foreign Minister also acknowledged Guatemala's eligibility will be difficult. Andrade asserted positive bilateral relations are especially important during Guatemala's 2007 electoral year. End Summary. GOG Welcomes Health Initiative, Notes Long-Standing Cuban Medical Presence - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶2. (SBU) Secretary Leavitt outlined his vision for the new regional health initiative, which includes a regional training facility in Panama and the training of hundreds of health workers from the region per year, with particular emphasis on health providers from rural areas, such as nurses, technicians and community health workers. He described the next steps in the program -- drafting a Memorandum of Understanding, visiting the participating countries, and possibly signing the agreement in a regional venue -- and added he had spoken to officials from the Guatemalan Health Ministry about the project. The Secretary clarified the health initiative arose from a meeting of Central American Ministers of Health in June 2006. ¶3. (C) Vice Foreign Minister Andrade welcomed Secretary Leavitt's announcement of the new initiative and mentioned that the Guatemalan Minister of Health had briefed his Government on the project. He confirmed Guatemala wishes to participate in the program, even though it is "late," and will require "catching up to the Cubans, who are ten years ahead." Andrade explained Guatemala cannot refuse any offer of help that addresses Guatemala's "human needs and social demands." Therefore, Guatemala has relied on Cuban medical programs, despite the political risks entailed, he said. (COMMENT: The Vice Foreign Minister appeared to criticize implicitly the United States for having left the Cuban efforts in medical diplomacy unchecked for so long and clearly displayed some discomfort about the political work the Cubans are doing in rural areas of Guatemala. Of all the meetings Secretary Leavitt had on the health initiative on the margins of the Ortega inauguration, the Guatemalans were the most candid about the costs and benefits of Cuban interventions in health in the region. END COMMENT.) ¶4. (C) Vice Foreign Minister Andrade next broached his Government's keen interest in Guatemala's achieving eligibility for, and eventually participating in, an MCA program. To facilitate this objective, he invited Ambassador Danilovich to visit Guatemala "at the earliest opportunity." Ambassador Danilovich assured Andrade he would welcome Guatemala's participation in the MCA, while clarifying that meeting the MCA's eligibility indicator criteria is essential to participation. He confirmed his interest in visiting Guatemala and the MCC's interest in assisting Guatemala in its efforts to qualify for the program. ¶5. (SBU) Vice Foreign Minister Andrade recognized that Guatemala's "culture of violence" is beyond one's imagination, and disadvantages Guatemala vis a vis MCA eligibility. He ventured that the high rate of unemployment among youth is part of the problem. The Secretary noted that given his home state of Utah's experience in managing a high population growth rate and young population, perhaps Utah could help Guatemala address its gang problem. Andrade was receptive to the suggestion and indicated he will follow up on the matter with the U.S. Embassy in Guatemala City. Immigration Considerations - - - - - - - - - - - - - - ¶6. (SBU) Vice Foreign Minister Andrade next raised the impact of U.S. immigration policy on Guatemala and suggested the U.S. Congress must reach bipartisan consensus to craft a comprehensive immigration program that will resolve outstanding immigration issues that affect the Central American region. Andrade cited specific problems with U.S. deportations of Guatemalans to their country of origin, especially those involved in criminal activity, and sought Guatemala's participation in the Temporary Protected Status (TPS) program. Secretary Leavitt suggested that, in addition to engaging Congress on immigration concerns, Guatemala should approach relevant U.S. States on managing matters related to migration. Improving Bilateral Relations in an Election Year - - - - - - - - - - - - - - - - - - - - - - - - - ¶7. (C) Expounding upon his interest in an MCC program and TPS for Guatemala, Andrade argued that improved bilateral relations are especially vital this year because Guatemala will hold national elections in September. He remarked that public perception in Guatemala is that the United States does not "consider" Guatemala as much as it does Nicaragua, Honduras, and El Salvador, given that the others are MCC countries and continue to benefit from TPS. This public perception could be especially problematic in an election year, ventured Andrade, who added that the U.S. Ambassador and DCM in Guatemala are moving the bilateral relationship in a positive direction and are well-versed in Guatemalan issues. The Boon of CAFTA - - - - - - - - - ¶8. (SBU) Vice Foreign Minister Andrade praised CAFTA by remarking the trade agreement offers new opportunities for exports and investment. In addition to the rise in U.S. investors, other foreigners are seeking to invest in Guatemala, he said. Andrade cited particular interest in establishing call centers in Guatemala and noted his country must expand and improve its English-language training programs to draw more call-center investment, as employees must be fluent in English. Secretary Leavitt mentioned Utah is home to many call centers, in part because many Utah residents speak foreign languages, and the state's young population offers the workforce the call centers require. He offered to put call-center companies he knows in touch with the Guatemalans, a prospect that enthused Andrade. Narcos Behind Construction Boom? - - - - - - - - - - - - - - - - ¶9. (SBU) The Vice Foreign Minister commented that Guatemala's macroeconomic indicators are strong, but poverty, unemployment and social problems continue to pose serious challenges. Remittances are a boon, he said, and are growing about 20 percent annually, which provides much-needed help to Guatemala's impoverished rural areas.However, Andrade speculated that part of Guatemala's economic strength is likely because of narcotraffickers, who are "legalizing" their operations by financing the construction of new luxury apartment buildings. He warned these money-laundering projects are "mushrooming" in prime parts of Guatemala City with no apparent connection to traditional construction companies. ¶10. (U) Participants: Guatemalan Delegation: Guatemalan Vice-Foreign Minister Luis Fernando Andrade Guatemalan Ambassador to Nicaragua Jorge Echeverria Roldan U.S.: Secretary Michael Leavitt MCC CEO John Danilovich Assistant Secretary Tom Shannon Ambassador Paul Trivelli HHS Special Assistant to the Secretary for International Affairs William Steiger USAID Director Alex Dickie MCA-N Country Director Matt Bohn Political Counselor/notetaker Victoria Alvarado ¶11. (U) This cable was cleared by Secretary Leavitt, MCC Danilovich, and Department of State A/S Shannon. TRIVELLI