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
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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
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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
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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
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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?
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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