MANAGUA MAYOR EYES AMBASSADORIAL POSTING IN ROME,

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000401 SIPDIS SIPDIS WHA/CEN E.O. 12958: DECL: 02/13/2017 TAGS: PGOV PINR KDEM NU PREL ECON EPET EINV IR SUBJECT: MANAGUA MAYOR EYES AMBASSADORIAL POSTING IN ROME, CRITICIZES ORTEGA GOVERNMENT REF: 2006 MANAGUA 2453 Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D). ¶1. (C) Summary: Managua Mayor Dionisio Marenco confirmed to the Ambassador that he may become Nicaragua's Ambassador to Italy, although the timeline is unclear. The Sandinista (FSLN) mayor, who is interested in establishing sister city relationships with U.S. cities, will also consider the Wisconsin-Nicaragua partnership as a possible source of assistance for Managua. Pleased with the Ambassador's appreciation for Managua's support for the new Embassy compound, Marenco offered to help with any outstanding requirements. Marenco believes that the Ortega government has lost sight of its campaign promises of zero unemployment and hunger, and instead, factions within the new government are engaged in an internal power struggle. He is proud of his role in securing Nicaragua's oil deal with Venezuela. Marenco is opportunistic, personable and pragmatic, and reportedly holds presidential ambitions, which could explain why he is rather critical of Ortega's performance thus far. End Summary. Italy in Mayor's Plans? - - - - - - - - - - - - ¶2. (C) Managua Mayor Dionisio "Nicho" Marenco confirmed to the Ambassador over breakfast on February 12 that he may become Nicaragua's Ambassador to Italy, although he did not fix a timeline. To start, Marenco, whose ancestors he claims come from Italy's Liguria and Piedmont regions, will travel to Rome on February 25 to meet with his "friends," the Mayor of Rome, Walter Veltroni, and the Italian Foreign Minister, Massimo D'Alema to seek additional support for Managua. Marenco explained that Rome has donated a number of garbage trucks to Nicaragua's capital city and that he will request additional assistance in waste management as current capacity is about half of what it should be. He will also explore the possibility of Italian investment in constructing a Managua-Granada metro-rail to ease highway congestion between the two cities. Mayor Seeks Sister City Ties, Offers Help for New Embassy - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - ¶3. (C) The Mayor noted his interest in establishing sister city relationships with U.S. cities, mentioning Los Angeles, Miami, and Washington, D.C. as possibilities. Marenco recounted that in the 1980s he studied English for one summer at Michigan State University, adding that he maintains close ties with people he met at the time and that several relatives live in the United States. The Ambassador, who suggested the Mayor also consider the Wisconsin-Nicaragua partnership as a possible source of assistance for Managua, thanked Marenco for his support for the construction of the new U.S. Embassy compound. Appearing pleased by the recognition, Marenco offered to help with permits or any other outstanding requirements, remarking that he looks forward to the projected inauguration of the new Embassy on July 4. Not Much Praise for Ortega Government - - - - - - - - - - - - - - - - - - -- ¶4. (C) Marenco commented that the Ortega government appears to have gotten off track, losing sight of its campaign promises of zero unemployment and hunger. Instead, factions supporting the new government are engaged in an internal power struggle. He related his frustration over the Ortega administration's lack of institutionalism, half jesting that to meet with President Ortega one must knock on the door of his residence because the current presidency maintains no formal lines of communication. Marenco warned that drought in some areas of Nicaragua and a poor coffee harvest, plus the inflation typically associated with the start of the rainy season in May, could soon test Ortega on the economic front unless he starts to focus on the real problems on hand. At least Ortega made the right decision in choosing Arturo Cruz to represent him in Washington, opined Marenco, who added that he had highly recommended Cruz. Taking Credit for Venezuelan Oil Deal - - - - - - -- - - - - - - - - - - - - ¶5. (C) According to Marenco, another bright spot is Nicaragua's oil deal with Venezuela, which Marenco reminded the Ambassador, he had initiated over a year ago. Marenco expects that Nicaraguan oil company PETRONIC will probably replace the Sandinista-leaning Municipal Association of Nicaragua (AMUNIC) in the management of the oil deal, which under concessional terms, will provide up to 10,000 barrels per day of diesel and bunker fuel to subsidize public transport and power generation. Estimating that the Venezuelan oil will cover about 1/3 of Nicaragua's daily consumption requirements, Marenco explained that Nicaragua must pay Venezuela 60% of the cost in 90 days and the remaining 40% in 25 years at very favorable terms. He has also proposed an increase in gas prices at the pump to help offset the fuel subsidies for public transport; however, many Sandinistas reject this idea as it would hurt the middle class. Better to Steer Clear of Iran - - - - - - - - - - - - - - - ¶6. (C) While Marenco acknowledged that Chavez' rhetoric is at times problematic, he asserted that, unlike Nicaragua's relationship with Iran, its relationship with Venezuela is advantageous. In his view, Nicaragua should steer clear of the Middle East, a region with different values and complicated conflicts that have nothing to do with Latin America. He recounted how in the midst of the Iran-Iraq war he had traveled to Iran as part of a Sandinista government delegation. Another Nicaraguan delegation arrived in Baghdad the day after his group left Tehran, part of Ortega's effort to facilitate talks between Iraq and Iran. The visits were a disaster; neither side was pleased with Nicaragua's engagement. Bio - - - ¶7. (C) Marenco, who comes from a Conservative family, graduated from the Central American University in the 1960s, where he met Daniel and Humberto Ortega, and later received an MBA from Harvard-associated INCAE. Reportedly, Eden Pastor used Marenco's home as a launching point for his attack on the National Palace in August 1978. During the 1980s Sandinista era, Marenco held various positions, including the ministries of Internal Commerce, Transportation, and Planning. Before becoming mayor of Managua, Marenco ran Channel 4, the Sandinista TV station. On his third marriage, Marenco is in his early 60s and underwent quintuple bypass heart surgery in 2000 in Miami. Comment - - - - ¶8. (C) Marenco is opportunistic, personable, and pragmatic, and is loosely aligned with Rosario Murillo's camp. He reportedly holds presidential ambitions, which could explain why he is rather critical of Ortega's performance thus far. Whether his interest in serving as ambassador to Rome signals a change in plans -- or perhaps a desire to distance himself from Daniel's regime to avoid flak and better position himself for 2011 -- remains to be seen. TRIVELLI