CODEL NELSON MEETS WITH VICE PRESIDENT MORALES

C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 000542

SIPDIS

SIPDIS

WHA/CEN, H FOR MARK SMITH

E.O. 12958: DECL: 02/28/2017
TAGS: PGOV PINR KDEM NU PREL
SUBJECT: CODEL NELSON MEETS WITH VICE PRESIDENT MORALES


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


1. (C) Summary: In Senator Nelson's meeting with Nicaraguan
Vice President Jaime Morales, he noted his commitment to
fostering friendship between the American and Nicaraguan
peoples and good relations between their two governments.
Morales sought the Senator's support for TPS renewal for
Nicaraguans residing in the United States, more
counter-narcotics assistance, and an expansion of the
Millennium Challenge Account (MCA) program and funding.
Morales praised the success of CAFTA thus far and noted that
Nicaragua will also take advantage of the Venezuelan trade
agreement ALBA. While the Vice President understood the
Senator's view that Nicaragua's MANPADS pose a threat if they
fall into the wrong hands, Morales asserted that their
destruction must be considered within the context of a
regional security balance. End Summary.


2. (U) In Senator Nelson's February 19 meeting with
Nicaraguan Vice President Jaime Morales, he explained that he
had come to Nicaragua on a mission of peace to help pave the
way for good relations and reconciliation between the two
governments. Nelson noted that some people in other
countries want to drive a wedge between the United States and
Nicaragua, but good bilateral relations will prevent this
from occurring. He recounted his success in meeting with
difficult leaders, referring to his meeting with Venezuelan
President Chavez a few years ago and a more recent meeting
with President Asad of Syria. He also shared his plans to
meet next with Ecuadorian President Correa and Bolivian
leader Morales.


3. (C) Visibly pleased with the Senator's message, Morales
assured the Senator that the desire for friendship is mutual.
Replying to the Senator's query regarding Morales'
background, the Vice President recounted his own personal
experience as a former Contra leader and the chief negotiator
of the peace accord between the Contras and Sandinistas.
Morales explained that he had learned to forgive and move on
-- eventually to the point of accepting Ortega's offer to run
on the FSLN ticket for the good of his country -- even though
Ortega had confiscated his property and belongings in the
early 1980s. He revealed that Ortega had once told him that
it is hard to ask for forgiveness, but even harder to
forgive. Similarly, misunderstandings in the past between
the United States and Nicaragua had led to difficulties.
However, now that the relationship is based on mutual respect
and understanding and both governments share democratic
principles, Morales was confident that these differences can
be surmounted. (Note: Morales has told us that he was duly
compensated for the loss of his property and belongings.
Some contacts claim he was compensated twice, once by Ortega
and once by the Nicaraguan government.)


4. (C) Senator Nelson referred to the black bean packing
plant he visited earlier in the day as an example of
productive cooperation between the two countries, adding that
the Millennium Challenge Account (MCA) program in Nicaragua,
including its paving of roads and property titling, is
another success. Vice President Morales mentioned that he
had recently spoken with the MCA country director, who told
him that thanks to the MCA, Nicaragua is already exporting
yucca to Senator Nelson's home state - Florida. Morales
opined that the MCA is a magnificent project and inquired
whether the MCA program could be expanded to other areas of
the country, especially in light of the fact that the MCA
programs in Honduras and El Salvador are more heavily funded.
The Senator took note of this interest.


5. (C) Senator Nelson next raised CAFTA, noting his
understanding that the trade agreement has already started to
produce some positive results. Morales replied in the
affirmative, opining that the benefits outweigh the risks.
He explained that while Nicaragua was not adequately prepared
to compete with the United States, training has been made
available to offset this weakness. He added that while CAFTA
opens an important "window," the agreement is not exclusive,
as the agreement with Venezuela (ALBA) provides an additional
option. The Senator replied that he had met for two hours
with President Chavez. He remarked that the Iranian
president appears to have lost domestic popularity as
evidenced by the loss of his party in the recent municipal
elections there. Morales clarified that relations with
neighboring countries are more important for Nicaragua, while
Foreign Minister Santos, who also attended the meeting,
appeared to be surprised by the news that Ahmadinejad's
popularity was slipping.


6. (C) Moving on to the subject of Man Portable Air Defense
Systems (MANDPADS),Senator Nelson commented that the
Nicaraguan media appeared to be exercised by the subject.
Nelson explained to the Vice President that he had told the
press that he did not perceive Nicaragua has a threat that
would merit keeping these weapons, which are largely of
benefit to terrorists and whose upkeep is expensive. Neither
Costa Rica's three airplanes nor Honduras' antiquated planes
pose a threat to Nicaragua's sovereignty, opined the Senator.


7. (C) Morales, who suggested that the destruction of
Nicaragua's MANPADS be discussed in the context of regional
security, asserted that while in the spirit of the Esquipulas
peace agreement Nicaragua had already destroyed over one
thousand MANPADS under the Bolanos administration and reduced
its troops to 15,000, its neighbors had done nothing to live
up their commitment to the accord. He asserted that some
countries, like Costa Rica, have huge security budgets, $77
per capita Vs. Nicaragua's $4 per capita, and an army
"disguised as police." The Senator, who stated that he had
met a few weeks ago with President Arias and it was clear
that Costa Rica's security forces are purely civilian in
nature, reminded Morales that the bottom line is that if one
of Nicaragua's MANPADS falls into the wrong hands and is used
to shoot down an airplane, the repercussions will be serious.


8. (C) Concurring with the Senator's assessment, the Foreign
Minister noted that the MANPADS are well protected, thanks to
U.S. assistance, and reiterated the Nicaraguan government's
interest in discussing them within the context of the
region's security balance. Morales remarked that he had
urged former President Bolanos to seek some form of
compensation - helicopters, for example, in exchange for
MANPADS destruction. The Ambassador explained that our level
of assistance to the Nicaraguan military is substantial,
approximately $17 million during the 2006-2007 period,
including three patrol boats, eight zodiac boats, and
$750,000 worth of communications equipment.


9. (C) Expanding on the topic of security, Morales commented
that, in addition to the terrorist threat, narcotics and
people traffickers are other enemies that Nicaragua is ill
equipped to confront. The Ambassador explained we are
providing assistance to the Nicaraguan police and military
through DEA and INL. Morales suggested that additional
assistance would be helpful, especially in light of the
increase in drug trafficking along the Pacific coast. He
mentioned that while Nicaraguan law allows the government to
keep the assets seized from traffickers, "bonuses" for
sizable drug busts would provide additional incentives. For
example, if the Nicaraguan police seized 2,000 tons of
cocaine on route to the United States, contributing boats or
helicopters to Nicaragua would recognize these efforts and
improve the country's ability to combat trafficking.


10. (C) Vice President Morales next broached the subject of
Temporary Protected Status (TPS) renewal for approximately
4,000 Nicaraguans residing in the United States. The Senator
replied that he has a problem with TPS in that it presents a
double standard because Nicaraguans and Hondurans enjoy TPS
privileges, while Haitians do not. Further, reasoned the
Senator, Hurricane Mitch was years ago and now Nicaragua's
government is stable and it should welcome back its citizens.
Foreign Minister Santos, who had assured the Senator in his
meeting the previous day (septel) that the new government
looks forward to the return of its citizens and appeared
rather unnerved by the Senator's remarks, clarified that it
is a matter of timing. Once the new government is on its
feet, it will be better prepared to welcome home these
Nicaraguans.


11. (U) Moving on to a less controversial topic, the Vice
President said he was aware that he and the Senator share a
common passion - the environment. Morales listed water
resources and deforestation as Nicaragua's most significant
environmental challenges and welcomed any help the U.S. could
provide through the MCA or other sources. The Senator
replied that his trip includes a visit to the Peruvian
Amazon, adding that years ago he had witnessed destruction of
the Amazon from space. Given that the Amazon produces 25% of
the world's fresh water, the situation there is critical,
explained the Senator. Morales concurred and predicted that
in the near future water will become more expensive than
petroleum. Thus it is incumbent upon Nicaragua to protect
its water resources, including 8,000-square kilometer Lake
Nicaragua.


12. (U) Participants:

Nicaragua:
Vice President Jaime Morales
Foreign Minister Samuel Santos
VP Secretary General Luis Ventura

U.S.:
Senator Nelson
Ambassador Paul Trivelli
DCM Peter Brennan
Ms. Carolina Tess
Ms. Sherry Davich
Captain Gene Moran
Polcouns/notetaker Victoria Alvarado
Control Officer Irene Marr


13. (U) This cable was cleared by Codel Nelson
TRIVELLI