OPPOSITION LEADERSHIP SEEKS CONTINUED DIALOGUE

C O N F I D E N T I A L SECTION 01 OF 03 NASSAU 001196 SIPDIS E.O. 12958: DECL: 09/24/2017 TAGS: PGOV PREL SNAR ETRD BF SUBJECT: OPPOSITION LEADERSHIP SEEKS CONTINUED DIALOGUE WITH EMBASSY -------------- SUMMARY -------------- ¶1. (C) Former Prime Minister Perry Christie hosted a working lunch for the Charge and Embassy senior staff September 24 to exchange views on current bilateral issues and domestic Bahamian politics. Christie, who remains as Leader of the Opposition, emphasized his party's commitment throughout their tenure in office to maintaining close relations with the U.S. and his desire that we continue to view the PLP as a trusted partner. He registered his concern that a perception had developed prior to the election that the U.S. was unhappy with his administration because of its decision to establish formal diplomatic ties with Cuba. The Charge, in reviewing the many positive developments in relations under Christie's stewardship, emphasized that we viewed both major parties as close friends and allies. Christie criticized current Prime Minister Ingraham for calling for a review of investment deals and contracts concluded by his government, noting that this represented a break with the Bahamian tradition that could weaken the investment climate for foreign investors. Still clinging to slim hopes that legal challenges in three constituencies could return them to power, the PLP leaders present sought to project the image of an engaged opposition, which is ready to return to government. END SUMMARY. -------------- Drugs, Tourism, and Trade Top Agenda -------------- ¶2. (C) Progressive Liberal Party (PLP) officials and former government ministers, led by former Prime Minister and PLP leader, Perry Christie and former Foreign Minister Frederick Mitchell, hosted Charge and senior Embassy staff at a working lunch on September 23 to discuss a range of issues in U.S.-Bahamian relations following the recent change of government. In an informal, question-and-answer format led by the ex-Prime Minister and Charge, PLP officials queried Embassy staff on the incoming Ambassador, the status of Operation Bahamas Turks and Caicos (OPBAT),the Caribbean Basin Initiative, Western Hemisphere Travel Initiative, Haiti and visa issues -- even including some specific visa concerns on behalf of constituents. ¶3. (C) Following the recent release of the "Majors" drug list, PLP leaders solicited the Charge's views on continuing joint efforts at drug and migrant interdiction on the high �0A;seas, especially given the imminent departure of U.S. army helicopters from OPBAT on October 1. Charge reviewed the reasons for the Bahamas continued inclusion on the Majors list, but noted that the report specifically praised the cooperation of The Bahamas. He thanked the former PM and FM for their steadfast support of OPBAT, which had contributed to the successful effort to identify the resources to backfill Army's October 1 departure from the mission. He noted there would be a ceremony to mark the turnover of the Exuma base from Army to DEA, and invited Christie to attend. ¶4. (C) A number of PLP members registered concern that the Western Hemisphere Travel Initiative was having a negative impact on Bahamian tourism receipts, given some indicators of softness in the hotel industry in the past year. Consular Chief Ramadan highlighted U.S. efforts to meet the unexpectedly high passport demand and current issuance waiting times in the U.S. and overseas. The Charge pointed out that both Puerto Rico and the U.S. Virgin Islands, which were not affected by the WHTI, had also experienced a soft early season. While we have heard anecdotally from hoteliers that conference and wedding business is off, summer numbers appear to have recovered. ¶5. (C) Former Foreign Minister Mitchell inquired about the status of the region's request to renew CBI authority. The Charge affirmed that the administration was committed to working with Congress to renew and update the CBI to ensure continued duty free access to the U.S. market. He also noted the success of the Competitiveness Forum held in early June, and ongoing efforts to finalize a Trade and Investment Framework Agreement with CARICOM. -------------- Perceptions on Bilateral Relations -------------- ¶6. (C) Turning to the overall Bahamas-U.S. relationship, Christie noted the public assertion by the new Foreign Minister that relations with the U.S. were "better" than they had been under the PLP, and asked whether this was indeed the case. He noted that many PLP supporters felt that the U.S. had been "unhappy" with the PLP prior to elections, and that this had had an impact on the campaign. The Charge pointed out that whenever he had been asked publicly about the Foreign Minister's statement, he had stated that we enjoyed outstanding relations with the current government and outstanding relations with the previous government. He said we were fortunate to be in a country where the major political parties both wanted to have and be seen to have close relations with the U.S. After reviewing the highlights in bilateral relations during Christie's tenure, including agreement on the megaports and container security initiatives, the CARICOM-U.S. meeting in Nassau, and mutual support for the new Haitian government, the Charge reiterated U.S. appreciation for Christie's support for the close partnership we enjoyed. ¶7. (C) Christie thanked the Charge for this affirmation, and then launched into a defense of his opening of formal diplomatic relations with Cuba, recalling his conversations with the Secretary on the subject. The Charge, noting he had heard the former PM speak before of his concern for the perceptions created by this opening, said he believed the Opposition Leader was more concerned by the relationship than the U.S. was. He explained that the U.S. understood the Bahamas need to work with Cuba to resolve migration matters and look after Bahamians who travel to or study in Cuba. At the same time, we sought to encourage democratic countries, such as the Bahamas, to use their relationship with Cuba to encourage Cuban government respect for the same values and rights that people in the Bahamas demand. ¶8. (C) Responding to Christie's repeated concerns about perceptions of differences in relations pre-election, the Charge noted that the Embassy had been troubled by airport security and safety issues, especially in the wake of high profile cases of baggage handlers involved in the drug trade, and the former Ambassador had determined after months of government inaction on our concerns to raise our concerns publicly because of the urgency of addressing ongoing drug trafficking and potential terrorism concerns. While acknowledging that this issue could have contributed to perceptions of differences in the relations, the Charge noted that there were also many very public areas of cooperation and common action as well during the PLP's final months in office. He noted in particular the PLP's decision to train Haitian police officers at the Royal Bahamas Police Training center, which represented one of the most concrete contributions of any CARICOM country to Haiti's rebuilding. The Charge rounded out the discussion by pointing out that the Embassy had maintained a studious neutrality throughout the election campaign. -------------- -------------- Election Challenges and New Directions in the PLP -------------- -------------- ¶9. (C) Charge wrapped up the discussion by asking the PLP about the status of their ongoing legal challenges to election results in three constituencies. Christie said indications were that many people had voted outside of their constituency, but did acknowledge that this occurred on both sides. He said this represented a significant weakness in the electoral process that would need to be addressed prior to future elections. Christie registered his concern for PM Ingraham's statement that he would not allow a Court to decide the election -- and would call early elections if it appeared his party would lose the election challenges. ¶10. (C) In the same vein, Christie and his colleagues were sharply critical of the Free National Movement (FNM) government's decision to review contracts and investments approved by the PLP prior to elections. They underlined the potential negative impact of withdrawal from or abrogation of such contracts on the climate for foreign investment in The Bahamas. Pressed as to whether any contracts or foreign investments had yet been canceled, they acknowledged that all were still in force. They also lamented the new administration's domestic spending priorities, including an apparent determination to alter their plans for downtown Nassau's redevelopment and a decision not to retain government employees hired in a pre-election government hiring binge. -------------- COMMENT -------------- ¶11. (C) The lunch, which emerged from a discussion the Charge had with Christie in the weeks after the elections, itself reflected the shortcomings of the PLP's governing style. The date and format was repeatedly changed at the PLP's request as they could not agree internally on a suitable date. Characteristic of the PLP, half of the 12 participants arrived late. And, while there was some substance in the discussions, the PLP seemed more interested in photographs and a press release of the meeting to signal their continuing good relations with the U.S. The party as a whole continues to have difficulty accepting their surprise electoral defeat, and the divisions that plagued the party during elections have become worse in the wake of the defeat with blame for the loss usually being directed at Christie for his indecisive leadership style or at those ministers with scandals that tainted the party. The ex-Foreign Minister's offhand remark that the current government was seeking to portray the PLP as "corrupt and inept" may have been an inadvertent diagnosis of what went wrong with the PLP's campaign. Christie appeared more resigned to the defeat than in earlier encounters, and openly discussed his turning the party over to a younger generation. Overall, the PLP sought to project the image of an engaged opposition that is a good friend of the U.S. which sees its future back in government after leadership changes and political retrenchment. END COMMENT. HARDT