T&T PRIME MINISTER SEEKS U.S. ENGAGEMENT IN MEETING WITH

UNCLAS SECTION 01 OF 03 PORT OF SPAIN 000389

SIPDIS

SIPDIS
SENSITIVE

STATE FOR WHA/CAR, WHA/PPC, EEB/TPP/BTA, H
STATE PASS USTR FOR AUSTR EISSENSTAT, V LOPEZ
USDOC/ITA/MAC/LATIN AMERICA CARIBBEAN
TREASURY FOR OFFICE OF TAX POLICY
DOE FOR OFFICE OF POLICY AND INT'L AFFAIRS
COTONOU FOR JCUSHING

E.O. 12958: N/A
TAGS: PREL PGOV EPET ETRD MARR SNAR VE TD
SUBJECT: T&T PRIME MINISTER SEEKS U.S. ENGAGEMENT IN MEETING WITH
CODEL ENGEL


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SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY


1. (SBU) SUMMARY: During an April 16 meeting with CODEL Engel,
Trinidad & Tobago Prime Minister Manning voiced frustration that
Washington has not engaged on his bilateral economic and security
proposals, and he complained about Article 98 and low margins on LNG
sales to the U.S. CODEL members agreed that there had been
"neglect," and they encouraged Manning to bring his concerns to
Washington and specifically to Capitol Hill when he attends the
Caribbean 2020 Conference in June. Manning pledged to attend the
conference, and COFA Western Hemisphere Subcommittee Chairman Engel
in turn promised to organize an event for Manning on Capitol Hill at
that time.


2. (SBU) SUMMARY CONT'D: On regional relations, Manning said he
seeks an "energy alliance" that would allow Trinidad & Tobago to
temper Venezuela's influence in the Caribbean. He elaborated on
T&T's regional role by recounting several instances in which T&T
came to the assistance of neighbors Haiti, Guyana, Grenada, and
Venezuela. He also asked why the President's recent Latin America
trip had not included a stop in the Caribbean. End Summary.


3. (U) Codel Engel met with Trinidad & Tobago (T&T) Prime Minister
Patrick Manning on April 16 at Manning's office in Whitehall.
Manning was joined by Foreign Minister Arnold Piggott as well as
Permanent Secretary Sandra Marchack and Communications Director
Paige deLeon from the Office of the Prime Minister. In addition to
Rep. Eliot Engel (D-NY),Chairman of the House Committee on Foreign
Affairs (COFA) Subcommittee on the Western Hemisphere, the CODEL
members participating in the meeting were Rep. Maxine Waters (D-CA)
and her spouse Amb. Sidney Williams (former U.S. Ambassador to the
Bahamas),Rep. Sheila Jackson-Lee (D-TX),Rep. Barbara Lee (D-CA),
Rep. Yvette Clarke (D-NY),and Western Hemisphere Subcommittee Staff
Director Jason Steinbaum. Embassy Charge and Economic Chief
accompanied.

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Manning Seeks U.S. Engagement
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4. (SBU) Chairman Engel opened the discussion by conveying his
intention to make the Caribbean a priority for his Subcommittee.
Manning welcomed the CODEL's visit and said he could not understand
why the U.S. had not responded to a series of GOTT proposals aimed
at addressing mutual bilateral and regional concerns.


5. (SBU) PM Manning said he had asked to amend the bilateral tax
treaty to permit energy companies to deduct the cost of exploration
in T&T from their U.S. tax bills, asserting that the cost of
exploration should be borne by the country whose energy security
stands to benefit from the investment. Manning also raised his past
requests for a "partial scope" trade agreement covering energy-based
products and for duty-free access to the U.S. market for CARICOM
manufactured goods packaged in T&T, arguing that these would have a
minimal effect on the U.S. market and huge benefits for CARICOM.
Finally, he reviewed his call for the U.S. to finance T&T patrols of
international waters in the Eastern Caribbean, to prevent drug
traffickers from moving "up the islands" as the GOTT ramps up
surveillance and interdiction in its own waters. Manning asserted
that he had received no response to these ideas from Washington and
asked rhetorically "What are we to conclude?"


6. (SBU) Describing T&T as the only economy in the Caribbean that is
doing well, Manning said his country has done nothing to abuse its
"strategic position" as the top supplier of U.S. imports of
liquefied natural gas (LNG),ammonia, and methanol. Manning also
commented that T&T was not reaping its due from LNG sales to the
U.S., both because of pricing formulas in its long-term supply
contracts and because of the cut taken by foreign companies that
process T&T's LNG and transport it to market. Based on pricing,
Manning suggested that Mexico might be a more attractive market than
the U.S. for any prospective new LNG production capacity in T&T.


7. (SBU) PM Manning raised Article 98, acknowledging that U.S. had

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partially lifted restrictions on military assistance following his
September 2006 meeting with A/S Shannon but complaining that this
was not enough. Noting that he did not want to be completely
negative, Manning praised Washington's engagement on criminal
investigations. He explained that he had asked for and received
support from the U.S. Attorney General's office, and this had helped
his government pursue a tough line on integrity for public officials
in T&T.

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CODEL Agrees U.S. Engagement Needed
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8. (SBU) Chairman Engel responded that he was perplexed that
Washington had not engaged on PM Manning's ideas and promised to use
his position to find out why there was not more dialogue. He
commented that the U.S. has become so preoccupied with the war on
terror and the war in Iraq that it sometimes cannot see beyond those
foreign policy priorities. Engaging on T&T's concerns was not only
the right thing to do, he continued, it was also in the U.S.
interest when Venezuela is increasing its influence in the
Caribbean. He also noted that he has sponsored legislation to
abolish Article 98 and signaled that the bill has bipartisan support
in the COFA.


9. (SBU) The other Members of Congress thanked PM Manning in turn
for his candor and encouraged him to bring his concerns to Capitol
Hill when he visits Washington in June for the Caribbean 2020
Conference. When PM Manning expressed doubt whether it was
worthwhile for him to attend the 2020 Conference, the CODEL members
urged Manning to make the trip and to insist on a substantive
conference agenda that would address his concerns. In response,
Manning pledged to attend. (NOTE: Foreign Minister Piggott had
previously announced to local press on April 12 that Manning would
go to Washington for the 2020 Conference. END NOTE.)


10. (U) Rep. Waters said the new Democratic Party majority in
Congress was an opportunity to address Caribbean concerns. She
expressed support for special and differential treatment for
Caribbean nations in WTO agreements and flagged concern over the
decline of the banana and sugar industries in the Caribbean.


11. (SBU) Rep. Jackson-Lee characterized the Codel's visit to
Grenada and T&T as ground-breaking. She voiced concern that PM
Manning's call for support in patrolling the Eastern Caribbean had
not received due consideration, saying that she could not imagine a
more accommodating offer and indicating that it should have been
brought to the attention of the House Committee on Homeland
Security, of which she and Rep. Clarke are members.


12. (U) Rep. Lee said that the current lineup of the COFA Western
Hemisphere Subcommittee provides a "critical mass" to focus
attention and resources on the Caribbean. She also commented that
U.S. neglect of the Caribbean created an opening for China,
recalling the Chinese-built stadium that CODEL Engel had toured
during their previous stop in Grenada.


13. (U) Rep. Clarke said her Brooklyn constituency, which includes a
high proportion of Caribbean-Americans, had given her a mandate to
reshape U.S. relations with the region. She flagged narcotics and
deportation as issues of concern, and she also encouraged GOTT
officials to call on her directly when they visit Washington, in
addition to meeting with U.S. executive branch officials.

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Manning Describes T&T's Regional Role
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14. (SBU) PM Manning, visibly pleased with CODEL's response, offered
several anecdotes to illustrate T&T's role in the region, including
successful GOTT efforts to discourage international oil companies
from cutting off supply to Haiti for non-payment or taking
commercial advantage of disruptions in Venezuelan supply to Guyana.
Manning spoke at length on T&T's assistance to Grenada in the

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aftermath of Hurricane Ivan. He also recounted T&T's response to an
appeal from Venezuelan President Chavez during a prolonged strike at
PDVSA, when T&T supplied gasoline to Caracas in a barter exchange
for Venezuelan crude.


15. (SBU) PM Manning recounted that in the context of recent
T&T-Venezuela discussions on developing cross-border gas deposits,
President Chavez had told the GOTT ambassador in Caracas that by
teaming up Venezuela's gas reserves and T&T's LNG expertise, the two
countries could play a dominant role in the Western Hemisphere gas
market. Stressing that he did not share Chavez' aspirations,
Manning characterized his goal with Venezuela as an "energy
alliance" that the GOTT could use to temper Venezuela's influence in
the Caribbean, adding that he suspected Washington might not view it
that way.


16. (SBU) Manning said he could not understand why President Bush
had not included a stop in the Caribbean in his recent trip to Latin
America, when Chavez had managed to visit both Jamaica and Haiti as
he shadowed the President's travels elsewhere in the Hemisphere.
Chairman Engel responded that any U.S. presidential travel in the
region was a plus, and he praised the U.S.-Brazil agreement on
biofuels.


17. (SBU) Chairman Engel concluded that he hoped to use the findings
of his visit to T&T and Grenada to push for policy change, and he
said he would like PM Manning to meet with members of the COFA when
he travels to Washington in June, promising to organize an event for
that purpose. Manning indicated he would accept such an
invitation.


18. (SBU) COMMENT: Manning's appeal to CODEL Engel for greater U.S.
engagement parallels his message in recent meetings with other
visiting senior U.S. officials and in public fora in T&T. Post
anticipates Manning will act on CODEL Engel's advice to take his
message to Capitol Hill on the margins of the Caribbean 2020
Conference. Via septel Post will provide available details on
Manning's requests on security, trade, and the bilateral tax treaty
and ask Washington agencies for guidance on how to respond. END
COMMENT.


19. (U) CODEL Engel did not have an opportunity to clear this
message before departing T&T.

SWEENEY