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 PORT OF SP 00000389 001.4 OF 003 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. -------------- Manning Seeks U.S. Engagement -------------- ¶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 PORT OF SP 00000389 002.4 OF 003 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. -------------- CODEL Agrees U.S. Engagement Needed -------------- ¶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. -------------- Manning Describes T&T's Regional Role -------------- ¶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 PORT OF SP 00000389 003.2 OF 003 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