Identifier | Created | Classification | Origin |
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08BELMOPAN153 | 2008-03-13 22:27:00 | CONFIDENTIAL | Embassy Belmopan |
VZCZCXYZ0000 OO RUEHWEB DE RUEHBE #0153/01 0732227 ZNY CCCCC ZZH O 132227Z MAR 08 FM AMEMBASSY BELMOPAN TO RUEHC/SECSTATE WASHDC IMMEDIATE 1171 INFO RUCNCOM/EC CARICOM COLLECTIVE RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 0008 RUEHME/AMEMBASSY MEXICO 0170 RUEHIN/AIT TAIPEI 0009 |
C O N F I D E N T I A L BELMOPAN 000153 |
1. (C) SUMMMARY: Prime Minister Barrow looks forward to a positive meeting with the President. He has told us that he thinks the bilateral relationship is on a good track. Domestically he has faced several early challenges since he took office less than six weeks ago, the largest one being the country's financial situation. Barrow and his senior ministers have made several specific requests for law enforcement assistance which we believe should be seriously considered and supported. END SUMMARY. 2. (C) Prime Minister Dean Barrow is very pleased to be invited to Washington and looks forward to developing a good relationship with the President. The weeks in office since his election in early February have been hectic ones, with revelations of grants from foreign donors going to questionable projects, government property sold off for nothing to outgoing officials, a boatload of fleeing Cubans and a plane full of cocaine making a very public landing on a highway in northern Belize. Our previous reporting (reftels) concerning Prime Minister Barrow's goals is still a good guide to where his administration seeks to go. Initial indications are that he is serious about wanting to clean up official corruption and restore public confidence in government. The Big Problem -- Nothing in the Bank -------------------------- 3. (C) The most serious issue the new Barrow government faced on assuming office was the discovery that Belize's finances were in worse shape than even the pessimists had suspected. Each day has brought additional revelations of financial shenanigans by the previous government, most recently the revelation that US$20 million in grants to Belize from Venezuela and Taiwan were never received by the Central Bank but were instead paid out to a private bank to cover the government-guaranteed debt of a private corporation, Universal Health Services. Barrow told us March 12 that, although he had to be careful about appearing to be persecuting defeated political opponents, when there were clear violations of the law, justice had to be done. Separately, the government has asked for USG assistance to help trace misappropriated funds and to advise on how to conduct an audit of government finances going back a decade. 4. (C) The problems with Belize's finances that Barrow has inherited severely constrain his ability to deliver on his party platform, which promised a range of populist programs. His initial plan to approach Taipei and Caracas for additional grants has been undermined by revelations that previous grants do not appear to have been used appropriately. (COMMENT: One rumor spreading recently has the People's Republic offering Belize $200 million -- U.S. or Belize dollars is not clear -- up front and $200 million later in exchange for shifting recognition from Taiwan, something Barrow has said privately and publicly he would not do. At this point we have not confirmed the rumor with a credible source, and the sum of money seems to be out of proportion with Belize's significance. END COMMENT) 5. (C) In addition to problems with domestic spending, Belize's international creditors will be looking closely at the country's ability to service its debt, which is largely to commercial banks. The previous government's debt rescheduling package provides for low payments in the initial years which rapidly escalate in subsequent years. Absent some kind of unexpectedly good foreign exchange receipts or external balance of payments support Belize will again need to go to the banks to restructure its debt. Law and Order a Top Priority -------------------------- 6. (C) Barrow told the Ambassador at their initial meeting that law and order issues were a top priority, and he requested assistance with wireless intercept capability to target narcotics traffickers. In subsequent meetings with key ministers we have had additional security-related requests, including vetting of police officers (ref C). We believe these requests deserve serious consideration in Washington. Barrow and his team seem determined to go after corruption and to improve governance in Belize, something the USG should welcome and support. Bio Note -------------------------- 7. (C) We have asked several people about the Prime Minister's hobbies. Reading and art collecting are the only two that come to mind. He is apparently planning to solemnize his long-term common-law relationship with Kim Simpliss, but we have seen no official confirmation of that. See ref D for bio information. HILL |