(C) JAMAICA/SPAIN: ZAPATERO REFUSES TO MEET WITH

C O N F I D E N T I A L KINGSTON 000427 SIPDIS DEPT FOR WHA/CAR - JOE TILGHMAN TREASURY FOR SARA GRAY DEPT FOR CENTRAL AMERICAN CARIBBEAN BASIN COLLECTIVE E.O. 12958: DECL: 05/14/2018 TAGS: PREL EIND OVIP EINV SOCI SENV ECON JM SP XL SUBJECT: (C) JAMAICA/SPAIN: ZAPATERO REFUSES TO MEET WITH GOLDING REF: A. 07 KINGSTON 1089 (131155Z JUL 07)(NOTAL) ¶B. 07 KINGSTON 1125 (201056Z JUL 07)(NOTAL) Classified By: DCM JAMES T. HEG, Reasons 1.5(B) and (D) 1.(C) Spanish President of Government Rodriguez Zapatero thus far has refused to schedule a meeting with Jamaican Prime Minister (PM) Bruce Golding during the latter's upcoming visit to Madrid, according to Spain's Ambassador in Kingston, Jesus Silva. Speaking privately with Ambassador at a reception the evening of May 13, Silva expressed his government's extreme frustration with Golding's closure of RIU Group's massive hotel construction site in Montego Bay because of its alleged breach of the law in constructing a fourth floor for which it had not obtained the required permit. The State Minister in the Office of the PM, Daryl Vaz, a close advisor to Golding, sought to assuage Silva's concerns, and reportedly is meeting May 14 with RIU Group representatives at the Spanish Embassy. According to the "Gleaner" newspaper of May 14, "at least one Spanish investor has put on hold plans to construct a hotel, and two others have diverted attention from Jamaica, as the Spaniards take a wait-and-see attitude to the country's investment climate." Background: the Spanish "Re-Conquest" of Jamaica -------------- --- 2.(SBU) The Spanish RIU Group operates three large hotels on Jamaica's north coast and has another two under construction. Since 2002, RIU and five other powerful Spanish groups have started construction of twenty large hotels, comprising almost 10,000 rooms, with overall Spanish investment surpassing USD 1.5 billion -- thus unseating the U.S. as Jamaica's largest source of foreign direct investment. However, as delineated reftels, this massive investment has brought environmental, infrastructure, labor, and regulatory difficulties in its wake. Over the last year, several Spanish firms have faced various allegations of unsafe and/or substandard working conditions, harsh treatment of workers, and violations of building codes. Johnson