NICARAGUAN AMBASSADOR CRUZ ADDRESSES AMCHAM

UNCLAS SECTION 01 OF 02 MANAGUA 000278 SIPDIS SIPDIS SENSITIVE STATE PASS TO OPIC E.O. 12958: N/A TAGS: ETRD ECON EINV PGOV NU SUBJECT: NICARAGUAN AMBASSADOR CRUZ ADDRESSES AMCHAM REF: A. MANAGUA 0274, B. MANAGUA 0059 Summary -------------- ¶1. (SBU) Nicaraguan Ambassador to the United States Arturo Cruz highlighted cooperation between the United States and Nicaragua on arms control, property rights, investment, and foreign assistance in a recent presentation for Nicaraguan businesspersons. Cruz believes maintaining close, personal relationships between President Ortega and senior U.S. officials, many of whom Cruz claims harbor deep sympathy for Ortega, is critical to managing these sometimes difficult issues. Our view is that Ortega likely sees this communication with senior U.S. officials as a way to show Nicaraguans that the United States has somehow given its stamp of approval to the FSLN administration. Only Big Countries Matter -------------- ¶2. (SBU) Nicaraguan Ambassador to the United States Arturo Cruz reflected on his first year in Washington, D.C., during remarks delivered March 4 at a lunch organized by the American Chamber of Commerce of Nicaragua (AmCham). Cruz began by sharing his perspective on U.S. foreign policy formulation. He concluded that the United States has no clear foreign policy toward Latin America, but rather defines relationships with key countries such as Brazil, Mexico, and Colombia within a broader global context. Venezuela -------------- ¶3. (SBU) Cruz then moved to the specifics of the U.S. - Nicaraguan relationship, highlighting his objectives as Ambassador in managing trouble spots and providing U.S. officials with accurate information on Nicaragua. On Nicaragua's alliance with Venezuela, the importance of which he said U.S. officials underestimate, Cruz believes that Nicaragua is simply acting in the interest of the 80% of the population that survives on $2/day or less. Development funds available through ALBANISA (the Venezuelan - Nicaraguan joint venture established for the import of Venezuelan oil) are available for immediate disbursement to poverty alleviation programs, he explained. Cooperation with the United States -------------- ¶4. (SBU) Cruz told the crowd that Nicaragua has made it a priority to maintain a positive relationship with the United States. He mentioned negotiations on man portable air defense systems (MANPADS) as an example of cooperation between the United States and Nicaragua to work through difficult issues. He highlighted the Millennium Challenge Corporation (MCC) compact for Leon and Chinandega and Peace Corp programs as examples of successful cooperation. Cruz also emphasized his role in promoting investment in Nicaragua, and he claimed to meet regularly with potential investors. Cruz described himself as a "problem solver" for U.S. businesses facing difficulties in Nicaragua, working with Managua-based government officials. Cruz was careful to distinguish between those who support his approach to facilitating investment, such as Presidential Delegate for Investment Alvaro Baltodano, and unnamed Nicaraguan officials who do not. On property issues, Cruz is confident that the United States will again issue a waiver to Section 527 of the 1994/5 Foreign Assistance Act. However, he believes U.S. and Nicaraguan officials must reach a new understanding on the criteria used to evaluate property claims (Ref A). The Value of Personal Relationships -------------- ¶5. (SBU) Throughout his presentation, Cruz emphasized the importance of personal relationships with senior U.S. government officials. In particular, he highlighted his belief that President Ortega maintains strong personal relationships with Secretary of Commerce Gutierrez, MCC Director Danilovich, Health and Human Services Secretary Leavitt, and Overseas Private Investment Corporation President and CEO Mosbacher. Cruz believes that a personal connection with Ortega facilitates constructive exchanges on sometimes contentious issues. ¶6. (SBU) Cruz told the audience that Ortega's good relationships with these senior U.S. officials are based on trust, "because they understand that when Ortega commits to something, he follows through." He suggested that many U.S. political leaders harbor deep sympathy for Ortega and therefore exhibit patience for his rhetoric. Cruz hinted that Ortega would likely begin to moderate his rhetoric now that elections are behind him, and he also applauded the U.S. Government's "moderate, intelligent approach" to the bilateral relationship. He reported that U.S. Ambassador Designate to Nicaragua Robert Callahan has been specifically tasked by senior U.S. officials to develop a deep, personal relationship with Ortega. Cruz announced that Department of Commerce official Walter Bastian will lead an interagency delegation in the coming months to address issues of competitiveness in Nicaragua. [Note: Cruz may be referring to Post's as-yet unfunded BFIF proposal to host a competitiveness seminar in Managua in May (Ref B). End note.] Conclusion and Comment -------------- ¶7. (SBU) Cruz dodged difficult questions on the deterioration of democratic institutions and the government's pressure-laden negotiating tactics with U.S. company Esso. He went to great lengths to highlight positive relations with the United States, especially on a personal level between Ortega and senior U.S. officials. The importance of personal relationships for President Ortega is something we have heard from other sources as well. In particular, Cruz's remarks confirm that Ortega believes he has a special connection with Commerce Secretary Gutierrez; this, in part, fuels expectations that Secretary Gutierrez will visit Nicaragua this year. Our view is that Ortega likely sees this communication with senior U.S. officials as a way to show Nicaraguans that the United States has somehow given its stamp of approval to the FSLN administration. TRIVELLI