NORWEGIANS RELUCTANT TO CUT AID FOR NICARAGUA

C O N F I D E N T I A L OSLO 000688 SIPDIS FOR WHA/CEN ALBERT KRAAIMOORE E.O. 12958: DECL: 12/23/2018 TAGS: EAID PGOV PREL NU NO SUBJECT: NORWEGIANS RELUCTANT TO CUT AID FOR NICARAGUA REF: STATE 132044 Classified By: Deputy Political Counselor George Noll for reasons 1.4(b ) and (d) ¶1. (C) Poloff met with Kjersti Rodsmoen, head of the Latin America section of the MFA, who expressed official concern over developments in Nicaragua but little interest in actually reducing Norway's budget support. At the same time, Rodsmoen said that Norway would limit its 2009 budget support to 2008's figure of 20 million kroner (approx $3.2 million) rather than the 25 million kroner it had pledged for 2009 at a budget support group meeting this fall. She said she hoped this would send the proper signal to the Nicaraguan regime. Rodsmoen and poloff had discussed on a previous demarche how Norway's ambassador to Nicaragua upbraided the Nicaraguan foreign minister in a private meeting shortly after the election. ¶2. (SBU) The Nicaraguan elections have generated interest in parliament, and during criticism by the center-right parties in early December of Norway's aid policy, Development Minister Erik Solheim had the following to say: "I wouldn't say that we "threaten to hold back budget support." I would rather say that Norwegian budget support demands from countries that receive budget support that certain reasonable conditions must be met, such that the support can actually function. That means that there is a credible opposition, there is a functioning parliament, and that there are review systems. I am unsettled by the developments in Nicaragua, I'm not trying to downplay that. We will continue to follow those developments, and over the next year we may come to new conclusions." ¶3. (C) Comment: Post doubts that Norway will significantly cut its budget support to Nicaragua absent additional human rights or other violations over the coming months, given the limited steps already taken, and given that parliamentary attention to this issue will likely fade. JOHNSON