WHA/PDAS KELLY MEETING WITH PRESIDENT PREVAL

C O N F I D E N T I A L SECTION 01 OF 02 PORT AU PRINCE 000973

SIPDIS

STATE FOR WHA/CAR, DRL, S/CRS, INR/IAA
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
TREASURY FOR MAUREEN WAFER

E.O. 12958: DECL: 07/08/2018
TAGS: PGOV PREL HA
SUBJECT: WHA/PDAS KELLY MEETING WITH PRESIDENT PREVAL

PORT AU PR 00000973 001.2 OF 002


Classified By: Ambassador Janet Sanderson. Reason: E.O. 12958 1.4 (b)
, (d).


1. (C) Summary: WHA PDAS Kelly urged Haitian President
Preval to join the trend in the hemisphere toward
strengthened democratic institutions and open markets, and to
move beyond the current political impasse and get a new
government confirmed. The President retorted that Haiti
could not advance unless the U.S. arrested major Haitian drug
traffickers. Haiti's development hinged on getting control
of the drug trade -- which had infiltrated Haiti's police and
parliament -- as well as the associated corruption and money
laundering. PDAS Kelly pointed out that other countries in
the hemisphere had made progress by fighting drug trafficking
and tackling economic growth concurrently, including by
creating a partnership between the government and the private
sector. End summary.


2. (C) WHA PDAS Craig Kelly met with President Rene Preval
June 24, accompanied by the Ambassador and PolCouns
(notetaker). President Preval was accompanied by his
economic advisor Gabriel Verret and his political adviser
Paul Denis. DAS Kelly underscored U.S. optimism toward the
hemispheric trend toward strengthening of democratic
institutions coupled with greater economic growth through
open markets, while countries at the same time paid greater
attention to social issues such as access of the poor to
health and education. Chile was the best example of this
trend. The U.S. hoped Haiti could participate in this
hemispheric trend toward opening.


3. (C) PDAS Kelly noted that higher transport costs caused
by sharply higher oil prices might also give Haitian exports
a comparative advantage in close-by markets such as the U.S.
The U.S. and international community commitment to Haiti was
strong for now, but would not remain so forever. There was a
sense of urgency in Washington that Haiti should take
advantage of the current favorable conjuncture, get a new
government approved, and move beyond the current political
impasse. We took hope from the fact that the President
recently had designated a new Prime Minister nominee, Michele
Pierre-Louis.


4. (C) President Preval underscored that Haiti had made
considerable progress, but that it was not realistic to
expect it to move more rapidly. Haiti had gone 50 years
without a functioning legislature. Many deputies were
serving in the legislature for the first time and were still
learning their jobs. Political parties were weak; the
legislative branch was weak, as was the executive branch.
Haiti's constitution had to be redone. Despite these
difficulties, Haiti had achieved macro-economic stability.


5. (C) Preval went on to review the challenge of getting a
new government confirmed by the legislature. He was
confident that the new majority bloc in the Chamber of
Deputies, the ''Cooperative of Progressive
Parliamentarians,'' which was instrumental in the rejection
of his previous two Prime Minister nominees, was now disposed
to confirm his third PM nominee, Michele Pierre-Louis.


6. (C) The President then gave his trademark presentation
that drug trafficking was the single biggest obstacle to
Haiti's development, and had to be mastered before Haiti
could move on other fronts. He expressed bafflement at why
the U.S. had not arrested Guy Philippe and ''Flex.'' These
were ''amateurs,'' not someone like (late Colombian drug
trafficker) Pablo Escobar. The U.S. arresting them would
send out a deterrent signal to the drug trafficking world.
Preval admitted that Philippe had ties inside the police and
was well-organized. He also admitted that many drugs came to
Haiti from Venezuela, but he insisted that the U.S. should
fight the problem in Haiti. Preval feared that traffickers,
including Guy Philippe, would finance candidates in the next
elections or seek election themselves to obtain immunity from
prosecution. He said there were several traffickers
currently with seats in parliament. Preval said he had met
Colombian President Uribe and Argentinean President Fernandez

PORT AU PR 00000973 002.2 OF 002


at a recent summit in Nicaragua, where they had proposed a
regional conference for August 13 on drugs. Preval said he
wanted ''results, not conferences.''


7. (C) PDAS Kelly replied that the Colombian and other
examples showed that even where drug trafficking was an
existential threat, governments had to address concurrently
all other issues, especially economic development.
Experience showed that economic development helped anti-drug
efforts. We had seen some positive steps in Haiti, most
recently in the renewed authorization for Haitian mango
exports to the U.S. (Note: following last year's ban
following the discovery of fruit fly infestation of Haitian
mangos. End note.)


8. (C) The President said that everything depended on
getting a handle on drugs, corruption and money-laundering.
Preval professed he could not comprehend how a country could
develop if there was corruption. PDAS Kelly suggested that
it was not feasible to fight corruption for three years and
then switch to attracting investment. Governments could
pursue multiple objectives at once. He hoped that Haiti
could follow in the steps of many countries in the hemisphere
such as Chile and establish a new, cooperative relationship
between the private sector and the government. The President
concluded by insisting that institution-building in Haiti was
impossible as long as drugs remained a threat.


9. (U) PDAS Kelly did not have an opportunity to review and
clear this message.
SANDERSON