IBERO-AMERICAN SUMMIT CONCLUDES WITH LITTLE FANFARE

C O N F I D E N T I A L SECTION 01 OF 02 SAN SALVADOR 001261

SIPDIS

E.O. 12958: DECL: 11/05/2018
TAGS: PGOV PREL ES
SUBJECT: IBERO-AMERICAN SUMMIT CONCLUDES WITH LITTLE FANFARE

Classified By: The Ambassador, for reasons 1.4 (b) and (d)


1. (C) Summary: Ibero-American heads of state and government
gathered in San Salvador October 29-31 for the eighteenth
Ibero-American Summit. The intended focus of the session,
youth and development issues, took a backseat to economic
concerns. The summit culminated with the signing of the
Declaration of El Salvador (which was not signed by El
Salvador),which called for measures to combat the global
financial crisis and better provide for the future of youth
in the respective countries. Venezuelan President Hugo
Chavez opted to not attend the summit, which contributed to
the lack of fanfare, and also to the lack of overt
anti-American statements and activities. The Salvadorans did
an admirable job organizing the summit. End Summary.

--------------
Global Economic Issues
--------------


2. (C) Ibero-American heads of state and government reached
consensus October 30 to call for restructuring international
financial institutions, including the World Bank and IMF, but
efforts by some (Ecuador, Honduras, Nicaragua, Cuba, Bolivia,
and Argentina) to declare capitalism a "failed model" were
not successful. Representatives signed October 31 a special
communique on the world financial crisis. Included in the
document were plans to take measures to protect employment
and investment, guarantee financing for profitable
activities, increase liquidity to finance development, and
promote social policies that benefit the most vulnerable
sectors. The participants will seek to establish
"instruments of prevention," and find a solution to combat
future crises, as well as guarantee effective regulation of
capital markets.


3. (C) Ecuador's President Correa called for creation of a
Latin American monetary system; the proposal seems to have
fallen flat. Spain sought and received support from the
group for its inclusion in the G-20, though its participation
in the November 15 summit in Washington is still not assured.


4. (C) Participants also touched on the theme of oil. Brazil
reached an agreement with Cuba to purchase rights to explore
and drill for oil in Cuban waters in the Gulf of Mexico.
President Lula left the event early to travel to Cuba to give
high-level publicity to this deal. Ecuador's Correa proposed
analyzing ways to reward non-oil producing countries for
avoiding the use of hydrocarbons, as a way to promote the
development of alternative fuels.

--------------
Side Issues
--------------


5. (SBU) Summit participants:
- Condemned the U.S. embargo of Cuba.
- Condemned the October 30 ETA attack on the University
of Navarra in Pamplona, Spain.
- Implored other countries to not criminalize migration,
and agreed to strive toward comprehensive migration
reform after the U.S. elections.
- Pledged to find thorough internal development
strategies to combat poverty and guarantee access to
health care and quality education.

--------------
Youth and Development
--------------


7. C) Youth and development issues, the headline for the
Summit, were largely relegated to the background, though an
official declaration on these issues was signed and approved
October 31. The Declaration of El Salvador calls for the
governments involved to strive for better employment
opportunities for youth, and provide more and better
education, as well as more technological resources to "bridge
the digital gap." The declaration includes 41 commitments
relating to youth. Host El Salvador itself did not sign
because the GOES found inconsistencies with its own
constitution on abortion and children's rights.

--------------
Explosive Potential Unrealized
--------------


8. (C) A "Popular Youth Forum" at El Salvador's National
University proceeded without incident. The organizers
decided to hold the closing ceremony October 30 at the
Holiday Inn (several hundred meters from Embassy San
Salvador) and booked the facilities in the name of Simon

SAN SALVAD 00001261 002 OF 002


Bolivar. Fears of overflow and out-of-control crowds were
not realized (as were hopes and fears of an appearance by
Venezuela's Chavez). The event went off with little
attention, in part due to the (left-wing) FMLN's withdrawal
of support.

--------------
Side Meetings
--------------


9. (C) We learned from the Panamanian delegation that they
had met with both Salvadoran presidential candidates, and had
discussed both political and business opportunities and
projects. President Saca hosted Chilean President Bachelet
for a State visit at the conclusion of the summit, and signed
commercial and other agreements. President Bachelet
announced that Chile would have observer status in the
Central American regional security organization (SICA).
Spain and El Salvador signed a small educational exchange
program. Local media and elites were all over the Spanish
royal family, who shared the social pages spotlight with
performers Shakira, Alejandro Rodriguez, and Fher Olvera.

--------------
Comment
--------------

10. (C) The Salvadoran government was delighted with the way
the summit turned out. Foreign Minister Argueta and Deputy
Calix had feared a spectacle on par with last year's summit
in Chile, and told us they were very pleased to have avoided
that potential ordeal. The GOES handled security, protocol,
and overall organization in a responsible, professional
manner, earning plaudits from the entire diplomatic corps.
The FMLN, realizing the damage it could do to its election
campaign, divorced itself as much as possible from the
left-wing heads of state who appeared at the summit.
Presidential candidate Mauricio Funes had planned to leave
the country for the meetings, in apparent fear of association
with Chavez. In the end, he stayed, but kept a low profile.
Venezuelan monetary support for the FMLN campaign is one of
(center-right, pro-U.S.) ARENA's largest points of contention
with the FMLN in the campaign.


11. (C) Comment continued: Because of the non-controversial
aspect of this summit, and the immediately following U.S.
election, the event passed very quickly to the category of
"yesterday's news." The overall civility of the leaders in
their dealings with each other was one of the summit's most
salient positives. Even the unremarkable comments by almost
every leader about international financial problems were not
as vitriolic as they could have been. The consensus view,
recapitulated by Presidents Saca and Bachelet at their State
dinner on Friday evening (October 31) was that "unregulated,
casino capitalism" was to blame, with the solution being more
national government, and even international oversight of
financial markets.
GLAZER