(U) PANAMA AND THE 2009 SUMMIT OF THE AMERICAS

S E C R E T PANAMA 000298 SIPDIS E.O. 12958: DECL: 04/08/2019 TAGS: PINR PGOV PREL ECON SUBJECT: (U) PANAMA AND THE 2009 SUMMIT OF THE AMERICAS (C-AL9-00153) REF: SECSTATE 20677 Classified By: Classified by Ambassador Barbara J. Stephenson for reaso ns 1.4(b) and (d) -------------- Summary -------------- ¶1. (C/NF) Panama's main priority for the 17-19 April 2009 Summit of the Americas (SOA) was addressing the global economic crisis, and Delia Villamonte, Panamanian MFA DG for International Organizations and Conferences, was optimistic that President Obama would be a positive broker for consensus. According to Villamonte, the GOP would seek USG support to undertake actions to mitigate the global economic crisis, reform the banking system, promote governability, and strengthen security. Villamonte did not raise any areas where Panama would diverge from USG priorities, but noted that President Martin Torrijos was firmly opposed to pursuing any parallel declarations, with the exception of a declaration to address the global economic crisis. The Panamanians would not back efforts by Venezuelan President Hugo Chavez to steal the spotlight or promote an alternate agenda, but neither would the Panamanians be able to quiet an anticipated outburst from Chavez. End summary. -------------- Everybody's talking 'bout econ -------------- ¶2. (C/NF) Asked about the issues that the GOP would like to see the U.S. address at the SOA, Villamonte responded that Panama's priorities were: 1. addressing the global economic crisis, 2. addressing banking sector reform, 3. promoting governability, and 4. promoting regional security efforts. Villamonte did not provide specifics, but noted that all four had an international scope. She said that the SOA should address issues that affect all of the regions' countries, rather than "wasting time on divisive issues or issues particular to one country, while everyone's economies are suffering." When asked about parallel declarations, Villamonte said that Torrijos was firmly opposed to any parallel declarations that would distract attendees from the main task at hand, the economic crisis. Torrijos would be on board for a parallel declaration that dealt with the crisis, but no other. When asked whether Panama felt pressure from other governments to reform the international financial system or international financial organizations such as the World Bank (e.g. from socialist-leaning governments), Villamonte responded, "The dialogue is out there, but our economic system does not allow us to engage in anti-capitalist dialogue." She also cautioned against allowing the big, powerful countries to exploit or push aside the smaller ones. When POLOFF raised "the Cuba issue," Villamonte steered the conversation back to the "very serious" global economic crisis. (Note: Torrijos is among the Latin American presidents to visit Cuba recently.) -------------- All we are saying, is give Obama a chance -------------- ¶3. (C) Villamonte noted that the dynamic U.S. president's attendance at the SOA represented a great opportunity to forge consensus on the economic problems that affect the whole region. Impressed by Obama's performance at the G-20 Summit, Villamonte was optimistic that he could parlay this dynamism into real results with his first encounter with Latin American heads of state. Villamonte noted that Obama's recent comments in Turkey about the United States' positive relationship with the Muslim world were "very good and clear," and that "it needed to be said." Villamonte said that Obama's comments showed that he had a gift for diplomacy and oration, and that he could use those skills at the SOA to help create consensus on the economic crisis. -------------- Everybody's talking 'bout Chavism -------------- ¶4. (S/NF) POLOFF broached the subject of a potentially disruptive Chavez outburst during the SOA; Villamonte responded that, "We know he is going to do something, but he is a democratically-elected president and it is not as though we can tell him to be quiet." When it comes to Chavez's upstaging antics, although Panama would probably not intervene to stop him, Villamonte succinctly dismissed the notion that Panama would back him, by saying, "We do not get involved with any of that." Villamonte did not mention whether she had information on other leaders intending to undercut or upstage the summit process or to stage parallel anti-U.S. or anti-globalization summits. ¶5. (C) Villamonte noted that Panama was sending a small delegation. In addition to President Torrijos, First Vice President and MFA Samuel Lewis and herself, she ticked off a list of a few other senior officials who would attend, including the Minister of Labor, Edwin Salamin, the Minister of Economy and Finance, Hector Alexander, and a single protocol officer, Flavio Mendez. -------------- Comment -------------- ¶6. (S/NF) The GOP generally agrees with U.S. priorities and is looking for partnership rather than antagonism at the SOA. This is in-keeping with the positive, close relationship the U.S. has had with the GOP over the course of the Torrijos administration. Villamonte's ho-hum response to POLOFF's comments on Chavez's attempts to undercut the dialogue and "the Cuba issue" is in synch with Panama's overall view of its position on the regional stage. The GOP highly values the U.S. as its largest economic and political partner, but at the same time the GOP is exploring other beneficial relationships as Panama increasingly comes into its own, particularly as a regional economic and business hub. Post does not expect surprises from the GOP at the SOA, and anticipates that the GOP will exhibit its strong partnership with the U.S. and will help champion responsible efforts to address the global economic crisis. STEPHENSON