CODEL Engel meets LAC leaders at Fifth Summit of the

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STATE FOR WHA/EPSC, WHA/PPC, EEB/TPP/BTA, H
STATE PASS USTR FOR AUSTR EISSENSTAT
USDOC/ITA/MAC/LATIN AMERICA CARIBBEAN
TREASURY FOR LUYEN TRAN
DOE FOR OFFICE OF POLICY AND INT'L AFFAIRS

E.O. 12958: N/A
TAGS: PREL PGOV ETRD ENRG MARR SNAR TD
SUBJECT: CODEL Engel meets LAC leaders at Fifth Summit of the
Americas

SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY


1. (SBU) SUMMARY. Representative Eliot Engel, Chairman of the
Western Hemisphere Subcommittee of the House Foreign Affairs
Committee, led a Congressional delegation to the Fifth Summit of the
Americas in Trinidad and Tobago April 17-19, 2009. The delegation
consisted of Representative Connie Mack (R-FL) Ranking,
Representative Gregory Meeks (D-NY),Representative Donald Payne
(D-NJ),Representative Mary Bono Mack (R-CA),Representative Yvette
Clarke (D-NY),Delegate Donna Christensen (D-VI),and Resident
Commissioner Pedro Pierluisi (D-PR). While in Port of Spain, the
delegation held 13 bilateral meetings with Latin American and
Caribbean Heads of State and with the Secretary General of the
Organization of American States (OAS). In all of the bilateral
meetings, Chairman Engel noted President Obama's desire to engage
with Latin America and the Caribbean and the importance of looking
at ways we can work together, improve cooperation, and focus on the
future. Chairman Engel reiterated that the Congress wants to work
with President Obama and hemispheric leaders on issues of concern to
the region. END SUMMARY.


2. (SBU) EL SALVADOR. In a meeting with both President Saca and
President-elect Funes, Chairman Engel noted it was the first time he
had participated in a joint meeting and said it was a clear
indicator of El Salvador's vibrant democracy. Engel said he is a
strong supporter in the Congress of working to improve U.S. - El
Salvador relations, adding he fought to ensure Central America was
included in the Merida Initiative. President Saca discussed the
importance of the Central American/Dominican Republic Free Trade
Agreement (CAFTA-DR) and the help it provides to small enterprises;
noting the importance of governments helping to facilitate private
investment. Saca said his government and the U.S. embassy had just
completed the exchange of notes to renew the Cooperative Security
Location (CSL) for counternarcotics flights. President-elect Funes
said he wanted to work together on drug trafficking (and the CSL),
organized crime, and economic and social issues, such as migration.
He added President Obama called him after his (Funes) election and
he was thankful to hear Obama say he would focus more attention to
the region. Chairman Engel said he was looking forward to working
with President-elect Funes and hoped to visit El Salvador in the
near future.


3. (SBU) PANAMA. In the delegation's meeting with President
Torrijos, Chairman Engel said the Congress hoped to vote on the
Panama Free Trade Agreement (FTA) this year and he would do
everything he could do to see that it went through. Engel
reinforced the need for the U.S. to engage more with Latin America
and Caribbean. Ranking Member Mack and Representative Meeks both
reiterated their desire to see the FTA passed as soon as possible.
Torrijos said he was working hard for passage of the FTA as well as
for a closer relationship and increased cooperation with the U.S. on
issues including trade, counternarcotics and organized crime. He
added that Panama is proceeding with the Canal expansion project and
the Minister of Trade said investment in Panama has created 83,000
jobs in the last 15 months.


4. (SBU) CHILE. President Bachelet urged greater and broader U.S.
engagement with Latin America and the Caribbean. She noted that
regional leaders have very high expectations for President Obama and
will want to see concrete results. Bachelet recommended that U.S.
foreign policy not be "prejudiced" and that the U.S. avoid engaging
exclusively with ideological allies. She suggested we engage more
with Brazilian President Lula and that we try to seek "respectful
relations and cooperation" with Bolivian President Morales and
others. She urged the U.S. to reconsider "sanctions" against
Bolivia and to work with Paraguay. Chairman Engel asked that Chile
help the U.S. encourage President Morales to support
counternarcotics efforts in the region and informed Bachelet of his
bill to include Paraguay in the Andean Trade Preferences program.
Bachelet emphasized greater regional investments in developing human
capital through education and referenced the $6 million partnership
forged with U.S. universities. She confirmed her support of pilot
projects for solar power energy in Northern Chile and hoped for
greater emphasis in this area throughout the region. Bachelet also
urged the U.S. to recapitalize the Inter-American Development Bank
(IDB) in order to strengthen the economies of Latin American
countries. Representative Meeks noted he will hold a hearing on the

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IDB in mid-May. On the Cuba issue, Bachelet stated that all
Organization of American States (OAS) member states would like to
have seen Cuba at the Summit and advocated for the U.S. to end the
embargo. Representative Meeks referenced President Obama's recent
announcement on Cuba.


5. (SBU) OAS. The delegation, along with Members traveling on the
official delegation, met with OAS Secretary General Insulza over
breakfast. Insulza praised President Obama's speech at the opening
ceremony and said it was very positive Obama was there to listen to
leaders of the region. Insulza told Members that President Obama
was the most popular leader in the hemisphere and it was important
that we collectively were focusing on the same issues, such as
poverty and inequality in the region. Insulza said the OAS was in
need of additional resources, noting they were not able to give
staff cost of living raises. Representative Meeks remarked he had
created a new caucus on the OAS and invited all Members to join.
Insulza said the OAS would soon be releasing a report on crime in
the region.


6. (SBU) URUGUAY. Chairman Engel told President Vazquez that OAS
Secretary General Insulza, in their previous meeting, had praised
the peacekeeping work, in particular, that Uruguay has participated
in. Engel added Uruguay has been a good friend and partner to the
U.S. Vazquez said it was important to work together, to focus on
our similarities, and to continue to look for ways to cooperate in
the hemisphere. Vazquez told the delegation of a market access
issue regarding lamb exported from Uruguay that he hopes can be
resolved. He also said he wanted Uruguay to receive the same trade
benefits through the Andean Trade Preferences and Drug Eradication
Act (ATPDEA) that were being considered for Paraguay. Engel said he
would be happy to work with Uruguay and reiterated that his bill on
including Paraguay in ATPDEA had just been introduced.


7. (SBU) HONDURAS. President Zelaya said President Obama's speech
at the opening ceremony was one of hope. He told the delegation
there were four areas that Honduras and the U.S. could continue to
cooperate on. The first is the need to fight the causes of violence
(not just violence itself). Zelaya said the Merida Initiative is a
good plan, but more funds need to be invested. He said he supported
the Millennium Challenge Account (MCA) and said Congress should be
sure to judge each program individually. On trade, Zelaya said
CAFTA-DR is a good initiative, but we need to continue to work to
increase its strengths and reduce its weaknesses. On migration, he
acknowledged U.S. businesses need migrants, but added individuals
need support at home, as they wouldn't leave if there were jobs at
home. Engel said he is a supporter of increased funds for Central
America in the Merida Initiative and he will continue to work on
that. He also said he supports a longer extension of Temporary
Protected Status (TPS). Zelaya noted the good work of Ambassador
Llorens and invited Engel to attend the OAS General Assembly to be
held in Honduras in June.


8. (SBU) ECUADOR. Chairman Engel said he is working hard in the
Congress to strengthen U.S. ? Ecuador relations, stressing the
importance of working together. He said with President Obama we
have a new beginning and need to look forward to the future as Obama
noted in his opening ceremony remarks. President Correa thanked
Engel for his help and said there was a lot we could work on
together such as combating narcotrafficking. Correa remarked it
would be useful if we could establish a more permanent commercial
agreement to avoid the renewal issue we continuously face with
ATPDEA. He reiterated Ecuador does not support the FARC and noted
Ecuador is also a victim of the Colombian conflict, as they deal
with refugees on their northern border. Correa noted he had just
met with President Obama with the other UNASUR countries and noted
his impression that Obama has a different approach to the region.
Correa was pleased by this as he thought the previous
Administration's approach to the hemisphere had been terrible.
Correa added there are huge expectations for President Obama in the
hemisphere. Engel said we have huge opportunities, but we need to
keep expectations realistic. He added he hoped despite recent
disagreements we could keep the dialogue going. Representative
Meeks said Correa could be a unifier in the region. On the issue of
the Inter-American Development Bank (IDB),Correa expressed concern
that the IDB follows strict policies of conditionality and argued
IDB, IMF, and World Bank-imposed policies have increased the gap

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between the rich and poor in Ecuador. Representative Engel ended
the meeting by asking if Ecuador would recognize Kosovo; Correa said
he was waiting for a decision at the International Court of Justice
(ICJ) on the matter.


9. (SBU) HAITI. Chairman Engel opened the meeting with President
Preval by stressing we need to help Haiti in every way possible. He
said he mentions Haiti in all the meetings he has on the region,
adding great strides have been made, but there is much more to be
done. President Preval said Haiti was on its fifth UN Stabilization
Mission which should be more successful since Haiti now has
political stability. He conveyed his concern that there might be
fatigue among the international community with regard to Haiti, but
the international community has a big role to play. Preval raised
two areas where Haiti needed assistance ? building roads to allow
producers to bring goods to market and increasing electricity.
Without electricity, individuals are unable to benefit from HOPE.
Preval mentioned that of the eight bridges destroyed during the last
hurricane season, only three have been repaired. Representative
Kendrick Meek raised the issue of temporary protective status (TPS).
He said he had productive meetings with the Department of State and
the Department of Homeland Security and that the issue is under
review. Meek advised should TPS be approved, measures would need to
be taken to ensure there would not be a mass migration.
Representative Greg Meeks said he is exploring with the IDB why $100
million for Haiti was held up and said he hopes to have the money
released no later than June. He also suggested that resources flow
through the GOH so that citizens better understand that the
government is providing the help they need. Chairman Engel noted
the potential Haiti has for growing jatropha and said he was happy
Secretary Clinton announced additional funding at the April Donors'
Conference.


10. (SBU) CARICOM. Representative Charlie Rangel (D-NY) joined the
delegation for its meeting with the leaders of the Caribbean
Community (CARICOM). Chairman Engel noted the excitement
surrounding President Obama and said there was a new dynamic in
dealing with the region. CARICOM leaders said they recognized the
changes President Obama has afforded. The first issue the CARICOM
leaders raised was "tax havens" and the pending legislation in the
U.S. Congress. Leaders think the most disturbing repercussion of
the legislation would be the potential it has to destroy their
financial sector which could bring a halt to investment in the
region. CARICOM agrees there need to be international standards and
they are working on those issues but see the legislation as
detrimental to investment. On security, leaders noted the
importance of the Merida Initiative, but said it needed to be
extended to the Caribbean as they too faced drug/arms trafficking
issues which would likely grow. They added they hoped the $30
million President Obama had announced at the Summit's opening
ceremony was for the first six months of a longer commitment. They
also commended the previous Administration for the 2007 Conference
on the Caribbean in DC and noted the e-trace initiative is making
progress.


11. (SBU) CARICOM, cont. Representative Rangel said CARICOM
leaders should remember they had great access to the U.S. Congress.
He agreed that legislation which actually named countries as "tax
havens" was wrong and could adversely affect CARICOM countries. He
added the discussion could continue with Ambassadors in Washington
DC on the best way to handle the issue. Chairman Engel said he has
asked Representative Doggett to meet with the CARICOM Ambassadors to
discuss the legislation and added he had previously arranged a
meeting between CARICOM Ambassadors and officials at the U.S.
Department of the Treasury. On Merida, Engel said he is a strong
supporter who pushed to have Central America included, and is doing
the same now with the Caribbean. On arms trafficking, he said he
had sent a letter to President Obama on the issue, calling for the
assault weapons ban to be reinstated. He added the news that
President Obama had asked the U.S. Senate to ratify the CIFTA treaty
was also important. On deportations, Representative Payne remarked
U.S. law on deportations won't change, so he is interested in ways
we can work together on issues related to deportations such as
reintegration programs and working to provide more information on
deportees. He noted the importance of the PEPFAR program.
Representative Meeks noted he was planning a hearing on the IDB in
mid-May and asked for any thoughts on re-capitalization of the IDB.

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12. (SBU) DOMINICAN REPUBLIC. President Fernandez told the
delegation the Summit is historic and serves to lower the tension
between the U.S. and other countries. He is looking forward to
working with President Obama. Fernandez raised the overall issue of
the financial crisis and then discussed his work to strengthen and
deepen democracy and democratic institutions. He said the Dominican
Republic continues to work to fight drug trafficking, but the $2.5
million provided in the Merida Initiative is not sufficient. The DR
needs additional funding and a strategic plan. Representative Engel
reiterated his strong support for Merida, particularly regarding
funding for Central America and the Caribbean, and noted his support
for the fine work Fernandez is doing.


13. (SBU) COLOMBIA. In their meeting with President Uribe the
delegation praised the courage and work of Uribe, as well as the
work of Ambassador Barco in Washington DC. Chairman Engel remarked
how Colombia has impressed so many and said before Uribe's
leadership, Colombia was on the verge of becoming a failed state.
On the FTA, Engel said he wants to see it come up for a vote and is
optimistic any obstacles can be overcome. He also thanked Uribe for
the friendship he has provided to the U.S. President Uribe
expressed deep gratitude to the Members for the support Colombia has
received from the U.S. and said he recognized that help publicly
during his speech in one of the plenary sessions. He said if you
look at statistics, it is clear Colombia has made progress on
various issues, but there is much more to be done and the GOC is
determined to keep going. Uribe reconfirmed his commitment to
restoring law and order in Colombia and is focused on improving the
administration of justice, reparations for victims of the conflict,
and more directly addressing social issues such as health and
education. He added that President Obama had asked him what the
next steps were on fighting drug trafficking and he said he
responded that we needed to persevere. Representative Clarke said
she was very impressed with Uribe and the paramilitary
demobilization process which she said could be used as a global
model. On the FTA, she said opponents in the Congress need to be
honest with Colombia on what they are looking for and that she would
be willing to work on a strategy with Members who are not
supportive. Representative Becerra agreed there needs to be clear
signal on what the Congress needs to see for a trade deal to happen.
Representative Meeks said he is very passionate about Colombia and
the FTA. He said Uribe has turned Colombia around, has saved lives,
has a 70 percent approval rating, is working on ILO standards and
has done more for Afro-Colombians than any other President.


14. (SBU) ARGENTINA. President Fernandez de Kirchner spoke at
length on the need for responsible leadership in the region and
noted her hope that U.S. relations with the hemisphere (and Cuba)
will change and lead to concrete results. She added her initial
impressions of President Obama are excellent. Chairman Engel said
he believed we will see progress in the hemisphere under President
Obama and that we are committed to strengthening relations.
Representative Meeks asked about recapitalization of the IDB and
Fernandez de Kirchner spoke about the high levels of inequality in
the hemisphere. On Cuba, Representative Payne reminded that Cuba
had to do more than just talk in order for us to continue to be able
to move forward.


15. (SBU) MEXICO. President Calderon expressed his hope that
collaboration between the U.S. and Mexico is moving in the right
direction. The current security and judicial crises are at the top
of his agenda and he thanked the U.S. for working closely with his
administration on these issues. Members acknowledged that reports
indicate 90 percent of the weapons used in Mexico are being
purchased in the U.S. and much of the demand for drugs in the U.S.
has fueled conflict in Mexico. They reconfirmed their commitment to
address issues in the U.S. and collaborate more closely with not
only Mexico, but others in the region to combat the drug trade and
keep it from spreading to new transit and entry points. All
appeared hopeful that the Merida Initiative is moving in the right
direction, yet acknowledged that there are many challenges that lie
ahead.


16. (U) Chairman Engel has cleared this cable.


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