RESPONSE FROM AMEMBASSY SAN JOSE TO REQUEST FROM

UNCLAS SAN JOSE 000688 SIPDIS SENSITIVE DEPT FOR EEB/EPPD FOR NSMITH-NISSLEY E.O. 12958: N/A TAGS: KSEP AMGT BEXP ECON ELAB ETRD SENV PREL PGOV CS SUBJECT: RESPONSE FROM AMEMBASSY SAN JOSE TO REQUEST FROM EEB - ACTING, ASSISTANT SECRETARY NELSON: DUE DILIGENCE ON NOMINEES FOR THE SECRETARY OF STATE'S 2009 AWARD FOR CORPORATE EXCELLENCE REF: SECSTATE 78538 ¶1. Please see responses from AMEMBASSY SAN JOSE to action request (reftel). ¶2. Question: Are there possible negatives or risks of U.S. embarrassment that could result from the potential selection of your post's nominee (Intel Costa Rica)? Answer: No. ¶3. Question: Do you have any information concerning job creation in the United States resulting from the operations of the company you nominated (Intel Costa Rica)? Answer: Intel Costa Rica imports input parts from the United States as well as exports final product to the United States. U.S. producers and consumers hire U.S. employees (therefore creating jobs) whom are integral parts of the Intel Costa Rica supply chain. ¶4. Question: What is your assessment of the company's (Intel Costa Rica) trade and investment activities with regard to helping stimulate economic growth in the U.S. and increasing American exports (what is the U.S. content of its products)? Answer: The percentage of U.S. content in Intel Costa Rica products is unavailable. However, Intel Costa Rica does use raw materials and other inputs from the United States. ¶5. What is the state of labor conditions in the company's (Intel Costa Rica) facilities and are workers unionized? Answer: Intel Costa Rica has an Employee Association (Asociacion Solidarista de Empleados de Componentes Intel de Costa Rica in Spanish) which was founded in 1997. There are 2,073 members which represents about 93 percent of Intel Costa Rica's employees. The employee association offers loans, savings options, insurance, credit cards, discounts, and other benefits to its members. We are told that Intel's employment practices rate in the upper echelon of the Costa Rican system. Employees that leave Intel often request (or initiate) labor practices that replicate Intel's work environment. ¶6. Are you aware of any litigation pending in local courts involving the company (Intel Costa Rica)? Answer: No. Intel Costa Rica is required to report any material litigation as part of their ongoing U.S. Securities and Exchange Commission (SEC) reporting requirements. Intel Costa Rica currently does not have any litigation that triggers this reporting requirement. Intel Costa Rica currently has two cases matriculating in the Costa Rican courts and both of them are private (not government related). Since both are open cases, Intel Costa Rica's lawyers were not at liberty to disclose additional details about the cases. ¶7. Question: Please confirm that the Chief of Mission and others involved in the nominating process do not hold shares of stock or have other financial interests in the company. Answer: The three main players involved in the selection process, CDA Peter Brennan, Economic Officer Mark Kissel, and Economic Specialist Anna Sparks, do not hold stock in Intel. ¶8. Thank you for the opportunity to respond. We look forward to the final results of the selection process. BRENNAN