RESTREPO ASSURES FUNES HIS SUCCESS MATTERS TO U.S.

C O N F I D E N T I A L SAN SALVADOR 001008

SIPDIS

E.O. 12958: DECL: 10/25/2019
TAGS: PGOV PREL HO ES
SUBJECT: RESTREPO ASSURES FUNES HIS SUCCESS MATTERS TO U.S.

Classified By: Charge d'Affaires, for reasons 1.4 (b) and (d)


1. (C) Summary: NSC Senior Director for Latin AMERICA Daniel
Restrepo told President Funes October 23 his government's
success was important to the White House and praised Funes'
Honduras policy. Funes noted the challenge of deteriorating
public security and said divisions in (conservative,
opposition) ARENA could complicate his efforts to keep
hard-line (left-wing) FMLN elements at bay. Funes welcomed
news of a White House visit, though a date was still to be
set. He welcomed the October 20 extradition to El Salvador
of Julio Eduardo Villatoro Monteagudo and acknowledged that
El Salvador owed the U.S. reciprocity on extraditions.
Restrepo later told FM Martinez that Manuel Melgar as
Minister of Public Security remained problematic. (Note:
Melgar is implicated in the 1985 Zona Rosa killings that
include the murder of four U.S. Embassy Security Guards.)
Martinez said the GOES hoped to announce an Ambassador in
connection with a Funes trip to Washington and expressed hope
for movement on U.S. immigration reform. He expressed thanks
for USG support, noting that Washington's actions and
attitude helped the President resist hard-line FMLN elements.
End Summary.


2. (C) NSC Senior Director for Latin AMERICA Daniel Restrepo
visited San Salvador October 23-25 to participate in the
National Security Planning Workshop organized for the GOES by
the Center for Hemispheric Defense Studies (CHDS). The
Workshop brought together two dozen GOES officials, senior
police and military officers, National Assembly
representatives and others to jump start development of a
national security strategy addressing the deteriorating
public security situation in El Salvador.

Funes Pessimistic on Zelaya's Return
--------------


3. (C) Restrepo met October 23 with President Mauricio Funes,
Foreign Minister Hugo Martinez and Private Secretary to the
President, Francisco Caceres. He was accompanied by Charge
and PolCouns (notetaker). Restrepo said Funes' success was
important to the White House. Funes expressed appreciation
for Secretary Clinton's attendance at his inauguration June 1
and commented on good U.S.-El Salvador coordination on
Honduras. Restrepo said the USG appreciated the constructive
role on Honduras played by Funes, Martinez and the GOES in
complicated circumstances. Funes noted the GOES had recently
distanced itself from the ALBA countries' statement on
Nicaragua and expressed frustration at the "irresponsible"
positions taken by the (left-wing) FMLN on Honduras. (Note:
Funes was the FMLN's presidential candidate, though not a
long-time party member.) He recalled his frustration when
FMLN hardliners installed themselves in the VIP lounge at San
Salvador's airport to greet ousted President Zelaya and other
heads of state (July 6) before Funes could arrive while
simultaneously organizing a raucous pro-Zelaya rally. Funes
said Zelaya's return to power looks more difficult with each
passing day. He said Micheletti was essentially the same as
Zelaya -- "impulsive." Funes said GOES outreach to regional
business leaders had been helpful in pushing both sides to
talk with the added benefit of improving Guatemala President
Colom's relationship with that country's private sector.

Funes Addresses Security, Divided ARENA, FMLN meddling
-------------- --------------

4. (C) Funes noted that his personal approval ratings
remained quite high (in the 80% range) but that some of his
ministers, primarily in the security area, had taken a hit.
He said the growing public security crisis in El Salvador
would be difficult to resolve. The army, he said, was not
adequately prepared to take a leading role in restoring
public security and noted that a solution would involve good
intelligence and prevention efforts. Funes said his
predecessor Antonio "Tony" Saca left behind neglected tax and
public security issues. Funes said his tax reform proposals
were not aggressive and included plans merely to enforce
existing tax law but were now facing opposition from some
sectors. He noted former U.S. Ambassador Douglas Barclay had
urged much more aggressive tax reform.


5. (C) Commenting on growing divisions in ARENA, with twelve
of thirty-two deputies breaking ranks with the party, Funes
said ARENA's problems were not beneficial to his
administration. In the short term, he acknowledged this
could make passing a budget easier if dissident ARENA
deputies voted with the FMLN. However, Funes said in the
long term he will need to build coalitions with the right in
order to govern free of the influence of hard-line FMLN
elements. Paralysis in the Assembly, he said, could make
governing impossible.

6. (C) Funes thanked Restrepo for his participation in the
National Security Workshop and noted that improved public
security would require multiple efforts: better intelligence
on criminal activity, investment in security forces, and
crime prevention. He said proposals to return police and
their families to barracks to insulate them from threats and
blackmail would be a step backwards in El Salvador's efforts
to build community-based policing. Restrepo noted the limits
on any military's ability to perform police roles and said
planning for what happens after the military becomes involved
in public security will be critical to success. Funes said
the Salvadoran Armed Forces would not perform police roles,
only support roles and said strengthening Salvadoran public
institutions was key to resolving the security problem.


7. (C) Funes called attention to a recent interview with FMLN
leader Medardo Gonzalez where he said the FMLN had won the
election but was not in government. Funes said the FMLN
still had difficulty recognizing that they won in coalition
with a citizen movement led by Funes. He also noted recent
comments by Vice President Salvador Sanchez Ceren that the
U.S. should "learn its lesson" from defeats in Vietnam, in El
Salvador and elsewhere. Funes said responding to those
comments was difficult and uncomfortable because they did not
reflect his government's position, something both he and the
Charge d'Affaires stated publicly.

White House Visit Timing
--------------


8. (C) Funes asked about timing for a White House visit.
Restrepo said the President's Nobel Peace Prize and domestic
issues like health reform had made scheduling more difficult,
but that Funes should be the next Latin American leader to
visit the Oval Office.

We Owe You One on Extradition
--------------


9. (C) Charge thanked FM Martinez for his cooperation in
managing the extradition to El Salvador of Salvadoran con-man
Julio Eduardo Villatoro Monteagudo October 20. Funes
welcomed the return of Villatoro and said that El Salvador
now "owed one" to the U.S. on extradition, referring to the
extradition request for Jose Marvin Martinez now pending
before the Salvadoran Supreme Court for almost two years.

FM on Exchange of Ambassadors; Melgar Still an Issue
-------------- --------------


10. (C) FM Martinez hosted Restrepo and PolCouns (notetaker)
for dinner later October 23. Martinez queried about the
status of a U.S. Ambassador in San Salvador. Restrepo noted
that with A/S incumbent Shannon's Brazil nomination and
A/S-designee Valenzuela's nomination both on hold in the
Senate, other nominations in the region were also being held
up. Martinez said the GOES hoped to announce a new
Salvadoran Ambassador in connection with a Funes visit to
Washington. He said CDA Franciscio Altschul was still being
considered for the position, but the FM and President Funes
were looking at other options. Martinez said some career
diplomats were under consideration, but President Funes felt
strongly that any Ambassador in Washington must have his
complete confidence.


11. (C) Restrepo told Martinez that when Funes visits the
White House, if Minister of Public Security and Justice
Manuel Melgar is still in place, USG mistrust of him will be
one of POTUS' talking points. Martinez acknowledged that the
Melgar issue remained open and thanked Restrepo for the heads
up. (Note: Melgar has been implicated in the 1985 Zona Rosa
killings that included the murder of four U.S. Embassy Marine
Security Guards.)


12. (C) Martinez said that recent proposals by ALBA countries
for an OAS General Assembly session on Honduras would be
counterproductive. He said the GOES wanted a solution, even
if only symbolic, before November elections in Honduras in
order to use those elections as a way out of the crisis. He
said the role of Zelaya's FM Rodas was consistently unhelpful
and agreed with Restrepo's assessment that both sides had
exhibited no strategic thinking throughout the crisis, merely
lurching from one tactical move to another.

U.S. Immigration Reform; Future Cooperation
--------------


13. (C) Martinez asked about prospects for immigration
reform. Restrepo said he expected a proposal to be
introduced in Congress as early as November but substantive
action would wait until 2010 after health care reform was
completed. He said success would depend on members of
congress being able to tell constituents they had taken a
number of concrete steps to address economic insecurity at
home and health care reform would top that list.


14. (C) Martinez echoed Funes' appreciation for continuing
close communication between the USG and GOES. He noted that
despite the fact that taking office as the global financial
crisis hit El Salvador had been difficult, overall the timing
of Funes' presidency had been good because of the new
attitude in the White House. Martinez said close ties with
the USG and public expressions of support for Funes had
served to strengthen the President and allowed him to push
back against hard-line elements in the FMLN. The U.S.
Embassy's and larger USG actions and attitude, he said,
strengthen Funes.


15. (C) Comment: Restrepo's visit provided high-level
reinforcement of what Funes needs to hear: That USG backing
of his government is solid and in for the long haul. The
first five months have demonstrated to Funes that USG support
is substantial, dependable, and necessary.


16. (SBU) This cable has been cleared by NSC - D. Restrepo.
BLAU