Your Visit to El Salvador

S E C R E T SAN SALVADOR 001069 SIPDIS SOUTHCOM FOR LTG KEEN FROM THE CHARGE E.O. 12958: DECL: 2019/11/17 TAGS: PGOV PREL MOPS ECON ES SUBJECT: Your Visit to El Salvador CLASSIFIED BY: RBLAU, CDA; REASON: 1.4(D) ¶1. (S) Summary: Embassy San Salvador warmly welcomes you to El Salvador. Your visit reinforces the U.S. policy of active engagement with the GOES, which strengthens the moderate, pragmatic elements in the new government. President Mauricio Funes has stated his desire to make the U.S. and Brazil his closest allies, though the orthodox part of the left-wing FMLN is trying to pull his administration in a more radical direction, and carries out its own foreign policy. President Funes' non-FMLN campaign support group, the Friends of Mauricio (now renamed the Citizen Movement for Change),is largely in control of the economic apparatus of El Salvador. Similarly, Defense is in the hands of a formerly-retired, recently-promoted military officer and Friend of Mauricio, Brigadier General David Munguia Payes. FMLN hard-liners are at the helm of the security, education, and intelligence apparatus. Foreign policy is in the hands of a loyal FMLN member, but has thus far been characterized by pragmatism and outreach to the U.S. Assistance programs are moving forward successfully but some police and security programs are under review. Our military-to-military relationship is solid, typified by the successful June visit of the USNS Comfort, the September visit of General Fraser, and the current disaster relief operations. End Summary. -------------- -- GOES Struggling to Recover from Severe Flooding -------------- -- ¶2. (SBU) Severe flooding and landslides triggered by a tropical depression over a four-day period in early November caused significant loss of life and economic damage in El Salvador. The hardest hit area was the central part of the country near the capital of San Salvador. In the department of San Vicente, the Acahuapa River flooded several communities, and a landslide off the base of the San Vicente Volcano caused an estimated 82 deaths. The GOES currently estimates a total of 192 deaths countrywide and there are approximately 14,295 homeless in 132 shelters in the affected areas. Heavy losses in the agricultural sector have many in the GOES concerned about short term food security. USG relief supplies have arrived in El Salvador and are being distributed to the most severely affected areas aided by the use of four JTF Bravo helicopters. The GOES plans on issuing $300 million in bonds to finance the rebuilding effort. -------------- Good Relations with U.S. Essential -------------- ¶3. (C) On the day he was inaugurated, President Funes told Secretary of State Clinton that his government needs a good relationship with the United States. One out of every three Salvadorans lives in the U.S., and Salvadorans who remain at home are avid consumers of all manner of American products, media, and culture. Half of all Salvadoran exports are to U.S. markets. Given the transnational crime links radiating to and from the U.S. via Central America, there are no serious alternatives to cooperation with our law enforcement. The Salvadoran military admires and trusts our armed forces, and naturally look to us for training, equipment, and mentoring. When natural disasters strike, the U.S. Embassy (especially USAID) has always been the Salvadorans' first phone call, and always will be. As a result, the Salvadoran public is among the most pro-American in the hemisphere. Even the hard-line FMLN recognize these points, if at the same time they do not forget our role in preventing them from seizing power with violence during the country's protracted and bloody civil war. ¶4. (C) On October 12, twelve legislative deputies declared their independence from (conservative) ARENA and joined a loose bloc with the (left-wing) FMLN party, enabling the FMLN to assume control of the Legislative Assembly's leadership positions. The agreement allows the incumbent (conservative, opportunistic) National Conciliation Party (PCN) to retain the Assembly presidency for 15 months, after which the FMLN will preside for the remaining 15 months of the legislative term. The support of the twelve breakaway deputies, now calling themselves the Gran Alianza por la Unidad Nacional (GANA, from the verb "to win") were key to the approval of President Funes' first budget this month. However, President Funes has publicly chastised the FMLN's gamesmanship and suggested he is worried that the growing power of the FMLN could jeopardize his long-term policy goals. -------------- Scope of Bilateral Relationship -------------- 5.(SBU) The size and scope of the U.S. Embassy -- representing some 18 federal agencies in total -- reflects the breadth of our bilateral relationship as well as our commitment to Central America. Among the major programs executed by this mission are the following: -- Millennium Challenge: We are two years into a five-year compact valued at 461 million dollars, the largest MCC compact in the hemisphere. The main component is a highway that extends across the northern third of the country. Funes himself presided over ribbon-cutting ceremonies for MCC projects during the month of August. -- Law Enforcement: El Salvador is a beneficiary of the Merida Initiative, with funding for the National Civilian Police (PNC), prisons, judiciary, and the International Law Enforcement Academy (ILEA). El Salvador's hosting of ILEA is an ongoing success story. FBI Director Mueller visited last December and inaugurated an INL-funded state-of-the-art automated fingerprint identification system (AFIS). The FBI and the Salvadoran PNC jointly operate the Transnational Anti-Gang Center, a unique bilateral entity tasked with investigation and information sharing. -- USAID: Current programs include fiscal policy, trade, health, education, environment, tax administration, rule of law, and democracy building. USAID enjoys a prestigious reputation in the country; it is also training dozens of USAID new hires, pursuant to a USG directive to increase world-wide AID staffing. -- Peace Corps: The Peace Corps maintains an active presence throughout El Salvador, with 150 volunteers working on rural health, development, literacy, and sanitation. -- Military: El Salvador had troops in Iraq from August 2003 until early 2009 who were considered professional and competent by U.S. and coalition members. Their experience and President Funes' desire for excellent relations with the USG could translate into a commitment to deploy to Afghanistan. We have ongoing cooperation and training programs intended to maintain a rich military-to-military relationship in humanitarian assistance/disaster relief, counter-terrorism, counter-narcotics, and peacekeeping operations. In April we renewed the agreement to operate a Cooperative Security Location (CSL) for another five years. The CSL, which you will visit, is located at the military end of the international airport, and serves as a regional hub for counter-drug detection-and-monitoring flights. The first contingent of Salvadoran peacekeepers returned from Lebanon on August 24. In June the USNS Comfort visit provided medical attention to nearly 20,000 people and two engineering projects to rural communities. HSV Swift is scheduled to visit El Salvador June 19 to July 03, 2010. Beyond the Horizons deployments are scheduled for 2010 and 2011. The Salvadoran Navy has been patrolling more aggressively since August 22, 2009, yielding recent successes against illicit trafficking at sea. On November 11, the Chief of the Salvadoran Navy signed a letter of request for four high speed maritime interceptors under the Enduring Friendship Program. The Minister of Defense has deployed troops to patrol alongside the National Civilian Police as part of President Funes' anti-crime initiative. -- CAFTA: El Salvador was the first country where CAFTA entered into force and has become a huge beneficiary. By 2007, 78 percent of exporters under CAFTA were micro, small, or medium enterprises, which principally export non-traditional products such as 'ethnic' foods. This has helped diversify El Salvador's economy and create new job opportunities, especially for women and the rural poor. CAFTA has also helped El Salvador increase its exports to its Central American neighbors, strengthening regional integration. On October 28, the Salvadoran Supreme Court admitted a claim originally filed in 2007 alleging that CAFTA violates the Salvadoran Constitution and therefore should be repealed. The plaintiffs argue that CAFTA violates five articles of the Constitution related to taxes and existing treaties with neighboring Central American countries. -------------- U.S. Priorities -------------- ¶6. (C) Our work in El Salvador is focused on (1) promoting improved public security; (2) supporting stable, democratic governance; (3) broadening economic prosperity; and (4)investing in people. ¶7. (C) Although El Salvador has made remarkable progress since the 1992 Peace Accords, violent crime remains unresolved. Street gang activity such as extortion, robbery, and kidnapping undermine public security and erode confidence in the ability of the police and the judiciary. The Merida Initiative, coupled with ongoing efforts to strengthen the police and enact judicial reform, aims to improve public security and the rule of law. Recent Legislative Assembly approval of a constitutional amendment to permit wiretapping, with broad political support, is an important step; implementing legislation is in the works. The significant USG commitment to improving regional security, as evidenced by the presence of the CSL and the International Law Enforcement Academy (ILEA),also provides us with additional credibility with the Funes administration. ¶8. (U) A recent increase in violent crime prompted President Funes to sign an emergency decree November 5 to deploy 3,500 soldiers for 180 days to occupy and control 28 of the most violent urban areas in the country. These forces will supplement the 1,700-2,000 troops already operating joint patrols with the National Civilian Police (PNC),meaning that more than half of the ESAF's 10,000 forces will be engaged in domestic law enforcement. ¶9. (S) Although law enforcement cooperation between the GOES and USG traditionally has been strong, the new Minister of Public Security and Justice, Manuel Melgar, has been linked to the 1985 Zona Rosa attack which killed four off-duty U.S. Embassy Marine Security Guards and other Americans and Salvadorans. Law enforcement cooperation has not been frozen, though Melgar's presence as Minister has resulted in a distancing from the USG, a far cry from the close relationship we enjoyed with his predecessor. We are in close contact with Washington as we navigate our way around Melgar in this critical component of the bilateral relationship. ¶10. (C) Promoting economic growth, spurring job creation, and encouraging investment are important near-term USG priorities. Funes' electoral victory had a great deal to do with public dissatisfaction over economic conditions in El Salvador. Funes inherits an economy already in recession and a fiscal deficit which severely limits what he can do to stimulate growth. Redirecting loans from multilateral institutions from debt refinancing to budget assistance will provide some immediate relief, but much of that funding will now be redirected to disaster recovery. El Salvador's economic recovery will largely depend on the U.S. economy, the destination for about half of its exports and major source of remittances ($3.8 billion, or 18 percent of GNP, in 2008). In the short run, the Millennium Challenge Corporation project will provide much-needed fiscal stimulus and new jobs, while CAFTA and our USAID assistance programs will help strengthen the foundations for future prosperity. -------------- The Way Ahead -------------- ¶11. (C) Although the Salvadoran electorate may have granted President Funes a mandate for reform, by all appearances the Salvadoran public at-large expects him to work with the country's dynamic private sector, and to maintain good relations with the United States. Center-right ARENA must come to grips with its electoral defeat and assume its new role as an opposition party. Other opposition parties, civil society leaders, business interests, and the press are all reasonably solid institutions. They also pay attention to signals from the USG, which traditionally has great influence in El Salvador. Your visit will provide a vote of confidence in El Salvador's stability, and reinforce the enduring, reliable quality of relations with the USG. BLAU