YOUR VISIT TO EL SALVADOR

S E C R E T SAN SALVADOR 000802 SIPDIS FOR GENERAL FRASER FROM CHARGE D'AFFAIRES E.O. 12958: DECL: 08/21/2019 TAGS: PGOV MARR ES SUBJECT: YOUR VISIT TO EL SALVADOR Classified By: Charge d'Affaires, for reasons 1.4 (b) and (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 mil-to-mil relationship is solid, typified by the successful visit of the USNS Comfort. End Summary. -------------- Good Relations with U.S. Essential -------------- 2.(C) On the day he was inaugurated, President Funes told Secretary of State Clinton that his Salvadoran 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. -------------- Scope of Bilateral Relationship -------------- 3.(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 has 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 about to take in dozens of new USAID trainees, pursuant to a USG directive to increase world-wide AID staffing. -- Peace Corps: The Peace Corps maintains an active presence throughout El Salvador, with volunteers working on rural health, development, literacy, and sanitation. -- Military: El Salvador had troops in Iraq from August 2003 until early 2009 and 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 mil-to-mil relationship in humanitarian assistance/disaster relief, counter-terrorism, and counter-narcotics. We recently renewed the agreement to operate a Cooperative Security Location (CSL) for another five years. The CSL, located at the military end of the international airport, 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. In July and August, MILGP coordinated and facilitated two MEDRETEs in the northern zone and has a third scheduled for September. -- 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. -------------- U.S. Priorities -------------- ¶4. (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. ¶5. (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 Comalapa Cooperative Security Location (CSL) and the International Law Enforcement Academy (ILEA), should also provide us with additional credibility with the oncoming Funes administration. ¶6. (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, but full implementation of the Merida Initiative is now contingent upon guidance from Washington regarding how best to work around Melgar. Thus far, 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. ¶7. (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. 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 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 -------------- ¶8. (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. ARENA and 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, which takes on added importance in light of Honduras' meltdown next door. BLAU