INSULZA: U.S. SHOULD TALK TO HONDURAN CANDIDATES ABOUT THE

C O N F I D E N T I A L SANTIAGO 000845 SIPDIS AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA E.O. 12958: DECL: 2019/09/11 TAGS: PREL OAS HO VE WEU CI SUBJECT: INSULZA: U.S. SHOULD TALK TO HONDURAN CANDIDATES ABOUT THE ELECTION CLASSIFIED BY: Paul Simons, Ambassador; REASON: 1.4(B),(D) ¶1. (C) SUMMARY: During a September 7 meeting with the Ambassador, OAS Secretary General Insulza suggested that the United States inform leading Honduran presidential candidates of U.S. views of the upcoming election. Insulza said the United States has done everything possible to sanction the de facto Honduran government, but the EU should suspend ongoing trade negotiations. END SUMMARY. INSULZA: U.S. SANCTIONS THE RIGHT MOVE, NOW TALK TO THE CANDIDATES -------------- -------------- ¶2. (C) The Ambassador met with OAS Secretary General Jose Miguel Insulza on September 7 in Santiago. He said that the United States has done everything possible to apply sanctions to the de facto Honduran government and stated that tinkering with CAFTA benefits would be counterproductive and hurt the poor. ¶3. (C) Insulza suggested that the next step for the United States is sharing its views on the elections with the two leading Honduran presidential candidates. (Note: This is in reference to the USG statement we would not be able to support the outcome of the scheduled election under current conditions, and called for a positive conclusion of the Arias process as a sound basis for legitimate elections.) ¶4. (C) According to Insulza, the European Union (EU) could be more helpful by suspending ongoing trade negotiations with the de facto regime. He did not/not advocate cutting existing EU trade benefits. Insulza also asked Chilean Foreign Minister Fernandez to reach out to prominent Chilean business figures with ties to the de facto regime because he thinks they could play stronger roles. NOT EASY TO WOO ZELAYA FROM CHAVEZ -------------- ¶5. (C) Insulza was pessimistic about the chances of peeling Zelaya away from Chavez, in large part because Zelaya remains extremely grateful for Petrocaribe's $200 million lifeline to Honduras. Insulza noted that both he and President Bachelet have encouraged Zelaya to be more independent, but doubted those efforts would be successful. He added that Secretary Clinton might have better success in pulling Zelaya away from Chavez. Insulza commented that he does not/not believe Chavez wants Zelaya to return to Honduras because that would demonstrate the United States cannot deliver in the hemisphere. TROUBLE AHEAD FOR ALBA? -------------- ¶6. (C) Insulza predicted trouble for Chavez and ALBA in the upcoming year. He told the Ambassador that three Caribbean countries want to withdraw along with both leading Presidential candidates in Honduras. Insulza thinks Petrocaribe money is the only tool at Chavez's disposal. He credited President Obama's strong showing at the Summit of the Americas as being extremely important for the U.S. image in the Caribbean. SIMONS