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

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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

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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?

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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