ASSISTANT SECRETARY SHANNON'S MARCH 2 MEETING

C O N F I D E N T I A L STATE 023140 SIPDIS E.O. 12958: DECL: 03/10/2019 TAGS: NU PARM PGOV PREL SUBJECT: ASSISTANT SECRETARY SHANNON'S MARCH 2 MEETING WITH NICARAGUAN FOREIGN MINISTER SAMUEL SANTOS Classified By: WHA A/S Thomas A. Shannon for reasons 1.4 (b) and (d). ¶1. (U) March 2, 2009; 17:00-18:15 p.m.; Washington, DC, USA. ¶2. (U) Participants: U.S. Assistant Secretary Shannon (WHA) Deputy Assistant Secretary Robinson (WHA) Stephanie Pico (PM/WRA) Bert Kraaimoore (WHA Notetaker) Nicaragua Foreign Minister Samuel Santos Charge Alcides Montiel Counselor Fernando Coronel ¶3. (C) SUMMARY: Assistant Secretary Shannon met with Nicaraguan Foreign Minister Samuel Santos on March 2, 2009. Santos requested the meeting to discuss the status of the Man-Portable Air Defense System missiles (MANPADS) negotiations, but during the meeting also addressed the November municipal elections, GON plans for electoral reform, and Nicaragua's Millennium Challenge Corporation (MCC) compact. Santos said Nicaragua wanted to sign the MANPADS agreement as originally proposed by the USG, without further negotiation. He also presented A/S Shannon with a GON &white paper8 on the November elections that he said demonstrates that the elections were not fraudulent. Santos noted the GON's willingness to work with the United States and the European Union on electoral reform and urged the USG to maintain Nicaragua's MCC compact, noting its importance to the Nicaraguan people. Finally, Santos stressed that the GON is sincerely interested in building a constructive relationship with the United States and offered Nicaragua's services as a bridge to "those on this continent and on others with whom the U.S. does not have a friendly relationship." End summary. Elections, Reform, and Protest -------------- ¶4. (C) Santos began the discussion with a defense of the November 2008 municipal elections, noting that what happened before, on, and after November 9 was all part of a normal electoral period - much like what is currently taking place in El Salvador. He presented a "white paper" that he stated provided an exhaustive defense of the conduct of the elections. He stated that the GON is committed to electoral reform and to working with the US and the EU to achieve that end. Santos stated that the GON had not been able to move more quickly with electoral reform due to the paralysis that had existed in the National Assembly (NA) until mid-January. He noted that the resolution of the deadlock had led to the election of a new Executive Directorate (JD) in the NA in which the Sandinista National Liberation Front (FSLN) was only given two of seven seats - the remaining seats going to other parties. (Comment: The deadlock was resolved by an agreement between President Daniel Ortega and Liberal Constitutional Party (PLC) honorary chairman Arnoldo Aleman to exchange PLC votes for the revocation of criminal convictions against Aleman. The resulting JD gave five of the seven seats to the FSLN and its allies. End Comment.) ¶5. (C) A/S Shannon said that the common perception in the U.S and among donor countries was that fraud had taken place in the November elections. This was still a problem, Shannon noted, and the White Paper's promise of electoral reform wasn't enough to restore confidence in Nicaragua's electoral authority. ¶6. (C) Santos lamented the violence that had occurred on February 28 when opposition and Sandinista supporters held separate marches throughout Nicaragua, but stated that the police had done their job to keep the peace. He argued that it was the opposition that had been provocative by calling for marches on the day the FSLN normally commemorates the death of Camilo Ortega, President Ortega's brother. MANPADS Agreement -------------- ¶7. (C) Santos stated that the GON is willing to conclude an agreement on the destruction of 651 MANPADS in exchange for approximately $5 million for the refurbishment of a Managua children's hospital and related medical equipment. He said Nicaragua would sign the USG-proposed agreement without further negotiations. A/S Shannon said we would reply to Nicaragua's proposal as soon as possible Nicaragua's MCC Compact -------------- ¶8. (C) Regarding Nicaragua's Millennium Challenge Corporation (MCC) compact, Santos stressed that the GON is very interested in seeing the compact continue and hopes that the MCC Board of Directors will decide at its March 11 meeting to reinstate the compact in its entirety. He noted that the compact directly assists the Nicaraguan people, is not controlled by the GON, and sends a positive message regarding U.S. commitment to the region. A/S Shannon noted that the March 11 MCC meeting will be the Secretary's first as Chair of the MCC Board and that it is not clear, yet, how she will vote on Nicaragua's compact. He noted that there are many in Washington who have serious questions regarding the apparent GON manipulation of the vote in November and that Board members will expect an explanation at the March 11 meeting. The Future Relationship -------------- ¶9. (C) Santos stated that the GON is interested in constructing a new, positive relationship with the U.S. Santos suggested that the GON could serve as a bridge to "those on this continent and on others with whom the U.S. does not have a friendly relationship." A/S Shannon stated that the U.S. is also interested in building a better relationship, between both governments and people, and that we seek a Central America that works well and can address the many challenges facing the region. He thanked Santos for the offer to serve as a bridge, but said we could handle our own outreach. El Salvador -------------- ¶10. (C) The conversation turned to other regional issues and A/S Shannon asked about the GON's relationship with El Salvador and what Santos thought about the upcoming elections. Santos stated that the GON has been careful to stay out of the presidential race, but has been speaking to both sides to encourage a peaceful election. He said it is clear that the race is a toss up, although the most recent information that the GON has shows Arena with a 3 to 5% lead. A/S stressed that the U.S. wants to make clear that we have no role in the election, that we are prepared to work with whoever wins, and that, should the FMLN win, we are confident that we will be able to work with Mauricio Funes. Cuba -------------- ¶11. (C) A/S Shannon asked if Santos had heard about the day's events in Cuba, which saw Raul Castro purge a number of Fidel loyalists from his government, including FM Felipe Perez Roque. Santos was very surprised by the news, especially about Perez Roque, but acknowledged that Perez Roque was very close to Fidel. G-20 and the Summit of the Americas -------------- ¶12. (C) A/S Shannon asked Santos about recent comments by a GON official calling the G-20 an illegitimate process. Santos replied that the GON's position is that the G-20 is too limited a forum to address the current economic crisis and that the process should be amplified to include all affected by the emergency. He argued that the appropriate forum is the UN General Assembly. A/S Shannon suggested that when these issues are addressed in a forum of that size, the usual outcome is an inability to achieve any consensus and that the current crisis requires immediate coordination among the major economies. He stressed, however, that it is the position of the USG that such coordination can be based in reforms that address poverty and development in all economies. He noted that the United States hopes that the five G-20 countries who will also attend the Summit of the Americas will carry that message to Port of Spain. CLINTON