Ambassador visits Honduran cigar capital

UNCLAS TEGUCIGALPA 000206 DEPT OF COMMERCE WASH DC DEPT OF AGRICULTURE USD WASH DC DEPT FOR USAID DEPT FOR PEACE CORPS DEPT FOR WHA/CEN SIPDIS E.O. 12958: N/A TAGS: EAGR EAID ETRD SCUL SNAR PGOV HO SUBJECT: Ambassador visits Honduran cigar capital SUMMARY -------------- ¶1. Ambassador Llorens visited Danli in El Paraiso, a poor province known for high-quality cigar production, February 13. Danli is host to a sizable population of Cuban emigres who transplanted their know-how to create one of the leading export industries of the country. El Paraiso is also the setting of several successful USAID technical assistance agricultural projects. The Ambassador's visit to the region underlined the importance of both industries while also stressing that small entrepreneurs can successfully compete in the world marketplace if they have the right tools. In addition, the Ambassador highlighted the role of education by making a donation of books to the library and garnered extensive positive press. Many regional issues were raised at a luncheon with local and national leaders hosted by the mayor of Danli. The Ambassador welcomed the opportunity to listen to local concerns and invited a delegation to visit Tegucigalpa and meet with him and other involved mission members. Meetings with Peace Corps volunteers, radio and press interviews rounded off the day. Cigars -------------- ¶2. The leaders of the tobacco industry gathered on the premises of the Tabaco de Oriente factory (owned by the Cuban-American Plasencia brothers) to discuss the uppermost issues on their mind: the impact of the new tobacco tax imposed by the U.S. in the recent legislation to expand the State Children's Health Insurance Program and the substantial increase in the minimum wage in Honduras. The Ambassador explained that the tax was being imposed on all tobacco products, including those made in the U.S., to finance healthcare for needy children. The brunt of the tax will be borne by U.S. domestic producers and will not impact the competitiveness of the Honduran cigars as all will be equally affected. The tobacco producers present were still concerned about being priced out of the market, especially in the midst of a worldwide economic downturn. The Ambassador promised to pass on their concerns. ¶3. Cigar-making is an artisanal industry employing about 20,000 people directly and 100,000 indirectly. Most large companies like the Plasencia brothers integrate their operations from planting through making their own boxes and labels. Ninety-nine percent of production is exported to the U.S. GREEN PEPPERS, EDUCATION AND EXPORTS -------------- ¶4. The Ambassador visited a small farm run by Henry Figueroa, a graduate from an USAID project aimed at disseminating technical assistance. As a result he is exporting to El Salvador and the U.S. and employing more than 50 families from the region. The visit to his farm demonstrated how he has passed on his knowledge to his neighbor farmers. As a result of this ripple effect, the region is implementing good farming principles that not only result in increased yields, quality and steady export markets but also end up saving lives: the proper labeling of common farm poisons is a simple example of the power of technical advice. DRUGS, ECONOMIC DOWNTURN ARE REGIONAL ISSUES -------------- ¶5. The Ambassador listened to regional issues of concern at a lunch hosted by the Mayor of Danli and attended by Minister of Security Jorge Rodas and the Vice Minister of Defense Rodolfo Sevilla (who are originally from Danli and traveled especially from Tegucigalpa to attend) as well as business, civic and church leaders. The problems center on drugs entering the country from Nicaragua and opportunities for regional economic development. From the meat industry, to dairy, to coffee and tobacco; all expressed the need for additional support in the form of better roads, cleaner water, technical assistance, etc. Security was a recurring theme, as the local leaders felt that much of the increase in crime was drug related. ¶6. A project helping 300 at-risk youth entirely staffed by volunteers over the past 5 years is a good example of the type of worthwhile local initiative that could be brought to the attention of appropriate private / public organizations. The Ambassador offered to host a delegation of leaders such as those present at the luncheon to a day of meetings in Tegucigalpa with the proper agency and sections heads. "TO READ A GOOD BOOK IS AN EDUCATION" -------------- ¶7. A donation of 79 reference books to the Casa de Cultura de Danli was covered b national press, including La Tribuna, which used the event to Hondurans on to read and study more as a weapon in the fight against crime, stating that "to read a good book is an education." This was the second donation of books by the Embassy and the enthusiasm of its reception as well as the positive dividends yielded by the previous one is a testament to the good relationship with our Cultural Affairs Section and the importance attached to it by all the civil society leaders who turned out for the event. -------------- PEACE CORPS -------------- ¶8. An informal meeting with the two Peace Corps volunteers in the area rounded out the visit. Anne Marie Infantino and Nathan Mahaffey have been working in the areas of technical assistance for educators and environmental technology. They highlighted problems similar to those raised at the luncheon - lack of basic infrastructure making it very difficult to achieve developmental goals. -------------- COMMENT -------------- ¶9. The visit to Danli was very productive as it helped to strengthen ties with community leaders, provided a snap shot of the area, its important industries and current problems. The visit produced extensive positive media coverage including press, radio and television. Above all, it demonstrated that the U.S. and its local representatives care about an often-neglected region of the country. The Danli delegation's visit to Tegucigalpa should yield some worthwhile projects as we work on issues. LLORENS