TFHO1: PHONE CONVERSATION WITH DE FACTO FINANCE

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 000940

SENSITIVE
SIPDIS

STATE FOR WHA/CEN, CA/VO

E.O. 12958: DECL: 09/18/2019
TAGS: PGOV PREL KDEM CVIS HO
SUBJECT: TFHO1: PHONE CONVERSATION WITH DE FACTO FINANCE
MINISTER

Classified By: Classified by Hugo Llorens for reasons 1.4 (b & d)


1. (C) Summary: Consul General (CG) received a phone call
September 17 from Gabriela Nunez, de facto regime Minister of
Finance. Nunez was calling to find out if her U.S. visa had
been revoked, as she anticipated being invited to Washington,
D.C. by the World Bank for consultations. CG confirmed her
visa was currently valid, but advised caution and discretion
in traveling to the United States as a representative of a
regime not recognized by the U.S. government. CG strongly
urged Nunez to use her close relationship with de facto
President Roberto Micheletti to bring him back to the San
Jose negotiations in good faith. Nunez agreed to do so. End
Summary.


2. (C) Gabriela Nunez (de facto regime Finance Minister,
former head of the Honduran Central Bank, and Liberal Party
vice presidential candidate aligned with then President of
Congress Roberto Micheletti) called the CG on September 17,
2009 to find out if her U.S. visa were still valid, as she
anticipated being invited by the World Bank and other
International Financial Institutions (IFI's) for
consultations within the next week. Nunez stated that though
she was a member of the de facto regime, she had remained
separate from the political actions taken by it, and focused
on the economic and financial good of the country. She also
reported that she and Zelaya administration Minister of
Finance Rebecca Santos were to be given "observer" status at
the World Bank's general meetings in early October in
Istanbul. Nunez said she had been in discreet contact with
the World Bank on various pressing issues, naming Pamela Cox
and Linda Fragenti as her interlocutors. Nunez had, in fact,
planned a trip to the United States the week of September 7,
but had cancelled out of concern for her visa status, giving
her need to present a budget to Congress as her excuse for
cancelling. CG asked if it was her impression that by
inviting her, the World Bank was in some way recognizing the
de facto regime, but she replied that she didn't take the
invitation as recognition. Nunez said she had a video
conference with World Bank officials scheduled for September

18.


3. (C) CG then took advantage of her call to lay out the
U.S. and international community position on the coup, noting
that this was a critical moment for negotiations, and urging
her to use her strong relationship with Micheletti to bring
him back to the negotiating table in good faith. CG pointed
out that the U.S. and international community were well aware
of the leading role President Zelaya had played in creating
an atmosphere of mistrust leading up to June 28, but that the
legal and common sense conclusion of all outside Honduras was
that what had happened could only be called a coup d,etat.
Elections before a restoration of the democratic and
constitutional order, unobserved and possibly disrupted,
would not bring Honduras out of isolation. CG emphasized
that the U.S. and international community strongly believed
that the Arias process offered an exit from this crisis,
without winners or losers other than Honduras and the
Honduran people as the winners. CG urged her to talk to
Micheletti to push him to consider the long-term good for
Honduras and to grab the chance offered by San Jose out of
the crisis. CG assured Nunez that the U.S. was on Honduras'
side, and would not turn its attention away if Zelaya were
allowed to return under a negotiated agreement.


4. (C) Nunez listened attentively, did not disagree with
anything said, and promised to engage with the political
situation, admitting that it was in reality impossible to
separate the financial from the political. She acknowledged
that Micheletti has a lot of confidence in her, and hoped she
could be helpful. She expressed her admiration for the
United States and said she was grateful to be able to hear
our position, in spite of the restrictions on U.S. contact
with the de facto regime. She agreed to keep the
conversation confidential, and said she would call the CG
after the video conference.


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5. (C) Comment: Prior to joining the de facto regime, the
U.S.-educated Nunez was a good Embassy contact, respected for
her professionalism and integrity. She has also long been
very close to Micheletti, especially during his unsuccessful
run for the Liberal Party presidential nomination. She is
the latest in a series of important de facto actors to reach
out to the Embassy following the revocation of 13 visas of de
facto members and supporters, and seemed genuinely interested
in helping to reach a solution to the current crisis.
Nevertheless, we will work with Treasury, EEB and WHA to
discourage her from attending any IFI meetings; doing so
would send a confusing and counterproductive signal about
international recognition of the de facto regime.
LLORENS