USG DELEGATION ATTENDS PRESIDENT LOBO'S

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 000096

SIPDIS

E.O. 12958: DECL: 01/28/2020
TAGS: PGOV PREL KDEM HO
SUBJECT: USG DELEGATION ATTENDS PRESIDENT LOBO'S
INAUGURATION

REF: TEGUCIGALPA 0088

Classified By: Ambassador Hugo Llorens for reasons 1.4 (b/d)


1. (C) Summary: Assistant Secretary of State (A/S) for
Western Hemisphere Affairs (WHA) Arturo Valenzuela,
accompanied by Ambassador Hugo Llorens, Assistant Secretary
of State for Economic, Energy, and Business Affairs (EEB)
Jose Fernandez and Principal Deputy Assistant Secretary of
State (PDAS) for Western Hemisphere Affairs Craig Kelly, led
the U.S. delegation to the January 27 inauguration of
President Porfirio Lobo. During the visit, the delegation
met with President Lobo and his economic team, President Jose
Manuel "Mel" Zelaya, and Colombian Vice President Francisco
Santos. The delegation also held a press roundtable for
print media. WHA A/S Valenzuela told President Lobo that the
international community cannot accept a solution to the
Honduran political crisis that does not restore the
constitutional order and urged creation of a Truth Commission
within the framework of the Organization of American States
as a mechanism to bring closure to the crisis. EEB A/S
Fernandez told Lobo that the U.S. is interested in helping
his government recover from its economic woes. WHA A/S
Valenzuela told President Zelaya that the U.S. has always
been committed to the defense of Honduran democracy, but also
wants Honduras to move forward towards a better future. Vice
President Santos told the U.S. delegation that his government
wanted to demonstrate its support for Honduras and the Lobo
government in the wake of the election process. End Summary.


2. (U) WHA A/S Arturo Valenzuela led the U.S. delegation to
the January 27 inauguration of President Porfirio Lobo. The
other members of the delegation were: Ambassador Hugo
Llorens, EEB A/S Jose Fernandez, WHA PDAS Craig Kelly,
Executive Assistant to the Assistant Secretary for Western
Hemisphere Affairs Juan Gonzalez, and Protocol Officer Tanya
Turner. The delegation attended the inaugural ceremony held
at the National Stadium and participated in a luncheon for
foreign delegations hosted by President Lobo at the Executive
Mansion.


3. (C) The delegation met with president-elect Porfirio Lobo
on January 26, the day before the inauguration. WHA A/S
Valenzuela told Lobo that the international community cannot
accept a solution to the Honduran political crisis that does
not restore the constitutional order. A/S Valenzuela
commended Lobo for his efforts to build national unity and
reintegrate Honduras into the international community. A/S
Valenzuela told Lobo that creation of a Truth Commission
within the framework of the Organization of American States
(OAS) could bring closure to this chapter in Honduran
history. He also stated that if the OAS were to reinstate
Honduras quickly that would facilitate resumption of donor
assistance to Honduras. EEB A/S Fernandez said that once the
family fight in Honduras is over, the U.S. is very interested
in helping the Lobo government. Lobo thanked the U.S. for
its efforts to solve the crisis. He said Honduran society is
very polarized and said he would call for compliance with the
Tegucigalpa-San Jose Accord.


4. (C) WHA A/S Valenzuela and PDAS Kelly met with President
Jose Manuel "Mel" Zelaya at the Brazilian Embassy on January
26, the day before he departed Honduras with Dominican
Republic President Leonel Fernandez. Brazilian Charge
d'Affaires Francisco Catunda also attended the meeting.
Zelaya thanked the Ambassador for his efforts to attempt to
avert the political crisis. Zelaya said the Honduran crisis
has complicated international relations in the Americas. He
also said there will be no reconciliation among Hondurans
unless they learn to debate ideas peacefully. A/S Valenzuela
told Zelaya that the U.S. has always been committed to the
defense of Honduran democracy, but that the U.S. also wants
Honduras to move forward and have a better future. He told
Zelaya that Zelaya can play a role in Honduras' future.
Zelaya promised to try to help and said the U.S. could count
on him. Brazilian Charge Catunda thanked the U.S. for its
staunch support over many months for their Embassy and staff.
Catunda cited our effort to ensure that regime authorities
provided water, electricity, and allowed daily shipments of
food to those residing inside the chancery compound.


5. (SBU) While WHA A/S Valenzuela, Ambassador Llorens and
PDAS Kelly met with President Zelaya, EEB A/S Fernandez met

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with members of Lobo's economic team on January 26. Among
the participants were William Chong Wong, who was
subsequently named Minister of Finance for the new
government, and Maria Elena Mondragon, who will head the
central bank. A/S Fernandez emphasized the importance of the
Pathways to Prosperity initiative and encouraged Honduras,
which chairs the Pathways pillar on small and medium
enterprises, to be prepared to play a strong role at the
Pathways ministerial in San Jose. The economic team
expressed interest in learning more about Pathways.
(Comment: Getting the new team up to speed on Pathways will
be a high priority for the Embassy in upcoming weeks. End
Comment.) A/S Fernandez said that he hoped to work with the
economic team on areas of common interest, including
channeling remittances into investment and developing
public-private partnerships. The economic team expressed
concern about the government's balance sheet, particularly
the large amount of short-term internal debt, and pressed for
resumption of economic assistance, including budget support
and technical assistance.


6. (C) The U.S. delegation met with Colombian Vice President
Francisco Santos, who led the Colombian delegation to the
inauguration, on January 26. Vice President Santos told the
U.S. delegation that the Government of Colombia wanted to
show its support for Honduras and the Lobo government in the
wake of the election process. Santos said Colombia could
draw from its own experience in confronting narco-trafficking
and crime to assist Honduras' new government in addressing
these challenges. WHA A/S Valenzuela thanked Colombia for
its contributions to the Haiti relief effort. Santos
responded that Colombia's commitment to the Haitian relief
effort underscored Colombia's solidarity with its hemispheric
neighbors and proved that Colombia can provide valuable
expertise and assistance. WHA A/S Valenzuela highlighted the
importance of bolstering electoral processes through
strengthening institutions, which can only be viable if they
are responsive to the people. Vice President Santos, who
generally described the Colombian economy in positive terms,
expressed concern about the adverse effect on the Colombian
economy if the U.S.-Colombia Free Trade Agreement (FTA) is
not ratified. WHA A/S Valenzuela responded that it would be
difficult to achieve passage of an FTA in an election year,
but that the U.S. would continue its efforts to do so.
Santos also expressed concern that U.S. discussions with the
Union of South American nations (UNASUR) would reopen the
debate on Colombia's Defense Cooperation Agreement (DCA); WHA
A/S Valenzuela assured Santos that no meetings are currently
planned and any future ones would take place at a low level
and would not endanger the DCA.


7. (U) WHA A/S Valenzuela, Ambassador Llorens, EEB A/S
Fernandez, and WHA PDAS Kelly held a press roundtable by
invitation for local and international print media on January
27 before their departure. A/Valenzuela stated that it was a
historic moment for Honduras and that he was pleased to be a
witness to this important step forward in the process of
national reconciliation in Honduras. A/S Valenzuela
reiterated the U.S. commitment to work with the government of
President Lobo. He welcomed President Lobo's efforts to form
a cabinet that includes all political parties and expressed
support for President Lobo's calls that a national unity
government be formed within the framework of the Organization
of American States as called for in the Tegucigalpa-San Jose
Agreement.
LLORENS