VZCZCXYZ0002
RR RUEHWEB

DE RUEHMU #1236/01 3291656
ZNR UUUUU ZZH
R 251655Z NOV 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0198
INFO WHA CENTRAL AMERICAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS MANAGUA 001236 
 
SENSITIVE 
SIPDIS 
STATE FOR WHA/CEN AND  EB/IFD/OIA 
STATE ALSO FOR WHA/EPSC 
TREASURY FOR INL AND OWH 
 
E.O. 12958: N/A 
TAGS: EINV ECON KIDE NU
SUBJECT: FLSN ATTACKS AGAINST THE EMBASSY UPSET AMERICAN AND 
NICARAGUAN INVESTORS 
 
REF: MANAGUA 1090; MANAGUA 907; MANAGUA 799 
 
SUMMARY 
 
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¶1. (SBU) American and Nicaraguan investors in the tourism 
industry have expressed their displeasure with the Government of 
Nicaragua (GON) regarding the October 30 attacks against the 
Embassy by Sandinista National Liberation Front (FSLN) supporters. 
They have told GON officials that the attacks have scared away 
investors and tourists.  American entrepreneurs also worry that 
they may not be welcome in Nicaragua because of the government's 
anti-American rhetoric.  GON officials, including President 
Ortega's family, hear the concerns of investors, but continued 
rhetoric and future attacks cannot be ruled out so long as 
political gain is put ahead of economic growth. 
 
 
 
INVESTORS UPSET ABOUT ATTACKS AGAINST EMBASSY 
 
--------------------------------------------- 
 
¶2. (SBU) American and Nicaraguan investors in the tourism 
industry are upset with the GON for allowing FSLN supporters 
to attack the Embassy on October 30 (Ref A).  One American investor 
stated that the GON and FSLN should know that the Embassy is 
considered sovereign U.S. territory and many Americans in Nicaragua 
are offended by the attacks and vandalism.  Nicaraguan 
entrepreneurs have also expressed their frustration with the GON, 
noting that the government should have prevented the attacks and 
that this incident has damaged Nicaragua's image in the United 
States and international community. 
 
 
 
BAD FOR BUSINESS 
 
---------------- 
 
¶3. (SBU) On November 19, the Association for Nicaraguan Investors 
and Developers (ANID), an advocacy group for tourism and real 
estate development, held a town hall meeting with Alvaro Baltodano, 
Presidential Delegate for Investment Promotion, and Javier 
Chamorro, Executive Director of ProNicaragua, the government's 
investment promotion agency.  Laureano Ortega, the son of President 
Daniel Ortega and First Lady Rosario Murillo, also attended the 
meeting; local media report that Ortega has an internship with 
ProNicaragua.   Investors complained that the attacks were bad for 
business and have scared away tourists and other investors. 
American entrepreneurs expressed their concern that they might not 
be welcome in Nicaragua because of the GON's anti-American 
rhetoric.  One Nicaraguan investor told GON officials that he 
attended the American Association of Retired Persons (AARP) 
National Member Event and Expo on October 22-24 with ProNicaragua 
(Ref B).  He said that he had developed good contacts at the AARP 
event, and he had followed up with them to explore business 
opportunities.  After the attacks against the Embassy, however, his 
contacts decided that they did not want to do business in 
Nicaragua. 
 
 
 
¶4. (SBU) Baltodano said he understood investor concerns regarding 
the attacks, and he had spoken to senior government officials about 
the incident.  He defended the FSLN's right to protest and avoided 
criticizing the attacks, noting that investors must deal with the 
political realities of Nicaragua.  Baltodano asserted that the GON 
wants to maintain bilateral relations with the United States, 
including strengthening commercial ties.  Chamorro added that 
ProNicaragua is working within the GON to underscore the importance 
of maintaining Nicaragua's image as an attractive place for foreign 
investment.  He acknowledged that the United States is Nicaragua's 
biggest trading partner, and U.S. investors are important 
contributors to Nicaragua's economic development.  One American 
investor suggested that there should be a mechanism to convey 
investor concerns directly to President Ortega.  Baltodano 
responded that he communicates directly with President Ortega and 
will convey these concerns to him.  Note: Laureano Ortega took 
notes during the meeting and did not speak.  Several Nicaraguan 
investors spoke to him privately before and after the meeting to 
voice their concerns about the damage done to Nicaragua's image as 
a result of the attacks.  End note. 
 
 
 
COMMENT 
 
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¶5. (SBU) Investors in the tourism industry are already struggling 
to attract tourists and maintain their businesses because of the 
global economic crisis (Ref C).  The attacks against the Embassy 
were a serious blow to Nicaragua's tourism sector, and 
entrepreneurs are reporting that some American and other foreign 
tourists have cancelled their vacations here after the incident. 
GON officials, including President Ortega's family, hear the 
concerns of investors, but continued rhetoric and future attacks 
cannot be ruled out so long as political gain is put ahead of 
economic growth. 
CALLAHAN