VZCZCXRO3301
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHTM
DE RUEHRS #0188/01 3562041
ZNR UUUUU ZZH
R 222041Z DEC 09
FM AMCONSUL MATAMOROS
TO RUEHC/SECSTATE WASHDC 4563
INFO RUEHME/AMEMBASSY MEXICO 2095
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RHEHAAA/NSC WASHINGTON DC
RUEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEABND/DEA HQ WASHDC
RUEABND/DEA  MATAMOROS RESIDENT OFFICE MATAMOROS MX
RUPEUSA/HQ NORTHCOM
RUEHRS/AMCONSUL MATAMOROS 3750

UNCLAS SECTION 01 OF 02 MATAMOROS 000188 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/MEX 
 
E.O. 12958: N/A 
TAGS: ASEC PREL PGOV PHUM SNAR ECON KCRM MX
SUBJECT: DARK SECURITY CLOUD HOVERS OVER MATAMOROS BUSINESS 
COMMUNITY 
 
MATAMOROS 00000188  001.2 OF 002 
 
 
¶1. (U)  Participants: 
 
Consul General Michael Barkin 
EconOff Angela Palazzolo 
National Vice President Roberto Capistran, CANACINTRA Mexico (La 
Camara Nacional de la Industria de Transformacisn) 
President Alejandro Fernandez Sandoval, COPARMEX Matamoros 
(Confederacisn Patronal de la Republica Mexicana, S.P.) 
President Manuel Garcia Garza, CANACINTRA Matamoros 
President Javier Huerta, CODEM (Matamoros Economic Development 
Committee) 
President Carlos Rubio, AMMAC (Matamoros Maquila Association) 
Cirilia Quintero PhD., Professor-Investigator at COLEF (Colegio 
de la Frontera Norte) 
 
¶2.  (SBU)  Summary:  Local business association presidents and 
an academic depicted a vulnerable and anxious security and 
economic environment at a lunch with the Consul General on 3 
December.  They described the business community and the 
community at large as hanging on and laying low, waiting for 
better times.  Conversation focused on the impact of the 
insecure environment on their employees and business investment, 
personal security concerns, border crossing delays, and a 
tourism sector that has yet to recover.  End Summary 
 
---------- 
(in)Security Environment and Investment 
---------- 
¶3.  (SBU)  According to the maquila managers in the group, their 
employees have been threatened by criminals and criminal 
activity.  For example, one company has had three instances of 
their employees getting express kidnapped (taken to ATM's and 
forced to withdraw cash) in the last six months.  Some express 
kidnappings have occurred immediately outside of industrial 
parks.  Maquilas have adjusted their business practices in an 
effort to assist employees.  Adaptations to the security 
environment include requiring employees to have bank accounts so 
paychecks can be electronically deposited, and paying the 
mandated holiday bonus early or spreading out the bonus over a 
number of weeks.  Many maquilas also advise employees to have 
two bank accounts, one where their paycheck is deposited, and 
another small "cash account" linked to an ATM card in order to 
minimize their losses if they become an express kidnapping 
victim. 
 
¶4.  (SBU)   The group said investors are cautious and not 
investing all across Mexico right now.  They said the economic 
slowdown has negatively impacted their businesses but local 
investment is dragging as a direct result of fear and 
uncertainty regarding the security environment in Matamoros and 
the Mexican border region.  Some members of the group believed 
the growth of the Zetas and related criminal activity has had 
the largest negative impact on security in Matamoros.  They 
think the Zetas are diversifying their operations and the 
cartels cannot control them.  The group lamented having to spend 
so much time concerned about security, rather than keeping their 
focus on growing their businesses.  (Note: The Zetas are a Drug 
Trafficking Organization (DTO) in Matamoros who are operating in 
a historically Gulf Cartel controlled city.  They are increasing 
their footprint through extortion.  End Note) 
 
---------- 
Challenges to recovery: Border delays, tourism nearly non 
existent 
---------- 
¶5.  (SBU)  The group spoke of issues they consider barriers to 
Matamoros's capability to recover from the economic downturn. 
They said north and southbound border delays are a constant 
challenge for business and tourism in the area, especially in 
the months of November and December when holiday travel can 
increase wait times to several hours at the three crossings 
between Matamoros and Brownsville.  In addition, tourism has not 
recovered due to crossing delays, security concerns, and the 
economic downturn.   The group saw tourism as an important part 
of the economic life of the community that is nearly 
non-existent at this time. 
 
---------- 
Personal security concerns overshadow everyday life 
---------- 
¶6.  (SBU)  Some members of the group expressed concern for their 
family's safety.  They delineated a line between common crime 
 
MATAMOROS 00000188  002.2 OF 002 
 
 
and crime as a result of DTOs and the impact upon their family 
life.  Anxiety about common crime is as much a concern as the 
presence of DTOs or Mexican military in Matamoros.  They 
intimated how they escort their children to school each day and 
are afraid to let them walk alone for even a few blocks because 
they could be targeted by kidnappers.  Some gave examples of 
criminals asking business people and doctors for `protection' 
money, though none admitted this happening to them personally. 
They shared anecdotes of friends and business associates who 
have moved their families into cities in Texas such as 
Brownsville, San Antonio, Houston, and beyond due to fears about 
the security situation in Matamoros and the border region in 
Mexico as a whole. 
 
¶7.  (SBU)  Even though individual business people may be 
targeted by criminals for protection money the maquila managers 
in the group said maquilas are not targeted for protection 
money.  They posit DTOs do not want to attract too much 
attention from the U.S. as the majority of maquilas in Matamoros 
are U.S. based companies. 
BARKIN