This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 PANAMA 000205 
 
SIPDIS 
 
 
SENSITIVE 
 
 
DEPARTMENT FOR WHA/CEN/BRIGHAM 
 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ETRD PM POL CHIEF
SUBJECT: PANAMA'S FOUR PRESIDENTIAL CANDIDATES MEET WHITE 
HOUSE ENVOY OTTO REICH 
 
 
REF: A. 03 PANAMA 02346 
     ¶B. PANAMA 0145 
     ¶C. 03 PANAMA 02279 
     ¶D. PANAMA 0111 
 
 
SUMMARY 
------- 
¶1.  (SBU) On January 22, Special Envoy Otto Reich and 
Ambassador Watt met with Panama's four presidential 
candidates -- Ricardo Martinelli, front-runner Martin 
Torrijos, Jose Miguel Aleman, and Guillermo Endara.  The 
candidates explained their strategies, goals, and priorities 
in a series of 10-minute interviews and one general session. 
The candidates agreed on the need to end corruption, attract 
investment to create jobs, modernize the Canal, make 
government more honest and transparent, negotiate a Free 
Trade Agreement with the United States, support U.S. 
counter-terrorism and security initiatives, and maintain good 
Panama-U.S. relations.  Not surprisingly, they disagreed 
mainly on who would win the May 2 vote.  A luncheon meeting 
held earlier in the day for GOP officials and NGO/private 
sector representatives produced complementary themes, 
focusing on Panama's need for a modern, professional civil 
service and on the Canal Administrator's suggestion that the 
government of Panama increase transparency in government 
procurement by adopting the "bid by internet" system of the 
Panama Canal Authority.  End Summary. 
 
 
¶2.  (SBU) All four of Panama's presidential candidates met 
privately with Special Envoy Reich and Ambassador Watt on 
January 22, accompanied either by their vice presidential 
running mates or their campaign managers. 
 
 
Ricardo Martinelli 
------------------ 
¶3.  (SBU) Martinelli, accompanied by campaign manager Jimmy 
Papadimitriu, explained his stand for transparency and 
against corruption as the only way to increase jobs and 
investment and gave strong support to Amb. Reich's January 21 
speech declaring that the United States would no longer issue 
visas to corrupt officials.  (See Ref A.)  Martinelli also 
repeated his theme that U.S. troops should return to Panama. 
Martinelli said he would run the GOP "like a business" and 
would work to convince Panama's people "to have faith in the 
system" because unfortunately the system is "guilty until 
proven innocent."  According to Martinelli's own poll 
(conducted by Greenberg, one of President Clinton's 
pollsters), his campaign is currently  in third place with 
11%, ahead of Jose Miguel Aleman (7%), but trailing Torrijos 
(45%) and Endara (30%).  He accused the PRD of "rigging" poll 
results that show Torrijos ahead with 49% and Martinelli last 
with 5%. 
 
 
Martin Torrijos 
--------------- 
¶4.  (SBU) Torrijos promised a 100-day legislative marathon 
following his inauguration as president to pass laws to 
reform social security and encourage large-scale investment. 
He also promised to revitalize the government transparency 
law by eliminating President Moscoso's restrictive 
implementing decree, which effectively gutted the law. 
Torrijos hopes to conclude a bilateral commercial agreement 
with Colombia to lure Colombian capital and entrepreneurs to 
Panama.  Torrijos noted that only the Democratic 
Revolutionary Party (PRD) has good relations with Cocle 
Province residents who are in the path of Canal expansion. 
Vice presidential candidate Samuel Lewis Navarro (Refs B and 
C) said the Torrijos campaign shared many U.S. concerns, such 
as security, counter-narcotics, and counter-terrorism.  He 
pointed out that all three PRD candidates, including second 
VP candidate Ruben Arosemena, hold degrees from U.S. 
universities. 
 
 
Jose Miguel Aleman 
------------------ 
¶5.  (SBU) Shrugging off single-digit polling results, 
Arnulfista standard-bearer Aleman predicted a "final battle" 
between himself and Martin Torrijos.  He declared himself 
surprised but pleased that the bilateral Free Trade Agreement 
has a good chance of becoming reality, a fact he attributed 
to the good relations between President Moscoso and President 
Bush.  Aleman commented that "too many party people" are 
appointed at all levels throughout the government, which 
affects Panama's democracy.  Aleman said he is on the street 
every day where he finds "much enthusiasm" for his campaign. 
He noted that the Arnulfistas are fielding some 1800 
candidates and he predicted a clean electoral process.  In 
the session with the other candidates, Aleman said that 
Panama's beef, rice, and sugar industries are "fragile" but 
employ many people (which is why Aleman and Endara, with 
their strength in the countryside, are more protectionist on 
trade). 
 
 
Guillermo Endara 
---------------- 
¶6.  (SBU) Endara's vice presidential running mate (and 
ex-schoolmate), Billy Ford, said the days of Panama's 
"special" U.S. relationship were over; what Panama now seeks 
are "excellent" relations with the United States.  "Our 
government (1989-1994) never stole a dollar," Ford said, 
adding that it was about time Panama had a government that 
can convince people that it knows what it is doing.  Endara 
promised to "do what we did before, but better" and recalled 
his close relations with former Ambassador Hinton, after the 
1989 "Just Cause" invasion restored Endara as president. 
Endara expressed interest in working closely with the USG on 
security (see Ref D), adding that Panama has no capability to 
identify citizens or residents with links to international 
terrorist groups. 
 
 
Luncheon With GOP/NGOs/private sector 
------------------------------------- 
¶7.  (SBU) Prior to meeting the four candidates, Amb. Watt 
hosted a luncheon for Special Envoy Reich at which the themes 
of government financial transparency, administrative reform 
and Canal bidding practices were discussed intensively. 
Several participants asserted that the state was in dire need 
of overhaul and modernization -- "Why should our civil 
servants be job hunting every five years?" they asked. 
(Note: Panama has no professional civil service.  Government 
employment is subject to the "spoils" system, where the 
ruling party can appoint everyone from minister to postal 
clerk.)  Canal Administrator Aleman Zubieta argued for a 
change in the Passenger Vessels Services Act (PVSA) that 
would allow Panama to serve as an embarkation point for 
cruise ships, and for a new public contracting law that would 
permit internet bidding like the system now used by the Canal 
Authority.  Guests included embattled Controller General 
Alvin Weeden, Electoral Tribunal President Valdes, the 
Catholic Archbiship of Panama, Canal Administrator Aleman, 
Vice Foreign Minister Castrellon, and leaders from business, 
civil society, and the media. 
 
 
WATT