VZCZCXYZ0000
OO RUEHWEB

DE RUEHTG #2519/01 3502005
ZNR UUUUU ZZH
O 162005Z DEC 05
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0365
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHPE/AMEMBASSY LIMA PRIORITY 0388
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUMIAAA/CDR USSOUTHCOM MIAMI FL//CINC/POLAD// PRIORITY
RUEAHND/CDRJTFB SOTO CANO HO PRIORITY

UNCLAS TEGUCIGALPA 002519 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA, WHA/PPC, AND WHA/CEN 
STATE FOR EB AND INL 
NSC FOR DAN FISK 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM ECON KJUS PINR HO
SUBJECT: EMBASSY AND ZELAYA TRANSITION TEAM PREPARE FOR 
CLOSE WORKING RELATIONSHIP; JANUARY CABINET MEETING PLANNED 
 
REF: TEGUCIGALPA 2517 AND PREVIOUS 
 
¶1. (SBU) Summary: Ambassador, DCM, PolChief and EconChief met 
December 14 with key members of the transition team/new 
cabinet of President-elect Jose Manuel "Mel" Zelaya, led by 
Hugo Noe Pino, the head of the transition and future Minister 
of Finance.  Noe Pino confirmed that Zelaya had postponed a 
planned trip to Washington until after the January 27 
inauguration.  Jimenez requested the highest-ranking possible 
USG delegation to the inauguration.  The Embassy Country Team 
and the Zelaya Cabinet and key officials will meet again for 
briefings/dinner around January 12.  End Summary. 
 
¶2. (SBU) Ambassador, DCM, PolChief and EconChief met December 
14 with key members of the transition team/new cabinet of 
President-elect Jose Manuel "Mel" Zelaya.  Representing 
Zelaya was Hugo Noe Pino, the head of the transition and 
future Minister of Finance, future Minister of Foreign 
Affairs Milton Jimenez, future Minister of Agriculture Hector 
Hernandez, and future Vice President of the Central Bank 
Edwin Araque. 
 
¶3. (U) Noe Pino confirmed that the presidential inauguration 
will be held January 27 in Tegucigalpa at the main soccer 
stadium.  Jimenez emphasized that the Zelaya team was seeking 
the highest possible level of governmental representation at 
the inauguration to help instill confidence in the new 
government after the disputed election that did not end until 
Zelaya's opponent, Porfirio "Pepe" Lobo, conceded 10 days 
after the election.  Ambassador noted that the USG delegation 
was still being determined.  The Zelaya transition team 
informed Post later that they have not yet determined how 
many seats will be set aside for diplomatic delegations.  On 
January 25, the new congressional leadership, likely to be 
led by Roberto Micheletti as the new President of Congress, 
will be installed. 
 
¶4. (SBU) Noe Pino confirmed Zelaya's December 12 comments to 
the Ambassador that Zelaya has postponed his plans for an 
official visit to Washington, DC until after he is 
inaugurated.  In addition to a hoped-for meeting with 
President Bush, Zelaya and his team would like to meet with 
key Executive Branch officials and key members of 
Congress/Senators and their staff. 
 
¶5. (SBU) Noe Pino underlined that the Zelaya cabinet was not 
yet complete, with several key ministries (Commerce and 
Industry, Defense, etc.) still to be finalized.  His office 
later faxed the Embassy the current official cabinet list, 
which Post has e-mailed to WHA/CEN. 
 
¶6. (SBU) Jimenez made clear that the Zelaya Administration 
wants to have a close bilateral relationship, which he said 
was fundamental for Honduras.  The future FM said that the 
GOH under Zelaya would conduct pragmatic foreign relations, 
and always keep focus on the U.S.-Honduran bilateral 
relationship.  He emphasized the importance of transparency 
and anti-corruption efforts, noting that attracting foreign 
investment is critical. 
 
¶7. (SBU) Hernandez, who plans a trip to Washington o/a 
January 12 to discuss agricultural issues, highlighted 
agriculture/natural resources as key, noting that poverty 
reduction and economic growth are fundamental goals of the 
Zelaya Administration.  Araque outlined key aspects of 
economic policy, including continued macroeconomic stability, 
stabilization of interest rates, and a strengthening of the 
financial system. 
 
¶8. (SBU) Noe Pino said that enormous challenges lay ahead for 
the Zelaya Administration, including the issue of teacher's 
pay and benefits which he said would require great skill to 
manage.  He said that the Zelaya team had the political will 
to do the best possible on transparency and would have strong 
support for the poverty reduction strategy.  He noted the 
importance  of CAFTA and MCC.  Noe Pino thanked the 
Ambassador for the Embassy's support for peaceful dialogue to 
resolve the protracted election dispute. 
 
¶9. (SBU) Ambassador noted that the Embassy sought to work 
 
closely and productively with the Zelaya Administration, 
aiming to work things out in private to avoid public 
confrontations if possible.  The USG sought to boost the 
institutions critical to a democratic capitalist country, 
institutions that are often weak or lacking in Honduras.  He 
also emphasized the importance of retaining technical 
employees when the Liberals take over the 
ministries/government agencies, rather than treating these 
key positions as merely patronage jobs.  Loss of these highly 
skilled individuals could set back structural reform efforts 
in Honduras by years.  The Ambassador outlined the three 
overarching themes of USG interest in Honduras as: 
- good governance/rule of law 
- regional stability/security (including transnational crime) 
- economic growth/poverty reduction 
 
¶10. (SBU) Both Noe Pino and Jimenez commented that the three 
areas were very similar to the Zelaya Administration's areas 
of emphasis.  Jimenez said that personnel changes in the GOH 
should not reach below the level of director, and that there 
will not be sweeping changes at the technical/career level. 
Noe Pino concurred with Jimenez's comments. 
 
¶11. (SBU) Ambassador suggested a joint meeting of the Country 
Team with the Zelaya Cabinet and other key officials one 
afternoon the week of January 9 at the Embassy.  The plan 
would be for an initial session involving everyone, with a 
brief overview of USG efforts in Honduras, followed by 
working groups meetings on the three themes outlined in 
paragraph 9.  The Embassy sections/agencies would deliver 
brief presentations about USG programs in Honduras with a 
give and take session to follow between USG and Honduran 
officials on areas of mutual cooperation and the challenges 
and opportunities that lie ahead.  The groups would then come 
back together for drinks and then a dinner.  Noe Pino and his 
team enthusiastically accepted the invitation, with a 
tentative date of the afternoon of January 12. 
 
¶12. (SBU) EmbOffs and the Zelaya team also discussed CAFTA 
implementation legislation and possible Immigration reform, 
with Jimenez stating that the passport issuance function 
would be transferred out of the Government and Justice 
Ministry and back to the MFA under Zelaya.  Noe Pino said 
that any possible Immigration reform legislation would not 
likely be considered until after the new Congress is sworn in 
on January 25. 
 
¶13. (SBU) Noe Pino expressed concern that outgoing GOH 
officials would seek in the waning days of this 
administration to sign lucrative contracts in which they have 
a personal interest.  He fears such contracts and commitments 
that would unnecessarily tie the hands of the incoming Zelaya 
Administration, and requested that the Embassy make the same 
point to the current GOH.  (Comment:  This is a delicate 
matter. Post recognizes that previous outgoing governments 
have abused their positions in precisely this manner, 
awarding themselves sweetheart deals on the way out the door. 
 Post continues to advocate for transparent and fair contract 
processes, and for a vigorous anti-corruption effort.  That 
said, it is also true that a number of legitimate contracts 
remain to be approved by Congress, with scant days left in 
which to do so.  Separating the wheat from the chaff will be 
a challenge for both Post and for the GOH.  End comment.) 
 
¶14. (SBU) Comment:  The meeting was an excellent beginning to 
more Country Team-Zelaya Cabinet transition meetings, and 
Post is optimistic that this will help set the tone for a 
productive working relationship.  The level of receptiveness 
of the Zelaya team to working closely with the Embassy is 
extremely high and Post hopes further meetings will deepen 
the bilateral understanding and commitment to working toward 
joint goals.  Post notes that Vice President-elect Elvin 
Santos led several future Zelaya cabinet ministers at a lunch 
at the Ambassador's residence on December 15 to discuss 
customs and immigration issues with visiting DHS Assistant 
Customs Commissioner Keith Thomson and EmbOffs.  Post 
strongly requests a high-level USG delegation to the 
inauguration, ideally led by Secretary of State Rice or 
Secretary of Commerce Gutierrez.  End Comment. 
 
SIPDIS 
Ford