VZCZCXYZ0031
RR RUEHWEB

DE RUEHZP #0125/01 0202018
ZNY CCCCC ZZH
R 202018Z JAN 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 7225
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2125
RUEHCV/AMEMBASSY CARACAS 0913
RUEHLP/AMEMBASSY LA PAZ JAN QUITO 0802

C O N F I D E N T I A L PANAMA 000125

SIPDIS

SIPDIS

WHA/CEN FOR GSCHIFFER
WHA/EPSC FOR URS & GUMBINER

E.O. 12958: DECL: 01/31/2016
TAGS: BEXP ETRD OREP PM
SUBJECT: PANAMANIAN PRESIDENT TORRIJOS AND REP DAN BURTON
DISCUSS FTA AND CHAVEZ

REF: 2005 PANAMA 2141

Classified By: AMBASSADOR WILLIAM A. EATON FOR REASONS 1.4 (B) AND (D)

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SUMMARY
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¶1. (SBU) Congressman Dan Burton (R-IND) and the Ambassador
called on President Torrijos on January 12th to discuss
on-going U.S./Panama FTA negotiations and Hugo Chavez's
influence in the region.  Torrijos reiterated GOP commitment
to free trade and sought Burton's help in resolving a key
obstacle to concluding the FTA.  Torrijos said Venezuela has
expanded its diplomatic presence in Panama, but he did not
see any interference in Panama's domestic affairs.  Noting
that the region is splitting ideologically, Torrijos
suggested the USG reach out more consistently to likely
successful presidential candidates and democratically elected
leaders.  He maintained that poor channels of communication
to the USG with regional governments translate into
opportunities for Chavez to increase his influence
regionally.  END SUMMARY

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TORRIJOS SEEKS HELP ON FTA
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¶2.  (SBU) President Torrijos sought the Congressman's support
for Panama's position on unresolved sanitary and
phytosanitary (SPS) issues that had stalled FTA negotiations
in Washington.  Torrijos stressed GOP plans to create a new,
independent, science-based institution to handle the issuance
of import permits for agricultural and food products.
Torrijos complained that the USG's firm stance on SPS issues
had already provoked a cabinet crisis, fueled opposition in
the agricultural sector, and put Panama on a limb in a region
which is increasingly turning against free trade and the U.S.
 Noting that the GOP sees growing support among Democrats on
Capitol Hill, Torrijos urged the U.S. to "trust" Panama on
this issue.  Congressman Burton subsequently called USTR to
convey GOP concerns and to encourage prompt resolution of the
SPS issue.

¶3.  (SBU) Note:  As reported septel, the GOP has turned its
focus from lobbying others in the USG and is now working to
overcome fundamental USG concerns on SPS with a view to
completing the FTA as soon as possible.

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TORRIJOS DISCOUNTS CHAVEZ INFLUENCE IN PANAMA
---------------------------------------------

¶4. (C)  Torrijos said that the GOV had expanded its
diplomatic presence in Panama but the GOP had no evidence of
GOV meddling in Panama's domestic affairs.  However, he
believes the region was splitting in two ideological camps.
He advised the U.S. to reach out to opposition candidates
(who may be successful candidates in the future) and
democratically elected leaders in the area and, above all, to
keep channels of communication open.  Torrijos emphasized the
importance of the USG engaging with Bolivia's President-elect
Evo Morales.  Torrijos plans to attend Morales' inauguration
this week in La Paz where he expects to also see Chavez.

¶5.  (C) Burton said he had spoken with Chavez twice, but that
every time he has tried to reach out to the GOV, Chavez "said
something stupid," making it politically impossible to
reconnect.  Burton said his Chief of Staff would be attending
President Morales's inauguration.  Burton stated this trip
through Guatemala, Costa Rica and Panama left him with the
impression that the U.S. was perceived as something of a
"bully" in the area.  He suggested that a summit of Central
American/Latin American leaders with the U.S. as an
invitee/participant and not as a sponsor/organizer might help
the U.S. to be seen as a working partner.  Torrijos agreed
this was a good idea.

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COMMENT
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¶6.  (C) President Torrijos was cordial and open in this
meeting, which lasted almost 45 minutes.  Though Torrijos is
wary of Chavez, his denial of Chavez's meddling is

disingenuous.  It certainly stands in stark contrast to
concerns that a number of private sector contacts have
expressed (reftel) to Emboffs about growing "bolivarian
mischief" in Panama.

EATON