VZCZCXRO2440
OO RUEHLMC
DE RUEHMU #0513/01 0671724
ZNR UUUUU ZZH
O 081724Z MAR 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5514
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE IMMEDIATE
RUEHDG/AMEMBASSY SANTO DOMINGO IMMEDIATE 0505
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC IMMEDIATE
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC IMMEDIATE

UNCLAS SECTION 01 OF 02 MANAGUA 000513 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR WHA/CEN, WHA/EPSC, EB/TPP/BTA/EWH 
PASS USTDA FOR AL ANGULO AND KATE MALONEY 
USDOC FOR MARK SIEGELMAN, ALYSIA WILSON AND WALTER BASTIAN 
OPIC FOR JUAN CARLOS MONTES-RIVERA AND MARK STUCKART 
USTR FOR ANDREA MALITO 
 
E.O. 12958: N/A 
TAGS: ETRD BEXP PREL NU
SUBJECT: NICARAGUA CLOSE TO THE FINISH LINE ON CAFTA, SEEKS 
HIGH LEVEL EVENT TO KICK-START INVESTMENT 
 
REF: A. MANAGUA 275 
     ¶B. MANAGUA 256 
 
 Sensitive but unclassified; handle accordingly. 
 
¶1.  (SBU)  Summary:  The GON is now reasonably confident that 
Nicaraguan politicians will finally permit a vote on CAFTA 
implementing legislation March 9, so that Nicaragua can join 
CAFTA by April 1.  PLC (Liberal Party) sources in the 
National Assembly have also confirmed that a vote is on 
track.  Minister of Trade Alejandro Arguello visited 
Ambassador March 6 to seek Embassy assistance in arranging a 
high-level event in Washington to acknowledge the event, 
explaining that the GON needs all the good news it can get in 
this election year.  A trade mission would also be welcomed 
here.  End summary. 
 
¶2.  (SBU)  Alejandro Arguello, Minister of Industry, 
Development and Trade, called on the Ambassador March 6. 
accompanied by Cristian Martinez, director of regulations at 
MIFIC.  Arguello said that the PLC had assured him that they 
would have the 40 members of their party bloc prepared to 
vote the required legislative changes under "emergency" 
procedures on Thursday, March 9.  Eduardo Montealegre had 
also promised that his seven-member ALN-PC bloc would be 
there to vote yes.  With a few more votes from the generally 
pro-GON Camino Cristiano and Azul y Blanco blocs, there 
should be a clear majority in the Assembly.  The GON was 
still a bit concerned that the Sandinistas have not promised 
to refrain from interfering, and that several key FSLN 
deputies have talked about amending the draft legislation on 
anti-corruption penalties and IP protections, which could 
open a Pandora's box.  However, MIFIC's extensive 
consultations with the PLC bloc had at last provided that 
group with all the information they claimed to need to hold a 
vote (Comment:  in the past, the Assembly has used the need 
for more information as a stalling tactic. End comment). 
Martinez also indicated that Agriculture Minister Mario Salvo 
had the declaration of SPS equivalency on his desk for 
signature that day (ref a).  Arguello had participated in 
successful outreach events with local rights holders to 
promote IPR legislation (ref b), and was coordinating with 
local business groups. 
 
¶3.  (SBU)  The Ambassador offered to weigh in with PLC 
contacts to urge a prompt vote.  Assembly board member 
Eduardo Mena (PLC) informed polcouns on the morning of March 
7 that the PLC,s 40 deputies are prepared to vote for 
CAFTA-DR implementation legislation on March 9.  Assembly 
Defense Committee Chair Delia Arellano (Camino Cristiano) 
called in the afternoon to confirm the PLC deputies are 
prepared to vote on the CAFTA-DR legislation. She explained 
that the instructions, as usual, had come from El Chile, 
former President Arnoldo Aleman's hacienda, where the PLC 
leadership meets every Monday to receive its marching orders. 
 
¶4.  (SBU)  Once entry into CAFTA is assured, the GON wants to 
arrange for maximum exposure for launching this trade 
opportunity.  Foreign Minister Caldera and Nicaraguan 
Ambassador to the U.S. Salvador Stadthagen have advised 
Arguello that the GON should seek a White House kickoff 
ceremony for President Bolanos, as was provided to Salvadoran 
President Saca in February.  Arguello explained that it was 
important to attract some major investment to Nicaragua in 
the short term in order to have the promise of jobs in the 
run-up to November's presidential election.  "We need to 
create some good news in the next eight months" he explained. 
 Ambassador Trivelli cautioned that a White House event would 
be difficult to achieve, but agreed to convey the GON's 
request. 
 
¶5.  (SBU)   In addition to garnering publicity for 
Nicaragua's CAFTA potential in the United States, a 
high-level trade mission, ideally to be led by Secretary of 
Commerce Gutierrez, would help the GON harvest the fruits of 
CAFTA and demonstrate the benefits of free trade and close 
association with the USG in the face of Sandinista appeal. A 
trade mission would benefit from deliverables associated with 
possible OPIC program announcements and USTDA's heralding of 
new projects in the key sectors of energy, telecommunications 
and infrastructure. 
 
 
MANAGUA 00000513  002 OF 002 
 
 
¶6.  (SBU)  Action request:  Washington agencies are asked to 
consider providing some official recognition for Nicaragua's 
entry into CAFTA.  If, as we anticipate, a White House event 
is not feasible, perhaps a ceremony with USTR Portman could 
be arranged.  We also urge USDOC to consider including 
Nicaragua on the schedule for a high level trade mission at 
the earliest opportunity.  Post stands ready to collaborate 
with Washington agencies on the organization of successful 
CAFTA kick-off events. 
TRIVELLI