VZCZCXYZ0000
PP RUEHWEB

DE RUEHBO #7060/01 2151915
ZNR UUUUU ZZH
P 031915Z AUG 06
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 7599
INFO RUEHMU/AMEMBASSY MANAGUA PRIORITY 1776

UNCLAS BOGOTA 007060 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
WHA/AND 
H - MARK SMITH 
 
E.O. 12958: N/A 
TAGS: PREL PGOC ECON CO
SUBJECT: SCENESETTER FOR CODEL DAVIS - AUGUST 5-9 
 
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Summary 
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¶1. (SBU) Post welcomes the August 5-8 visit of CODEL Davis to 
Colombia.  President Alvaro Uribe was re-elected in May; he 
is the first president to be re-elected to a second, 
consecutive term in over 100 years.  We expect close 
bilateral relations between the United States and Colombia to 
continue in his second term, which begins on August 7.  With 
USG help, President Uribe has made great strides in fighting 
drug trafficking and terrorism.  He recognizes U.S. support 
as key to the success of efforts to re-establish central 
authority throughout the national territory.  As a result of 
U.S.-Colombian efforts, drug eradication and interdiction are 
at record levels.  USAID programs aim to strengthen 
democratic institutions, create alternative development 
opportunities, and assist people displaced by internal 
violence. 
 
¶2. (SBU) Colombia's human rights record, although imperfect, 
is improving.  The peace process with the United Self-Defense 
Forces of Colombia (AUC) has resulted in the demobilization 
of over 30,000 paramilitaries, but rigorous application of 
the Justice and Peace Law is needed.  While exploratory talks 
with the National Liberation Army (ELN) are focused on 
establishing an agenda for formal negotiations and a 
ceasefire agreement, the Revolutionary Armed Forces of 
Colombia (FARC) have yet to enter into discussions with 
Uribe.  The FARC has held three U.S. citizens for more than 
three years; their safe recovery is a top priority.  The 
economy is growing and the United States and Colombia 
concluded Free Trade Agreement negotiations in February. 
 
----------------- 
Internal Politics 
----------------- 
 
¶3.  (SBU) President Uribe is the first Colombian president to 
be re-elected to a second, consecutive term in over 100 
years.  He was re-elected on May 28 with 62 percent of the 
vote.  A coalition of pro-Uribe parties won a collective 
majority in the House and Senate on March 12.  The 
left-leaning Polo Democratico Alternativo party presidential 
candidate, Carlos Gaviria, won 22 percent of the vote, giving 
the left its best ever showing in Colombia.  The Liberal 
party received 12 percent of the vote, its poorest showing in 
more than 40 years.  Uribe,s second inauguration will be 
held August 7, 2006.  Your CODEL will attend as Uribe's 
special guests. 
 
-------------------------------------------- 
U.S. Assistance Key to Security Improvements 
-------------------------------------------- 
 
¶4. (SBU) USG security assistance is premised on combating the 
interrelated threats of drug trafficking and terrorism and 
includes training, material aid, and guidance to security 
forces and other institutions.  Uribe characterizes U.S. 
assistance as critical to the GOC,s "Democratic Security" 
policy - aimed at establishing a state presence throughout 
national territory - and considers the United States to be 
Colombia,s most important ally. 
 
 -- Plan Patriota: The military's multi-phased campaign to 
re-take areas dominated by the FARC is in its third year. 
The first phase, which focused on securing Cundinamarca 
Department, which surrounds Bogota, pushed the FARC away from 
the capital and resulted in the deaths of at least five 
mid-level FARC commanders.  The second, more complex phase, 
is two years old and is focused on the FARC,s traditional 
stronghold in southern Colombia.  The operation disrupted the 
FARC's hold on the region.  Sustainment of troops in this 
isolated region is difficult.  Infectious diseases - 
especially leishmaniasis, a parasitic skin infection - and 
landmines are the leading causes of military casualties. 
 
 -- Despite the Colombian's military's success, the FARC 
continues to attack isolated or smaller police and military 
targets throughout the country, while avoiding direct 
contests with larger units.  Two notable exceptions include 
the late December 2005 attack that killed 29 Colombian 
soldiers just outside of La Macarena National Park and two 
attacks on civilians, resulting in 17 dead and 14 injured, in 
southern Colombia in late February.  The May 28 presidential 
elections, however, were the least violent in recent history. 
 
 
-- Center for Coordinated Integral Action: With Embassy 
support, the GOC formed in 2005 an interagency center to 
facilitate delivery of social services in seven areas that 
have traditionally lacked state presence and been controlled 
by illegal armed groups.  The Center focuses on providing 
immediate social services, including documentation and 
medical care, and longer-term economic development projects. 
More than 40,000 individuals have been enrolled in state 
health care.  Judges, investigators, and public defenders 
have been placed in all 16 municipalities of the Plan 
Patriota area.  A public library was opened in early 2006 in 
the town of San Vicente del Caguan, which had long been 
dominated by the FARC. 
 
-- Plan Colombia II: The GOC has provided Washington with a 
draft proposal of Plan Colombia II.  Most of the program 
areas outlined continue the same goals the U.S. has supported 
since Plan Colombia,s inception in 2000.  The programs and 
projected costs of this next phase of Plan Colombia are under 
discussion. 
 
--------------------------------- 
Drug Eradication and Interdiction 
--------------------------------- 
 
¶5.  (SBU) Eradication and interdiction are at record levels. 
In 2005, the program surpassed its goal of 130,000 hectares, 
but did not reach its stated goal of 3,000 hectares of poppy 
because the 2005 crop was too small to survey.  The aerial 
eradication program has sprayed nearly 101,000 hectares of 
coca and 231 hectares of poppy as of July 31, 2006. 
Eradication pilots are having a hard time locating poppy 
crops, despite devoting more spray weeks to opium, as growers 
move into more isolated areas. 
 
¶6.  (SBU) The GOC claims it manually eradicated an additional 
32,000 hectares of coca in 2005.  Manual eradication is a 
high-cost, high-risk program that combines illicit crop 
eradication with job creation, and avoids the health and 
environmental controversies surrounding aerial eradication. 
President Uribe is a proponent of manual eradication.  He 
launched an ambitious program in January to manually 
eradicate coca in La Macarena National Park.  The Embassy is 
supporting this effort, but three FARC attacks killed 12 
policemen and civilian eradicators in February and March. 
Another six eradicators were killed by an improved explosive 
in La Macarena on August 2.  The GOC claims to have manually 
eradicated over 15,000 hectares of coca and 112 of poppy as 
of July 31, 2006. 
 
¶7.  (SBU) Interdiction operations in 2005 met or exceeded 
2004,s record seizures.  GOC security forces destroyed 134 
cocaine HCl processing laboratories in 2005 and seized record 
amounts of processed cocaine (223 metric tons) and coca base. 
 As of August 1, 2006, the GOC has destroyed 92 HCl labs and 
seized over 85 metric tons of processed cocaine and coca base. 
 
--------------------------------------------- -------- 
U.S. Assistance to Development and Democracy Building 
--------------------------------------------- -------- 
 
¶8.  (U) The USAID Mission in Colombia funds programs in three 
key strategic sectors.  USAID,s Democratic Governance 
programs aim to improve the transparency of the justice 
system, assist the peace process, promote respect for human 
rights, support democratic processes and foster efficiency 
and accountability.  USAID programs also promote legal 
alternative development opportunities through increased 
competitiveness, improved local government infrastructure and 
management, and a more favorable environment for investment 
and trade.  Colombia has the second largest population of 
internally displaced persons, behind only Sudan.  USAID has 
provided support to nearly 2.7 million Colombians displaced 
by internal violence.  USAID also helps children who have 
been forced to serve as child combatants. 
 
--------------------------------------------- ---- 
Military Justice and Improved Human Rights Record 
--------------------------------------------- ---- 
 
¶9.  (SBU) The Uribe Administration continues to make steady 
progress on human rights cases involving military abuse or 
collaboration with paramilitaries.  We continually emphasize 
the importance of creating a legal system that delivers 
credible, timely results.  In April 2005, Military Penal 
Justice Director General Puentes submitted a comprehensive 
military justice reform package; congress has approved the 
first measure, but approval for the second stage is pending. 
A recent incident will test the justice system: on May 22, 
Colombian army soldiers gunned down 10 members of en elite 
judicial police squadron in Jamundi, Valle Department.  These 
officers had received DEA training and support and were part 
of a successful counter narcotics unit.  Eight of the army 
officers involved are under arrest, but jurisdiction 
(civilian vs. military) has yet to be decided.  On June 10, 
Uribe announced a proposal to ensure civilians investigate 
and review all criminal cases against military defendants to 
ensure transparency in human rights cases. 
 
¶10.  (U) Human rights training is mandatory for all members 
of the military and police.  Less than two percent of human 
rights violations are attributable to government security 
forces, according to GOC statistics.  Homicides fell by 16 
percent - to the lowest level in 18 years - kidnappings by 62 
percent, and forced displacements by 22 percent in 2005, 
building on trends from previous years.  The GOC has a 
difficult but active dialogue with NGOs, the United Nations, 
and foreign governments. 
 
----------- 
Extradition 
----------- 
 
¶11.  (SBU) President Uribe is a strong supporter of the 
U.S.-Colombia extradition relationship.  Since taking office, 
he has approved more than 350 extraditions to the United 
States.  President Uribe has approved but suspended the 
extradition of four AUC leaders to ensure their continued 
cooperation in the AUC demobilization process. 
 
-------------------------------- 
Demobilization and Peace Process 
-------------------------------- 
 
¶12.  (SBU) The GOC began negotiations with the United 
Self-Defense Forces of Colombia (AUC) in 2002.  The AUC 
demobilization process is drawing to a close and nearly all 
AUC members (more than 30,000) have demobilized since 2003. 
A few small groups have not participated in the 
demobilization.  Over 10,000 illegal armed group members 
(from the FARC, ELN and AUC) have individually deserted and 
entered the government's reinsertion program since 2002. 
 
¶13.  (SBU) The reinsertion program has limited funding and 
logistical problems, but is slowly improving.  Colombia has 
requested U.S. aid for the demobilization and reinsertion 
process.  In FY06, Congress approved up to USD 20 million in 
demobilization assistance, subject to certification. 
Consultations continue with the Congress regarding the U.S. 
intention to spend USD 15.5 million in FY06.  The USG has 
also demarched numerous allies, with some success, to 
financially support these processes. 
 
¶14.  (SBU) President Uribe signed the Law of Justice and 
Peace, which governs demobilization for ex-paramilitaries, in 
July 2005.  The Law offers demobilized terrorists a five- to 
eight-year alternate sentence, followed by a two-and-a-half 
to four-year parole period, but only if they fully 
demobilize, turn over all assets, release all hostages and 
child soldiers, and give reparations (actual or symbolic) to 
victims.  Individuals or groups organized for drug 
trafficking or illicit enrichment are not eligible for 
reduced sentences, and only crimes committed during 
membership in the illegal armed group are covered.  Rigorous 
implementation of the law is key to ensuring peace and 
justice in Colombia. 
 
¶15.  (SBU) The National Liberation Army (ELN) began 
preliminary discussions with the GOC in Cuba in December 2005 
aimed at laying the groundwork for peace talks.  A second 
round of talks took place in February and a third in May; a 
fourth round is set for September.  Both the FARC and GOC 
have publicly announced they are willing to enter into talks, 
particularly on humanitarian exchange, but the FARC rejected 
the last seven GOC proposals.  New initiatives are in 
progress. 
 
------------- 
U.S. Hostages 
------------- 
 
¶16.  (SBU) The three U.S. contractors captured by the FARC in 
February 2003 are the longest held U.S. hostages in the 
world.  Their safe release continues to be a top priority. 
The Colombians are providing full assistance.  Uribe has 
assured us that the U.S. hostages will be included in any 
humanitarian exchange.  The Embassy held a commemoration 
ceremony on February 13, marking the third anniversary of 
their capture. 
 
------------------------- 
Positive Economic Outlook 
------------------------- 
 
¶17.  (U) Tremendous gains in security have helped boost the 
Colombian economy.  In 2005, Colombia's gross domestic 
product (GDP) increased by 5.2 and inflation was 4.9 percent, 
the lowest rate in 50 years.  The first quarter of 2006 also 
started off strong with 5.23 percent growth, while inflation 
in the first half of the year is well below target at 3.92. 
2005 Foreign Direct Investment increased to USD 5.6 billion, 
an increase of 50 percent over 2004, and first quarter 2006 
FDI totaled USD 978 million, which is an increase of 6.8 
percent over the same period in 2005.  The largest U.S. 
investors - Drummond (coal), ChevronTexaco and ExxonMobil - 
are planning considerable expansion due to the improved 
investment climate.  Colombia,s exports and imports each 
increased more than 20 percent in 2005, and the U.S. is 
Colombia,s largest trade partner (approximately 40 percent 
of exports and 28 percent of imports).  Colombian exports to 
the U.S. have grown USD 1 billion per year since ATPDEA's 
inception in late 2002, while U.S. exports to Colombia 
increased approximately USD 2 billion.  Unemployment fell 
from 18 percent when President Uribe took office to a little 
more than 11 percent in May 2006.  Most of the major rating 
agencies upgraded Colombia to investment grade in late 2005 
and early 2006. 
 
¶18.  (SBU) Free Trade Agreement negotiations between the U.S. 
and Colombia concluded in February.  Both countries are 
verifying the final text of the agreement, and notification 
to the U.S. Congress will follow completion of that process. 
The agreement will provide stronger IP protection and give 
increased market access to key U.S. industrial and 
agricultural exports.  For Colombia, the agreement will 
create a more attractive investment climate, locks in ATPDEA 
benefits, boosts their sugar quota, and addresses some of 
their concerns regarding sanitary and phyto-sanitary. 
WOOD