VZCZCXYZ0002
RR RUEHWEB

DE RUEHZP #2103/01 2991513
ZNR UUUUU ZZH
R 261513Z OCT 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 9228
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/JOINT STAFF WASHINGTON DC
RUEKJCS/OSD WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD//

UNCLAS PANAMA 002103 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ETRD PM
SUBJECT: STAFFDEL MEACHAM AND TOON MEET WITH FM LEWIS 
 
 
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Summary 
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¶1.  (SBU) Passage of the U.S.-Panama Free Trade Agreement 
(FTA) was key to deepening the bilateral relationship and 
facilitating cooperation in security issues, First Vice 
President and Foreign Minister Samuel Lewis told Meacham and 
Toon October 18.  Lewis discussed strategies to shore up 
Congressional support for the FTA.  Lewis also lamented the 
prospect of significant reductions in USG democracy and 
capacity-building assistance programs, calling such treatment 
by a strategic partner "ridiculous."  Vice Foreign Minister 
Ricardo Duran, Ambassador William Eaton and PolOfficer also 
participated.  End summary. 
 
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FTA 
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¶2.  (SBU) Lewis highlighted the importance of the FTA to the 
bilateral relationship, emphasizing that the FTA would impact 
the relationship beyond the trade arena, especially in the 
"U.S.-Panama strategic alliance."  The FTA would bring more 
segments of Panamanian society into the alliance, deepening 
and broadening the relationship, Lewis said.  The FTA would 
thus make other areas of cooperation easier, especially in 
security issues including intelligence, counternarcotics, and 
counterterrorism, he added. 
 
¶3.  (SBU) Lewis discussed ways to increase the chances of the 
FTA's passage in Congress.  He agreed that linking the 
Panamanian FTA with those of other countries like Colombia or 
Peru would be a mistake.  He emphasized the need to build up 
the national security elements of the FTA, adding that this 
aspect was unique to Panama and would gain votes from 
otherwise wary legislators.  As an example, Lewis said that 
Panama enjoyed a good relationship with the Congressional 
Black Caucus; some members who normally voted against free 
trade agreements nonetheless understood and accepted the 
national security argument in support of an FTA with Panama. 
Furthermore, the FTA may be easier to sell because Panama 
does not pose a threat in terms of U.S. job displacement or 
flooding the U.S. market, said Lewis. 
 
¶4.  (SBU) Lewis agreed with the suggestion to focus on 
Senators who had an interest in Latin America, including 
possibly Senators Grassley, Baucus, and Bingham, and Senator 
Leahy.  Lewis suggested inviting members of Congress to visit 
Panama or possibly sending the Panamanian Ambassador in the 
United States out to visit the home states of key Senators. 
He said Panama had a special relationship with many Members 
of Congress who still remembered passing the 1977 
Carter-Torrijos treaty.  Lewis said he understood the 
importance of keeping the FTA a nonpartisan issue and the 
need to ratify the agreement quickly in Panama to demonstrate 
the country's commitment and interest. 
 
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Security Cooperation and Public Outreach 
---------------------------------------- 
 
¶5.  (SBU) Panama considered the relationship with the United 
States of the greatest importance, said Lewis, and saw itself 
as a border state.  The GOP was committed to a working 
relationship with the United States that accounted for 
Panama's position as a "border and transit" state.  Panama 
was very conscious of the role it needed to play in 
counternarcotics, money laundering, terrorist financing, and 
fighting all types of criminal activity, Lewis added. 
However, the reality was that Panama lacked the necessary 
resources for the kind of cooperation it would like to 
develop, said Lewis.  The two countries needed to focus on 
areas of cooperation and funding that could be geared to 
mutual interests. 
 
¶6.  (SBU) Lewis's main focus on security pushed beyond law 
enforcement and into long-term programs and public diplomacy. 
 He emphasized the need to combine social impact activities 
and the fight against crime, especially in remote areas with 
limited government presence.  There was no substitute for 
human intelligence, said Lewis, and security forces could not 
substitute for community workers who served the community 
while gathering crucial information.  Lewis questioned the 
elimination of such capacity building programs and the focus 
on law enforcement in current USG assistance.  Such treatment 
was "ridiculous," he said. 
 
¶7. (U) This cable has been cleared by Carl Meacham and 
Bernard Toon. 
 
ARREAGA