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INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0910
RUEHIN/AIT TAIPEI 0068
RUMIAAA/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC
RHEHNSC/NSC WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000196 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CEN 
 
E.O. 12958: DECL: 01/23/2017 
TAGS: PGOV PREL PINR NU
SUBJECT: FM SANTOS CLAIMS OIL CONCESSIONS WILL MOVE FORWARD 
 
REF: MANAGUA 0179 
 
Classified By: Ambassador Paul Trivelli for reasons 1.4 (b and d) 
 
¶1. (C) Summary: Nicaraguan Foreign Minister Samuel Santos 
informed us that the government of Nicaragua (GON) will 
facilitate the opening of oil exploration concessions on the 
Atlantic Coast that have been stalled for legal reasons. 
Santos also used the occasion to request assistance for the 
military and police to combat drug trafficking, and stated 
that he has no intention to enact sweeping personnel changes 
at the Foreign Ministry below the Director General level. 
Santos was not able to provide us with copies of the GON's 
recent bilateral agreements with Venezuela, Iran, and Taiwan 
(our second request), claiming that the GON is still "pulling 
together the details."  End Summary. 
 
¶2. (C) Nicaraguan Foreign Minister Samuel Santos requested a 
meeting with the Ambassador on January 22 to discuss the 
status of the oil concessions held by American companies MKJ 
and Infinity off of Nicaragua's Atlantic Coast.  He explained 
that officials from the Foreign and Finance Ministries had 
met with representatives of the North and South Atlantic 
Autonomous Regions (RAAN and RAAS) to resolve the issue of a 
legal stay of action filed by individuals within the RAAN and 
RAAS to halt the implementation of exploratory activities 
related to these oil concessions.  According to Santos, the 
RAAN and RAAS are concerned about the effects of oil 
exploration and development on the fishing industry that 
employs a large number of breadwinners in rural areas. 
Atlantic Coast officials assert jurisdiction up to 12 miles 
offshore; Santos said that the GON considers autonomous 
jurisdiction to end only three miles out.  He assured us that 
the GON is working to resolve the legal issues and allow the 
concessions to proceed. 
 
¶3. (C) Note: According to Law 445 (the Law of Communal 
Property of Ethnic and Indigenous Peoples of the Atlantic 
Coast Regions) passed in 2003, the RAAN and RAAS have an 
Economic Empowerment Zone (EEZ) three miles out from the 
coast line and 25 miles around the islands and keys.  Any 
exploitation of natural resources taking place within the 
RAAN and the RAAS and their EEZs requires approval by the 
regional governments.  The oil concessions granted to 
Infinity Petroleum in 2000 were modified in 2003 to 33 miles 
from the Corn Islands to place them outside of the 25 mile 
EEZ.  End Note. 
 
¶4. (C) Santos commented that the GON is fully committed to 
combating drug trafficking, but said "we don't have the 
necessary resources."  He specifically mentioned air support 
(helicopters) for the police and military.  Santos commented 
that head Police Commissioner Aminta Granera has received 
"serious threats" from international drug cartels resulting 
from her efforts to interdict drug shipments.  He made the 
point that "we aren't just doing this to help the U.S.," 
because the GON realizes that Nicaragua has a growing problem 
with drug addiction. 
 
¶5. (C) When Ambassador asked about Santos plans for Ministry 
personnel, he replied that he has no program to enact major 
changes below the Director General level.  Santos commented 
that some of the Directors General will be asked to resign or 
be transferred from their current positions, and some will 
stay.  (Comment: Ministry contacts are very concerned about 
their job security and have not been informed about the 
Minister's intentions.  End Comment.) 
 
¶6. (C) We again requested copies of recently signed bilateral 
cooperation agreements with Venezuela, Iran, and Taiwan 
(reftel).  Santos apologized and explained that the documents 
are not ready as the GON is still "pulling together the 
details."  He did provide us with a commentary of the "five 
bottlenecks" (energy, water, cement, education, and health) 
detailed in reftel.  Santos is planning a trip to Taiwan in 
March, he said, when he will encourage the Taiwanese 
government and investors to establish more "stable" (read, 
non-Free Trade Zone) businesses in Nicaragua.  He commented 
that the numerous Taiwanese maquila operations in Nicaragua 
"could leave at any moment." 
 
¶7. (C) Comment: Similar to previous encounters, the meeting 
with Santos was cordial and wide-ranging.  We predict that we 
will continue to have extensive access to and cooperation 
with the Foreign Ministry -- especially if Santos does not 
enact major changes in the Americas Directorate.  He is 
clearly committed to cooperating with us on a range of 
issues, however, we are still working to determine how deep 
this commitment runs in other areas of the new administration. 
TRIVELLI