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C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 000202 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS HHS FOR SECRETARY LEAVITT AND OFFICE OF GLOBAL 
HEALTH AFFAIRS (STEIGER AND CORREA-DE-ARAUJO), 
MCA FOR AMBASSADOR DANILOVICH, 
DEPT FOR WHA A/S SHANNON AND WHA/CEN 
 
E.O. 12958: DECL: 01/25/2017 
TAGS: PGOV PINR KDEM NU PREL
SUBJECT: SECRETARY LEAVITT,S MEETING WITH PRESIDENT-ELECT 
ORTEGA 
 
 
Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D). 
 
¶1.  (C) Summary: On January 9, 2007, in a meeting at 
Sandinista Party Headquarters, the U.S. Presidential 
Delegation (Presdel), led by Health and Human Services (HHS) 
Secretary Michael Leavitt, discussed with then 
 
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President-elect Daniel Ortega a new regional health-care 
training initiative, Nicaragua's Millennium Challenge Account 
(MCA-N) program, debt forgiveness, the designation of 
Nicaragua's Ambassador to the United States, and Ortega's 
campaign approach and political platform.  President-elect 
Ortega said he was encouraged by his recent phone 
conversation with President Bush.  He expressed interest in 
the health initiative and arranged for a meeting for the 
Secretary with the new Nicaraguan Minister of Health the 
 
SIPDIS 
following day.  End Summary. 
 
Shared Concerns over Health Care 
- - - - - - - - - - - - - - - - 
 
¶2.  (SBU) Responding to then-President-elect Ortega's opening 
remark that his January 8, 2007 phone conversation with 
President Bush was pleasant and positive and that they had 
agreed to work together to combat poverty, Secretary Leavitt 
noted that the President asked him personally to convey his 
greetings to Ortega and to reiterate their shared commitment 
to eliminate poverty, address health needs, and foster 
economic freedom and well-being.  The Secretary then offered 
greetings from the American people and expressed his 
particular commitment to work with Ortega and other Central 
American Government leaders to improve the health conditions 
of the region's citizenry - he shared the vision for a new 
regional health initiative, whose centerpiece will be a 
medical training center in Panama. 
 
¶3.  (SBU) The Secretary clarified that the health initiative 
arose from a meeting in June 2006 of Central American 
Ministers of Health, who expressed the need for a facility to 
train hundreds of health workers each year from the region, 
with an emphasis on nurses, technicians and community health 
workers from poor, rural areas.  Once trained, the workers 
would return to their home areas to provide improved health 
care.  By providing the training in the region, rather than 
abroad, health workers would be more likely to remain at 
home, explained the Secretary, who added that while in 
Nicaragua, he would meet with Heads of State and delegates 
from Central American nations to discuss the initiative.  He 
noted that the next steps include drafting a Memorandum of 
Understanding with the participation of interested countries, 
visiting the countries to refine the details of the 
initiative, and then possibly formalizing the agreement in an 
official venue with the presence of Heads of State and Health 
Ministers. 
 
¶4.  (SBU) Appearing pleased with the news of the initiative, 
Ortega commented that health is a crucial sector for his 
Government and suggested the Secretary meet with the incoming 
Minister of Health, Maritza Quant, during his visit to 
discuss details.  (Note: The Secretary met with Quant on 
January 10, 2007 septel.)  Reiterating his desire to maintain 
good relations with the United States and lauding the health 
initiative as an example of the kind of cooperation he seeks, 
Ortega then inquired about the status of the Millennium 
Challenge Corporation Compact in Nicaragua (MCC-N). 
Mentioning that he had last visited MCC departments of Leon 
and Chinandega in September 2006, Ambassador Danilovich 
replied that the MCC-N program is on schedule and has 
disbursed about USD 5 million out of the $175 million 
allocated.  He attributed much of the MCC-N's success thus 
far to the program's strong, quality local team. 
 
In Search of Additional Millennium Challenge Account Funds 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶5.  (SBU) Ortega observed that Nicaragua could benefit from 
additional MCC funds, similar to the amount designated for El 
Salvador's MCA program.  Asserting that Nicaragua offers the 
best conditions for an MCA program in the region, Ortega 
noted that additional funds would help further combat 
 
MANAGUA 00000202  002 OF 003 
 
 
poverty, generate employment, build additional roads and 
highways, and mobilize the country's productive forces - 
including its agriculture and livestock sectors.  Bolstering 
MCA-N would also help correct the existing "asymmetries" in 
CAFTA, enable Nicaraguans to comply with U.S. standards and 
increase their exports to the United States.  Further, argued 
Ortega, increasing exports would make Nicaragua more 
prosperous and, in turn, would help stem the tide of 
Nicaraguan immigrants to the United States.  Foreign 
Minister-designate Samuel Santos added that he had raised the 
idea of increasing the funding level for MCA-N during his 
recent meeting with Assistant Secretary Shannon in 
Washington.  Ambassador Danilovich shared h 
is interest in expanding the MCA program in Nicaragua, and 
reminded Ortega that participation in the program requires 
continued compliance with 18 eligibility indicators, and 
strong ("benchmark") performance during implementation. 
 
Debt Forgiveness and the Costa Ricans 
- - - - - - - -  - - - - - - - - - - - 
 
¶6.  (SBU) Bayardo Arce, a former National Assembly Deputy who 
was not re-elected but is serving as one of Ortega's economic 
advisors, sought our assistance in convincing the Costa Rican 
Government to forgive bilateral Nicaraguan debt and to be 
supportive of efforts in the Inter-American Development Bank 
(IDB) to forgive Nicaragua's debt.  Assistant Secretary 
Shannon noted that we are actively engaged with the Costa 
Ricans and other countries concerning Nicaragua's debt with 
the IDB and encourage them to vote in favor of debt 
forgiveness for the region's poorest countries.  Shannon 
responded that he would follow up on the matter.  After the 
Secretary voiced his appreciation for Arce's "straight 
 
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agenda," Arce jested that "this is the American style." 
 
Arturo Cruz Designated Ambassador to the United States 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶7.  (C) The Ambassador noted he had heard Arturo Cruz, Jr. 
could be Nicaragua's candidate to serve as Ambassador to the 
United States, and added Cruz would be a good man for 
Washington and someone with whom we could work well.  Ortega 
confirmed the designation.  (Comment: Overall, Cruz would be 
a good match, although given his closeness to the United 
States, the Sandinistas are likely to watch him closely, and 
his job will be difficult.  Before the start of the bilat, 
Cruz almost instinctively sat on our side of the table until 
we gently reminded him that he was incorrectly positioned.  A 
political analyst, Cruz lived in the United States for years 
and has served as a consultant to Salvadoran President Tony 
Saca.  We will meet with Cruz within the next few days to 
discuss the agrement process and bilateral concerns and 
priorities.) 
 
Secretary and Ortega Share Election Campaign Experiences 
 
SIPDIS 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶8.  (SBU) Referring to his three successful campaigns for 
Governor of Utah, the Secretary highlighted the importance of 
his own wife's backing during the campaign and added he had 
heard Ortega's wife had played a significant role in the 
success of Ortega's presidential race.  Ortega acknowledged 
Rosario Murrillo's support and noted she is a poet and a 
creative intellectual who set the tone of the campaign 
platform and crafted its slogan of "work, peace, and 
reconciliation," in an effort to heal both "internal and 
external wounds."  According to Ortega, the campaign this 
time was different because of this approach; in most cases, 
he said, people were more tolerant and less confrontational 
than in previous elections.  While at first he encountered 
some resistance in the Sandinista political party base, whose 
members were accustomed to a more adversarial campaign, 
Ortega explained that most of his supporters came around to 
the new approach. 
 
¶9.  (SBU) In Ortega's view, his message of reconciliation 
served to calm the fears of many of those who opposed him in 
the past, and pointed to accords he had reached with some of 
them before the election (probably referring to retired 
 
MANAGUA 00000202  003 OF 003 
 
 
Cardinal Obando y Bravo and former Contra Salvador Talavera, 
who, while he won on the Nicaraguan Liberal Alliance (ALN) 
ticket, signed a pre-election "peace and reconciliation" 
agreement with Ortega).  Further, since his electoral 
victory, a number of others who opposed him have sought 
rapprochement and inclusion, he claimed.  Ortega assured the 
Secretary he intends to continue his approach of 
 
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reconciliation and to include all Nicaraguans, regardless of 
a person's ideology or social position. 
 
Rosario Speaks Up 
- - - - - - - - - 
 
¶10.  (SBU) Expanding on Ortega's observations, Rosario 
Murillo commented that, as revolutionaries, the Sandinistas 
must transform the conscience of the people and Nicaragua's 
political culture.  Nicaraguans are tired of conflict and 
desire solidarity and reconciliation in a society "in synch 
with the soul of the people" and where love and affection 
predominate, she said.  She explained that the FSLN campaign 
slogan "United, Nicaragua triumphs," reflects this sentiment, 
as the new government will seek to use Nicaragua's diversity 
to unite its people. 
 
¶11.  (SBU) In closing, the Secretary conveyed his 
appreciation for the opportunity to share such a historic 
moment in Nicaragua's history and reiterated our commitment 
to democracy, economic and political freedom, and the 
Nicaraguan people. 
 
¶12.  (C) Participants: 
 
FSLN Participants: 
Daniel Ortega, President-elect 
Rosario Murillo, Chief of Staff and Ortega spouse 
Samuel Santos, Foreign Minister-designate 
Bayardo Arce, outgoing National Assembly Deputy 
Arturo Cruz, designated Nicaraguan Ambassador to the United 
States 
Muhamad Muhktar Muhamad Lashtar, note taker (incoming 
PARLACEN alternate for FSLN.  He is a former Libyan 
intelligence chief assigned to Nicaragua who has since become 
a Nicaraguan citizen.  His presence created a strong 
"undertow" that belied the overall cordial and collegial tone 
of the meeting.) 
 
U.S.: 
Secretary Michael Leavitt 
 
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MCC CEO John Danilovich 
Assistant Secretary Tom Shannon 
Ambassador Paul Trivelli 
DCM Peter Brennan 
HHS Special Assistant to the Secretary for International 
Affairs William Steiger 
Political Counselor Victoria Alvarado (notetaker) 
 
¶13.  (U) This cable was cleared by Secretary Leavitt, MCC 
Danilovich, and A/S Shannon. 
TRIVELLI