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RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC
RHEHNSC/NSC WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 000404 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CEN, PM/WRA FOR MARK ADAMS 
 
E.O. 12958: DECL: 02/12/2017 
TAGS: PGOV PREL PINR PARM KDEM NU
SUBJECT: LIBERALS FINALLY OPPOSE FSLN - WILL IT LAST? 
 
REF: A. MANAGUA 0350 
 
     ¶B. MANAGUA 0241 
 
Classified By: Ambassador Paul Trivelli for reasons 1.4 (b and d) 
 
¶1. (SBU) Summary: Nicaragua's previously divided Liberal 
parties jointly passed two resolutions in the National 
Assembly opposing actions by the Sandinista Front (FSLN) 
administration to change the official government seal and 
attribute powers to citizen councils that are reserved for 
government ministries.  Buoyed by their symbolic victory, 
deputies from both parties are positive regarding future 
cooperation and unification.  During a dinner hosted by the 
DCM, several deputies commented that the Liberals may work 
together to approve the destruction of Nicaragua's MANPADS 
and compensate war veterans.  End Summary. 
 
¶2. (U) On February 7, opposition forces from the Nicaraguan 
Liberal Alliance (ALN), Liberal Constitutional Party (PLC), 
and Sandinista Renovation Movement (MRS) voted as a bloc to 
approve two resolutions in the National Assembly condemning 
recent actions by the FSLN administration.  The PLC submitted 
a resolution calling on the government to respect the 
provisions of Law 290 (ref B) which prohibit the FSLN's 
newly-created citizens councils from taking on the functions 
of ministries.  The ALN next proposed a declaration ordering 
the government to follow Law 432 (of 1908) with respect to 
the design of the official government seal.  Later that 
night, elated deputies from both parties attended a dinner at 
the DCM's residence congratulating each other for standing up 
to President Ortega and promising similar actions in the 
future.  Representatives from the private sector with ties to 
both Liberal parties also attended.  The following guests 
were present: 
 
- ALN: Eduardo Montealegre, Alejandro Bolanos, Jamileth 
Bonilla, Luis Alberto Callejas, Pedro Joaquin Chamorro, 
Eliseo Nunez Sr., Mauricio Montealegre. 
 
- PLC: Jorge Castillo Quant, Victor Duarte, Carlos Noguera, 
Jose Pallais, Maximino Rodriguez, Freddy Torres. 
 
- Private Sector: Jose Adan Guerra, Enrique and Desiree 
Pereira, Juan Sacasa, Margarita Sevilla de Sarmiento, Nayo 
Somarriba. 
 
Future Cooperation on MANPADS and Contra Compensation? 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶3. (C) In response to a Honduran announcement that its 
military is receiving additional aircraft (for anti-narcotics 
patrols), President Ortega announced last week that he would 
not consider destroying more of Nicaragua's MANPADS stocks 
for "national security" reasons.  Behind the scenes, the Army 
and the administration urged the Assembly to scrap a bill 
pending since the last session that would order the President 
to undertake further destructions.  Unfortunately, PLC vice 
president and Assembly Executive Board member Wilfredo 
Navarro subsequently agreed with the FSLN deputies to again 
delay this bill. 
 
¶4. (C) During the dinner, Freddy Torres related that the PLC 
caucus is annoyed with Navarro for (again) making decisions 
on behalf of the party without consultation.  He commented 
that many PLC deputies would agree to follow the Army's 
previous recommendation to destroy 651 of the missiles, 
leaving 400 for national defense.  PLC caucus chief Maximino 
Rodriguez informed us that the Army lobbyists in the 
Assembly, however, do not support a vote that would give the 
President the authority to destroy more MANPADS.  Several ALN 
deputies also agreed that approving the destruction of 651 is 
"reasonable," although the destruction of the remaining 400 
would take considerable negotiation within the Central 
American security framework. 
 
¶5. (C) Rodriguez also reported that the PLC and ALN are 
planning to dust off a law from the Chamorro administration 
requiring the government to provide assistance and 
compensation to war veterans.  This initiative is intended 
to, in part, counter the Ortega-Talavera deal (ref A) that 
would entice ex-contras into the Sandinista camp through the 
Peace and Reconciliation Council headed by Cardinal Miguel 
Obando y Bravo (septel).  Some guests also mentioned that 
FSLN-allied deputy and ex-contra leader Elida Galeano (la 
Chaparra) is fed up with PRN chief/Ortega ally Salvador 
Talavera and may support the counter initiative. 
 
¶6. (C) Many of the deputies displayed an unfortunate lack of 
knowledge regarding key issues -- including several with 
prior experience in the National Assembly.  Dr. Guerra spent 
much of the evening explaining how the Assembly had undone 
years of work building up civilian authority over security 
and defense issues by approving the FSLN-proposed reforms to 
Law 290.  The deputies were surprised to hear that the Army, 
which is regarded by much of the public as a professionalized 
and reformed institution, has quietly worked to undermine 
civilian control through the Ministry of Defense and keep 
budgetary authority, intelligence, and policy development 
firmly under the authority of the military (and away from the 
prying eyes of civil society). 
 
Working Towards Unity... 
- - - - - - - - - - - - - 
 
¶7. (C) In addition to legislative cooperation, the two 
parties continue to seek unification at a broader level. 
Noguera confirmed that the PLC-ALN deputies continue to hold 
weekly (Thursday) lunches and are trying to expand the group. 
 Castillo Quant, PLC party president and a close associate of 
convicted PLC leader Arnoldo Aleman, implicitly acknowledged 
that Aleman is the main obstacle to Liberal unity.  (Comment: 
Despite their dueling-letters dust-up a few days before, over 
dinner Castillo Quant and Eduardo Montealegre seemed to get 
along quite well.  Castillo Quant in effect admitted that he 
had not been the author of the poison-pen letter to Eduardo 
-- a number of people mentioned that you could hear Aleman,s 
voice throughout -- but he signed it as president of the 
party. End Comment) 
 
¶8. (C) All the PLC deputies present admitted that Aleman was 
a "big problem" for them; whereas previously, many would 
either try to defend Aleman or, at best, claim that his legal 
situation was the issue.  Torres suggested Aleman maintains 
much of his influence because everyone in obsessed with him: 
thus, PLC and ALN lawmakers should focus on a common 
legislative agenda and ignore Aleman.  Castillo Quant, 
Noguera and Eliseo Nunez, made the same suggestion in a 
conversation with the DCM.  Carlos Noguera was particularly 
straightforward with the DCM about Aleman, while Jose Adan 
Guerra made a point of telling the Ambassador that all the 
Liberals should stop making Aleman an issue, in essence 
simply ignoring him in hopes that he will fade away as his 
power wanes. Guerra stressed that the USG should take this 
same approach. 
 
¶9. (C) The ALN deputies admitted to us that in the first 
week, as rookies in the National Assembly, they were taken 
off-guard by the FSLN's legislative "blitzkrieg," and did not 
know how to react, or even where to look for responses.  Luis 
Callejas said that they "wisened up" quickly, though, and 
realized that they have to organize and start developing 
their own legislative agenda and strategies. 
 
¶10. (C) Foro Liberal member Margarita Sarmiento told us that 
she plans to invite Castillo Quant and a small group of PLC 
deputies to one of their regular meetings to encourage 
further dialogue on liberal unity.  Juan Bautista Sacasa said 
he and some other Foro Liberal business people have put 
together a fund for the ALN -- they already have about $430K 
-- for their legislative efforts and preparation for the 2008 
municipal elections. 
 
¶11. (C) We asked the PLC deputies why Wilfredo Navarro -- PLC 
vice president, deputy, and Assembly Executive Board member 
-- has taken on the role of party spokesman.  Navarro has 
made several recent proclamations concerning party policy on 
a number of controversial issues that often do not coincide 
with the private conversations we have with other PLC 
deputies.  Noguera and Torres, visibly annoyed by Navarro's 
actions, claimed that Navarro speaks only for himself and 
usually does not bother to consult the caucus regarding his 
statements.  Noguera complained that the press has been 
complicit in elevating Navarro to his new de facto status as 
spokesman by ignoring other deputies. 
 
Views on Obando's Alliance with Ortega 
- - - - - - - - - - - - - - - - - - - - 
 
¶12. (C) The guests were divided on their views of Cardinal 
Miguel Obando y Bravo's role as President Ortega's advisor 
and head of the new Council of Peace and Reconciliation. 
Eliseo Nunez commented that Obando is cooperating with Ortega 
to protect his putative son, Harold Rivas, from persecution 
by the FSLN-controlled judicial system and also to moderate 
Ortega's excesses.  Mauricio Montealegre disagreed, saying 
that Obando is a hostage to Ortega's blackmail and is only 
acting to protect his family and interests. 
 
Comment: A Changing Atmosphere? 
- - - - - - - - - - - - - - - - 
 
¶13. (C) Since the elections, both Liberal camps have wallowed 
in an atmosphere of defeatism.  The February 7 votes seemed 
to re-energize the opposition and give credence to talk of a 
unified front.  Before uncorking the champagne, however, the 
PLC leaders must decide how far they are willing to challenge 
Aleman's authority.  If the parties collaborate on 
legislation that is a real threat to the FSLN, Ortega will 
again pressure Aleman to rein in his troops.  Given the 
FSLN's eagerness to redesign Nicaragua's government, this 
litmus test will likely occur sooner rather than later. 
TRIVELLI