VZCZCXRO6762
PP RUEHLMC
DE RUEHMU #0493/01 0550009
ZNY CCCCC ZZH
P 240009Z FEB 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 9209
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0969
RUMIAAA/CDR USSOUTHCOM MIAMI FL PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000493 
 
SIPDIS 
 
SIPDIS 
 
WHA/CEN 
 
E.O. 12958: DECL: 02/23/2017 
TAGS: PGOV PINR KDEM NU PREL
SUBJECT: ALN SEEKS ASSISTANCE TO MAINTAIN MOMENTUM, PREPARE 
FOR MUNICIPAL ELECTIONS 
 
REF: MANAGUA 0471 
 
Classified By: Charge d,Affaires a.i. Peter M. Brennan.  Reasons 1.4 (B 
,D). 
 
¶1.  (C) Summary:  The Nicaraguan Liberal Alliance (ALN) is in 
debt from its campaign commitments and urgently needs funding 
to maintain its momentum, enable leader Eduardo Montealegre 
to emerge as the uncontested leader of the opposition, and 
prepare for the 2008 municipal elections.  The ALN planning 
coordinator and its treasurer recently reported that many ALN 
supporters are hard pressed to support their families and are 
seeking other options because government positions are closed 
to them.  The ALN planning coordinator attributes much of the 
party's difficulties to its lack of organization and 
cohesion, but assert that the ALN needs funds and capacity 
building to resolve these issues.  The party is upgrading its 
website to allow people in Nicaragua and abroad to contribute 
on line.  The Charge outlined the kinds of U.S. training 
opportunities and encouraged the ALN to consider establishing 
a 501 (c) (3) foundation to support the party.  ALN leaders 
met with POL and USAID the following day to explore training 
options in more detail.  End Summary. 
 
ALN Confronts Campaign Debt, Cash Flow Problems 
- - - - - - - - - - - - - - - - - - - - - - - - 
 
¶2.  (C) ALN Planning Coordinator Kitty Monterrey and 
Treasurer Roberto Serrano warned Charge and PolCouns on 
February 20 that, although ALN presidential candidate Eduardo 
Montealegre placed second in the November race and he is 
considered to be the most prominent opposition leader by far, 
the party is in debt from its campaign commitments to a tune 
of $1.5 million.  Monterrey stated that the party's creditors 
(mostly media) are patient, and the news of the debt has not 
leaked to the public, while ALN caucus Assembly deputies and 
party headquarter employees are each contributing 4,000 
cordobas (about $220) per month towards debt payment. 
 
¶3.  (C) Monterrey explained that the ALN urgently needs 
funding to keep afloat -- at least $75,000 per month to run 
its headquarters -- plus robust training in party 
organization and strengthening, communications strategy, 
leadership, polling, community outreach, and training of ALN 
legislators.  Monterrey and Serrano voiced frustration that 
the ALN is unable to help its supporters -- who are hard 
pressed to support their families -- because the party enjoys 
no access to government jobs and does not have a budget to 
hire people.  Regarding the ALN's departmental and municipal 
offices, Monterrey said local party supporters along with the 
private sector are defraying these expenses. 
 
Matching Party Strengthening Needs with Training Options 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶4.  (C) Monterrey attributed much of her party's difficulties 
to its lack of organization and cohesion, but again, asserted 
that without funds and capacity building, the ALN will be 
unable to resolve these issues.   The Charge mentioned the 
IRI-USAID training of National Assembly lawmakers, most of 
whom were members of the ALN caucus, as the type of 
assistance we can provide.  Monterrey commented that the 
training would have been more beneficial if it had been open 
to members of party leadership, not exclusively lawmakers. 
She recommended that an organized training strategy with 
party leadership participation would be helpful.  The Charge 
suggested that Monterrey meet with POL and USAID to explore 
training options and how to effectively coordinate them. 
 
Clarifying Party-Civil Society Relations 
- - - - - - - - - -  - - - - - - - - - - 
 
¶5.  (C) Citing the Ambassador's recent op-ed on civil 
society, Monterrey praised the Ambassador's message, but 
opined that it does not completely reflect the harsh reality. 
 For example, the previous day the National Assembly had 
approved the registration of 113 NGOs, and 99% are associated 
with the FSLN, said Monterrey.  She next raised the 
relationship of civil society organizations and her party, 
sharing her concern that some NGOs that claim to support the 
ALN's political position do not and may not be contributing 
to defending or strengthening Nicaragua's democracy. 
Instead, some of these groups respond to the interests of 
 
MANAGUA 00000493  002 OF 002 
 
 
individual party politicians, ALN National Assembly Deputy 
Eliseo Nunez, Sr., for example.  The Charge clarified that we 
are aware of Sandinista control of the vast majority of 
Nicaraguan NGOs and that the purpose of the Ambassador's 
piece was to let it be known that if President Ortega takes 
the path of Chavez vis-s-vis independent NGOs, we will not 
remain silent, and we are committed to helping independent 
NGOs.  (Comment: NGO competition over limited donor funds 
appears to be at an all-time high, placing the newer, 
independent NGOs at a disadvantage over the more experienced 
and savvy FSLN-associated groups.  The latter know how to 
write proposals that will attract donors, while the former 
are inexperienced in the tradecraft.) 
 
¶6.  (C) Monterrey offered to forward a comprehensive list of 
NGOs that indeed support ALN efforts, mentioning the NGOs 11 
de Julio (11th of July) and la Cruzada por la Democracia 
(Crusade for Democracy) as among those close to the ALN.  She 
acknowledged that to the degree her party consolidates and 
resolves its internal conflicts, its relationship with civil 
society groups will be clearer and more constructive.  The 
Charge explained that our democracy assistance package 
includes components to help civil society, capacitate 
democratically committed political parties, and defend 
independent media, clarifying that we do not/not provide 
direct assistance to political parties.  To maximize these 
limited resources, it behooves the ALN to improve its 
communications with NGOs, the Charge suggested. 
 
Party Financing - Foreign and Domestic Support 
- - - - - - - - - - - - - - - - - - - - - - - 
 
¶7.  (C) Returning to the ALN's financial needs, Serrano, who 
handled Montealegre's fundraising campaign, recounted that he 
had maintained a low-profile during the campaign, but now as 
ALN treasurer and member of the board of directors, he will 
assume a more public profile.  Part of his new activities 
include upgrading the party web site to allow people in 
Nicaragua and abroad to contribute on line to the ALN, 
including monthly plans, if they so wish.  The Charge 
encouraged Serrano to explore establishing a 501 (c) (3) 
foundation -- like the Nicaraguan-American Foundation -- to 
support the party and offered to look into arranging a 
voluntary visitor program for Serrano so he could meet with 
U.S. fundraising experts. 
 
¶8.  (C) On the subject of domestic support for the ALN, 
Serrano shared his disappointment over Nicaragua's business 
elite and the failure of some, like Carlos Pellas and Ramiro 
Ortiz, to deliver on their campaign finance commitments to 
Montealegre.  Fortunately, some of the smaller financiers 
were more forthcoming, said Serrano, who recognized that 
smaller donations from many sources can also help a campaign. 
 He also confirmed that the Foro Liberal group will assist 
with fundraising.  The support would enable the ALN to cover 
its monthly costs so it may maintain its momentum and emerge 
as the clear opposition party.  The party will also need 
backing to prepare for the October 2008 municipal elections 
-- including buying air time and radio frequencies.  Serrano 
suggested that our good offices with the private sector would 
be helpful.  Polcouns suggested Serrano approach other 
embassies for assistance and the private sectors of 
neighboring countries. 
 
Comment 
- - - - 
 
¶9.  (C) According to the latest Cid Gallup poll (Reftel), 
Eduardo Montealegre leads the opposition.  To take advantage 
of his popularity, however, and to build up his party -- 
whose support, according to the same poll, has waned -- 
Montealegre must consolidate his leadership among the 
opposition and the ALN must evolve from a campaign alliance 
into a solid, well-equipped political machine.  He will need 
resources to achieve this objective.  Poloffs and USAID 
elections coordinator met with Monterrey on February 22 to 
discuss training and other support options.  Monterrey will 
next meet with IRI and NDI country directors.  We will also 
follow up on capacity building for fundraisers and continue 
to engage the local private sector. 
BRENNAN