VZCZCXYZ0017
PP RUEHWEB

DE RUEHMU #0616/01 0671458
ZNY CCCCC ZZH
P 081458Z MAR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 9377
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0990
RUEHIN/AIT TAIPEI 0070
RUMIAAA/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

C O N F I D E N T I A L MANAGUA 000616 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CEN 
 
E.O. 12958: DECL: 03/06/2017 
TAGS: PGOV PREL PINR KDEM NU IR TW VE
SUBJECT: (C) EMBASSY JUMP STARTS LIBERAL UNITY DISCUSSIONS 
 
REF: A. MANAGUA 0577 
 
     ¶B. MANAGUA 0543 
     ¶C. MANAGUA 0404 
 
Classified By: Ambassador Paul Trivelli for reasons 1.4 (b and d) 
 
¶1. (C) Summary: After splintering under the weight of mutual 
suspicion and recriminations, DCM hosted a cocktail to bring 
together members of the Nicaraguan Liberal Alliance (ALN) and 
Liberal Constitutional Party (PLC) to reactivate discussions 
on the need to forge a unified opposition to confront 
President Ortega's totalitarian ambitions.  ALN leaders 
insisted on achieving a unified agenda in the National 
Assembly (where Liberals hold the majority), while PLC 
representatives equivocated, visibly annoyed by the ALN's 
aggressive posture.  Ultimately, both sides concurred on the 
overarching need to defend the country against a renascent 
Sandinista dictatorship and agreed to meet again under the 
auspices of a neutral facilitator.  End Summary. 
 
¶2. (C) At the request of ALN deputy and chief unity 
negotiator Jamileth Bonilla, DCM agreed to host a cocktail on 
March 5 to jump start faltering unity discussions between the 
ALN and PLC (ref C).  In addition to Bonilla, ALN president 
Eduardo Montealegre and deputies Maria Eugenia Sequeira and 
Luis Callejas represented that party.  Francisco Aguirre 
Sacasa, Carlos Noguera, and Freddy Torres were invited on 
behalf of the PLC. 
 
¶3. (C) The encounter was significantly more contentious than 
previous meetings, with both sides launching accusations of 
unjustified public attacks and press manipulation.  Torres 
specifically criticized the reunification lunches organized 
by Bonilla as a "media circus" and complained that the ALN's 
efforts to recruit PLC deputies and mayors (refs A and B) had 
undermined confidence in the process.  Bonilla and Sequeira 
shot back that the PLC caucus in the National Assembly is 
still responding to FSLN interests through orders from 
convicted PLC leader Arnoldo Aleman, which is why the caucus 
has not agreed on a unified legislative agenda. 
 
Liberals Agree to Reject Questionable Agreements... 
- - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶4. (C) Despite their differences, the Liberals concurred that 
the Assembly should not ratify or approve various treaties 
and "friendship agreements" with Iran, Venezuela, and Taiwan. 
 Aguirre Sacasa explained that while agreements or memoranda 
of understanding do not normally require Assembly 
ratification, any document involving the national budget must 
pass the legislature's muster.  Thus, some of the Venezuelan 
agreements will require Assembly approval.  Both sides 
rejected the proposed agreement with Iran, which states that 
Nicaragua would support Iran in international fora.  They 
were unsure, however, about what kind of official action to 
take (if any) regarding the Iran document or other 
questionable agreements with Venezuela and Taiwan, which may 
not technically require approval from the Assembly.  We asked 
if they could pass a non-binding resolution rejecting the 
documents, but the deputies did not answer. 
 
... But Vacillate Over Budgetary Controls 
- - - - - - - - - - - - - - - - - - - - - - 
 
¶5. (C) ALN president Eduardo Montealegre strongly urged the 
PLC team to agree to modify the 2007 budget proposal to 
disallow extra-budgetary income generated by autonomous 
institutions to be spent on other official entities (such as 
the FSLN-controlled citizen councils).  Such a restriction 
would block the FSLN from "laundering" Venezuelan oil money 
through the state-controlled distributor to finance 
Sandinista projects without legislative oversight.  The 
deputies could not agree, however, on how to enact the 
modifications or if the Assembly has the authority to change 
the budget proposal at this stage.  (Note: According to 
Sequeira, the ALN, PLC, and MRS successfully proposed a 
motion the following day to add a clause to the budget that 
stipulates that revenues from autonomous government entities 
(like PetroNic) must be channeled through the national 
budget.  The ALN failed, however, to pass a motion that would 
have placed similar restrictions on donations.  End Note.) 
 
¶6. (C) Towards the end of the meeting, Ambassador and emboffs 
set the deputies back on course by giving examples of how 
Chavez manipulated divisions in the Venezuelan opposition to 
gain absolute control.  The anecdotes sobered the Liberals 
considerably.  They then agreed to continue negotiations in a 
private setting and with the assistance of a neutral 
facilitator and requested USG assistance in this regard. 
USAID Democracy and Governance Officer, present for the 
meeting, agreed to assist if/as needed. 
 
¶7. (C) Comment: The Liberals' confusion over parliamentary 
procedures and legislative oversight demonstrates the lack of 
capacity for even experienced deputies such as Bonilla, 
Sequeira, and Noguera (a former Assembly president) to 
respond to the Sandinistas' domination of all other branches 
of government.  In addition, overblown egos, internal 
divisions, and the Aleman Question (septel) persist in 
hampering unification attempts.  We will continue to nudge 
the Liberals in the right direction by, if necessary, 
providing a facilitator to assist negotiations and seeking 
additional technical support for legislative issues. 
TRIVELLI