VZCZCXRO3784
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DE RUEHMU #1113/01 1222133
ZNY CCCCC ZZH
P 022133Z MAY 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 0038
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
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 001113 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CEN 
 
E.O. 12958: DECL: 04/27/2017 
TAGS: PGOV PINR EINV KDEM NU
SUBJECT: LIBERAL DEPUTIES AGREE TO WORK ON JOINT 
LEGISLATIVE AGENDA/OPPOSITION 
 
REF: A. MANAGUA 1069 
     ¶B. MANAGUA 1067 
     ¶C. MANAGUA 1036 AND PREVIOUS 
     ¶D. MANAGUA 0616 
 
Classified By: Ambassador Paul Trivelli for reasons 1.4 (b and d) 
 
¶1. (C) Summary: Liberal National Assembly deputies from the 
Liberal Constitutional Party (PLC) and Nicaraguan Liberal 
Alliance (ALN) recently pledged during a meeting with poloffs 
to jump-start negotiations on a joint legislative agenda and 
methods to coherently oppose objectionable proposals from the 
Ortega administration.  The deputies agreed not to resist 
local efforts to form unity committees and select consensus 
candidates for the 2008 municipal elections.  The PLC 
president of the Assembly's Economic Commission also 
highlighted key legislation regarding coastal property and 
water rights that could affect foreign investment in 
Nicaragua.  End Summary. 
 
¶2. (C) Polcouns hosted a cocktail on April 26 for a small 
group of deputies from the PLC and ALN to discuss methods to 
form a unified opposition to the Sandinista National 
Liberation Front (FSLN).  Although we invited some deputies 
known for publicly sniping at each other, the meeting was 
cordial and productive.  The PLC was represented by party 
vice president Wilfredo Navarro and Economic Commission 
president (and former Foreign Minister) Francisco Javier 
Aguirre Sacasa.  ALN caucus chief Maria Eugenia Sequeira also 
attended with Chinandega deputy Luis Callejas.  (Comment: The 
PLC delegates, who arrived and left separately, took the 
opportunity to sneak in jabs at each other.  Before Navarro 
arrived, Aguirre warned poloff that he is "too close to the 
FSLN" and that the PLC deputies are "fed up" with Navarro's 
public feud with fellow PLC legislator Enrique Quinonez.  As 
soon as Aguirre left, Navarro joked with us and the ALN 
deputies about Aguirre's aristocratic affectations and 
pompous behavior.  End Comment.) 
 
Deputies Agree to Pursue Joint Agenda and Respect Local Unity 
Committees 
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- - - - - - 
 
¶3. (C) After Navarro and Sequeira reached an initial 
consensus that the Liberal caucuses should renew efforts to 
coordinate a joint legislative agenda, polcouns commented 
that the Foro Liberal is interested in funding a neutral 
facilitator to run a workshop for participants for both 
parties (ref A) and reminded them of their previous agreement 
to try this arrangement (ref D).  Navarro was initially 
suspicious of the involvement of the Foro, which he regards 
as pro-ALN, but came around when we explained that we had 
identified the facilitator (a neutral foreigner), and the 
Foro would only fund his expenses.  The group agreed to meet 
with PLC caucus chief Maximino Rodriguez when he returns from 
the U.S. on May 6.  (Note: Rodriguez is currently in the U.S. 
on a special security and defense International Visitors' 
Program with other Nicaraguan legislators and journalists. 
End Note.) 
 
¶4. (C) We asked the deputies how they planned to respond to 
actions by Liberals at the local level to form joint 
committees and seek consensus candidates for the 2008 
municipal elections (ref C).  Callejas responded that the 
committees are already a fait accompli in many areas, and 
Navarro and Sequeira agreed that the national leadership of 
both parties should not interfere in the process. 
 
Proposed Laws Could Hurt Investment 
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¶5. (C) Francisco Aguirre, who arrived and left earlier than 
the other guests, commented that pending legislation on 
beachfront property rights and the use of rivers could have a 
major impact on domestic and foreign investment.  He reported 
that his main priority is to ensure that these laws do not 
damage Nicaragua's investment climate and mentioned that the 
Superior Council for Private Business (COSEP) had agreed to 
fund a technical advisor to assist him with these projects. 
 
¶6. (C) When queried about the government's recent de-funding 
of investment promotion agency ProNicaragua, Aguirre 
acknowledged that ProNicaragua directors had contacted him 
after the passage of the budget, but their lobbying efforts 
were "too late."  He faulted ProNicaragua's leaders for 
 
MANAGUA 00001113  002 OF 002 
 
 
failing to educate the public or the Assembly about the 
benefits of their organization.  (Note: UNDP Director Alfredo 
Missair recently informed Econcouns that UNDP plans to fund 
ProNicaragua in another four-year project beginning 2008.  He 
defended the administration's "mistaken" abandonment of the 
organization as the result of efforts to free up funds from a 
budget that was overly constrained by past IMF commitments. 
End Note.) 
 
Arnoldista Bishop Feels Jilted by PLC 
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¶7. (C) While discussing the budget, Aguirre also mentioned 
that Leon Bishop Bosco Vivas called him to complain about the 
reduction of government assistance to the diocese of Leon, 
which apparently fell from $1 million to $500,000.  (Comment: 
Bosco Vivas, a strong backer of PLC leader Arnoldo Aleman, 
probably thought that his diocese was entitled to greater 
largesse and responsiveness from PLC legislators as a reward 
for his loyalty.  End Comment.) 
 
Comment: Does Opposition Unity Finally Have Traction? 
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¶8. (C) We will continue to encourage opposition unity at all 
levels by facilitating mediation efforts and supporting 
anti-Aleman elements within the PLC.  This process has been 
advanced by Liberals of all stripes increasingly concerned 
about the Ortega administration's secrecy and centralization 
of power (ref B).  Nevertheless, the success of developing a 
joint legislative agenda will ultimately depend on the 
commitment of a majority of Liberal deputies to work 
together, and the PLC's willingness to ignore Aleman when the 
call inevitably comes to support FSLN-sponsored projects 
benefiting Ortega and/or the Ortega-Aleman pact. 
TRIVELLI