VZCZCXYZ0018
PP RUEHWEB

DE RUEHMU #1588/01 1771911
ZNY CCCCC ZZH
P 261911Z JUN 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 0644
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHDC

C O N F I D E N T I A L MANAGUA 001588 
 
SIPDIS 
 
SIPDIS 
 
WHA/CEN FOR FEELEY AND SCHIFFER 
 
E.O. 12958: DECL: 06/07/2017 
TAGS: KDEM PGOV NU
SUBJECT: USG COMMITMENT TO GOOD RELATIONS WITH SANDINISTAS 
REMAINS FIRM 
 
Classified By: Charge Peter Brennan for reasons 1.4(b,d) 
 
¶1.  (C) SUMMARY:  In May 29-June 1 meetings in Managua, 
WHA/CEN Office Director John Feeley reaffirmed with senior 
FSLN leaders that USG policy is to pursue productive and 
positive relations with the Ortega government.  At the same 
time he communicated that President Ortega's increasingly 
anti-US rhetoric will not be without a cost and has sent a 
mixed message to Washington, especially following FM Santos, 
April 19 pledge to Secretary Rice that the Ortega government 
wants good relations.  Officials uniformly acknowledged that 
the President,s rhetoric is unproductive, but offered 
various excuses on the theme of "old habits die hard."  They 
also defended Nicaragua's right as a poor country to develop 
relationships with any country that can offer it assistance. 
Opposition leaders unanimously agreed that former president 
Aleman is the main obstacle to Liberal unity, but admitted 
they do not know how to remove him from politics.  With the 
press, business leaders, and civil society, Feeley emphasized 
the US commitment to democracy, transparency, and prosperity 
through private sector-led development in Nicaragua.  He 
praised the Nicaraguan police for their counter-narcotics 
efforts and pledged continued cooperation to help the GON 
contribute to regional stability and security.  END SUMMARY. 
 
 
Senior Officials Cognizant of Rhetoric's Impact 
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¶2.  (C) In separate meetings with Vice President Jaime 
Morales, Foreign Minister Samuel Santos, Economic Advisor 
Bayardo Arce, and Managua mayor Dionisio Marenco, Feeley 
drove home the point that Ortega's recent anti-U.S. rhetoric 
will not be cost free and could impede constructive bilateral 
dialogue, creating uncertainty among U.S. investors.  All 
acknowledged that Ortega's post-election anti-U.S. rhetoric 
has not been productive for the bilateral relationship, but 
claimed that Nicaragua is not in a position to refuse offers 
of assistance from Iran or Venezuela given its extreme 
poverty.  Morales asked us to "have patience" with the new 
administration while emphasizing our common agenda on trade, 
terrorism, drug trafficking, and poverty alleviation.  For 
his part, Santos insisted the level of rhetoric has decreased 
since January and re-enforced the importance of the U.S. 
relationship.  Arce, the least apologetic, argued that 
Nicaragua's economic needs compel it to build relationships 
with a broad spectrum of countries and reduce dependence on 
the United States.  Concerned about the impact of Ortega's 
rhetoric on smaller foreign investors, Marenco urged more 
direct "person-to-person" contacts, such as the expansion of 
sister city programs, that can deliver tangible results. 
 
Civil Society Organizations - A "Pebble in the Shoe" 
- - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶3.  (C) In partial defense of Ortega's recent accusation that 
the US is financing NGOs to foment opposition to his 
government, Santos blamed "undemocratic" civil society groups 
for attacking President Ortega and fanning the flames.  In a 
sweeping generalization, Santos claimed that NGOs are "the 
most anti-democratic (forces) that exist" because they are 
formed by small groups of individuals with special interests 
who usurp the role of elected legislators by claiming to 
speak on behalf of "civil society."  He labeled NGOs a 
"pebble in the shoe that we (the Sandinistas) didn't put 
there."  Pointing out the irony of Santos' comment, Feeley 
replied that most of Nicaragua's 4,000 national NGOs have 
been historically aligned with the Sandinistas and that 
several of the U.S.-financed NGOs had sought to include FSLN 
party members in training programs, only to be rebuffed.  He 
also noted that the Embassy had recently released a list of 
democratic civil society organizations that had received U.S. 
funding during the electoral campaign, underscoring our 
commitment to transparency in supporting Nicaraguan democracy. 
 
Opposition - Aleman Remains Main Obstacle to Liberal Unity 
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¶4.  (C) Feeley met separately with former presidential 
candidates Eduardo Montealegre (Nicaraguan Liberal Alliance - 
ALN) and Jose Rizo (Liberal Constitutional Party - PLC), the 
president of the Sandinista Renovation Movement (MRS) party 
Enrique Saenz, two PLC National Assembly deputies, and a 
group of PLC mayors to discuss opposition progress towards 
unity.  Liberal opposition leaders were unequivocal that 
Aleman is the primary obstacle to Liberal unity and must be 
removed from the picture, but there is no consensus on how to 
do it.  Rizo observed that Aleman still has substantial 
power, money, and control over an important segment of the 
PLC. From the Sandinista reformist perspective, Saenz is not 
promoting unity with the Liberals, but he assured Feeley that 
the MRS is ready to ally with them in the National Assembly 
on specific issues such as seeking to make public details of 
any Venezuelan oil deals and condemning the closure of RCTV 
by Chavez.  (Comment: The same morning as the Rizo meeting, 
Rizo and Montealegre appeared together on a popular morning 
talk show to discuss Liberal unity and common legislative 
agendas.  During the program, Aleman suddenly appeared, 
announcing that he had "come to talk, if you will permit me, 
about the unity that the people want."  Montealegre refused 
to engage Aleman, stating instead, that "if Aleman wants 
unity that he should accept that PLC directors - not Aleman - 
are the primary interlocutors on any discussions of unity." 
After the incident most observers indicated that Aleman,s 
surprise appearance made him look desperate.  End comment.) 
 
Message to Business Community and Media - "The U.S. will not 
Abandon You" 
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- - - - - 
 
¶5.  (SBU) During a reception with AmCham and other local 
business leaders, Feeley highlighted the overall benefits of 
CAFTA to Nicaragua during its first year in force.  There was 
general recognition and agreement that the creation of a 
strong and stable investment environment will require a lot 
of work with the Ortega administration and that the 
Nicaraguan private sector must play an active role in holding 
the Sandinistas to their pro-market campaign promises. 
Feeley emphasized that the United States and Nicaragua are 
friends, neighbors, and that the U.S. will not abandon its 
commitment to the Nicaraguan people, nor to its business 
community.  He emphasized that U.S. prosperity and security 
are integrally linked to that of our Central American 
partners. 
 
¶6.  (U) Feeley delivered the same message to the media during 
a joint press conference with Morales, and in other radio and 
TV interviews, underscoring that the USG very much wants to 
work with all democratically elected governments that govern 
democratically.  "This includes the GON and we hope we can 
continue to pursue our mutual interests in this spirit," he 
clarified.  In light of recent allegations that the U.S. is 
financing opposition parties with a view to destabilizing the 
Ortega government, Feeley reiterated Ambassador Trivelli,s 
statements that the USG is not financing parties, but 
institutions, to ensure prosperity, democracy, and 
transparency. 
 
Civil Society Sees Few Positive Signs 
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¶7.  (C) Pro-democracy NGOs Movimiento por Nicaragua (MpN), 
National Democratic Institute (NDI), and the International 
Republican Institute (IRI) expressed concern that the Ortega 
government is slowly blurring the lines between party and 
State.  Representatives commented that Ortega is likely to 
avoid drastic measures, but rather will seek increasing 
control of the democratic space through subtle means. 
Nonetheless, they pointed out that Ortega's recent attacks on 
MpN for its sustained criticism of the government have been 
anything but subtle.  Further, recent attempts by NDI to 
include young FSLN leaders in leadership training courses 
were rejected by the Sandinistas.  Despite the difficulties 
of these NGOs to engage with the new government, all viewed 
with optimism the National Assembly's recent condemnation of 
the closing of Venezuela's RCTV, seeing it as a step towards 
broader legislative unity to counter Ortega's maneuvering. 
 
¶8.  (C) Monsignor Aviles, the number two in Nicaragua's 
Catholic archbishopric, believes that democracy is stronger 
than ever in Nicaragua because elections can be held without 
violence, but he expressed concern that Ortega's campaign 
promises to the poor have raised expectations to an untenable 
level.  He warned of growing discontent with the Ortega 
administration, stating that Ortega never really had a plan, 
only empty campaign rhetoric.  Aviles suspected that Ortega 
will continue to employ a strategy of blaming foreigners and 
previous governments for Nicaragua's woes. 
 
Nicaraguan Police - Keep up the Good Work 
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¶9.  (C) Feeley congratulated National Police Commissioner 
 
Aminta Granera for the Nicaraguan National Police's (NNP) 
crackdown on drug trafficking since Granera took office in 
September 2006.  (Note: Shortly before the meeting a story 
broke of a 300kg cocaine bust. In the first 5 months of 2007 
NNP drug seizures are twice the 2006 totals.  End note.) 
Feeley also recognized the close cooperation between the U.S. 
and the NNP and confirmed our desire to stay engaged with the 
police on counter-terror and counter-drug initiatives.  He 
also praised the NNP for the implementation and early 
successes of the special vetted unit. 
TRIVELLI