VZCZCXYZ0009
RR RUEHWEB

DE RUEHZP #1035/01 1691925
ZNY CCCCC ZZH
R 181925Z JUN 07
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 0640
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1137
RUEHC/DEPT OF LABOR WASHDC
RUEHUB/USINT HAVANA 0073
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/JOINT STAFF WASHINGTON DC
RHEHAAA/NSC WASHDC
RUEKJCS/OSD WASHDC
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L PANAMA 001035 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 06/15/2017 
TAGS: PREL PGOV ECON ELAB PHUM KCRM AMGT VE PM
SUBJECT: PANAMA POST:  EDITION I 
 
Classified By: POLCOUNS BRIAN R. NARANJO.  REASONS: 
1.4 (B) AND (D). 
 
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SUMMARY 
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¶1.  (U) This cable is the first edition of what we hope will 
be a periodic series of reports on political developments. 
The Panama Post will include news items that would normally 
fall on our editor's cutting room floor.  Our intent is to 
provide our Washington consumers a more textured 
understanding of Panama's political on-goings and to share 
some information that might not otherwise find their way to 
our consumers. This edition's topics include: 
 
-- the governing PRD solidifies its dominance with membership 
drive 
-- a Bolivarian umbrella organization calls for a 
constituyente; 
-- Bolivarian party, the Popular Alternative Party (PAP), 
seeks "party in formation" status; 
-- child labor receives in-depth media press coverage; 
-- First VP and FM Samuel Lewis raises sale of old chancery 
with Ambassador; 
-- Panamanian baseball legend Omar Moreno to receive key to 
the city of Atlanta. 
 
Future editions of the Panama Post will include a similar 
smorgasbord of political stories, recount our encounters with 
high fliers and bottom feeders, and impart hopefully a better 
understanding of Panama's political milieu. 
 
------------- ---------------------------- 
Governing PRD Adds Over 50,000 New Members 
------------- ---------------------------- 
 
¶2. (U) Handily surpassing the 500,000 member mark, the 
governing Revolutionary Democratic Party (PRD) added 55,236 
new members to its rank and file during a nationwide, June 
8-10 membership drive.  Unofficially, the PRD now numbers 
549,581 members.  Jubilant, President Martin Torrijos -- who 
is also the PRD's Secretary General -- asserted that this 
impressive membership drive would ensure a PRD victory in 
¶2009.  Opposition National Liberal Republican Movement 
(MOLIRENA) President Gisela Chung, whose own party is quickly 
eroding under her feet, said the opposition had to unify to 
confront this rising PRD wave.  Democratic Change (CD) 
President Ricardo Martinelli, who currently heads the 
opposition polls, dismissively stated that voters joined the 
PRD because they wanted something, whereas voters joined CD 
because their heart led them there. 
 
¶3.  (C)  Comment:  The PRD outnumbers the three largest 
opposition parties  -- the Panamenista, Patriotic Union (UP), 
and Democratic Change (CD) parties -- combined.  Once these 
registrations are confirmed, one out of every four Panamanian 
voters will be a PRD member.  Most analysts tell the Panama 
Post that they believe that whoever the PRD chooses to 
succeed Torrijos will start at about thirty percent in the 
polls.  Since about half of the voters are independents, 
elections are won by appealing to voters who are not aligned 
with any party, most analysts agree. 
 
----- ------------------------- 
MPUNA Calls for "Constituyente" 
----- ------------------------- 
 
¶4.  (U) Bringing together "popular organizations" from across 
Panama, the Peoples United for Our America Movement (MPUNA) 
held its maiden meeting in Panama City on May 12.  University 
of Panama Professor Miguel Angel Candanedo was elected as 
this "anti-neoliberal" and "anti-capitalist" umbrella 
organization's first secretary general.  Candanedo has called 
for building an alternative proposal for the Americas that is 
based upon the ideals espoused by Simon Bolivar, Jose Marti, 
Victoriano Lorenzo, Cesar Sandino, Ernesto "Che" Guevarra and 
Panamanian forefather Justo Arosemena (have to have a local 
hero in your pantheon).  MPUNA hosted an "alternative social 
summit" at the University of Panama during the June 3-5 
Organization of American States General Assembly (OASGA). 
Candanedo denies that MPUNA seeks to establish itself as a 
political party or to launch its own candidates, but has 
called for a "constitutional assembly" (constituyente) and 
greater "participatory democracy." 
 
¶5.  (C) Comment:  Candanedo and MPUNA are following the 
chavista play book in calling for a constituyente and greater 
participatory democracy.  MPUNA's "alternative social 
summit," following Venezuela's line, even denounced 
alternative fuels such as ethanol asserting such efforts 
would only take food from the mouths of the hungry.  The 
University of Panama continues to be one of the few hotbeds 
of Bolivarianism in Panama.  Students from the university 
spearheaded a "spontaneous" demonstration against Venezuelan 
political activist Gerardo Blyde outside his hotel in the 
run-up to the OASGA.  The considerable backlash that the GOP 
endured for its milquetoast assertion that Chavez's closure 
of Radio Caracas Television (RCTV) was a "sovereign decision" 
and the outpouring of Panamanian public support for freedom 
of expression in Venezuela suggest that MPUNA and other 
Bolivarian enthusiasts may have a harder time than previously 
anticipated in leading their compatriots down the 
Chavez-inspired populist path. 
 
----------------------- 
Another New Party?  PAP 
----------------------- 
 
¶6.  (U)  The Popular Alternative Party (PAP) completed the 
final step to be considered a "party in formation," PAP 
Secretary General Omeldo Beluche announced June 12.  Beluche, 
 
SIPDIS 
a University of Panama professor and colleague of Candanedo, 
said that PAP had collected 1,200 signatures -- 200 more than 
necessary -- to complete this initial phase and called on 
supporters to join him on June 15 when he planned to deliver 
his petition to the Electoral Tribunal (TE). 
 
¶7.  (C)  Comment:  Beluche has previously told the Panama 
Post that he faces an insurmountable hurdle -- collecting 
some 60,000 signatures -- to have PAP formally recognized as 
a political party.  The Panama Post sees no indication that 
the political stars have realigned to make this goal any more 
achievable.  Instead, Beluche is both advocating for a lower 
registration threshold for new parties (a fruitless endeavor 
that will go nowhere in the National Assembly) while 
simultaneously preparing to attack Panama's electoral laws as 
undemocratic and yet another illustrative example that Panama 
needs "participatory democracy" and a "constituyente." 
 
----- ---------------------------------------- 
Media Raise Awareness of Child Laborer Problem 
----- ---------------------------------------- 
 
¶8. (U) Leading Panama City dailies La Prensa and 
Panama-America ran in-depth coverage on child labor on June 
12, the International Day Against Child Labor.  Television 
and radio outlets carried shorter reports.  According to the 
GOP's most recent figures (from 2000) there are 47,076 child 
laborers of whom 51 percent work in the agricultural sector. 
While a common problem in urban and rural areas, child labor 
is particularly prevalent among indigenous populations and in 
the agricultural sector.  Some indigenous children have been 
used as sex workers and in drug trafficking, according to 
media reports.  Extreme poverty, weak unions and agricultural 
labor regulations, and cultural attitudes that view child 
labor as a necessity and tradition, not as exploitation, 
contribute to a higher incidence of child labor.  The GOP is 
working with the International Labor Organization (ILO) to 
identify solutions, reports said, and the GOP established on 
June 23, 2005 a Committee for the Eradication of Child Labor 
and the Protection of the Adolescent Work.  The Technical 
Judicial Police (PTJ) recently opened an office in the Kuna 
Yala reservation (comarca) that will investigate cases of 
child exploitation, including as related sexual and drug 
trafficking crimes. 
 
¶9. (U) This extensive coverage raises public awareness of 
Panama's child labor problem with remarkable candor.  In 
2006, upon the release of the annual child labor report, the 
Office of First Lady Vivian de Torrijos lashed out the USG 
for smearing Panama with allegedly baseless assertions that 
child labor, particularly in the sex industry, was a problem 
in Panama.  Encouraged by the media's comprehensive coverage, 
the Panama Post hopes that the release of the next child 
labor report will foster a more sober discussion. 
 
----------------- ---------------------------- 
The Sale of "Old" Embassy Draws FM's Attention 
----------------- ---------------------------- 
 
¶10.  (U) As many of our readers know, Embassy Panama will 
soon be moving into new digs in Clayton.  Among the eleven 
different locations that we will be vacating, our departure 
from the chancery -- located on a prime, water-front lot on 
Panama City's main drag, Balboa Avenue -- has drawn the most 
interest from realtors, builders, the Attorney General (who 
would like to turn the chancery into her new headquarters), 
and now First VP and FM Samuel Lewis.  Lewis called 
Ambassador on June 13 to give us a heads-up that Panama daily 
La Prensa would be running an article regarding the sale of 
old chancery.  (Note:  La Prensa did not run an article on 
the sale of the chancery in its June 14 edition.)  This 
article would state that, in the MFA's Legal Advisor's 
opinion, the land was leased and could not be sold or 
transferred and that it should revert back to the GOP when it 
ceased to be our chancery.  Furthermore, Lewis said that an 
unnamed California broker was offering the property for sale 
for USD 16 million.  Noting that our legal experts were still 
reviewing the matter, Ambassador advised Lewis that no broker 
was selling or authorized to sell the property and undertook 
to discuss the matter with Lewis once we had guidance from 
Washington. 
 
¶11.  (SBU) Comment:  The Panama Post suspects, but cannot 
confirm, that Lewis planted this article with La Prensa. 
What may be an administrative matter for the U.S. of 
disposing of excess real estate will likely be viewed much 
more politically by the GOP.  Indeed, the mere listing on 
state.gov of Embassy Panama as one of several State 
properties to be put on the sales block was picked up by 
several Panama news outlets  The Panama Post understands that 
OBO is actively studying the matter. 
 
--------------------------------------------- -- 
Baseball Diplomacy: Panamanian Legend Omar Moreno Returns to 
Atlanta 
--------------------------------------------- --- 
 
¶12.  (U) Panama Post Exclusive!!!  Panamanian baseball legend 
and close Embassy partner Omar Moreno will take a 
little-league team to play a series of friendlies in Atlanta 
July 28 - August 4.  Omar, whose foundation provides Panama's 
poorest kids with a chance at a better life through baseball 
and education, earned World Series's rings with the '79 
Pittsburg Pirates and the '85 Kansas City Royals and finished 
his career with the Atlanta Braves.  While in Atlanta, he 
will receive a key to the city, cut a ribbon at a little 
league field to be named after him by Atlanta's Recreation 
and Parks Department, and take his kids to a game at Turner 
Field.  Picking up on the Embassy's encouragement of 
public-private partnerships, Delta Airlines is looking to 
provide free air fare for Omar and his kids, and Coca Cola 
may sponsor as well. 
 
¶13.  (SBU)  Comment:  The Panama Post is happy to report that 
this endeavor is another in a growing tradition of sports 
diplomacy victories here in Panama.  Post is working with the 
Department's Office of Sports Diplomacy to provide additional 
involvement and coverage to be used back in Panama. 
 
 
EATON