VZCZCXYZ0000
PP RUEHWEB

DE RUEHSN #2069/01 2852311
ZNR UUUUU ZZH
P 122311Z OCT 07
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC PRIORITY 8198
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY

UNCLAS SAN SALVADOR 002069 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PHUM PREL PGOV ES HN NU
SUBJECT: EL SALVADOR MOVES CLOSER TO RESOLVING GULF OF 
FONSECA DISPUTE 
 
 
¶1.  (U) Summary:  On October 4 the leaders of El Salvador, 
Nicaragua, and Honduras signed an agreement declaring their 
commitment to working together to develop the Gulf of 
Fonseca.  The leaders labeled the agreement the first step 
toward resolving territorial disputes that have plagued the 
gulf region since the 1800s.  The agreement also establishes 
joint projects to benefit the region and creates presidential 
commissions in each country.  The agreement follows President 
Saca,s announcement of the formation of a tri-national 
commission during his speech at the UN General Assembly on 
September 25 in New York.  End Summary. 
 
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SACA USES UN TO ADVANCE REGIONAL AGENDA 
---------------------------------------- 
 
¶2.  (U)  On October 4, President Saca, President Ortega of 
Nicaragua, and President Zelaya of Honduras signed an 
agreement declaring the Gulf of Fonseca a &zone of peace, 
security, and sustainable development8 between the three 
countries and expressed their commitment to working together 
to develop the region.  The leaders hailed the agreement as 
the first step towards resolving the territorial disputes 
over the Gulf region. 
 
¶3.  (U)  The ceremony followed President Saca,s September 25 
announcement at the UN General Assembly of the formation of a 
special tri-national commission to resolve the ongoing border 
dispute over the Gulf of Fonseca.  Prior to the announcement, 
President Saca reportedly extended formal invitations to the 
leaders of Nicaragua and Honduras to begin a &new era of 
collaboration8 to promote the development of the Fonseca 
Gulf Zone. 
 
-------------- 
THE AGREEMENT 
-------------- 
 
¶4.  (U)  The agreement establishes joint projects to mitigate 
the vulnerabilities of the gulf zone and develop regional 
projects focusing on sustainable development and utilization 
of natural resources, including fishing and agriculture. 
(Note:  Representatives of Nicaragua,s fishing industry have 
already announced their opposition to the agreement on the 
grounds that it will harm the small fishing communities 
located along the gulf.  End Note.)  The leaders also 
expressed their intention to form presidential commissions in 
each country to facilitate the agreement and realize future 
projects. 
 
¶5.  (U)  Salvadoran media expressed surprise at the inclusion 
of Nicaragua in the proposed dialogue.  The GOES stated that 
the offer was based on a diplomatic note sent by Nicaragua in 
June 2006 that suggested that the three countries work 
together to reach a solution to the ongoing dispute.  It 
appears that previous negotiations regarding the border 
dispute had been limited to El Salvador and Honduras.  Media 
reports indicate that the three leaders had informal 
conversations regarding the proposal prior to the 
announcement. 
 
¶6.  (U)  President Saca,s initiative appears intended to 
prevent any future ruling by the International Court of 
Justice (ICJ) that could award a significant slice of 
territory, particularly the Island of Conejo, to Honduras. 
Conejo is a small island in the Gulf of Fonseca located 
approximately 600 meters off the coast of Honduras.  It 
measures only 1000 square meters.  Despite its size it is 
strategically significant to both countries.  For Honduras, 
the island establishes access to the Gulf of Fonseca and the 
Pacific Ocean.  For El Salvador, the island overlooks the 
port of La Union.  From El Salvador's perspective, Honduran 
possession of Conejo would establish Honduran territorial 
rights to the Bay of La Union and negatively impact El 
Salvador's security posture in the region. 
 
------------------------------- 
BORDERS, ISLANDS, AND THE ICJ 
------------------------------- 
 
¶7.  (U)  El Salvador and Honduras have been litigating 
various territorial disputes before the ICJ for years.  In 
1992 the ICJ ruled on the delimitation of the "bolsones", 
disputed pockets of land on the northern border between El 
Salvador and Honduras, as well as three disputed islands. 
The ICJ awarded roughly two-thirds of the disputed territory 
to Honduras.  In addition, the ICJ devised a resolution 
giving the three countries exclusive control over a three 
nautical mile zone extending from their coastlines, as well 
as shared control over the waters of the Gulf.  The court 
affirmed Honduras right of access to the Pacific, but, 
because the judgment failed to specifically identify the 
Island of Conejo, each of the countries have interpreted the 
ruling differently. (Note: Nicaragua was not a party to the 
original dispute.  When the Court awarded Honduras access to 
the Gulf, Nicaragua, which had previously shared the waters 
with El Salvador, became an interested party.  End Note.) 
 
¶8. (U)  In January 1998, Honduras and El Salvador signed a 
border demarcation treaty to implement the terms of the ICJ 
ruling.  Before the treaty took effect however, El Salvador 
announced its intention to submit new evidence to the ICJ. 
In 2003, the ICJ denied El Salvador,s petition to present 
additional evidence supporting their claim to the Goascaran 
River estuary and the Island of Conejo.  The Court,s ruling 
did not resolve the dispute. 
 
¶9. (U)  Although there had been numerous reports of ongoing 
negotiations between the countries since the 1992 ruling, the 
conflict resurfaced in October 2006 when Honduran media 
reported that the "Libro Blanco de la Defensa Nacional de El 
Salvador" listed the island as Salvadoran territory, thus 
potentially blocking Honduran access to the Pacific.  (Note: 
The "Libro Blanco de la Defensa Nacional de El Salvador" is 
equivalent to the U.S. National Defense Strategy.  It was 
first published in 2006 and is reviewed annually.  End Note.) 
 This launched a series of public statements from both sides 
claiming sovereignty over the island. 
 
¶10. (U)  The ongoing dispute reemerged on September 17, 2007 
when the Honduran vessel &Ulua8 was briefly detained by 
Salvadoran and Nicaraguan naval forces.  Honduran media 
alleged human rights violations concerning those detained; 
however the governments of Honduras, El Salvador, and 
Nicaragua disputed these claims.  Ultimately, the vessel was 
granted permission from the Salvadoran government to proceed. 
 
¶11. (U)  Since the 1980s, Honduras has continued to treat the 
island as its territory and has maintained a small contingent 
of soldiers on the island. 
 
¶12. (SBU)  Comment: The agreement is notable for several 
reasons.  From a diplomatic perspective, President Saca's 
shrewd tactical use of his UN speech enabled the GOES to 
shape an important regional issue in El Salvador's favor.  By 
all appearances the agreement has likely mooted any potential 
ICJ ruling that could deprive El Salvador of disputed 
territory and award it to Honduras.  It also seems to protect 
El Salvador's economic interests in the Gulf of Fonseca 
region at large, as well as the rapidly developing Bay of La 
Union, which has recently been a magnet for local and 
regional investment.  End Comment. 
 
Glazer