VZCZCXYZ0009
RR RUEHWEB

DE RUEHMU #2532/01 3401842
ZNY CCCCC ZZH
R 061842Z DEC 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 1746
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHUB/USINT HAVANA 0040

C O N F I D E N T I A L MANAGUA 002532 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/CCA AND WHA/CEN 
 
E.O. 12958: DECL: 12/05/2017 
TAGS: ETRD ETTC PREL CU NU
SUBJECT: NICARAGUA AND SUSPENSION OF TITLE III OF THE 
LIBERTAD ACT 
 
REF: SECSTATE 158768 
 
Classified By: CDA Richard Sanders for reasons 1.4 b&d. 
 
¶1. (C) Summary: Nicaragua under President Ortega, in contrast 
to the past three administrations, is establishing closer 
relations with Cuba.  We expect Nicaragua to vote more 
consistently with Cuba.  The trading relationship between the 
two countries has increased, but continues to be 
insignificant.  No high-level Cubans have visited Nicaragua 
in the last six months.  140 Cuban doctors are now working in 
Nicaragua.  Cuba provides Nicaraguans with scholarships and 
medical treatment in Havana.  While we expect the 
Cuba-Nicaragua relationship to strengthen over the next few 
years, what shape it will take remains unclear.  At this 
time, post believes that failure to waive Title III of the 
Libertad Act for Nicaragua would allow Ortega to trumpet U.S. 
"hostility" toward his new government.  Post recommends 
another waiver for Nicaragua.  End Summary. 
 
Bilateral Relationship 
---------------------- 

¶2. (C) The Cuba-Nicaragua relationship has changed and 
intensified since President Ortega took office in January. 
The head of the Cuban mission in Nicaragua has been upgraded 
from Charge d'Affaires to Ambassador, Nicaragua has sent an 
ambassador to Cuba, and Cuba sent a successor to its recently 
departed Defense Attache.  We now expect Nicaragua to vote in 
international fora more consistently with Cuba than in the 
recent past.  During the previous three governments, the GON 
generally voted with the United States on Cuba-related 
matters and occasionally abstained.  The notable exception 
was when Nicaragua joined international calls for an end to 
the U.S. embargo of Cuba -- reflecting a disagreement over 
tactics.  Neither President Ortega nor any member of his 
cabinet has made any statement against Castro or in support 
of the democratization of Cuba. 
 
Trade and Investment 
-------------------- 

¶3. (U) Nicaraguan-Cuban bilateral trade declined steadily 
from 1991 to 2005, but has increased in the last two years. 
Two-way trade between Nicaragua and Cuba totaled USD 550,000 
in 2005, down from USD 800,000 in 2003.  By the end of 
September 2007, two-way trade had reached USD 4.4 million, 
mostly the result of Nicaragua's purchase in March of USD 3.7 
million of energy saving light bulbs for distribution to 
pensioners and the poor.  Nicaragua's investment promotion 
agency, ProNicaragua, reports no significant Cuban investment 
in Nicaragua since the 1990s.  On January 11, Nicaragua 
joined the Bolivarian Alternative for Latin America (ALBA), a 
trade and cooperation agreement, of which Venezuela, Cuba, 
and Bolivia are members. 
 
Visits 
------ 

¶4. (C) No high-level Cubans have visited Nicaragua in the 
last six months.  Ortega visited Cuba on June 16 during the 
first leg of his trip to Venezuela, Libya, Iran and Italy. 
There are rumors that Ortega has visited Cuba on at least two 
occasions for medical treatment, but these cannot be 
confirmed. 
 
Training and Scholarships 
------------------------- 

¶5. (C) Post has seen an increase in Cuban training and 
education assistance, as well as more personnel exchanges 
with Nicaragua.  The Nicaraguan military has traditionally 
used Cuban trainers and Cuban facilities for both military 
and civilian educations.  Various sources report that the 
Nicaraguan military has been moving away from Cuban training 
as they consider it ineffective.  The military is focusing 
its training and assistance efforts on European countries, 
notably Spain, as well as with the United States.  Post knows 
of at least 17 Cuban teachers currently working on the 
Atlantic Coast of Nicaragua. 
 
¶6. (C) Cuban medical assistance is the most extensive example 
of this increased relationship.  There are 72 Cuban medical 
personnel in the Northern Atlantic coast region, all of whom 
stayed through hurricane Felix.  An additional 70 Cuban 
medical personnel augmented this contingent after the 
hurricane to assist with post-recovery operations.  Cuban 
doctors have also been providing long-term medical care on 
the outskirts of Managua and rural areas around the country. 
 
¶7. (C) For years, Cuba has offered full scholarships to 
Nicaraguan students to attend Cuban universities.  According 
to press reports, over 977 Nicaraguan students are currently 
in Cuba, mostly studying medicine.  Further, under a 
long-standing agreement, any member of the Nicaraguan 
military can receive free medical treatment in Havana.  Since 
January, over 500 Nicaraguans have been transported to 
Venezuela and Cuba for surgery, primarily for cataracts, paid 
for by Venezuela. 
 
Comment 
------- 

¶8. (C) Both Cuba and Nicaragua have expressed a desire to 
continue a steady increase in their bilateral relationship. 
So far, this desire has manifested itself most prominently in 
the health sector.  Post believes that failure to waive Title 
III of the Libertad Act for Nicaragua would allow Ortega to 
trumpet U.S. "hostility" toward his new government.  Failure 
to waive Title III would hand hard-core Sandinistas the 
argument that Cuba and Venezuela are more reliable, generous 
allies for Nicaragua.  Post recommends a waiver of Title III 
of the Libertad Act for Nicaragua. 
SANDERS