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C O N F I D E N T I A L SECTION 01 OF 05 MANAGUA 000212 
 
SIPDIS 
 
SIPDIS 
 
DEPT PLS PASS TO USAID LAC 
DEPT FOR WHA/CEN GREENE AND NYMAN 
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SOUTHCOM FOR FPA 
 
E.O. 12958: DECL: 02/19/2018 
TAGS: PGOV PHUM ECON KDEM NU
SUBJECT: NICARAGUA'S MINING TRIANGLE - READY FOR MUNICIPAL 
ELECTIONS 
 
REF: A. MANAGUA 153 
 
     ¶B. MANAGUA 130 AND PREVIOUS 
     ¶C. MANAGUA 105 
     ¶D. 2007 MANAGUA 1944 
     ¶E. 2007 MANAGUA 1783 
 
Classified By: Charge Richard Sanders for reasons 1.4(b,d) 
 
¶1.  (C) SUMMARY: In Nicaragua's North Atlantic Autonomous 
Region (RAAN) cities of Bonanza, Rosita, and Siuna (the 
"mining triangle"), Liberal political parties are discussing 
unity for the 2008 municipal elections, but obstacles remain 
as entrenched leaders may torpedo unity to remain in power. 
There is a sharp divide regarding the Supreme Electoral 
Council's (CSE) proposal to suspend November's municipal 
elections.  Mayors in all three municipalities from multiple 
parties support the suspension, while NGOs, religious 
leaders, and opposition political parties insist 
infrastructure is sufficient to hold elections.  If elections 
move forward, Liberals are confident of victory in the three 
municipalities.  President Ortega's Citizens' Power Councils 
(CPCs) are active throughout the region, fueling resentment 
in these predominantly Liberal municipalities and tension 
with indigenous community councils.  The small indigenous 
Mayagna and Miskito populations resent the large numbers of 
Pacific "mestizos" who continue to migrate into region, 
causing land disputes and social problems.  END SUMMARY. 
 
Mining Triangle - Nicaragua's "Wild West" 
- - - - - - - - - - - - - - - - - - - - - 
 
¶2.  (SBU) On a recent five-day trip to the area known as the 
"mining triangle," we met with political party 
representatives, mayors, religious leaders, Ministry of 
Family representatives, NGOs, and civil society groups in the 
cities of Bonanza, Rosita, and Siuna to gauge how well the 
region is recovering from the affects of Hurricane Felix, to 
solicit opinions about the region's preparedness to hold 
municipal elections in November, and discuss key issues and 
challenges facing the region. 
 
¶3. (U) Located in the center of the RAAN, these cities are 
poor and isolated.  Siuna, the closest to Managua, is a 
bone-jarring six-hour drive and Bonanza is an additional 
three hours.  Dubbed the "mining triangle" for its past glory 
as a minor gold mining region, little remains of this history 
save rusting equipment and dilapidated buildings.  Today, 
Siuna is the only city where commercial mining activity 
continues.  Unemployment levels are estimated to top 75 
percent in the region and the majority of the population 
lives from subsistence farming and cattle raising.  The 
municipalities face shortages of potable water, have poor 
public sanitation infrastructure, insufficient school and 
health facilities, and bad roads. 
 
Liberal Unity - Fact or Fiction 
- - - - - - - - - - - - - - - - 
 
¶4.  (C) The two major Liberal parties - the Nicaraguan 
Liberal Alliance (ALN) and the Liberal Constitutional Party 
(PLC) - in all three municipalities are at various stages of 
unifying their electoral tickets for November's municipal 
elections.  (NOTE:  These meetings were all held before the 
CSE stripped reformist Eduardo Montealegre of control of the 
ALN.  While the impact of this action at the local level 
throughout Nicaragua remains to be seen, tenuous local 
alliances -- such as those struck in the mining triangle -- 
may unravel without the weight of the central parties pushing 
for unity.  END NOTE)  Liberal unity appears the most 
advanced in Bonanza, the smallest of the three 
municipalities, where the sitting mayor is from the 
Sandinista National Liberation Front (FSLN).  The ALN and PLC 
have tentatively agreed on a PLC candidate for mayor, Pedro 
Torrez, and a yet-to-be-determined ALN candidate for vice 
mayor.  (COMMENT:  Torrez, a current member of the RAAN's 
Regional Council, came across as dull and befuddled.  He was 
unable to answer questions regarding his campaign strategy or 
messaging and left the substantive talking to an advisor.  In 
reference to Torrez, the local representative from the 
 
MANAGUA 00000212  002 OF 005 
 
 
Nicaraguan NGO Institute for Development and Democracy 
(IPADE) remarked "I can't believe there aren't better 
candidates."  It appears Torrez' main asset is his loyalty to 
the party.  The choice of lackluster, but loyal PLC 
candidates would seem to confirm the intent by PLC defacto 
leader Arnoldo Aleman to hand-pick PLC candidates rather than 
bend to a more democratic primary (septel).  END COMMENT) 
 
¶5.  (C) In Rosita, the PLC and ALN signed an agreement to 
work together in late December.  Neither the PLC nor the ALN 
had finalized their respective tickets and they had not 
discussed power-sharing specifics.  They have agreed to work 
together in principal, but it was apparent from our 
discussions that lingering suspicion and mistrust remain. 
The ALN representatives commented that "those in power (the 
PLC) want to keep it and they will divide the Liberal forces" 
and added that "all the PLC candidates are or have been in 
power and that will make the process difficult."  For their 
part, the PLC representatives viewed the ALN as a "traitor" 
to the true Liberal torch-bearing PLC and accused the ALN of 
having weakened the PLC in 2006, facilitating Ortega's 
election. 
 
¶6.  (C) In Siuna, the largest of the three municipalities, 
the political landscape is more complex.  The PLC is the 
dominant party and the FSLN and ALN are minor players.  The 
Nicaraguan Resistance Party (PRN) -- comprised of ex-Contras 
-- is quite influential while the Sandinista Renovation 
Movement (MRS) and PAMUK -- a regional indigenous party -- 
are on the cusp of forming an alliance.  Where the PLC and 
ALN have not yet held any discussions, the ALN and PRN have 
been working together since last November and have developed 
a sound campaign strategy and solid realistic messages.  Via 
open primaries held in late January, the ALN/PRN alliance 
selected its mayoral, vice mayoral, and eight municipal 
council candidates.  The ALN/PRN alliance has laid excellent 
groundwork for the elections, but expressed concern about the 
PLC's willingness to compromise and work together given the 
party's dominance in the municipality. 
 
¶7.  (C) The ALN's concerns may be well-founded.  Neither the 
incumbent PLC mayor, nor the mayoral and vice mayoral 
candidates in Siuna (both nominated by the local PLC party) 
appeared genuinely interested in working with the ALN.  As in 
Rosita, the PLC views the ALN as a pesky upstart that 
undermines Liberal unity.  The ALN and PLC were scheduled to 
hold a first round of discussions two days after our 
meetings.  The outlook was not bright, however, as the two 
parties' separate power-sharing proposals appeared virtually 
incompatible.  The PLC proposal would assign the ALN the 
number 5 and 7 seats (of 8) on the municipal council, while 
the ALN proposal allots the party the vice mayorship along 
with seats 1, 3, 5, and 7 on the council.  If the PLC refuses 
to negotiate a middle ground, ALN/PRN alliance 
representatives assured us they will take their case to the 
national level with both parties to broker an acceptable 
compromise (a path to resolution no longer possible following 
the CSE's February 20 decision stripping Montealegre of 
control of the ALN). 
 
Support for Municipal Elections in November 
- - - - - - - - - - - - - - - - - - - - - - 
 
¶8.  (C) According to NGO and religious leaders -- all of whom 
have extensive presence in rural areas -- as well as 
political opponents, the damage caused by Hurricane Felix to 
essential voting infrastructure (clinics and schools) in the 
mining triangle municipalities was minimal and does not 
justify suspending November's municipal elections, a proposal 
currently under consideration by the CSE (ref C).  This 
broad-based opinion sharply contrasts the statement signed by 
the RAAN's eight municipal mayors on January 10 in Siuna (ref 
C).  Asked in turn about this statement in light of the 
contrast of opinions, the FSLN mayor of Bonanza and PLC mayor 
of Rosita staunchly defended their decisions to sign the 
statement and were adamant about the extent of the damage. 
(NOTE: In Rosita, municipal statistics revealed that the 
hurricane destroyed 25 schools and damaged 12 more. END NOTE) 
 Siuna's PLC mayor -- the instigator and host of the January 
 
MANAGUA 00000212  003 OF 005 
 
 
10 session -- suggested that the signed statement had been 
improperly interpreted by the media and recast it as a 
statement "showing solidarity about the extent of the 
damage," not a demand to suspend the elections. 
 
Lost "Cedulas" Excuse is a Red Herring 
- - - - - - - - - - - - - - - - - - - - 
 
¶9.  (C) In addition to downplaying infrastructure damage, our 
NGO, religious, and political party contacts stressed that 
the loss of cedulas -- national ID documents required for 
voting -- was minimal in these municipalities.  They pointed 
out that families affected by the hurricane were, in fact, 
required to present their cedulas as proof of residence to 
receive relief assistance.  Instead, sources remarked that 
the majority of people who don't have cedulas in the affected 
areas never did have them.  Most believed this justification 
is a red herring and that local leaders, having had a taste 
of power, are simply loath to surrender it. 
 
Liberal Migrants Remain Unregistered 
- - - - - - - - - - - - - - - - - - - 
 
¶10.  (C) Liberal leaders in Bonanza, Rosita, and Siuna 
estimate that thousands of recent immigrants -- principally 
from the Liberal strongholds of Matagalpa and Jinotega -- 
remain absent from local voter registries.  Whereas changing 
domicile is unlikely to affect the electoral outcome in 
Rosita and Siuna, which remain staunchly Liberal, PLC and ALN 
leaders hoped to win in Bonanza for the first time in four 
election cycles by taking advantage of this demographic 
shift.  Liberal leaders acknowledged, however, that it 
routinely takes years for voter registries to be updated, a 
problem they believe will only get worse with the CSE firmly 
under the control of President Ortega's FSLN (septel). 
Liberals fear that the CSE will take whatever measures 
possible to prevent Liberals from being able to vote in 
November's elections which many see as a referendum on the 
Ortega administration (ref A). 
 
FSLN - How to Influence People and Buy Votes 
- - - - - - - - - - - - - - - - - - - - - - - 
 
¶11.  (C) NGO, religious, and political party representatives 
universally criticized the Ortega government for hijacking 
Hurricane Felix relief supplies and using the Hambre Cero 
(Zero Hunger) rural development program to strongarm and/or 
bribe residents into supporting the Citizens' Power Councils 
(CPCs) -- President Ortega's mechanism for bringing direct 
democracy to Nicaragua (ref B) -- and the FSLN.  Sources 
reported that communities were required to establish CPCs in 
the aftermath of Hurricane Felix to receive relief supplies. 
Those who refused, sources alleged, did not receive 
assistance.  Further, contacts reported that the Ortega 
government has greatly scaled up the distribution of Zero 
Hunger assistance packets (ref C, D, E) in the mining 
triangle, especially among Mayagna and Miskito indigenous 
communities, to bolster flagging support for the FSLN and 
FSLN-allied indigenous YATAMA party.  According to a YATAMA 
representative in Rosita, seven families in each of 85 
communities (nearly 600 families) had received assistance 
packets.  He confirmed that the CPCs selected all of the 
families and that every family supported either the FSLN or 
YATAMA. 
 
CPCs Presence Grows 
- - - - - - - - - - 
 
¶12.  (C) CPCs have now been established in nearly every 
community in the mining triangle and are beginning to exert 
influence on a variety of fronts.  The notable exception is 
the city of Siuna where the outspoken Liberal mayor, backed 
by a strong Liberal majority, have forced the CPCs to 
maintain a low profile.  Despite this, the Ministry of Family 
(MiFamilia) in Siuna works closely with youth coordinators 
within community-level CPC cabinets to carry out training, 
distribute information, and to act as the Ministry's "eyes 
and ears" to detect incidents of inter-familial violence. 
The MiFamilia official praised the effectiveness of the CPCs, 
 
MANAGUA 00000212  004 OF 005 
 
 
pointing to a marked increase in the reporting of violence. 
Her counterpart in Bonanza also works closely with CPC youth 
coordinators and uses monthly CPC meetings as a forum to 
promote specific programs.  The FSLN mayor of Bonanza 
referred to the CPCs as his "right arm" and mentioned that 
the CPCs are currently carrying out a comprehensive study of 
the urban center's problems. 
 
¶13.  (C) While government agencies appear to leverage the CPC 
network to extend their reach into rural areas with positive 
results, other uses of it are not as positive.  As mentioned 
earlier, it was widely reported that the CPCs have used 
hurricane relief supplies and the Zero Hunger program to 
reward FSLN party loyalists and exclude others.  IPADE's 
Bonanza representative reported that while some CPC 
coordinators are excellent, most are "polarizing the 
communities and forcing traditional community councils to 
become more political."  His counterpart in Siuna remarked 
that FSLN staff in every government institution have been 
appointed as CPC representatives.  The PRN president in Siuna 
complained that 200 PRN affiliates who applied to the 
National Agricultural Technology Institute (INTA) for seeds 
were told they needed reference letters from local CPC 
coordinators to qualify.  All were subsequently denied.  The 
mayor of Siuna bitterly recounted that a number of 
PLC-affiliated teachers were transferred to remote 
communities without warning and replaced by CPC-recommended 
teachers. 
 
Racial Groups Sharply Divided 
- - - - - - - - - - - - - - - 
 
¶14.  (C) Tension between the indigenous populations (Mayagna 
and Miskito) and immigrant mixed ("mestizo") populations 
simmers just below the surface.  The indigenous populations 
-- estimated at 20,000 people -- live in a few communities 
and there is limited contact between the two groups. 
Property rights are the primary point of conflict.  Under the 
Law of Autonomy (Law 28), the indigenous communities use a 
system of community property rights.  While poor demarcation 
creates friction between the indigenous communities, all 
resent what they see as the illegal land-grab practices of 
the immigrant mestizos.  With mestizos now accounting for the 
majority of the mining triangle's population, the 
community-managed land system is under threat.  This conflict 
leaves both sides open to political manipulation as parties 
maneuver to curry favor with the groups. 
 
Domestic Violence is Commonplace 
- - - - - - - - - - - - - - - - - 
 
¶15.  (C) Domestic violence and insufficient resources to 
address this growing problem were challenges facing the 
MiFamilia and the Women's Network NGO in each municipality. 
Driven by poor education and chronic unemployment levels of 
70-85 percent -- and exacerbated by the economic effects of 
Hurricane Felix -- the domestic situation of women in the 
mining triangle is worrisome.  In Rosita, over 250 cases of 
inter-familial violence were reported to the Women's Network 
in 2007.  Thus far in 2008, the Network has received an 
average of two cases per week.  Despite these high abuse 
levels, none of the three MiFamilia offices have facilities 
to protect battered and/or abused girls and women.  Often, 
they must place victims with local families, rely on the 
scarce resources of their Network colleagues, or simply 
return the women to their homes.  Neither MiFamilia 
representatives nor Network staff had information about the 
scope of Trafficking in Persons (TIP), but they did not 
believe it was a significant problem in the region. 
 
Comment 
- - - - 
 
¶16.  (C) Although the region is remote and poor, we left the 
mining triangle after five days with the impression that the 
region is changing and that the people are doing their best 
to recover from the economic damage caused by Hurricane Felix 
last September.  Buses and trucks of all shapes and sizes 
carrying cattle and an array of supplies were plying the bad 
 
MANAGUA 00000212  005 OF 005 
 
 
roads connecting these three cities whose streets teemed with 
pedestrians and commercial activity.  Despite the mayors' 
"gloom and doom" rhetoric about the general state of things, 
we received a loud and clear message that the people want to 
keep moving forward with the region's development and they 
see their right to vote in democratic elections as essential 
part of the development process.  Within the framework of our 
2008 Democratic Initiatives program, we will work to 
strengthen relations with partners in the region to 
facilitate free and fair elections. 
SANDERS