VZCZCXYZ0002
RR RUEHWEB

DE RUEHMU #0673/01 1442145
ZNY CCCCC ZZH
R 232145Z MAY 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2660
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHUB/USINT HAVANA 0045

C O N F I D E N T I A L MANAGUA 000673 
 
SIPDIS 
 
STATE FOR WHA/CCA AND WHA/CEN 
 
E.O. 12958: DECL: 05/22/2018 
TAGS: ETRD ETTC PREL CU NU
SUBJECT: NICARAGUA AND SUSPENSION OF TITLE III OF THE 
LIBERTAD ACT 
 
REF: STATE 52541 
 
Classified By: Amb. Paul Trivelli for reason 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.  Cuban Vice President Laje attended 
Nicaragua's Food Security Summit on May 7.  140 Cuban doctors 
are now working in Nicaragua.  Cuba provides Nicaraguans with 
scholarships and medical treatment in Havana.  Since Fidel's 
departure from power, the Nicaragua-Cuba relationship has 
entered a holding pattern.  As events unfold in Cuba, it is 
unclear how this relationship will change.  Post continues to 
believe that failure to waive Title III of the Libertad Act 
for Nicaragua would allow Ortega to trumpet U.S. "hostility" 
toward his government.  Post recommends another waiver for 
Nicaragua.  End Summary. 
 
Bilateral Relationship 
---------------------- 

¶2. (C) While the Cuba-Nicaragua relationship has intensified 
since President Ortega took office in January 2007, Fidel's 
withdrawal from power seems to have put the relationship into 
a holding pattern.  The DAO reports that the Nicaraguan 
Defense Attache to Cuba is no longer a resident diplomat and 
only travels to Cuba 3-4 times a year, because of the lack of 
training or exchanges.  We continue to 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 since 2006.  Two-way 
trade between Nicaragua and Cuba totaled USD 550,000 in 2005. 
 It reached USD 6.9 million in 2007, 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, 2007 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) Cuban Vice-president Laje attended Nicaragua's Food 
Security and Sovereignty Summit on May 7.  Raul Castro has 
been invited to participate in the July 19 Sandinista 
Revolution Day celebrations, but we have no confirmation on 
his attendance.  Ortega visited Cuba in December 2007 to 
attend the PetroCaribe Summit, and on March 19-20 and April 
18-22 of this year for meetings. 
 
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 traditionally used 
Cuban trainers and Cuban facilities for both military and 
civilian educations during the 1980s, under Ortega's first 
term.  Despite the current Ortega administration's closer 
relationship with Cuba, various sources report that the 
Nicaraguan military has received little if any 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 Cubans 
augmented this contingent after the hurricane to assist with 
post-recovery operations, and remained.  Cuba now rotates 
medical staff in and out of the Atlantic Coast region, 
keeping the overall level at 140.  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.  In 
2007, in a program called Operacion Milagro, over 500 
Nicaraguans were transported to Venezuela and Cuba for 
surgery, primarily for cataracts, paid for by Venezuela.  As 
part of Operacion Milagro, the EU is financing the 
construction of three ophthalmology centers on the Atlantic 
coast.  Cuban doctors will support and staff these centers. 
Future operations will be conducted through these clinics, 
which may decrease the number of patients flying to Cuba and 
Venezuela.  It will also result in an increase in Cuban 
medical professionals in urban areas on the Atlantic Coast. 
 
Comment 
------- 

¶8. (C) Both Cuba and Nicaragua have expressed a desire to 
continue a strong 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. 
TRIVELLI