O 022220Z JUL 08
FM AMEMBASSY MANAGUA
TO SECSTATE WASHDC IMMEDIATE 2833
INFO WHA CENTRAL AMERICAN COLLECTIVE IMMEDIATE
AMEMBASSY CARACAS IMMEDIATE 
AMEMBASSY LA PAZ IMMEDIATE 
AMEMBASSY QUITO IMMEDIATE 
CIA WASHDC IMMEDIATE
NSC WASHINGTON DC IMMEDIATE
DIA WASHINGTON DC IMMEDIATE
USS KEARSARGE  IMMEDIATE
COMPHIBRON EIGHT IMMEDIATE
CDR USSOUTHCOM MIAMI FL//J2,J3,J5 IMMEDIATE

C O N F I D E N T I A L MANAGUA 000848 
 
DEPT FOR WHA/CEN NYMAN AND GREENE 
DEPT FOR INR/IAA EMERSON 
DEPT FOR USOAS 
NSC FOR ALVARADO 
USS KEARSARGE FOR COMMODORE PONDS 
 
E.O. 12958: DECL: 07/01/2018 
TAGS: PHUM PGOV NU
SUBJECT: NICARAGUA: ORTEGA USES THE "S" WORD 
 
REF: A. 2008 MANAGUA 573 
     ¶B. 2008 MANAGUA 350 
 
Classified By: Ambassador Paul Trivelli, Reasons 1.4 (b and d) 
 
¶1.     (C) SUMMARY: The week of June 23 saw three 
developments that may indicate a troubling and explicit 
ideological shift by the government of Nicaragua (GON). 
President Daniel Ortega of the Sandinista National Liberation 
Front (FSLN), issued a decree granting his wife, Rosario 
Murillo, control over all social programs and institutions of 
the State, including the Social Security Institute (INSS), 
making her, in effect, what the press has termed 
"co-president." Ortega's son, Juan Carlos, issued a rare open 
letter to the youth of Nicaragua calling for the end of the 
political pact between Ortega and the ex-president and 
convict Arnoldo Aleman, characterizing it as a "dinosaur", 
and encouraging youth to seize power through the Citizen 
Power Councils (CPCs). Finally, Ortega publicly announced his 
intention to return the country to "socialism." These three 
incidents suggest further consolidation of Ortega's personal 
power via "direct democracy."  END SUMMARY 
 
Co-Presidenta 
- - - - - - - - - - - 
¶2.    (U) On Friday June 13, 2008 Presidential Decree No. 
26-2008 appeared in "La Gaceta" granting Ortega's wife, 
Rosario Murillo, control over all social programs and 
institutions of the State as well as the Social Security 
Institute (INSS). The Nicaraguan press subsequently dubbed 
Murillo "co-president," given Ortega's statement that fifty 
percent of the power of the government resides in his wife's 
management of public policy. Murillo is also the coordinator 
for the Citizen Power Councils(REF A). Through this decree, 
Ortega essentially fused management of the CPCs with 
government social programs, further blurring the distinction 
between government, CPCs and the party. 
 
Citizen Power instead of the Pacto 
- - - - - - - - - - - - - - - - - 
¶3.  (C) On June 23, Juan Carlos Ortega Murillo, son of the 
presidential duo, issued a rare open letter to the Nicaraguan 
youth, published on the presidential website, in which he 
pronounced the pact ("el pacto") between the Constitutional 
Liberal Party (PLC) and the Sandinista National Liberation 
Front (FSLN) a "dinosaur" whose usefulness had come to an 
end. The missive, entitled "Rebellious Youth" called on youth 
to reject "el pacto" (REF B), terming it  a relic of "an 
antiquated representative democracy," to be replaced by the 
CPCs (REF A). This formulation represents the first open hint 
by the Ortega administration that collaboration with the PLC 
may be nearing an end.  The transcript of the letter as well 
as a short biography of Juan Carlos have been sent to WHA/CEN. 
 
Deja Vu? Ortega Espouses Socialism 
- - - - - - - - - - - - - - - 
¶4.    (U) As if to drive home the true meaning of both his 
son's words and the decree, in a speech Monday, June 23, 
Ortega told FSLN supporters that "socialism" was the only way 
Nicaragua can solve its social problems and "confront savage 
capitalism." To carry out what he termed "a 
political-ideological project", Ortega named Carlos Fonseca 
Teran, the son of FSLN founder Carlos Fonseca Amador as the 
political secretary of the FSLN in the department of Leon. 
Notably, in the same speech, Ortega again denounced the media 
for criticizing his administration. He assserted that the 
Revolution "is exposed to insults and slander of all kinds" 
and that people should not be fooled by what they hear or see 
in the press as the media represents the "oligarchy." Despite 
his regular criticism of market-based economies, Ortega's 
Monday night speech was the first time during this 
administration he has openly espoused socialism for 
Nicaragua. 
 
Comment 
- - - - - - - - - - - - - - - 
¶5.    (C) Given the control that Rosario Murillo already 
holds over the CPCs and other aspects of day-to-day 
governmental affairs, her new administrative position and her 
son's articulation of FSLN re-evaluation of the "pacto", may 
foreshadow a potential future shift away from the 
power-sharing agreement with the PLC towards more direct 
control of government through the CPC's.  As municipal 
elections in November loom, and with three of the main rival 
democratic parties now eliminated, the "pacto" may indeed 
become ever more irrelevant to Ortega. These three incidents 
suggest further consolidation of Ortega's personal power via 
"direct democracy." 
 
 
TRIVELLI