VZCZCXYZ0000
PP RUEHWEB

DE RUEHBO #3433/01 2591914
ZNY CCCCC ZZH
P 151914Z SEP 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 4679
INFO RUEHBR/AMEMBASSY BRASILIA PRIORITY 8375
RUEHCV/AMEMBASSY CARACAS PRIORITY 0990
RUEHPE/AMEMBASSY LIMA PRIORITY 6550
RUEHZP/AMEMBASSY PANAMA PRIORITY 2305
RUEHQT/AMEMBASSY QUITO PRIORITY 7234
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RHMFIUU/FBI WASHINGTON DC PRIORITY
RHMFISS/CDR USSOUTHCOM MIAMI FL PRIORITY

C O N F I D E N T I A L BOGOTA 003433 

SIPDIS 

E.O. 12958: DECL: 09/11/2018 
TAGS: PREL ETRD PTER ENRG SNAR MARR KJUS CO
SUBJECT: VISIT OF SENATOR CHUCK HAGEL TO BOGOTA AND 
CARTAGENA -- AUGUST 28-31, 2008 

Classified By: CDA Brian A. Nichols 
Reasons 1.4 (b and d) 

¶1.  (C) Summary.  Senator Chuck Hagel, Southcom Deputy 
Commander General Glen Spears and delegation visited Bogota 
and Cartagena from August 28-31, 2008.  In Bogota, Senator 
Hagel, the Ambassador and delegation met with President 
Alvaro Uribe, who urged support for the U.S.-Colombia Trade 
Promotion Act, and raised concerns over Venezuela, Ecuador, 
and Panama.  The Senator also met with Finance Minister Oscar 
Zuluaga, Prosecutor General Mario Iguaran, and key business 
leaders in Bogota to discuss the country's economic outlook. 
In Cartagena, the Senator met with the mayor and received a 
DEA briefing on counterdrug efforts, toured a port security 
program co-sponsored by the USG and a USAID-sponsored service 
center for demobilized ex-combatants.  End Summary. 

URIBE PUSHES FOR CTPA 
--------------------- 
¶2.  (C) In an August 29 meeting with President Uribe and 
Foreign Minister Jaime Bermudez, President Uribe told Senator 
Hagel's delegation and Ambassador Brownfield that he 
understood the U.S. political situation that stymied the 
passage of the U.S.-Colombia Trade Promotion Act (CTPA). 
Uribe urged that Hagel try to convince Speaker of the House 
Nancy Pelosi to allow the agreement to come to the floor for 
a vote during the November 2008 lame duck session.  Uribe 
underscored the need for Colombia to attract foreign 
investment so it can better confront terrorists and illicit 
crops by offering alternative development and economic 
growth.  He said Colombia had addressed the labor-concerns 
voiced by the Democrats; Uribe had ratified both the legality 
of strikes bill and cooperative bills into law -- enhancing 
Colombia's labor rights regime.  Uribe noted he would travel 
with a large delegation to the U.S. Congress during the three 
week session in September, urging passage of the CTPA this 
year.  Uribe told Hagel that waiting until a new 
administration took office to bring the CTPA to a vote would 
require the Government of Colombia (GOC) to re-educate new 
congressmen on the issue. 

REGIONAL STRATEGIC INTERESTS 
---------------------------- 
¶3.  (C) Uribe noted the strategic political interests the USG 
had in maintaining a strong relationship with Colombia, one 
of its strongest allies in the region, particularly regarding 
foreign investment and open markets.  He noted with the CTPA 
the United States had the opportunity to "develop an economic 
and diplomatic front" to counter the anti-democratic, 
anti-capitalistic governments of Chavez, Correa and Morales. 
He noted that Chavez recently expropriated two important 
international banks, signaling an increase in his statist 
approach.  Uribe said Chavez was more worrisome to him than 
Correa, as Correa lacked petroleum resources and would suffer 
more from the economic decline associated with 
anti-international investment policies.  Uribe noted that 
eventually -- perhaps not in the next election, but the 
following -- Correa would face electoral difficulties due to 
his economic policies. 

CONCERN OVER PANAMA 
------------------- 
¶4.  (C)  Uribe told Hagel he was increasingly concerned over 
Panama's political future.  He said President Martin 
Torrijos' relationship with the U.S. and international 
investment was good, but noted that leading members of 
Torrijos' Democratic Revolutionary Party (PRD), including its
likely presidential candidate, would likely hold views 
adverse to U.S. and Colombian interests.  If the USG was not 
careful with the fate of Panama's Free Trade Agreement, it 
could face an unfriendly president in Panama, creating a 
hostile climate for U.S. investment. 

ENERGY SECTOR REPRESENTATIVES:  OUTLOOK GOOD 
-------------------------------------------- 
¶5.  (SBU) Representatives from Exxon-Mobil, Chevron, 
Occidental Petroleum, and Ecopetrol jointly briefed Senator 
Hagel and General Spears on the positive state of the 
hydrocarbons sector in Colombia.  All agreed that improved 
security and pro-investment policies had helped spur a 
significant increase in investment since 2002.  Oxy Colombia 

President David Stangor praised GOC efforts to improve 
security and support social programs with the community, but 
noted that transparency of royalty investment at the 
municipal and departmental levels remained weak.  Exxon-Mobil 
Government Affairs Director Jose Noguera said his company was 
optimistic about natural gas exploration, but watchful of 
potential new regulations that might complicate marketing of 
gas.  Ecopetrol Vice President Alvaro Vargas said his company 
planned to double exploration and production to 1 million 
barrels per day by 2015 as well as increase biofuels 
production to 100,000 tons per year by 2009.  Chevron 
Colombia President David Bantz noted that Chevron had 
invested $300 million in Colombia since 2005, and grown its 
gas production 50 percent.  All four representatives told 
Hagel their biggest concern was the continuance of political 
stability and contract sanctity; they remained confident 
pro-investment conditions would prevail for the foreseeable 
future. 

U.S. COMPANIES:  TRADE PROMOTION AGREEMENT KEY 
--------------------------------------------- - 
¶6.  (SBU)  In a luncheon with the Board of Directors of the 
Council of American Enterprises in Colombia (CEA), U.S.
company representatives stressed the importance of U.S. 
Congressional approval of the Colombia Trade Promotion 
Agreement (CTPA).  Hagel described the challenges of 
achieving passage during the remainder of the current 
Congress, but expressed optimism that there still existed 
sufficient time for consideration.  The Senator pointed out 
the various challenges facing the United States around the 
world and stated that the CTPA was important for the U.S. and 
Colombia for political, economic, and strategic reasons.  He 
encouraged U.S.-based senior leadership of the major U.S. 
companies in Colombia to engage their members of Congress and 
emphasize the importance of the CTPA to their businesses and 
workers. 

PROSECUTOR GENERAL: HUMAN RIGHTS PROGRESS 
----------------------------------------- 
¶7.  (SBU) Prosecutor General Iguaran thanked Hagel and the 
DCM for the USG's continued support of Colombia's justice 
system, especially the new accusatory system, and the Justice 
and Peace and Human Rights Units.  Human Rights Unit chief 
Sandra Castro briefed the delegation on recent convictions in 
human rights cases.  Senator Hagel encouraged Iguaran to 
accompany President Uribe to Washington to lobby for the 
passage of the CTPA, and to travel to Washington after U.S. 
elections to brief officials in the new Administration. 
Iguaran, responding to a question from General Spears, told 
the group that information collected from the Raul Reyes 
computers had been useful in advancing investigations of the 
FARC.

FINANCE MINISTER:  SECURITY AND A STRONG ECONOMY 
--------------------------------------------- --- 
¶8.  (SBU) In a private meeting with the delegation, Finance 
Minister Oscar Zuluaga told Hagel and the DCM that, despite 
turmoil in world markets, rising inflation and the steep 
appreciation of the Colombian Peso, the long-term outlook for 
Colombia's economy was bright.  Zuluaga highlighted the 
improved security situation and economic liberalization under 
President Uribe as key to Colombia's strong economic 
performance since 2002.  Zuluaga identified the energy and 
infrastructure sectors as prime investment opportunities.  He 
cited the post-Uribe political outlook as the top risk to the 
economy, insisting that strong leadership must continue to 
make economic reforms and security gains permanent.  Zuluaga
added that the worsening economic situation in Venezuela, 
Ecuador, and Bolivia could hurt Colombia's export sector.  He 
emphasized that conclusion of the CTPA was critical to 
promoting investment, increasing competitiveness and 
achieving investment grade status for Colombian national 
debt.  Senator Hagel reiterated his support for the CTPA and 
noted the political and economic implications of continued 
delay. 

CARTAGENA:  DRUGS AND PORT SECURITY 
----------------------------------- 
¶9.  (SBU) On August 30, the Ambassador and Hagel delegation 
visited the Embassy Office in Cartagena, and received DEA and 
Colombian Navy briefings on drug interdiction efforts and 

successes in the region.  Hagel also visited the Cartagena 
Seaport, one of eight participating Colombian seaports in the 
USG-sponsored Port Security Program aimed at deterring and 
preventing the shipment of illicit narcotics.  The Senator 
received an orientation brief and walk-through of ongoing 
Colombian National Police anti-narcotics inspections of 
various international cargo, a tour of the port operations 
center, and brief on Port security and expansion plans that 
would more than double the port's capacity. 

¶10. (SBU) Cartagena Mayor Judith Pinedo told Hagel, the 
Ambassador, and delegation that Cartagena was set to take 
advantage of the CTPA, enhanced security, and tourism in 
order to tackle the city's poverty problem.  She asked for 
assistance with "crazy" World Bank regulations.  Pinedo said 
Cartagena would only be able to improve the lives of its 
citizens -- including many displaced as a result of 
Colombia's armed conflict -- through the benefits of free 
trade and tourism.   Pinedo said Cartagena was trying to 
expand public transport and plan for infrastructure 
development (including water and sewer) to support up to a 
million more residents expected to relocate to the city in 
coming decades.  She lamented "crazy" World Bank regulations 
that forced the city to accept the lowest bids on contracts 
on key infrastructure--terms that led companies to game the 
system, provide poor quality work and later inevitable 
demands for contract re-negotiation.  Hagel asked the mayor 
for details, and said he would be willing to call Bank 
President Robert Zoellick to discuss the problems.

DEMOBILIZED COMBATANTS 
---------------------- 
¶11. (SBU) Senator Hagel's delegation, accompanied by the 
Ambassador, also visited a USAID-supported service center for 
demobilized ex-combatants from Colombia's illegal armed 
groups to learn about the scope, advances and challenges of 
demobilization and reintegration.  The Senator had the 
opportunity to meet with a group of the center's 
beneficiaries, including four ex-paramilitaries and one 
ex-FARC member.  The Cartagena service center serves 669 
demobilized ex-combatants--621 collectively demobilized and 
48 deserters.  The Center's director explained that the 
Centers were established to provide access to health care, 
formal education, vocational training, income generation 
opportunities, and psychological assistance to ex-combatants 
and their families.  Senator Hagel told the group that the 
programs to bring former-combatants back into society were 
worthy of continued USG support and represented an example 
for other countries facing post-conflict reintegration 
problems to follow. 

NICHOLS