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FM AMEMBASSY MANAGUA
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INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
RUMIAAA/CDR USSOUTHCOM MIAMI FL//J2/J3/J5// PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000105 
 
SIPDIS 
 
DEPT FOR KRAAIMOORE 
 
E.O. 12958: DECL: 01/21/2019 
TAGS: PGOV PHUM NU
SUBJECT: AMBASSADOR RAAS TRIP EYE OPENING 
 
REF: A. 08 MANAGUA 1514 
     ¶B. 08 MANAGUA 1149 
 
Classified By: Ambassador Robert J. Callahan for reasons 1.4 (b) & (d) 
 
¶1. (C) SUMMARY: On January 15 and 16, Ambassador Robert J. 
Callahan traveled with Defense Attache (DAO) and EmbOff to 
Nicaragua's South Atlantic Autonomous Region (RAAS) to meet 
with political, military, religious and community leaders. 
The ambassador visited Corn Island, Bluefields and El Bluff 
during the two day trip.  Regional government leaders 
expressed their growing frustration with the central 
government's overt control of their budgets, while 
Rama-Creole government leaders told the ambassador about 
their ongoing struggles to receive title over their ancestral 
lands.  The eye-opening trip provided the ambassador with a 
deeper understanding of the key people and issues that drive 
this dynamic and complex region.  END SUMMARY 
 
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ON CORN ISLAND 
-------------- 
 
¶2. (C)  On January 15, Ambassador Callahan flew to Corn 
Island, his first trip to the tropical island since his 
arrival to Nicaragua.  (NOTE: Corn Island is strategically 
located off the Atlantic coast of Nicaragua in the main 
pathway of most Atlantic narco-traffic routes between 
Columbia and Mexico. END NOTE)  While on the island, he 
visited the Nicaraguan Navy's new barracks, built with USG 
funds.  He also traveled to the Corn Island Nicaraguan 
National Police (NNP) station for brief facility tour.  Then 
he called on Mr. George Morgan, the president of Pasenic 
seafood, one of the largest employers on the island.  Mr. 
Morgan, who was born on Corn Island, fled Nicaragua during 
the Sandinista revolution and rebuilt his fishing business in 
Hawaii before returning to his native island following the 
return of democracy to Nicaragua. 
 
¶3. (C) The ambassador traveled to the Corn Island City Hall 
to meet with outgoing Mayor Alex Dixon (see Reftel A).  Mayor 
Dixon reviewed many of the challenges that the municipal 
government faces, including limited resources from the 
central government, and gave his frank assessment of incoming 
Sandinista mayor Cleveland Webster.  Mayor Dixon told the 
ambassador that he intended to run in March 2010 for a seat 
in the RAAS Regional Council.  The ambassador than hosted a 
lunch with representatives from the Nicaraguan Navy and NNP 
at the Casa Canada hotel.  He ended his brief four-hour visit 
to Corn Island with a press interview at the airport. 
 
-------------------------------------- 
BLUEFIELDS REGIONAL GOVERNMENT PINCHED 
-------------------------------------- 
 
¶4. (C) The ambassador arrived in Bluefields that afternoon to 
hold meetings with the Nicaraguan Navy, local politicians, 
community leaders and members of the clergy.  He first toured 
the Nicaraguan Navy headquarters in Bluefields, including the 
new pier and boat repair facilities financed through USG 
funds.  His first political meeting was with the popular 
outgoing mayor, Luis Gutierrez.  Next the ambassador met with 
President Lourdes Gibbs and members of the executive board of 
the RAAS Regional Council, which is responsible for 
establishing development projects and controlling the natural 
resources of the RAAS.  Gibbs expressed her frustration with 
the central government,s unfair control of their budget by 
pointing out that the RAAS has more territory and almost 50 
percent more people than the North Atlantic Autonomous Region 
(RAAN), but because it is an area controlled by Liberals, it 
receives only about one-third of the RAAN's budget (see 
Reftel A). 
 
¶5. (C) The ambassador met with RAAS Regional Governor Yadira 
Flores, who described the budgetary pressures she was under 
to execute a development agenda without adequate resources. 
Flores explained that central government funds barely meet 
the operational costs of the regional government and that 
most of the funds she had for development projects came 
directly from the Danish Embassy.  The ambassador told Flores 
that the Embassy was reviewing all of its assistance to 
Nicaragua, and would explore ways that it could direct aid 
specifically to democratic local governments, such as the 
RAAS Regional Council. 
 
------------------------------------------ 
RAMA-CREOLE GOVERNMENT AGAINST GREAT ODDS 
------------------------------------------ 
 
¶6. (C) The ambassador traveled to the Rama-Creole Territorial 
Government headquarters to meet with President Santiago 
Thomas and representatives from Rama Cay and Monkey Point. 
After showing the ambassador maps of the vast Rama-Creole 
territory and the increasing numbers of Pacific Coast 
imigrants who are illegally occupying Rama lands, Thomas 
explained that the central government refused to move forward 
on its obligations according to Law 445 to demarcate and 
title ancestral lands to the Rama-Creole people (see Reftel 
B).  The GON was forcing a settlement with the Rama-Creole 
government to give away the rights to millions of acres of 
western land in exchange for a promise to eventually complete 
the demarcation process.  Monkey Point Community President 
Pearl Watson told the ambassador that the Rama-Creole people 
were not asking squatters to leave their lands or pay for 
illegally occupying them.  Instead the Rama-Creole people 
would give title to squatters with the condition that they 
could not sell the land, only pass it down to their heirs. 
The ambassador remarked that situation reminded him of the 
19th century treatment of Native Americans in the United 
States. 
 
----------------- 
ECUMENICAL DINNER 
----------------- 
 
¶7. (C) That evening the ambassador hosted an ecumenical 
dinner with church leaders Bishop Oliver Hodgson (Moravian), 
Father Flavio Murillo (Catholic), and Reverend George Porter 
(Anglican), who told him about the religious environment of 
the RAAS and the respective histories of their congregations. 
 Each leader shared his perspective on the problems facing 
the RAAS, especially his concerns about rising unemployment, 
neglect by the central government, and drug trafficking. 
 
--------------------------------------------- ----- 
LAST DAY - PRESS CONFERENCE, NAVY & HOSPITAL TOURS 
--------------------------------------------- ----- 
 
¶8. (C) On January 16, the ambassador held a morning press 
conference with local members of the press.  After, he 
traveled to El Bluff with members of the Nicaraguan Navy to 
tour their naval base and review the new, reinforced Navy 
warehouse roof financed through USG funds.  Following this, 
he visited a successful USAID project at the RAAS Regional 
Hospital in Bluefields that has dramatically reduced infant 
mortality rates. 
 
------- 
COMMENT 
------- 
 
¶9. (C) The two-day, whirlwind trip to the RAAS provided the 
ambassador with a close-up look at many of the key players 
and issues of the region.  In conversations with political 
and community leaders, the ambassador stressed the ongoing 
commitment of the United States to help in the region. 
CALLAHAN