VZCZCXYZ0002
PP RUEHWEB

DE RUEHC #3140 0702254
ZNY CCCCC ZZH
P 112237Z MAR 09
FM SECSTATE WASHDC
TO RUEHMU/AMEMBASSY MANAGUA PRIORITY 0000
INFO RUEHSN/AMEMBASSY SAN SALVADOR PRIORITY 0000
RUEHUB/USINT HAVANA PRIORITY 0000

C O N F I D E N T I A L STATE 023140 
 
SIPDIS 
 
E.O. 12958: DECL: 03/10/2019 
TAGS: NU PARM PGOV PREL
SUBJECT: ASSISTANT SECRETARY SHANNON'S MARCH 2 MEETING 
WITH NICARAGUAN FOREIGN MINISTER SAMUEL SANTOS 
 
Classified By: WHA A/S Thomas A. Shannon for reasons 1.4 (b) and (d). 
 
¶1. (U) March 2, 2009; 17:00-18:15 p.m.; Washington, DC, USA. 
 
¶2. (U) Participants: 
 
U.S. 
 
Assistant Secretary Shannon (WHA) 
Deputy Assistant Secretary Robinson (WHA) 
Stephanie Pico (PM/WRA) 
Bert Kraaimoore (WHA Notetaker) 
 
Nicaragua 
 
Foreign Minister Samuel Santos 
Charge Alcides Montiel 
Counselor Fernando Coronel 
 
¶3. (C) SUMMARY:  Assistant Secretary Shannon met with 
Nicaraguan Foreign Minister Samuel Santos on March 2, 2009. 
Santos requested the meeting to discuss the status of the 
Man-Portable Air Defense System missiles (MANPADS) 
negotiations, but during the meeting also addressed the 
November municipal elections, GON plans for electoral reform, 
and Nicaragua's Millennium Challenge Corporation (MCC) 
compact.  Santos said Nicaragua wanted to sign the MANPADS 
agreement as originally proposed by the USG, without further 
negotiation.  He also presented A/S Shannon with a GON 
&white paper8 on the November elections that he said 
demonstrates that the elections were not fraudulent.  Santos 
noted the GON's willingness to work with the United States 
and the European Union on electoral reform and urged the USG 
to maintain Nicaragua's MCC compact, noting its importance to 
the Nicaraguan people.  Finally, Santos stressed that the GON 
is sincerely interested in building a constructive 
relationship with the United States and offered Nicaragua's 
services as a bridge to "those on this continent and on 
others with whom the U.S. does not have a friendly 
relationship."  End summary. 
 
Elections, Reform, and Protest 
------------------------------ 
 
¶4. (C) Santos began the discussion with a defense of the 
November 2008 municipal elections, noting that what happened 
before, on, and after November 9 was all part of a normal 
electoral period - much like what is currently taking place 
in El Salvador.  He presented a "white paper" that he stated 
provided an exhaustive defense of the conduct of the 
elections.  He stated that the GON is committed to electoral 
reform and to working with the US and the EU to achieve that 
end.  Santos stated that the GON had not been able to move 
more quickly with electoral reform due to the paralysis that 
had existed in the National Assembly (NA) until mid-January. 
He noted that the resolution of the deadlock had led to the 
election of a new Executive Directorate (JD) in the NA in 
which the Sandinista National Liberation Front (FSLN) was 
only given two of seven seats - the remaining seats going to 
other parties. (Comment: The deadlock was resolved by an 
agreement between President Daniel Ortega and Liberal 
Constitutional Party (PLC) honorary chairman Arnoldo Aleman 
to exchange PLC votes for the revocation of criminal 
convictions against Aleman.  The resulting JD gave five of 
the seven seats to the FSLN and its allies.  End Comment.) 
 
¶5.  (C) A/S Shannon said that the common perception in the 
U.S and among donor countries was that fraud had taken place 
in the November elections.  This was still a problem, Shannon 
noted, and the White Paper's promise of electoral reform 
wasn't enough to restore confidence in Nicaragua's electoral 
authority. 
 
¶6. (C) Santos lamented the violence that had occurred on 
February 28 when opposition and Sandinista supporters held 
separate marches throughout Nicaragua, but stated that the 
police had done their job to keep the peace.  He argued that 
it was the opposition that had been provocative by calling 
for marches on the day the FSLN normally commemorates the 
death of Camilo Ortega, President Ortega's brother. 
 
MANPADS Agreement 
----------------- 
 
¶7. (C) Santos stated that the GON is willing to conclude an 
agreement on the destruction of 651 MANPADS in exchange for 
approximately $5 million for the refurbishment of a Managua 
children's hospital and related medical equipment.  He said 
Nicaragua would sign the USG-proposed agreement without 
further negotiations.  A/S Shannon said we would reply to 
Nicaragua's proposal as soon as possible 
 
Nicaragua's MCC Compact 
----------------------- 
 
¶8. (C) Regarding Nicaragua's Millennium Challenge Corporation 
(MCC) compact, Santos stressed that the GON is very 
interested in seeing the compact continue and hopes that the 
MCC Board of Directors will decide at its March 11 meeting to 
reinstate the compact in its entirety.  He noted that the 
compact directly assists the Nicaraguan people, is not 
controlled by the GON, and sends a positive message regarding 
U.S. commitment to the region.  A/S Shannon noted that the 
March 11 MCC meeting will be the Secretary's first as Chair 
of the MCC Board and that it is not clear, yet, how she will 
vote on Nicaragua's compact.  He noted that there are many in 
Washington who have serious questions regarding the apparent 
GON manipulation of the vote in November and that Board 
members will expect an explanation at the March 11 meeting. 
 
The Future Relationship 
----------------------- 
 
¶9. (C) Santos stated that the GON is interested in 
constructing a new, positive relationship with the U.S. 
Santos suggested that the GON could serve as a bridge to 
"those on this continent and on others with whom the U.S. 
does not have a friendly relationship."  A/S Shannon stated 
that the U.S. is also interested in building a better 
relationship, between both governments and people, and that 
we seek a Central America that works well and can address the 
many challenges facing the region.  He thanked Santos for the 
offer to serve as a bridge, but said we could handle our own 
outreach. 
 
El Salvador 
----------- 
 
¶10. (C) The conversation turned to other regional issues and 
A/S Shannon asked about the GON's relationship with El 
Salvador and what Santos thought about the upcoming 
elections.  Santos stated that the GON has been careful to 
stay out of the presidential race, but has been speaking to 
both sides to encourage a peaceful election.  He said it is 
clear that the race is a toss up, although the most recent 
information that the GON has shows Arena with a 3 to 5% lead. 
 A/S stressed that the U.S. wants to make clear that we have 
no role in the election, that we are prepared to work with 
whoever wins, and that, should the FMLN win, we are confident 
that we will be able to work with Mauricio Funes. 
 
Cuba 
---- 
 
¶11. (C) A/S Shannon asked if Santos had heard about the day's 
events in Cuba, which saw Raul Castro purge a number of Fidel 
loyalists from his government, including FM Felipe Perez 
Roque.  Santos was very surprised by the news, especially 
about Perez Roque, but acknowledged that Perez Roque was very 
close to Fidel. 
 
G-20 and the Summit of the Americas 
----------------------------------- 
 
¶12. (C) A/S Shannon asked Santos about recent comments by a 
GON official calling the G-20 an illegitimate process. 
Santos replied that the GON's position is that the G-20 is 
too limited a forum to address the current economic crisis 
and that the process should be amplified to include all 
affected by the emergency.  He argued that the appropriate 
forum is the UN General Assembly.  A/S Shannon suggested that 
when these issues are addressed in a forum of that size, the 
usual outcome is an inability to achieve any consensus and 
that the current crisis requires immediate coordination among 
the major economies.  He stressed, however, that it is the 
position of the USG that such coordination can be based in 
reforms that address poverty and development in all 
economies.  He noted that the United States hopes that the 
five G-20 countries who will also attend the Summit of the 
Americas will carry that message to Port of Spain. 
CLINTON