VZCZCXYZ0000
RR RUEHWEB

DE RUEHTG #0206/01 0840031
ZNR UUUUU ZZH
R 250031Z MAR 09
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC 9467
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS TEGUCIGALPA 000206 
 
DEPT OF COMMERCE WASH DC 
DEPT OF AGRICULTURE USD WASH DC 
DEPT FOR USAID 
DEPT FOR PEACE CORPS 
 
DEPT FOR WHA/CEN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR EAID ETRD SCUL SNAR PGOV HO
SUBJECT:  Ambassador visits Honduran cigar capital 
 
SUMMARY 
-------- 
 
¶1. Ambassador Llorens visited Danli in El Paraiso, a poor province 
known for high-quality cigar production, February 13.  Danli is host 
to a sizable population of Cuban emigres who transplanted their 
know-how to create one of the leading export industries of the 
country.  El Paraiso is also the setting of several successful USAID 
technical assistance agricultural projects.  The Ambassador's visit 
to the region underlined the importance of both industries while 
also stressing that small entrepreneurs can successfully compete in 
the world marketplace if they have the right tools.  In addition, 
the Ambassador highlighted the role of education by making a 
donation of books to the library and garnered extensive positive 
press.  Many regional issues were raised at a luncheon with local 
and national leaders hosted by the mayor of Danli.  The Ambassador 
welcomed the opportunity to listen to local concerns and invited a 
delegation to visit Tegucigalpa and meet with him and other involved 
mission members.  Meetings with Peace Corps volunteers, radio and 
press interviews rounded off the day. 
 
Cigars 
------ 
 
¶2. The leaders of the tobacco industry gathered on the premises of 
the Tabaco de Oriente factory (owned by the Cuban-American Plasencia 
brothers) to discuss the uppermost issues on their mind:  the impact 
of the new tobacco tax imposed by the U.S. in the recent legislation 
to expand the State Children's Health Insurance Program and the 
substantial increase in the minimum wage in Honduras.  The 
Ambassador explained that the tax was being imposed on all tobacco 
products, including those made in the U.S., to finance healthcare 
for needy children.  The brunt of the tax will be borne by U.S. 
domestic producers and will not impact the competitiveness of the 
Honduran cigars as all will be equally affected.  The tobacco 
producers present were still concerned about being priced out of the 
market, especially in the midst of a worldwide economic downturn. 
The Ambassador promised to pass on their concerns. 
 
¶3. Cigar-making is an artisanal industry employing about 20,000 
people directly and 100,000 indirectly.  Most large companies like 
the Plasencia brothers integrate their operations from planting 
through making their own boxes and labels.  Ninety-nine percent of 
production is exported to the U.S. 
 
 
GREEN PEPPERS, EDUCATION AND EXPORTS 
------------------------------------- 
 
¶4. The Ambassador visited a small farm run by Henry Figueroa, a 
graduate from an USAID project aimed at disseminating technical 
assistance.  As a result he is exporting to El Salvador and the U.S. 
and employing more than 50 families from the region.  The visit to 
his farm demonstrated how he has passed on his knowledge to his 
neighbor farmers.  As a result of this ripple effect, the region is 
implementing good farming principles that not only result in 
increased yields, quality and steady export markets but also end up 
saving lives: the proper labeling of common farm poisons is a simple 
example of the power of technical advice. 
 
DRUGS, ECONOMIC DOWNTURN ARE REGIONAL ISSUES 
--------------------------------------------- 
 
¶5. The Ambassador listened to regional issues of concern at a lunch 
hosted by the Mayor of Danli and attended by Minister of Security 
Jorge Rodas and the Vice Minister of Defense Rodolfo Sevilla (who 
are originally from Danli and traveled especially from Tegucigalpa 
to attend) as well as business, civic and church leaders.  The 
problems center on drugs entering the country from Nicaragua and 
opportunities for regional economic development.  From the meat 
industry, to dairy, to coffee and tobacco; all expressed the need 
for additional support in the form of better roads, cleaner water, 
technical assistance, etc.  Security was a recurring theme, as the 
local leaders felt that much of the increase in crime was drug 
related. 
 
¶6. A project helping 300 at-risk youth entirely staffed by 
volunteers over the past 5 years is a good example of the type of 
worthwhile local initiative that could be brought to the attention 
of appropriate private / public organizations.  The Ambassador 
offered to host a delegation of leaders such as those present at the 
luncheon to a day of meetings in Tegucigalpa with the proper agency 
and sections heads. 
 
 
"TO READ A GOOD BOOK IS AN EDUCATION" 
------------------------------------- 
 
¶7. A donation of 79 reference books to the Casa de Cultura de Danli 
was covered b national press, including La Tribuna, which used the 
event to Hondurans on to read and study more as a weapon in the 
fight against crime, stating that "to read a good book is an 
education."  This was the second donation of books by the Embassy 
and the enthusiasm of its reception as well as the positive 
dividends yielded by the previous one is a testament to the good 
relationship with our Cultural Affairs Section and the importance 
attached to it by all the civil society leaders who turned out for 
the event. 
 
----------- 
PEACE CORPS 
----------- 
 
¶8. An informal meeting with the two Peace Corps volunteers in the 
area rounded out the visit.  Anne Marie Infantino and Nathan 
Mahaffey have been working in the areas of technical assistance for 
educators and environmental technology.  They highlighted problems 
similar to those raised at the luncheon - lack of basic 
infrastructure making it very difficult to achieve developmental 
goals. 
 
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COMMENT 
------- 
 
¶9. The visit to Danli was very productive as it helped to strengthen 
ties with community leaders, provided a snap shot of the area, its 
important industries and current problems.  The visit produced 
extensive positive media coverage including press, radio and 
television.  Above all, it demonstrated that the U.S. and its local 
representatives care about an often-neglected region of the country. 
 The Danli delegation's visit to Tegucigalpa should yield some 
worthwhile projects as we work on issues. 
 
LLORENS