VZCZCXRO3633
PP RUEHQU
DE RUEHPU #0451/01 1201540
ZNR UUUUU ZZH
P 301540Z APR 09
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 9887
INFO RUEHZH/HAITI COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 2299
RUEHMN/AMEMBASSY MONTEVIDEO 0371
RUEHSG/AMEMBASSY SANTIAGO 2464
RUEHMT/AMCONSUL MONTREAL 0394
RUEHQU/AMCONSUL QUEBEC 1405
RUEATRS/DEPT OF TREASURY WASHDC
RUCOWCV/CGDSEVEN MIAMI FL
RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL

UNCLAS SECTION 01 OF 04 PORT AU PRINCE 000451 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CAR, WHA/CCA, S/CRS/ INR/IAA 
SOUTHCOME ALSO FOR POLAD 
STATE PASS AID FOR LAC/CAR 
TREASURY FOR MAUREEN WAVER 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON SNAR EAID HA
SUBJECT:  HAITI: CODEL CONYERS MEETS PRESIDENT, PRIME MINISTER 
 
PORT AU PR 00000451  001.2 OF 004 
 
 
¶1.  This message is sensitive but unclassified-please protect 
accordingly. 
 
Summary 
- - - - 
 
¶2. (SBU) A Congressional Delegation led by House Judiciary Committee 
Chairman John Conyers heard President Preval and Prime Minister 
Pierre Louis make the case that Haiti is at a turning point and 
needs additional help in the form of budget support.  At the 
international donors conference in Washington April 14-15, Haiti 
will lay out its priorities of boosting road building and 
electricity and agricultural production.  The President argued that 
foreign donors should channel more assistance through the Government 
rather than through NGOs.  The Prime Minister praised HOPE 2 
legislation for creating jobs.  Her government's program focused on 
improving the lot of the Haitian people and reforming the 
dysfunctional judicial system.  Chairman Conyers and his delegation 
promised the U.S. would continue to support Haiti.  End summary. 
 
¶3. (SBU) Chairman Conyers led a congressional delegation that 
included Lamar Smith (R-TX), Jan Schakowsky (D-IL), Donna 
Christensen (D-V.I.), and Anthony Weiner (D-NY).  Accompanying the 
delegation were Bob Creamer (Schakowsky spouse), and Judiciary 
Committee Professional Staff members Keenan Keller, Sean McLaughlin, 
Cynthia Martin, and Alli Halataei.  Dr. Paul Farmer accompanied the 
delegation in their meeting with President Preval.  The Ambassador 
and PolCouns (notetaker) attended for the Embassy. 
 
President Preval:  Haiti Has Unique Opportunity 
- - - - - - - - - - - - - - - - - - - - - - - - 
 
¶4. (SBU) President Preval told the delegation in their April 6 
meeting that he agreed with former President Clinton's recent 
statement that for the first time in thirty years, Haiti has an 
opportunity for making economic progress.  The country had made 
important progress, achieving political stability and it was moving 
toward holding Senate elections.  An impartial electoral authority, 
with representation from all political parties and churches, was 
organizing these elections.  Now Haiti had to achieve economic 
progress.  The President recalled that the 2008 hurricanes had dealt 
Haiti a severe blow, causing USD 1 billion in infrastructure losses. 
 He professed not to know whether collapsed bridges were being 
rebuilt (Note:  They are, with help from USAID and the World Bank). 
Haiti deserves international support, the President declared. 
 
International Support, Debt Relief 
- - - - - - - - - - - - - - - - - - 
 
¶5. (SBU) Chairman Conyers said he was optimistic Haiti could move 
ahead with international support.  We needed a comprehensive 
strategy to meet all Haiti's challenges, which had deep historical 
roots.  International organizations gave Haiti a mere pittance and 
attached onerous conditions.  These set Haiti up for failure.  Haiti 
had an opportunity with the new U.S. Administration.  Congresswoman 
Schakowsky asked about the possibility of debt relief. 
 
¶6. (SBU) The President recounted that Haiti had worked with the IMF 
on fiscal and monetary reforms since 2006.  Haiti would soon 
complete this program, resulting in the elimination of USD 1.1 
billion in debt, which would remove USD 70 million in debt service 
per year.  Yet Haiti continued to face severe economic challenges. 
It had brought inflation down from 40 percent in 2004 to 7 percent 
before the hurricanes in the summer of 2008.  GDP growth had risen 
to 3.4 percent before the 2008 storms.  Haiti now needed to create 
jobs through public investment and supporting the private sector. 
 
Donors Should Channel More Aid through Government of Haiti 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶7. (SBU) Congressman Smith said that the omnibus bill the Congress 
had recently passed contained USD 250 million for Haiti.  He asked 
what additional funds Haiti needed.  Preval said Haiti needed a lot 
more.  Paul Farmer remarked that a large part of foreign assistance 
had gone to NGOs.  His NGO, Partners in Health, had immediately put 
this money back into the public sector.  The President conceded that 
NGOs had to play in strong role in weak states like Haiti, but he 
urged that donors increase the amount of funding given directly to 
 
PORT AU PR 00000451  002.2 OF 004 
 
 
government entities, so that Haiti would implement its own programs. 
 He had heard that donor countries and IFIs were pouring billions 
into Eastern Europe and Gaza.  It was a pity, he joked, that Haiti 
was not a former communist country, or a country at war or one that 
faced a guerrilla insurgency. 
 
The Corruption Factor 
- - - - - - - - - - - 
 
¶8. (SBU) Congressman Weiner emphasized that the members of this 
delegation all support foreign aid.  The U.S. provides a great deal 
of assistance through NGOs because of government corruption.  Preval 
acknowledged that Haiti is prey to corruption because it was a weak 
state.  But he was trying to strengthen the Haitian state and had 
introduced mechanisms for fighting corruption and smuggling.  As an 
underdeveloped country, the corruption that plagued Haiti was on a 
petty scale.  With wages so low ?-and President himself entitled to 
a pension of only USD 200 per month-? civil servants would 
inevitably accept illegal payments, because it was the only way to 
feed their families.  Preval claimed that NGOs practiced just as 
much corruption as Haitian officials.  There was less corruption in 
Haiti than in other countries.  Haiti did not deserve its bad 
reputation on corruption and security.  Foreign countries ''should 
not judge Haiti.''  In any case, his government had an unshakeable 
will to fight corruption. 
 
¶9. (SBU) Dr. Farmer remarked that he had not experienced much 
corruption in Haiti.  He had observed, however, that NGOs and church 
groups bringing aid were proliferating and operating with no 
coordination.  His organization, Partners in Health (PIH), was 
relatively ineffective for its first 15 years in Haiti, but had then 
begun partnering with the Ministry of Health.  It now treated three 
million patients per year.  ''Privatization'' was not the answer: 
the bulk of Haiti's education system was private, yet Haiti had a 
very low literacy rate.  It was better if NGOs worked with the 
government. 
 
Haiti's Aid and Development Priorities 
- - - - - - - - - - - - - - - - - - - - 
 
¶10. (SBU) Preval said Haiti would try to mobilize international aid 
for three purposes:  1) building three strategic stretches of road, 
2) building up farming in three major agricultural planes:  the 
Artibonite, Torbeck, and the (Maribalai) area of the Northeast, and 
3) increase Haiti's electrical generating capacity from 100 to 125 
MW.  Simply making the existing system more reliable would cost USD 
13 million.  The government's strategy was to pursue simple goals 
with quick, visible results that would help preserve social 
stability. 
 
Drugs 
- - - 
 
¶11. (SBU) Congresswoman Christensen asked how the U.S. could better 
help the fight the flow of drugs through Haiti, and Preval replied 
that most effective step the U.S. could take was to reduce its drug 
consumption.  Drugs corrupted Haiti's police, parliamentarians, 
officials, and judges.  Half jokingly, Preval said that if Haiti's 
did not receive more counternarcotics help, the only solution would 
be to liberalize drug laws.  Congresswoman Christensen said that the 
U.S. would work on drug demand reduction. 
 
Elections 
- - - - - 
 
¶12. (SBU) Congresswomen Christensen also expressed concern about the 
exclusion of all Fanmi Lavalas candidates from the Senate elections. 
 On the election issue, Preval said that the Provisional Electoral 
Council, Haiti's independent election authority, had simply applied 
Haitian law, which demands that a party's candidates be designated 
according to that party's internal statutes.  Fanmi Lavalas had not 
followed those rules, and in fact had nominated three candidates for 
one Senate post.  (Note:  different wings of the party nominated 
different candidates for a few of the 12 Senate seats being 
contested in the April 19 elections.  End note) 
 
¶13. (SBU) Congresswoman Schakowsky stated that the new U.S. 
Administration clearly understood the need in Haiti for investment, 
 
PORT AU PR 00000451  003.2 OF 004 
 
 
infrastructure, and bringing stability and development.  President 
Preval closed by quoting former President Clinton to the effect that 
Haiti was at a turning point:  failing to take advantage of this 
opportunity would set Haiti back 10 to 15 years. 
 
Prime Minister:  HOPE 2 Creating Jobs 
- - - - - - - - - - - - - - - - - - - 
 
¶14. (SBU) The Ambassador hosted a breakfast April 7 for the 
Congressional delegation that include Prime Minister Michele 
Pierre-Louis, Minister of Justice Joseph Exume, and Minister of 
Economy and Finance Daniel Dorsainvil.  The Prime Minister said that 
HOPE 2 trade preferences had already created 23,000 jobs, could 
create 50,000 by the end of 2009, and had the potential to create up 
to 250,000 jobs in total.  Replying to Chairman Conyers' observation 
that factories should not come in to exploit cheap Haitian labor for 
a few years and then leave, the PM said that HOPE 2 legislation 
mandated a tripartite commission including the government, 
management and labor.  Haiti needed to expand its base of investors 
to engage in areas beyond partial assembly. 
 
Haitian Government Priorities 
- - - - - - - - - - - - - - - 
 
¶15. (SBU) Chairman Conyers argued that Haiti needed a comprehensive 
plan integrating all critical issues.  The Prime Minister said that 
that every element in her government's vision aimed to benefit the 
Haitian people.  She mentioned the priorities of job creation and 
giving birth certificates and other identity papers to the 60 
percent of the Haitian population that didn't have them.  Immediate 
goals were to improve governance, fight corruption, and increase per 
capita income.  Schools and health centers had to be rebuilt, road 
rebuilt, and agriculture stimulated.  The country needed more 
doctors and teachers.  This would require increased government 
expenditures.  The government now is able to cover only 30-40 
percent of its investment budget.  The government needs to fill a 
USD 125 million budget gap this year, either through direct budget 
support or through swaps.  The Prime Minister argued that drugs are 
the most destabilizing factor for Haiti.  Traffickers sought 
political power by running for parliament and the immunity a 
legislative seat conferred.  Drug money was a major factor behind 
corruption, especially for judges. 
 
Government Policy to Encourage Investment 
- - - - - - - - - - - - - - - - - - - - - 
 
¶16. (SBU) Minister of Finance and Economy Dorsainvil added that the 
judicial system must uphold the rights of investors.  Public money 
would be very important to stimulate economic growth, build 
infrastructure, and make available industrial space for investors, 
especially outside the capital.  Even if Haiti collected 25 percent 
of GDP in taxes (Note:  it collects barely more than 10 percent. 
End note) Haiti would barely cover its current budget, which in any 
case was inadequate for the country's needs.  The one bright spot 
was the drop in inflation.  While month-on-month inflation had been 
4.5 percent Feb-Mar 2008, during the peak of the energy and food 
price inflation, continuation of current trends would leave 2009 
with an annual inflation rate of below one percent. 
 
Haiti's Judiciary 
- - - - - - - - - 
 
¶17. (SBU) Responding to Congresswoman Christensen's question about 
what the Ministry of Justice needed, Minister of Justice Exume 
explained that the three elements under his control 
--judges/prosecutors, police and the penitentiary system-- failed to 
work together properly.  Judges were corrupt.  The judiciary was 
non-functional; many judges did not even show up for work regularly. 
 The U.S. is helping Haiti re-make the judiciary, the correctional 
system, and the police.  The large number of persons held in 
pre-trial detention was an indicator of the judiciary's failure to 
bring accused persons to trial.  Although Haiti had a low 
incarceration rate --its 8,000 prison inmates were barely 1 percent 
of the population-- detention facilities were terribly overcrowded. 
There was less than one square meter of space per prisoner, whereas 
2.5 was needed. 
 
Crime is Down 
 
PORT AU PR 00000451  004.2 OF 004 
 
 
- - - - - - - 
 
¶18. (SBU) The Prime Minister pointed out that kidnapping had 
decreased.  A large-scale anti-kidnapping police operation last 
November had prevented the usual upsurge in kidnappings around 
Christmas.  There had been 260 kidnappings in December 2007, but 
only 5 in December of last year. 
 
Role of Local Government 
- - - - - - - - - - - - 
 
¶19. (SBU) Congressman Weiner suggested that Haiti allow a greater 
role for local government.  The PM conceded that the complicated 
system of local government mandated by Haiti's constitution often 
produced conflicts.  Each municipality had a mayor and two deputies, 
who often did not work well together.  Justice Minister Exume 
pointed out that there was a high level of corruption in the 
municipalities.  Minister of Economy and Finance Dorsainvil said 
that the municipalities suffered from lack of capacity, such as 
accountants.  The Ministry of Interior was training 140 accountants 
to assign to municipalities. 
 
¶20. (SBU) When Congressman Weiner suggested that high energy and 
transport costs gave an advantage to countries such as Haiti that 
lay close to their main export markets, the PM observed that the 
costs of operating were also high in countries that Haiti competed 
with.  Haiti was at a turning point and still needed U.S. 
assistance, especially of the kind provided by HOPE 2.  Chairman 
Conyers concluded by expressing ''cautious optimism'' about Haiti's 
future. 
 
¶21. This cable was not cleared by Congressman Conyers' Professional 
Staffer Keenan Keller. 
 
Sanderson