VZCZCXYZ0007
OO RUEHWEB

DE RUEHPU #0603/01 1751148
ZNR UUUUU ZZH
O 241148Z JUN 09
FM AMEMBASSY PORT AU PRINCE
TO SECSTATE WASHDC IMMEDIATE 0086

UNCLAS PORT AU PRINCE 000603

SENSITIVE
SIPDIS

STATE FOR WHA/CAR AND H
H PLEASE PASS TO CODEL NELSON

E.O. 12958: N/A
TAGS: OVIP PGOV PREL HA
SUBJECT: SCENESETTER FOR CODEL NELSON'S JUNE 26 VISIT TO
HAITI

¶1. (SBU) Summary: Your delegation comes at an important point
in Haiti's democratic development.  Since you last visited in
2007, after food riots in April 2008 and a disastrous series
of hurricanes four months later, President Rene Preval and
his new Prime Minister, Michele Pierre-Louis, are working
hard to meet the basic needs of the population and repair the
nearly USD 1 billion in damage caused by the storms and
resulting flooding.  A donor conference in Washington and a
visit by Secretary Clinton in April both emphasized USG
determination to help the Haitian people overcome these
challenges and focus international attention on Haiti.
Electoral tensions and recent student demonstrations over a
controversial minimum wage bill have added an element of
uncertainty to Haiti's political and security environment.
Two rounds of national elections April 19 and June 21 to fill
12 vacant seats in the Parliament's 30-seat Senate saw low
voter turnout and isolated incidents of violence, but
improved security and organization.  End summary.

RIOTS, FLOODS ENDANGER YEARS OF PROGRESS
----------------------------------------

¶2. (SBU) Haiti is the hemisphere's poorest and most
politically troubled country.  After the collapse of the
Duvalier dictatorship in 1986, Haiti experienced a succession
of military regimes and popularly-elected governments,
interspersed with coups d'etat, the departure of an elected
President in the midst of an armed rebellion, and other
destabilizing events.  Even democratically elected leaders
sometimes resorted to political violence or failed to hold
constitutionally mandated elections.  All these factors have
exacerbated political instability and economic stagnation.
Two years after the departure of then-President Jean-Bertrand
Aristide in 2004, the presidential and legislative elections
of 2006 gave Haiti a new chance to consolidate political
stability and stimulate investment and economic growth.  With
the over 7,000 soldiers and 2,000 police of UN Stabilization
Mission in Haiti (MINUSTAH) guaranteeing the peace since
2004, gang activity and other violent crime has diminished
rapidly.

¶3. (SBU) However, rioting in April 2008, caused in part by
rising food and energy prices, brought political progress to
a halt.  While there was genuine social grievance behind the
April protests, much of the associated violence was organized
by political forces seeking to capitalize on the resulting
instability to oust then-PM Jacques-Edouard Alexis.  The
Senate voted to dismiss PM Alexis on April 12.  In the five
months following the dismissal of Alexis and his cabinet, the
Haitian government was paralyzed by political gridlock.
Parliament rejected two candidates for Prime Minister on
specious grounds.  After Preval nominated his third
candidate, Michele Pierre-Louis, Haiti was hit by a series of
hurricanes and tropical storms in August and September.  The
resulting flooding killed almost 800 people; displaced or
otherwise affected hundreds of thousands more, crippled the
country's transportation infrastructure, devastated livestock
and crops, and caused nearly USD 1 billion in damage.  In the
face of strong public pressure to confirm a government able
to respond to the hurricane damage, Parliament confirmed
Pierre-Louis on September 5.

STAGNANT ECONOMY SUFFERED A BLOW IN 2008
----------------------------------------

¶4. (SBU) The hurricanes and resulting flooding cast a
spotlight on Haiti's already dire economic situation.  About
70 percent of the Haitian population lives on less than two
dollars per day, and at least 60 percent are unemployed or
underemployed.  Continuing security challenges, inadequate
infrastructure, and an inhospitable business climate deter
investment in Haiti today.  The 2008 storms reduced that
year's growth rate to 1.3 percent, less than the 2.5 percent
population growth rate.  We have encouraged President Preval
and the Government to help Haitian and foreign investors take
maximum advantage of the second Haiti Opportunity Through
Partnership Encouragement Act (HOPE II), a trade preference
bill that allows many types of textiles manufactured in Haiti
duty-free access to U.S. markets.  That program thus far has
created about 11,000 jobs.

¶5. (SBU) Further job creation under HOPE II may be threatened
by a bill Parliament passed May 5 to nearly triple the
minimum wage.  Private sector representatives lobbied for
Preval to veto the bill on the grounds that it would make the
assembly sector unprofitable and push unemployment even
higher.  In the midst of student protests calling for Preval
to sign the bill as passed, the President returned the bill
to Parliament June 17 with a counterproposal to phase in the
minimum wage increase gradually.  Students have attacked
MINUSTAH and foreign diplomatic vehicles in their
demonstrations, which also featured anti-MINUSTAH and
anti-Preval slogans.  The fate of the revised bill in
Parliament is unclear.

RENEWED INTERNATIONAL INTEREST IN HAITI
---------------------------------------

¶6. (SBU) The food riots and hurricane damage of 2008 led the
United States and Haiti's other international donors to
redouble their efforts to achieve progress on food security
and economic growth initiatives.  Recent visits by UN
Secretary-General Ban Ki-moon and former President Bill
Clinton, the 15 UN Security Council Permanent
Representatives, and Secretary of State Hillary Rodham
Clinton have drawn attention to Haiti's plight.  In addition,
Secretary Clinton announced significant pledges of new
assistance at an April 14 donor conference in Washington,
including USD 20 million to create short-term jobs, USD 20
million more for debt relief, and USD 15 million in emergency
food aid.

CONTROVERSY LINGERS OVER PARTIAL SENATE ELECTIONS
--------------------------------------------- ----

¶7. (SBU) The partial Senate elections have been the object of
some controversy, but they have the strong backing of the
United States and the rest of the international community.
The electoral authority's decision to exclude all candidates
from Fanmi Lavalas, the political party of deposed former
President Jean-Bertrand Aristide, sparked a series of small
protests and a call from Lavalas militants to boycott the
election.  Those militants claimed victory when only 11
percent of eligible voters turned out on Election Day for the
first round on April 19, although participation in partial
legislative elections here is typically low.  Some Senators
have even threatened to refuse to seat the victorious
candidates in the Senate, although it is far from clear that
they will make good on their threat.

¶8. (SBU) The elections themselves took place in a largely
peaceful atmosphere, although acts of violence and ballot-box
theft were registered in some areas of the country.  The 29
observers deployed by the Embassy reported that voting
materials had generally been delivered to polling stations on
time, trained poll workers effectively oversaw the voting
process, and voters were generally not subjected to threats
or intimidation.  Elections in the Central Plateau, however,
were suspended after a poll worker was shot and unknown
perpetrators stole ballot boxes in some voting centers there.
 Electoral authorities have not yet fixed a date to re-run
the elections in the Center Department.

¶9. (SBU) The Embassy also deployed observers for the second
round of the election June 21.  Campaigning for the second
round was timid, in part because the government was late to
deliver promised financing to the candidates.  Pre-election
violence caused two deaths.  MINUSTAH and the Haitian
National Police improved their security procedures during the
second round, maintaining highly-visible presence throughout
the country that contributed to greater security.  The
Provisional Electoral Council corrected some organizational
problems noted in the first round.  However, Election Day
skirmishes left one dead and others injured.  Another
incident resulted in weapons charges against supporters of
another candidate who is the brother of a sitting Senator.
Voter turnout was low, approximately at the levels of the
April 19 first round.

THE ASSISTANCE PICTURE: RULE OF LAW/GOVERNANCE
--------------------------------------------- -

¶10. (U) The United States will provide over USD 287 million
in non-emergency assistance to Haiti in 2009.  Our programs
in Haiti -- financed by USAID, CDC, the Department of
Defense, and the State Department's Bureau of International
Narcotics and Law Enforcement Affairs (INL/NAS) -- seek to
implement reforms, build public institutions, improve law
enforcement and corrections capability, and help deliver
basic services.  Rule of Law programs target Haiti's justice
system by helping increase judicial authorities'
administrative, management and technical capacity.  Good
Governance programs provide technical assistance and training
to Haiti's Parliament in the areas of legislative drafting,
legal and judicial reform, and rules of procedure.  Programs
aimed at conflict mitigation address poverty and gang-related
violence through creation of short- and long-term employment
and transfer of job skills through labor-intensive
reconstruction of social and productive infrastructure.
Another program targets the Provisional Electoral Council to
help it solidify its organization and modernize the voter
registration process. Civil society programs assist a variety
of local media, regional journalist associations, and public
service associations, including those that monitor corruption.

HUMANITARIAN ASSISTANCE
-----------------------

¶11. (U) The steep rise in food prices in 2008 followed by the
four hurricanes sharply exacerbated Haiti's chronic food
insecurity, to which approximately 3 million Haitians are now
exposed.  USAID contributed USD 45 million in emergency food
aid and another USD 14 million for post-hurricane recovery.
USAID is continuing its programs to build disaster early
warning, response and mitigation capacity.  The Ambassador
officiated in November 2008 at the ground-breaking ceremony
for an Emergency Operations Center for Haiti's disaster
response agencies.  Following the hurricanes, Congress
appropriated an additional USD 96 million over three years
for the restoration of public services, repairs to public use
infrastructure, provision of income-generating activities,
asset restoration, and support to affected families.

HEALTH AND EDUCATION/ECONOMIC GROWTH
------------------------------------

¶12. (U) Basic health programs help increase access to
essential health services in 72 public sector clinics and 80
NGO clinics.  Nearly 50 percent of Haiti's population
receives at least some health services financed by the USG.
USAID-financed education programs include a new basic
education project to strengthen the Ministry of Education's
management and supervisory system, help it extend supervision
over the vast private-sector education system, and provide
scholarships.  Social assistance programs support Haiti's
most vulnerable citizens.  Economic growth programs target
trade and investment, financial sector programs for small and
medium enterprises, and programs for agricultural
productivity and marketing.  Reducing environmental
degradation is the goal of USD 25 million in programs that
focus on restoring watersheds to thwart periodic flooding.

HIV/AIDS RELIEF
---------------

¶13. (U) Haiti has the highest rate of HIV/AIDS infection in
the Western Hemisphere.  The President's Emergency Plan for
AIDS Relief (PEPFAR) will provide just short of USD 100
million in FY 2009 to prevent infections and place
HIV-positive persons into treatment.  Implemented by USAID
and CDC, PEPFAR programs target HIV/AIDS and tuberculosis,
but also benefit large parts of Haiti's health care system.
The PEPFAR program in Haiti is the largest in the hemisphere.

POLICE REFORM/CORRECTIONS
-------------------------

¶14. (U) The U.S. is the lead donor in implementing the
MINUSTAH/Haitian National Police (HNP) reform plan, which
foresees building the HNP from its current strength of 9,600
to 14,000 officers by the end of 2011.  In concert with
MINUSTAH's mandate to enhance Haiti's border security, the
U.S. Coast Guard provides training for the Haitian Coast
Guard, financed by INL/NAS.  Facility renovations, additional
boats, and a new operating base on the north coast will be
funded by INL/NAS in 2009.  The U.S. made a commitment in
2007 to assist in improving the conditions and respect for
human rights in Haiti's prison system, and remains the lead
donor to Haiti in this sector.

The Embassy at Port-au-Prince looks forwards to your visit.
TIGHE