R 082351Z JUL 09
FM AMEMBASSY TEGUCIGALPA
TO SECSTATE WASHDC 0073
INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
WHA CENTRAL AMERICAN COLLECTIVE
USINT HAVANA 
DEPT OF COMMERCE WASHDC

UNCLAS TEGUCIGALPA 000565 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV BBSR EINV HO
SUBJECT: AMCHAM VIEWS ON HONDURAN COUP 
 
¶1.  (U) SUMMARY:  On July 2, the Ambassador, Consul General, 
and the Econ section met with the executive directors of the 
Honduran AmCham to convey the USG position in the wake of the 
coup.  The Ambassador condemned the coup, informed them that 
the U.S. only recognized President Zelaya as the legitimate 
democratically elected leader of Honduras, and that we 
supported the restoration of the democratic and 
constitutional order.  The Ambassador stated that while we 
had a no-contact policy with the de facto regime, he assured 
them that the USG will continue to strongly support U.S. 
business.  American businesses had different views on the 
events of June 28, but most believed that the  removal of 
President Manuel "Mel" Zelaya was the best for Honduras and 
that enduring potential international sanctions over the next 
six-months until a new democratically elected president is 
sworn into office was a price worth paying.  They said they 
had all experienced immediate impacts on their businesses as 
a result of the political crisis and border closures (since 
lifted) and foresaw long-term repercussions.  Most disagreed 
with the USG position and expressed the hope that the U.S. 
would not abandon Honduras.  Several executives requested 
that the U.S. and international community declare support for 
the Honduran people and send a commission to Honduras.  END 
SUMMARY. 
 
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USG MESSAGE TO AMCHAM 
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¶2.  (U) On July 2, the Ambassador, Consul General, and the 
Econ section met with the executive directors of the Honduran 
AmCham to convey the USG position in the wake of the coup. 
The Ambassador condemned the coup of June 28 and forceful 
removal of President Zelaya by the  military.  The Ambassador 
stressed that the U.S. recognized Manuel Zelaya as the only 
legitimate President of Honduras.  He said we had no 
relations with the de facto regime.  He stressed that the 
U.S. was committed to restoring the constitutional and 
democratic order.  The Ambassador acknowledged that both 
sides made mistakes but expressed that negotiating a 
resolution was still possible.  The Ambassador advised the 
group of our current no contact policy with government 
officials, but assured them that the Embassy will stay in 
close touch with the U.S. business community, and maintain an 
official presence.  The CG acknowledged that Hondurans needed 
to travel to the U.S. to attend trade shows and meetings and 
confirmed that there would be no change in our visa policy 
for private individuals. 
 
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POLITICAL OPINIONS 
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¶3.  (U) The U.S. company executives (most of them Honduran 
nationals) expressed different opinions about the June 28 
forcible removal and exile of President Zelaya.  Some agreed 
there was a coup but said Zelaya violated the law and needed 
to be held accountable.  Others said there was no coup, 
rather Zelaya's removal was legal and necessary to restore 
stability.  One person said that the removal of Zelaya was 
conducted with dignity, since he was sent to Costa Rica and 
not placed in a Honduran jail. 
 
¶4.  (U) Various members criticized the way Zelaya was 
removed; but there was no alternative to removing him from 
office.  The Congress had to do something or Honduras would 
have ended up like Venezuela.  According to them, it is 
preferable to endure six months of sanctions rather than to 
be under a Zelaya regime for 20 years.  Additionally, some 
believed that the actions taken on June 28 mitigated 
potential future civil unrest and loss of Honduran lives. 
 
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WORRIES ABOUT THE ECONOMIC FUTURE 
--------------------------------- 
 
¶5.  (U) Various U.S. executives expressed concern about the 
impact of recent events on the economic future of Honduras. 
They have already experienced immediate impacts on their 
businesses and foresee long-term repercussions. 
 
¶6.  (SBU) Citibank and BAC-Bamer (GE) both said that they are 
seeing immediate effects on investment and cash flows. 
Investments are down, people are transferring money out of 
the banks, and the rate of decline of economic activity is 
accelerating.  Both bankers said they are concerned that 
Honduras' image is tainted and that international investment 
will continue to decrease in the near future.  They fear that 
the lack of support from the international community will 
hinder economic development and hoped for a short-term 
 
agreement to stem the hemorrhaging. 
 
¶7.  (SBU) The General Manager of the Marriott had to close 
its hotel in Tegucigalpa because of its proximity to the 
Presidential Palace, where protests have been centered the 
past week.  It is concerned that USG advice for AmCits to 
defer travel to Honduras will represent potential future loss 
of revenue once the hotel reopens.  The representative 
expressed that Marriott will recuperate in the long-term, but 
is unsure how long it will take. 
 
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BORDER CLOSURE 
-------------- 
 
¶8.  (U) AmCham Honduras has been in communication with the 
other Central American AmChams regarding the border closure 
following a decision by SICA (since lifted).  They estimated 
that the closure represented a major economic loss to the 
entire region. 
 
¶9.  (SBU) Crowley Maritime Corporation moves cargo bound for 
Honduras, Nicaragua, Guatemala, and El Salvador through 
Puerto Cortes and 100 percent of its Nicaragua-bound cargo 
passes through Honduras.  Because Puerto Cortes is a regional 
hub, the majority of Crowley's clients are U.S. companies 
that invest or sub-contract to the export-processing 
operations (maquilas).  The Crowley representative stated 
that they had experienced more complications during the past 
three years than in the previous 20, including 
double-taxation (now resolved), customs clearance 
deficiencies, and now a coup that triggered border closures. 
They are hoping that the USG will show support and ensure 
that the CAFTA-DR agreement is enforced. 
 
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PLEA FOR USG SUPPORT 
-------------------- 
 
¶10.  (U) Over the past three days, the AmCham has received 
many calls and emails from the U.S. business community in 
Honduras.  Many oppose the U.S. policy approach in support of 
Zelaya.  Companies are reporting that measures need to be 
taken to protect U.S. investments and they are concerned 
about capital flight.  Executives reported concern that local 
employees may turn against U.S. companies in solidarity with 
Zelaya if he returns. 
LLORENS