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RUEHUB/USINT HAVANA PRIORITY 0268
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RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC PRIORITY 1159
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
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UNCLAS SECTION 01 OF 17 TEGUCIGALPA 000741 
 
SIPDIS 
 
AID FOR WASHINGTON DEBBIE KENNEDY, TED LANDAU, DONNIE 
HARRINGTON; 
STATE FOR INL-MAYRA AHERN AND WHA/CEN 
EXIM FOR MICHELE WILKINS; OPIC FOR GERMAK; 
TREASURY FOR NANCY LEE, LARRY MCDONALD, SARA SENICH, MIKE 
RUFFNER, 
DEBRA VON KOCH, LAURA TRIMBLE; 
DHS/ICE FOR EDWARD DOLAN, JUAN ESTRADA, DAVID MAXWELL, 
MICHAEL 
FLANAGAN; 
 
E.O. 12958: N/A 
TAGS: ECON EAID EAGR ETRD MASS OEXC PGOV PREL SCUL
SNAR, HO 
SUBJECT: TFH01: STATUS OF USG ASSISTANCE TO HONDURAS 
 
TEGUCIGALP 00000741  001.2 OF 017 
 
 
¶1. (U) SUMMARY:  Following the events of June 28 the United 
States Government has halted communications with high-level 
GOH officials and has been steadily suspending programs with 
the GOH in compliance with USG policy guidance.  The 
following is a summary of the current status of actions taken 
by the agencies of the United States Government in Honduras. 
Also included are Comments and/or Recommendations for future 
actions. 
 
UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) 
-------------------------------------- 
 
Status: Case by Case or Active 
 
¶2. (U) Description:  If events of June 28 are determined to 
be a military coup or decree, the USG would be legally 
required by Section 7008 of the Foreign Assistance Act to 
suspend certain assistance programs.  Section 7008 restricts 
direct assistance to the Government of Honduras but does not 
apply to assistance to promote democratic elections or public 
participation in democratic processes.  It also does not 
restrict humanitarian assistance or assistance provided to 
the people of the country.  While the question is pending, 
the USG has rightly suspended, as a policy matter as opposed 
to a legal requirement, assistance programs that would be 
suspended if Section 7008 were applicable and several 
development assistance programs that provide support to the 
Government of Honduras have been halted.  These programs 
include direct or indirect USAID support to GOH ministries in 
basic education, environment, and family planning. 
Assistance suspended by USAID so far totals $4.15 million. 
End summary. 
 
¶3. (U) Programs covered by notwithstanding language, covering 
disease prevention including HIV/AIDS activities, child 
survival, disaster assistance and the provision of food aid 
have not been suspended.  In addition, assistance to 
facilitate free and fair elections is still being provided. 
Each of these can be protected under Section 7008 and/or with 
notwithstanding authorities. 
 
¶4. (U) Comments and/or Recommendations:  The recommendation 
is that the USG pursue a gradual approach similar to peeling 
away the many layers of an onion in suspending assistance 
activities that ultimately benefit the people of Honduras. 
Most actions taken so far have been partial suspensions, that 
is, the suspension of those activities specifically providing 
technical and financial support to GOH ministries.  Full 
suspensions of all activities in economic growth, 
environment, and education would include a broader range of 
activities including those with no direct links to the 
government.  Suspensions of this nature would involve more 
funding and have greater impact. 
 
¶5. (U) Direct/Indirect Assistance to the Government Not 
covered by Notwithstanding.  Thus far the approach has been 
to focus on direct and indirect assistance to the government, 
which is not protected by notwithstanding language.  The 
sectors most affected by this are education and family 
planning, though environment has also been affected.  While 
most of these have been partial suspensions, full suspensions 
of programs directly implemented by the government were 
made on 7/22 in education and on 7/28 in family planning. 
Continuation along this course would mean suspension of more 
family planning and education programs.  Please note that one 
of these programs (CETT) is a regional teacher training 
program with a public university, whose suspension would 
affect several countries in the region. 
 
TEGUCIGALP 00000741  002.2 OF 017 
 
 
 
¶6. (U) Notwithstanding. (Active) Even with notwithstanding 
authorities, the USG has flexibility in defining humanitarian 
and democracy/governance activities and aspects of each 
portfolio could be reduced.  These suspensions, however, 
would come at a high cost and could lead to suspensions of 
high-priority programs including direct health care to 
mothers and children in poor areas and support for free and 
fair elections.  All food aid programs are covered by 
notwithstanding authorities and are scheduled to conclude 
over the next six months.  The food aid programs directly 
benefit people in extreme poverty and we recommend that these 
activities not be suspended.  There are also elections 
assistance, rule of law, and municipal government programs 
that if suspended would undermine USG efforts to strengthen 
democracy-which is at the very core of the crisis.  These 
programs, which will affect the direction of governance in 
the future of Honduras, should, in our opinion, not be 
suspended. 
 
¶7. (U) Other Assistance. (Active)  There is a wide range of 
activities that are not to or through the government.  This 
includes activities in education, family planning, 
environment, maternal and child health, HIV/AIDS, municipal 
support, food security, civil society, and rural development. 
 We recommend that these programs continue.  In addition, 
USAID's FY 2008 Merida Funding was recently released by 
Congress and will be lost unless obligated by September 30. 
The failure to obligate these funds will have a negative 
impact on our gang prevention programs. 
 
MILLENNIUM CHALLENGE CORPORATION 
-------------------------------- 
 
Status: Active, Case-by-case on new contracts. 
 
¶8. (U) Description: The MCC program is entering its fifth and 
final year of implementation and all major activities are in 
full implementation.  The program has committed nearly 90% 
($186 million of the $215 million) in contracts.  The MCC has 
issued a strong warning letter under MCC Policy on Suspension 
and Termination regarding willingness to suspend or terminate 
funding. 
 
¶9. (U)Comments: Because of the advanced state of 
implementation and the minimal margin in the Compact 
timeline, even a temporary suspension would render many of 
the activities unsalvageable by the September 2010 deadline. 
Preliminary analysis indicates that the liabilities and costs 
of severing some of the major contracts may nearly equal or 
exceed the cost of completing them.  The precise financial, 
legal, operational and poverty cost of severing or suspending 
each contract is being analyzed by MCC. 
 
¶10. (U) The MCC could continue a pause on new major contracts 
and review the approval of any new contracts on a 
case-by-case basis.  This could hold progress on activities 
with uncommitted resources including unsigned Farm to Market 
Roads (approx. $7 million) and purchase of equipment for the 
Weight Control System (approx. 4 million).  If MCC pauses new 
Rural Roads contracts, the risk is that municipalities in 
rural communities may pull back their counterpart funding 
given further delays and the opportunity cost of that funding 
(particularly in an election year and following previous 
delays).  If counterpart funding can not be replaced, MCC 
would be unable to improve these rural roads before the 
September 2010 deadline. 
 
 
TEGUCIGALP 00000741  003.2 OF 017 
 
 
¶11. (U) The MCC is preparing the bidding documents and 
implementation strategy (likely with World Bank) that would 
include the purchase of equipment for a Weight Control System 
(approximately $4 million) for the road network.  The risk of 
withholding this funding is a reduced impact and 
sustainability of the protection of the road infrastructure 
investments made by the GOH and multiple donors, including 
USG (the Weight Control System was incorporated in Compact at 
the behest of USG). 
 
USMILGROUP 
---------- 
 
Training and Exercises (TREX) 
 
Status:  Suspended 
 
¶12. (U) Description: The U.S. Southern Command (SOUTHCOM) 
Training and Exercises division funds these events on an 
annual basis, sometimes the funds are expended by components 
(i.e. Army South) and aim at interoperability training and 
combined exercises that help promote regional stability. Two 
examples are Fuerzas Armadas PANAMAX (PANAMAX) and the other 
is TRADEWINDS.  PANAMAX is one of the largest multinational 
training exercises in the world, involving more than 30 
ships, a dozen aircraft and 7,000 personnel from 20 nations. 
The U. S. Southern Command-sponsored exercise focused on 
ensuring the defense of the Panama Canal, one of the most 
strategically and economically crucial pieces of 
infrastructure in the world. Honduras is scheduled to receive 
$12,000 of Developing Countries Combined Exercise Program 
(DCCEP) funds for PANAMAX execution. PANAMAX is scheduled to 
take place 8/24 - 9/16.  TRADEWINDS is an exercise that 
involves multinational field and maritime training, tailored 
to regional defense.  The estimated cost associated with the 
exercise is as follows: exercise-related construction: 
$90,000, DCCEP: $250,000, CE2 Funds (SOUTHCOM TADTAR): 
$10,000.  TRADEWINDS is scheduled to take place March 3-17 
2010, current status is suspended. 
 
¶13. (U) Comments and/or Recommendations:  These events only 
impact military-to-military engagement and they are currently 
suspended; recommend continued suspension of Honduras Armed 
Forces (HOAF) participation unless the political situation is 
resolved prior to the commencement of these or other TREX 
exercises. 
 
Foreign Military Financing (FMF) 
 
Status:  Suspended 
 
¶14. (U) Foreign Military Financing, the U.S. government 
program that finances the acquisition of U.S. military 
articles, services, and training through grants or loans, 
supports U.S. regional stability goals and enables friends 
and allies to improve their defense capabilities.  There are 
$33 million in committed funds toward Foreign Military Sales 
(FMS) cases.  $3.5 million is currently being withheld from 
Honduras. 
 
¶15. (U) Comments and/or Recommendations:  No new FMS cases 
will begin; cases that are implemented will not deliver goods 
or services. 
 
Counter Terrorism Fellowship Program (CTFP) 
 
Status: Cancelled. 
 
 
TEGUCIGALP 00000741  004.2 OF 017 
 
 
¶16. (U) Description:  A Department of Defense (DOD) capacity 
building tool that directly supports the war on terrorism by 
providing targeted and specific combating terrorism (CT) 
education for partner nations.  There are six events 
scheduled as of July 9. 
 
¶17. (U) Comments and/or Recommendations:  All events have 
been cancelled; if the political situation is resolved prior 
to the beginning of a CTFP sponsored event, HOAF may be 
allowed to participate on a case-by-case basis. 
 
Global Peace Operations Initiative (GPOI) 
 
Status: Suspended. 
 
¶18. (U) Description:  The GPOI program addresses major gaps 
in international peace operations support.  The program aims 
to build and maintain capability, capacity, and effectiveness 
for peace operations around the world.  There are two events 
scheduled as of July 9. 
 
¶19. (U) Comments and/or Recommendations:  The two GPOI 
events, one in July and one in August, have been cancelled; 
if the political situation is resolved prior to the beginning 
ofa GPOI sponsored event, HOAF may be allowed to partcipate 
on a case-by-case basis. 
 
Traditional Cmmander Activities (TCA) 
 
Status: Suspended. 
 
¶0. (U) Description: This program is funded by SOUTCOM to 
facilitate and encourage military-to-miliary engagement; 
there were 18 events programmed trough the end of FY 2009; 
all events are being cncelled by critical cancellation date: 
we are coducting no engagement activities per U.S. policy. 
 
¶21. (U) Comments and/or Recommendations:  Only ipacts 
military-to-military operations; if the poltical situation is 
resolved prior to the beginnig of a TCA sponsored event, 
HOAF may be allowed o participate on a case-by-case basis. 
 
Internatonal Military Education and Training (IMET) 
 
Staus:  Suspended. 
 
¶22. (U) Description:  The IMET pogram is a low cost, key 
funding component of U.S. security assistance that provides 
training on a grant basis to students from allied and 
friendly nations to attend U.S. military schools and training 
events.  There were 24 events funded through the end of FY 
¶2009.  Five students remain in U.S. courses begun prior to 
une 28 per the Chief of Mission's guidance. 
 
¶23. U) Comments and/or Recommendations:  Honduras IMET 
account will be charged a cancellation fee of 50 for courses 
cancelled 60 days prior to start dae.  MILGRP is managing 
these events on a case-bycase basis and is cancelling 
courses at the critial cancellation date with the intent of 
preventig the 50% cancellation fee. 
 
Army Corps of Enginers (USACE) 
------------------------------ 
 
Sttus: Case by Case 
 
¶24. (U) Description:  The U.S. Army Corps of Engineers funds 
several engineering projects that help build partner nation 
 
TEGUCIGALP 00000741  005.2 OF 017 
 
 
infrastructure.  There are currently two projects in process. 
 The Caratasca Naval Base, funding source 1004 CNT funds, 
$1.95 million, is 40% complete, with an estimated completion 
date of August 1, 2009; and the Potable Water Plant in La 
Venta, funding source Humanitarian Assistance, $136,000, is 
at 99% completion. 
 
¶25. (U) There are three other projects that were scheduled 
for award this fiscal year.  1) The Naval Base Guanaja, 
funding source 1004 CNT funds, $1.3 million; 2 Repair Carlons 
Renya School, funding source Humanitarian Assistance, 
$150,000; 3)  Build school in Cocota La Mosquitia, funding 
source Humanitarian Assistance, $250,000.  If contracts for 
these projects are not awarded by August 31, 2009, then all 
FY 2009 money becomes de-obligated and Congress must 
re-appropriate the money for FY 2010. 
 
¶26. (U) Comments and/or Recommendations:  Completing these 
engineering projects have a favorable local impact for the 
United States, however, Honduran military involvement varies. 
 These projects should be approved on a case-by-case basis or 
funding will be lost. 
 
Counterdrug Funding (CD) 
 
Status:  Case by case. 
 
¶27. (U) Description:  This program aims to prevent drug 
trafficking in Honduras. Counter Drug equipment money, 
$500,000 has been approved for FY 2009 for equipment. 
Counter Drug construction money, $1.95 million Caratasca and 
$1.3 million Guanaja Naval Base construction, was approved 
for these two engineering projects (see USACE above). 
 
¶28. (U) Comments and/or Recommendations:  Projects funded by 
CD should be approved on a case-by-case basis; not doing so 
can have negative impact on U. S. efforts against drug 
trafficking. 
 
Humanitarian Assistance Program (HAP) 
 
Status:  Case by Case 
 
¶29. (U) Description:  This program provides small cost 
humanitarian assistance to the local community.  Honduras 
military usually involved minimally as a labor or security 
force; will not start any new HAP projects.  There were ten 
events funded and currently being executed through end of FY 
¶2009. 
 
¶30. (U) Comments and/or Recommendations:  Continue this 
program: there is favorable local impact for the United 
States and there is little to no HOAF involvement. 
 
Enduring Friendship (EF) 
 
Status: Case by Case 
 
¶31. (U) Enduring Friendship is a SOUTHCOM sponsored maritime 
security initiative that is funded by 1206, FMF and Merida 
that provides training and equipment.  Approximately $4.7 
million in equipment (four fast boats, communications 
equipment, etc.) have been delivered; communications support 
packages are currently being delivered.  $1.3 million in 
future EF procurements is currently being withheld from 
Honduras. 
 
¶32. (U) Comments and/or Recommendations:  Continue to deliver 
 
TEGUCIGALP 00000741  006.2 OF 017 
 
 
communications support packages since these will benefit U.S. 
policy in its counter drug efforts and the funds are already 
committed and contracted.  No new purchases with existing EF 
monies. 
 
Latin American Cooperation Funds (LATAM COOP) 
 
Status:   Suspended. 
 
¶33. (U) Description:  Latin American Cooperation Funds are 
DOD monies that are used to facilitate and encourage 
military-to-military engagement and helps augment where TCA 
cannot fund an event.  There were two events programmed 
through FY 2009. 
 
¶34. (U) Comments and/or Recommendations: Only Impacts 
Military to military engagement; if the political situation 
is resolved prior to the beginning of a LATAM COOP sponsored 
event, HOAF may be allowed to participate on a case-by-case 
basis. 
 
Miscellaneous Military Programs and Projects 
 
Status:   Suspended. 
 
¶35. (U) Description: This miscellaneous category captures 
events, exercises, or projects that were funded by SOUTHCOM 
or its components (i.e. Joint Task Force -- Bravo, Army 
South, Marine Forces South, et. al.) and are usually 
Operations and Maintenance (O&M) or Training and Exercise 
funds -- these differ from TREX funds in terms executive 
agency for the funds -- used to facilitate 
military-to-military engagements, training, and/or exercises. 
 There were 14 events programmed through FY 2009. 
 
¶36. (U) Comments and/or Recommendations:  Only impacts 
military-to-military operations; if the political situation 
is resolved prior to the beginning of a sponsored event, HOAF 
may be allowed to participate on a case-by-case basis. 
 
¶37. (U) Comment:  If the USG pursues a more vigorous 
suspension approach we could stop posting trainees from the 
states, stop construction activities, end humanitarian 
assistance, stop foreign military funding and abandon the 
Guanaja base project. 
 
JOINT TASK FORCE BRAVO (JTF-B) 
----------------------------- 
 
Status:  Case-by-Case 
 
¶38. (U) Description:  Joint Task Force-Bravo continues to 
follow guidance from USSOUTHCOM regarding movement of 
personnel and approval for missions.  Personnel are 
restricted to base except for approved official business to 
include travel to/from the airport for permanent changes of 
assignment and approved TDYs.  Other exceptions are handled 
on a case by case basis.  JTF-B continues to plan for and 
conduct missions outside of Honduras.  Missions within 
Honduras are limited to unilateral training and FHA/DR 
preparation and local training that can be conducted without 
the Honduran military or contact with high-level GOH 
officials.  JTF-B will confer with lower-level GOH civilian 
personnel as necessary to plan and conduct missions and 
prepare for contingencies.  All Counter 
Narco-Terrorism/Counter Drug (CNT/CD) missions within 
Honduras are suspended in conjunction with restrictions on 
the DEA. 
 
TEGUCIGALP 00000741  007.2 OF 017 
 
 
 
¶39. (U) Comments and/or Recommendations:  JTF-B recommends 
restrictions for DEA engagement with Honduran law enforcement 
be eased to allow resumption of the CNT/CD mission in support 
of U. S. national security. 
 
INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT (INL) 
--------------------------------------------- --- 
 
Note: INL programs are covered by notwithstanding authorities 
 
Drug Enforcement Administration (DEA) 
 
Status:  Case by Case 
 
¶40. (U) Description: The DEA's mission in Honduras is to 
enforce the controlled substances laws and regulations in the 
United States by assisting and advising the Honduran 
Government in the interdiction of drug shipments destined for 
illicit traffic in the United States and to target and 
dismantle major drug trafficking organizations utilizing 
Honduras as a base for operations.  In order for an 
enforcement operation to be affected, it is essential that an 
element of the Honduran National Police (HNP) be present with 
DEA, and in essence the HNP is assisting the DEA in carrying 
out its mission in Honduras.  INL manages funding for the DEA 
sponsored Honduran National Police Vetted Unit.  DEA Agents, 
by U.S. Law, need to be accompanied by their foreign 
counterparts, local law enforcement, to carry out arrests and 
raids on foreign soil. 
 
¶41. (U) Comments and/or Recommendations:  Due to the 
political situation in Honduras, Counter Drug and Terrorism 
(CNT) missions are currently suspended except for a case by 
case basis.  The DEA in Honduras has been granted permission 
by the Ambassador to work with the Vetted Unit on a 
case-by-case basis with his approval.  Because of the present 
situation, the DEA has suspended all interdiction efforts. 
The DEA has verified several incidents in recent weeks, where 
illegal narcotic shipments have passed through Honduras 
without interruption or an attempt to interdict the shipment. 
 It is recommended that the DEA in Honduras be able to resume 
interdiction efforts and that the DEA be able to continue 
working with the Vetted Unit in its fight against illegal 
narcotics trafficking.  The DEA in Honduras is providing 
minimal support to the Honduran National Police Vetted Unit 
at the moment.  This minimal support has enabled the Vetted 
Unit to remain functional and somewhat effective.  If this 
support was suspended, the Vetted Unit would be disbanded and 
probably would not be reconstituted at a later date. 
 
Combined Operations - Technical Area Task (TAT) 
 
Status:  Active 
 
¶42. (U) Description:  This program enables the U. S. Coast 
Guard to intercept and seize Honduran flagged vessels and 
crew.  The total funding available is committed for the Host 
Nation Ship Rider program for Technical Area Task (TAT) to 
coordinate Honduran Naval and Police officers serving on U.S. 
Coast Guard cutters and provides vital assistance in 
narcotics interdiction missions. 
 
¶43. (U) Comments and/or Recommendations: Funds will expire 
9/30/09.  Suspension has direct impact on U.S. Law 
Enforcement operations. 
 
INL - Law Enforcement 
 
TEGUCIGALP 00000741  008.2 OF 017 
 
 
 
Antigang Program 
 
Status: Inactive 
 
¶44. (U) Description:  The INL Honduras component of the 
Regional Antigang Initiative vets, equips, trains, and 
mentors the Honduran National Police (HNP) Gang Unit.  Top 
priorities are:  (a) integrating HNP Antigang units into the 
ICE Vetted Unit to fulfill ICE's Operation Community Shield 
mandate in Honduras; (b) documenting and controlling gangs in 
prison; (c) expanding the HNP Joint Information 
Communications Center (CEINCO) for gang intelligence to HNP 
and U. S. Law Enforcement; (d)  Vetting and expanding the HNP 
kidnapping Unit; and (d) establishing multi-service anti-gang 
task force and developing relationships with U. S. Law 
Enforcement to receive, analyze, and disseminate real time 
gang intelligence to Honduran and U. S. law enforcement. 
 
¶45. (U) Comments and/or Recommendations:  Status likely means 
unimpeded or increased gang activity in prisons and between 
Honduras and the United State, loss of vetted agents, safe 
houses, polygraph initiative, diversion of HNP and U. S. Law 
Enforcement Resources, continued kidnapping of American 
Citizens and no HNP criminal intelligence networks with U. S. 
law  enforcement. 
 
Improved Prison Management 
 
Status: Partially Active 
 
¶46. (U) Description:  Strengthens capacity of the HNP 
correctional system to control prisoners, especially violent 
gangs and organized crime.  Improves intelligence collection, 
analysis, and exploitation; vets, trains, equips, and mentors 
corrections officials and Security Threat Intelligence Units; 
strengthens Corrections Academy; creates a U.S. and regional 
corrections officer exchange program; supervises building of 
maximum security and segregation facilities.   INL Regional 
Corrections Advisor (USPSC) supports a Honduran Prison 
Management Plan. 
 
¶47. (U) Comments and/or Recommendations:  Suspension would 
mean that gangs, kidnappers, and organized crime will 
continue to operate, often against American citizens.  This 
is critical as prisoners prepare to release undocumented gang 
members whose prison terms are up beginning this year. 
 
Police Intelligence 
 
Status: Inactive 
 
¶48. (U) The Joint Information Communication Center (CEINCO) 
is the intelligence unit of the HNP. INL supports training, 
technical assistance and logistical support to improve police 
intelligence and investigation to provide real time 
intelligence analysis and reports to HNP and US law 
enforcement.  As part of GOH anti-corruption efforts, INL had 
just begun expanding, training and equipping CEINCO's 
Polygraph Unit. 
 
¶49. (U) Comments and/or Recommendations: Status delays 
polygraph tests for INL program participants and vetted 
units, needed to achieve a reliable and effective police 
force.  Implementation of planned intelligence exchange 
networks with US law enforcement for investigation of 
transnational criminal organizations is also hindered. 
 
 
TEGUCIGALP 00000741  009.2 OF 017 
 
 
Police/Prosecutor Training 
 
Status: Inactive 
 
¶50. (U) INL supports training police, prosecutors and judges 
in investigation, complex case preparation and prosecution, 
through DOJ, ICE, FBI and US local LE agencies. INL supports 
US and regional networks of investigators and prosecutors to 
pursue criminal organizations in US and Honduran courts. A 
priority is FLETC tactical training of the ICE Vetted Unit at 
the Federal Law Enforcement Training Academy in Glencoe, GA. 
 
¶51. (U) Comments and/or Recommendations:  The effectiveness 
of FBI and ICE networks is undermined and improvements in the 
local conviction rate of criminals charged are impeded. 
 
Border Control and Interdiction 
 
Status: Inactive 
 
¶52. (U) Description: INL strengthens the capacity of the HNP 
to interdict weapons, drugs, asset laundering, illegal 
immigration, and movement of violent transnational gangs and 
organized crime at borders where local law enforcement 
presence is limited. 
 
¶53. (U) Comments and/or Recommendations:  Suspending support 
in equipment, facility upgrades, training, and enhanced 
communication will perpetuate the limited capacity of the HNP 
to interdict these activities of concern to U.S. law 
enforcement. 
 
Improved Policing/Police Communication 
 
Status: Inactive 
 
¶54. (U) Description: INL supports nonlethal and IT equipment 
for effective Law Enforcement and complements better use of 
other program elements such as intelligence and investigative 
technologies.  The Police Communication program also improves 
HNP operations through communication equipment and training. 
 
¶55. (U) Comments and/or Recommendations:  Expanding and 
integrating the National Automated Case Management 
Information System (NACMIS) a real time database system into 
FBI, ICE, and U.S. Law Enforcement is a top priority whose 
suspension would delay U.S. Law Enforcement access to over 25 
million records for criminal investigations. 
 
Central American Fingerprint Exchange 
 
Status: Inactive 
 
¶56. (U) Description:  FBI will establish an electronic system 
to manage fingerprint records in Central America, linked to 
FBI and U.S. Law Enforcement databases. 
 
¶57. (U) Comments and/or Recommendations:   Suspension will 
hinder both U.S. and Honduran Law Enforcement from detecting 
criminal, (including gang) movements in the region and in the 
United States. 
 
 
Trafficking in Persons (TIP) 
 
Status: Inactive 
 
¶58. (U) Description: Strengthens Honduran TIP laws through 
 
TEGUCIGALP 00000741  010.2 OF 017 
 
 
purchase of cameras to improve the effectiveness of TIP 
investigations by the Special Prosecutor for Children, often 
involving American Citizen perpetrators and/or traffic to the 
United States. 
 
¶59. (U) Comments and/or Recommendations: Funds will expire on 
09/30/09. 
 
 
Community Policing and Gang Prevention 
 
Note: Partially implemented through Civil Society and NGOs. 
 
¶60. (U) Status: Largely Inactive. Support to the Model 
Precinct and HNP has been stopped, although no official 
notification has been sent.  Support to NGOs and CSOs can 
recommence. 
 
¶61. (U) Description:  The regional gang initiative supports 
community policing and precinct management to counteract 
gangs by creating safe neighborhoods and collaboration 
between police, judiciary, civil society, and citizens.  Post 
has gained special access to security information from San 
Pedro Sula, a principal base for gangs, drug trafficking, and 
illegal gang migration to the United States. 
 
¶62. (U) The gang prevention program funds assessments, 
contracts, and grants to NGOs, civil society, and HNP to work 
with at-risk youth in barrios, schools, and centers for 
education, gang prevention, and reinsertion of ex-gang 
members into society.  INL needs to pilot these programs in 
the San Pedro Sula Model Precinct, a center of gang 
operations, and staging area for illegal drug and gang 
traffic to the United States. 
 
¶63. (U) Comments and/or Recommendations: Community policing 
program requires simultaneous and complementary support to 
both HNP and civil society. The hiring process for a US PSC 
in Policing has been stopped. Opportunities for training of 
teachers and school resource officers are being lost. The 
recently inaugurated National Campaign against Violence in 
Sports, aimed at curbing gang infiltration of and violence by 
youths in soccer fan clubs, has been stopped while violence 
increases. 
 
IMMIGRATION AND CUSTOMS ENFORCEMENT 
----------------------------------- 
 
¶64. (U) Status: Partially suspended all contact with senior 
GOH officials; contact with lower ranking government 
officials continues. INL support to augment Vetted Unit 
(transnational gangs) has been suspended. 
 
¶65. (U) Description:  The Immigration and Customs Enforcement 
(ICE) Assistant Attach Tegucigalpa (IAAT) office primary 
function is to support ICE initiatives, investigative, and 
operational activities, and to represent the Department of 
Homeland Security with various functions. IAAT investigative 
responsibilities focus on US National Security issues and 
U.S. Law Enforcement Cases (terrorism/special interest 
aliens, transnational gangs) through international 
investigations involving transnational criminal organizations 
responsible for illegal movement of people, goods, 
technology, narcotics, and munitions into the United States. 
Since ICE cannot conduct legal investigations nor apprehend 
persons of interest in Honduras, IAAT instituted a Vetted 
Unit supported by the Honduran National Police personnel 
supported by ICE and INL, under direct supervision by ICE. 
 
TEGUCIGALP 00000741  011.2 OF 017 
 
 
 
¶66. (U) Comments and/or Recommendations: At an appropriate 
time, it is recommended that ICE in Honduras be allowed to 
continue normal daily operations, working in conjunction with 
the Honduran National Police Vetted Unit, in support of ICE 
initiatives, to include investigative and operational 
activities. If suspended, the Vetted Unit would be disbanded 
and U.S. National Security would be jeopardized. In addition, 
INL support is needed to complete the equipping of the Vetted 
unit safe house and augmentation of the Vetted Unit with law 
enforcement agents/officers who specialize in transnational 
gangs. 
 
 
ECONOMIC SECTION 
---------------- 
 
Cybercrime Conference 
 
Status: Cancelled 
 
¶67. (U) Description: Conference to take place in Panama 
August 25-27 for Central American participants 
 
¶68. (U) Comments and/or Recommendations:  OAS has said that 
Honduras is no longer eligible to attend; post should not 
send nomination. 
 
Latin American Copyright Program 
 
Status: Deferred 
 
¶69. (U) Description: Program in Alexandria October 5-9 (in 
USPTO).  Program concentrates on copyright law and policy for 
the benefit of eight countries. 
 
¶70. (U) Comments and/or Recommendations:  Nomination due by 
August 5; post has not submitted nomination. 
 
U.S. TREASURY OFFICE OF TECHNICAL ASSISTANCE 
--------------------------------------------- 
 
Status: Suspended 
 
¶71. (U) Description: The U.S. Treasury Department's Office of 
Technical Assistance has four active programs in 
Honduras--Government Debt Issuance and Management, Budget and 
Financial Accountability, Revenue Policy and Administration, 
and Economic Crimes.  Both the Debt and Budget programs have 
Resident Advisors in Honduras that work out of the Ministry 
of Finance, along with their assistants.  The Revenue program 
has a permanent office in the Tax Authority (DEI), manned by 
three assistants.  There are six intermittent advisors who 
work on several large projects. The Economic Crimes program 
had an intermittent advisor who liaised with CNBS; however, 
he recently left the program and a new person has not yet 
been assigned. 
 
¶72. (U) In response to the coup d'tat, the Resident Advisors 
have been withdrawn from their offices in the Ministry of 
Finance, and the Intermittent Advisors have been told to 
refrain from coming to Honduras. 
 
¶73. (U) Comments and/or Recommendations:  If the political 
situation remains unresolved, these programs can be shut down 
with only a moderate financial impact. There would be costs 
related to the relocation of the two Resident Advisors.  The 
Revenue program is partially funded by the World Bank; 
 
TEGUCIGALP 00000741  012.2 OF 017 
 
 
performance of that portion of the program is governed by a 
contract between Treasury and FIDE (Investment and Export 
Development Fund).  The contract can terminated for cause 
(upon 30 days' notice) or for convenience (60 days' notice). 
Other than Force Majeure (whose application could be 
questioned), there is no cause for termination.  In the case 
of Force Majeure, FIDE would need to have been notified of 
its applicability within 14 days of the events giving rise to 
Force Majeure.   Once the contract is terminated, there is 
minimal hope of going through another procurement process to 
enter into another one, should the program be permitted to 
re-start.  There are reimbursements pending for work already 
performed that would have to be worked out.  In addition, 
there would be severance costs for the local assistants. 
After these costs are covered, the remainder of the 
congressionally allocated funds (TIATA) used in Honduras to 
fund the Treasury program would be redirected to programs in 
other countries. 
 
¶74. (U) The Office of Technical Assistance (OTA) programs are 
only partially completed and abandonment will be a setback 
for the Hondurans. In some cases, counterparts at the 
Ministry of Finance could continue implementation of the 
projects independently, using the standards already 
established and employing the training already provided. 
 
¶75. (U) In the case of the HR Revenue Program at the DEI, 
cessation of assistance would not only result in incomplete, 
inconsistent, and/or improper implementation of HR reform 
initiatives, but would negatively impact the DEI's efforts to 
improve revenue collection. 
 
DEPARTMENT OF COMMERCE 
---------------------- 
 
Honduras Private Sector Transparency Program 
 
Status: Ongoing 
 
¶76. (U) Description: FUNDAHRSE (Honduran Foundation for 
Corporate Social Responsibility) is a long-standing ITA Good 
Governance Program Partner and supports U.S. Department of 
Commerce goals to promote a transparent and secure business 
environment in Honduras.  The recipient has complied with all 
award terms and all expenses have already been incurred. 
 
¶77. (U) Comments and/or Recommendations:  Since there is no 
Honduran government involvement, Good Governance program 
staff recommends disbursing the second payment of the grant 
without delay. 
 
UNITED STATES DEPARTMENT OF AGRICULTURE (USDA) 
--------------------------------------------- 
 
Food for Progress (FFP) 
 
Status: Active 
 
¶78. (U) Description:  USDA signed Food for Progress (FFP) 
Agreements with the GOH in FY 2005 and FY 2006.  The GOH 
monetized a total of 57,000 MT of commodities and these 
proceeds are used to:  1- Support the Strategic Plan for the 
Agri-food Sector and Rural Areas of Honduras; 2- Trade 
Capacity Building; and 3- Support the operation of the 
technical office for the FFP agreement implementation.  As of 
June 2009, a total of $612,050 of FFP funds is pending to be 
disbursed:  $552,050 to finance GOH programs and $60,000 for 
NGO programs.  The GOH has hired/contracted the 
 
TEGUCIGALP 00000741  013.2 OF 017 
 
 
Inter-American Institute for Agricultural Cooperation (IICA) 
to administer the funds. 
 
¶79. (U) The FFP program beneficiaries are small and medium 
sized farmers and small and medium-sized agribusiness.  The 
objective is to improve agricultural production to fully 
engage in modern commercial trade and take advantage of 
CAFTA-DR.  The direct beneficiaries of Trade Capacity 
Building are the GOH offices with the responsibility for 
achieving and applying international standards for 
agricultural and food products (including regulations, 
inspection, food safety and surveillance units). Indirect 
beneficiaries are agricultural producers and food processors 
to be able to more easily access U.S. food inputs and gain 
entry to U.S. and third country markets. 
 
¶80. (U) Comments and/or Recommendations: Temporarily suspend 
financing for FFP government-to-government programs.  There 
may be legal issues involved with this action.  Precise 
vetted language will be needed to explain the recommended 
suspension-assuming there are no legal restrictions. 
 
Cochran Fellowship Program (CFP) 
 
¶81. (U) The CFP is administered by USDA/FAS. USDA 
appropriated funds are used to provide U.S.-based 
agricultural training opportunities for senior and mid-level 
specialists and administrators from public and private 
sectors who are concerned with agricultural trade, 
agribusiness development, management, policy, and marketing. 
 
Status: Case by Case 
 
¶82. (U) Description: Training in Establishing Microbiological 
Criteria for Food Safety (September/October 2009) and 
Biotechnology (September 13-25) for GOH Officials.  Risk 
Analysis in Grains and Quarantine Controls for OIRSA 
(International Organism for Regional Agricultural Sanitation) 
(August 2009). 
 
¶83. (U) Comments and/or Recommendations:   Recommend 
continuation of the regional OIRSA program which will 
increase Honduran Sanitary and Phytosanitary capacity. 
Others can be postponed. 
 
Emerging Markets Program (EMP) 
 
Status: Case by Case 
 
¶84. (U) The EMP is a market access program that provides 
funding for technical assistance activities intended to 
promote exports of U.S. agricultural commodities and products 
to emerging markets. The program is authorized by the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended. 
All funds must be spent in FY 2009.  Under EMP the following 
activities were planned: 
 
a)  Scientific Exchanges and Trade and Scientific Capacity 
Building 
 
Status: Active 
 
¶85. (U) Description:  Convince Central American Countries to 
adopt science-based standards for Salmonella Prevalence Study 
Training.  Program included participation of one GOH and one 
private sector representative.  Beginning August-September 
¶2009. 
 
 
TEGUCIGALP 00000741  014.2 OF 017 
 
 
¶86. (U) Comments and/or Recommendations:  Recommend to 
continue.  This regional training program will enable Central 
American countries like Honduras to adopt science-based 
standards for Salmonella in poultry to preserve U. S. exports 
to the region.  Honduran participation is critical to the 
success of this activity. 
 
b)  Tariff Rate Quota (TRQ) 
 
Status:  Cancelled 
 
¶87. (U) Description:  Improve transparency of the TRQ 
management in Honduras for CAFTA's implementation. 
 
c)  Regional and Western Hemisphere Gatherings 
 
Status:  Case by case 
 
¶88. (U) Description: Western Hemisphere Codex Colloquium 
(August 4-6) and Seminar on Cold Chain Standards (August 
10-12). 
 
¶89. (U) Comments and/or Recommendations:  Training for GOH 
officials has been cancelled.  Participation of the private 
sector is recommended. 
 
Trade Capacity Building Program 
 
¶90. (U) USAID provides funds to USDA/Foreign Agricultural 
Service (FAS) to implement various agricultural projects. TCB 
programs support implementation of CAFTA-DR.  TCB funds are 
multi-year funds available through FY 2010. 
 
Status:  Cancelled or postponed 
 
¶91. (U) Description: Training programs in Foreign Animal 
Disease, Minimum Residues Levels on Pesticides, Plant Health 
Diagnostic, Plant Health Systems, Plant Diseases Diagnostic, 
and Seafood Hazard Analysis and Critical Control Points. 
 
¶92. (U) Comments and/or Recommendations:  Much of the 
training involving GOH Officials was cancelled while others 
were postponed until U.S. policy permits them to take place. 
 
Forest Service IP Programmatic Support to the GOH 
Status:  Postponed 
 
¶93. (U) Description:  USAID provides funds to USDA/Forest 
Service (FS) to implement various agricultural projects. The 
FS funds are "no year" funds.  Biodiversity-earmarked funds 
from the Participating Agency Program Agreement (PAPA) are 
used for this project.  The objective is to provide technical 
assistance and support to the GOH to improve natural resource 
management. 
 
¶94. (U) Comments and/or Recommendations:  Postponed until 
U.S. policy permits technical assistance to take place. 
 
Agricultural Research Service (ARS) 
 
Status: Active 
 
¶95. (U) Description:  USDA/Agricultural Research Service 
(ARS) appropriated funds, 7 USC 3318(b).  ARS appropriated 
from FY05 and FY08.  The funds were obligated (can be spent 
until 9/29/10) to a private Honduran agricultural research 
foundation via a specific cooperative agreement.  The 
objective is to develop improved fruit fly trapping and 
 
TEGUCIGALP 00000741  015.2 OF 017 
 
 
control systems and integrated pest management programs for 
control of exotic fruit flies that threaten U.S. agriculture. 
 This program is carried out with the private Honduran 
Agricultural Research Foundation (FHIA). 
 
¶96. (U) Comments and/or Recommendations:  Recommend 
continuation.  Information from this program is critical for 
state and federal action agencies in the United States for 
use in detection and delimitation of fruit flies. 
 
Faculty Exchange Program (FEP) 
 
Status:  Active 
 
¶97. (U) Description: FEP uses appropriated USDA funds to 
bring qualified agricultural educators from progressive 
agricultural institutions of higher learning to the United 
States to increase their knowledge of, and ability to teach, 
agricultural economics and marketing, agribusiness, and 
agrarian law in a market-based economy.  The 
objective of the training is on biotechnology and SPS issues 
related to trade in horticultural products (August 7-December 
2009).  The semester-long training will expose the 
participant from a private university to U. S. systems, 
rules, and regulations related to SPS products.  Participant 
will incorporate this information in both formal classes and 
adult education. 
 
¶98. (U) Comments and/or Recommendations:  Recommend 
Continuation. 
 
Other Programs: 
 
Status: Cancelled 
 
¶99. (U) Description:  Includes Food and Drugs Administration 
(FDA)'s training in Food Defense (prevention of intentional 
contamination) and Dietary Supplements (introduction of FDA 
guidelines). 
 
¶100. (U) Comments and/or Recommendations:  These were 
cancelled because the participants are from the GOH. 
 
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) 
--------------------------------------------- 
 
Status:  Suspended 
 
¶101. (U) Description:  Overseas Private Investment 
Corporation's (OPIC) political risk insurance and financing 
exposure in Honduras totaled $231.2 million for 14 projects 
as of March 31, 2009.  Existing political risk insurance and 
financing commitments will be honored.  Following the June 
28, 2009 coup, OPIC downgraded its status in Honduras from 
"Open" to "Review", which means projects in OPIC's pipeline 
will be subject to added higher-level approval by OPIC's 
President and CEO. 
 
¶102. (U) Comments and/or Recommendations:  At this time, OPIC 
has suspended consideration of four finance projects with an 
aggregate investment of $275.8 million and the possibility of 
equity financing through six investment funds. 
 
EXPORT/IMPORT BANK (EXIM) 
------------------------ 
 
¶103. (U) 
Status: One pipeline project is moving forward towards a 
 
TEGUCIGALP 00000741  016.2 OF 017 
 
 
fourth quarter decision.  Description: The Board of Directors 
of the Export-Import Bank (EXIM) makes its decisions to 
support or decline financing requests based on the 
"reasonable assurance of repayment" standard set forth in the 
EXIM Charter. This authority is subject, however, to issuance 
of a Chafee determination which, if and when issued, 
precludes EXIM from supporting the transaction identified in 
such determination. The power to issue a Chafee determination 
was originally given to the White House but was subsequently 
delegated to the Secretary of State.  EXIM has one project in 
the pipeline.  The Cerro de Hula project is a 100.5 MW wind 
farm being developed using GE wind turbines.  The $250 
million project is with Energa Eslica which will sell all of 
its generated power into the national grid. 
 
¶104. (U) Comment and/or Recommendation:  The process to put a 
proposal before the Board is moving forward at this time. 
Energa Eslica is in the process of getting a sovereign 
guarantee from the Honduran government for the off take 
payments from ENEE (the national energy company), and EXIM is 
conducting due diligence on the project.  If sovereign 
support of the off-take contracts is confirmed and the due 
diligence continues as anticipated, then September 2009 is 
the earliest the project can be presented to the EXIM Board 
for approval.  After the approval it generally takes several 
weeks to a few months, depending on the complexity of the 
financing, for documents to be drafted, reviewed, and signed. 
 
PEACE CORPS 
----------- 
 
Status: Ongoing 
 
¶105. (U) Description:  Peace Corps has been monitoring the 
situation closely and restricting travel of its Volunteers as 
appropriate.  Volunteers have been reporting that the 
situation on the ground as being largely quiet and calm and 
no Volunteers have experienced any safety and security 
incidents. 
 
¶106. (U) Comments and/or Recommendations: While the Foreign 
Operations Act includes prohibition of foreign assistance in 
the event of a coup d'tat, it also states that provisions in 
this or any other Act authorizing or making appropriations 
for foreign operations shall not be construed to limit 
activities of the Peace Corps.  We would therefore recommend 
continuation of Peace Corps; security and safety permitting. 
 
PUBLIC AFFAIRS 
-------------- 
 
International Visitor Leadership Program (IVLP) 
 
Status: Active 
 
¶107. (U) Description: Regarding aid and assistance funds, The 
International Visitor Leadership Program is supported by two 
Acts, Smith-Mundt (1948) and reaffirmed with the 
Fulbright-Hays Act (1961).  These Acts refer to the value of 
the exchange of persons who are potential leaders in 
government, politics, media, education, arts, business and 
other fields.  These individual exchanges are in the 
self-interest of the United States since they promote mutual 
understanding.  These exchange program funds are set aside by 
Congress for this purpose.  The funding does not qualify as 
aid or assistance monies.  All the Honduras IVLP candidates 
except for two will travel in calendar year 2010 and all 
travelers were selected as FY10 participants. 
 
TEGUCIGALP 00000741  017.2 OF 017 
 
 
 
¶108. (U) Comments and/or Recommendations:  Considering that 
the monies set aside for IVLP programming is related to the 
two Acts regarding exchanges devoted to mutual understanding, 
PAS Honduras recommends that all nongovernmental travelers 
selected for IVLP programs for FY 2010 be allowed to 
participate.  We recommend, however, that those who are 
members of the Micheletti regime not be allowed to 
participate. 
 
Fulbright Program 
 
Status: Active 
 
¶109. (U) Description: Post has been advised by Washington, 
Office of Policy and Evaluation, Bureau of Educational and 
Cultural Affairs, that ECA does not have assistance programs 
or aid monies.  Consequently, Fulbright/Humphrey programs are 
frequently exempted from sanctions, as has been the practice 
under the Smith-Mundt and Fulbright-Hays Acts.  The selection 
of Fulbright candidates for FY09 has been completed and those 
selected are en route to their 
assignment and their studies. 
 
¶110. (U) Honduras has a world-unique program that is 
sponsored by the Central Bank in partnership with the 
Institute of International Education and Fulbright.  The Bank 
has pledged to fund two of the Fulbright candidates we 
indicate to them after the selection process is completed. 
The Bank has no role in indicating or selecting candidates. 
Once the two students are identified, IIE fosters those 
persons with the other Honduran Fulbrighters and the Bank 
pays all costs directly to IIE on their behalf, except for 
health insurance, administrative costs and pre-academic 
programs, if needed. 
 
¶111. (U) Comments and/or Recommendations Considering that the 
monies set aside for Fulbright programming is related to the 
two Acts regarding exchanges devoted to mutual understanding, 
PAS Honduras recommends that all Fulbright candidates 
selected programs for FY 2010 be allowed to participate. 
LLORENS