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PP RUEHCD RUEHGD RUEHHO RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHMC #0349/01 2652001
ZNR UUUUU ZZH
P 222001Z SEP 09
FM AMCONSUL MONTERREY
TO RUEHC/SECSTATE WASHDC PRIORITY 3936
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RHMFIUU/FBI WASHINGTON DC
RUEABND/DRUG ENFORCEMENT ADMIN HQ WASHINGTON DC
RHMFIUU/HQ USNORTHCOM
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHMC/AMCONSUL MONTERREY 9542

UNCLAS SECTION 01 OF 02 MONTERREY 000349 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV EIND EINV SOCI ASEC EAID ECON MX
SUBJECT: SAN LUIS POTOSI GOVERNOR-ELECT OUTLINES PLANS 
 
MONTERREY 00000349  001.2 OF 002 
 
 
¶1.  (SBU) Summary:  At a recent meeting with the Consul General 
(CG), San Lusi Potosi Governor-elect Fernando Toranzo Fernandez, 
a member of the Partido Revolucionario Institucional (PRI), 
outlined his plans to improve economic, healthcare and security 
conditions in his state.  He predicted that he would have broad 
support for his programs in state congress, which is dominated 
by the rival Partido Accion Nacional (PAN).  Toranzo repeatedly 
asked for USG assistance for his programs.  End summary. 
 
 
 
¶2.  (SBU) During a recent meeting with the Consul General, San 
Lusi Potosi Governor-elect Fernando Toranzo Fernandez stated 
that his incoming administration plans to focus on economic, 
security, and health issues.  Although a member of the Partido 
Revolucionario Institucional (PRI), Toranzo predicted that he 
will have a solid working relationship with a state congress 
dominated by the rival Partido Accion Nacional (PAN), because 
many PAN members supported his election bid due to a schism in 
their party. 
 
 
 
Economy 
 
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¶3.  (SBU) Toranzo said one of his top priorities will be to 
attract additional industry and job opportunities throughout the 
state and requested USG help in promoting economic development. 
He trumpeted the planned arrival of new businesses in the 
capital city of San Luis Potosi's Tres Naciones industrial park 
over the next few months.  However, Toranzo noted that the 
majority of the state's industry was centered in the capital. 
The real challenge, he stated, are the vast outlying areas that 
are economically depressed with high-poverty conditions and 
contain large indigenous populations.  (Note:  Around 33 percent 
(731,000) of the state's estimated population of 2.4 million 
lives in the capital city. End note.) 
 
 
 
Tax Holiday to Prevent Job Losses? 
 
---------------------------------- 
 
 
 
¶4.  (SBU) A key element of Toranzo's election platform was a six 
month tax holiday for businesses.  By not having to pay the 
state's two percent payroll tax, he told the CG that he believed 
companies will be encouraged to retain workers during the 
economic downturn.  (Major U.S. companies that would benefit 
include GM, Eton, 3M and Remy.)  However, current state 
Secretary of Economic Development Carlos Barcena Pous told the 
CG in a separate meeting that he believed Toranzo's tax relief 
plan would not retain jobs and would cause a significant drop in 
state revenues (septel). 
 
 
 
Healthcare 
 
---------- 
 
 
 
¶5.  (SBU) A physician by profession, Toranzo was passionate 
about the need to provide improved healthcare access to 
lower-income indigenous populations, where the government often 
has no control over healthcare practices.  He said that, during 
his previous stint as Secretary of Health, state efforts had 
reduced infant and maternal mortality in these groups by over 70 
percent.  The state does not have sufficient medical care 
facilities to treat its large number of dengue cases, he stated, 
adding that, fortunately, malaria and chaga's disease were not 
prevalent.  Toranzo requested USG assistance in his quest to 
improve healthcare.  (Note:  The state has an estimated 
indigenous population of around 264,000.  End note.) 
 
 
 
¶6.  (SBU) Authorities, he opined, should adapt healthcare 
practices to fit native customs.  As an example, he noted that 
 
MONTERREY 00000349  002.2 OF 002 
 
 
the traditional use of sharpened bamboo to sever umbilical cords 
had caused infections during childbirth.  After health officials 
had unsuccessfully tried to introduce stainless steel 
instruments - meeting strong resistance from indigenous leaders 
- they convinced indigenous midwives to use sterilized bamboo, 
thereby dropping the infection rate significantly. 
 
 
 
Security Lacking 
 
---------------- 
 
 
 
¶7.  (SBU) Toranzo admitted that security in his state had 
significantly deteriorated, largely due to organized crime 
activities.  He lamented the general public's lack of confidence 
in the state's ability to provide adequate security.  Toranzo 
said that state police needed additional training and 
improvements in intelligence gathering capabilities and asked 
for USG assistance in these areas.  A/Legatt will engage in 
further discussions on this issue with Toranzo and his team in 
coming months. 
 
 
 
Comment 
 
------- 
 
 
 
¶8.  (SBU) Toranzo, an open and gregarious interlocutor, has 
served as a member of the state legislature and twice as the 
state's Secretary of Health.  Although a PRI candidate, Toranzo 
has broad appeal with both PRI and PAN voters, and served as the 
Secretary of Health for the outgoing PAN administration. 
Historically, SLP has been a PAN stronghold.  The outgoing PAN 
governor won election in 2003 by a margin of over 10 percent of 
the vote.  In 2009, Toranza beat out his PAN rival 45 percent to 
42 percent.  Much of his success can be attributed to his appeal 
among lower-income voters and infighting among the state's 
various PAN factions. 
 
 
 
¶9.  (SBU) The state's export driven manufacturing sector has 
been adversely impacted by the U.S. recession.  Expatriate 
remittances, on which many lower-income families rely, have also 
dropped significantly.  Toranzo's platform, with its focus on 
economic development and healthcare assistance to the rural 
poor, is an attempt to mitigate these problems among one of his 
key voter bases.  However, he appears to realize that the 
magnitude of his plans, especially in light of a tighter federal 
budget (as with most Mexican states, San Luis Potosi depends 
heavily on federal revenue sharing), will require outside 
assistance, hence his calls for USG assistance.  To accomplish 
his ambitious goals, Toranzo will also need continued support 
among PAN members of the state congress.  Whether that will 
continue in Mexico's mercurial political climate remains to be 
seen. 
GRANDFIELDM