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RHMFISS/JOINT STAFF WASHINGTON DC
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RHMFISS/CDR USSOUTHCOM MIAMI FL
RHMFISS/DIRJIATF SOUTH
RHMFISS/COMDT COGARD WASHINGTON DC

C O N F I D E N T I A L PANAMA 000702 
 
SIPDIS 
 
E.O. 12958: DECL: 09/10/2019 
TAGS: PGOV PREL PM
SUBJECT: PANAMA'S LONG FAREWELL TO PARLACEN 
 
Summary 
-------- 
 
¶1. (SBU) The Government of Panama (GOP) is attempting to 
withdraw from the Central American Parliament (PARLACEN), a 
decision based exclusively on domestic politics.  The 
departure is an easy way for President Ricardo Martinelli to 
make good on his campaign promise to reform Panamanian 
institutions and eliminate endemic corruption. The 
administration has invested significant time and resources in 
the withdrawal process, with Foreign Minister Juan Carlos 
Varela, his Vice Minister and his Political Advisor traveling 
throughout Central America to lobby other PARLACEN members to 
let Panama go without a fight. Although the PARLACEN treaty 
does not contain a formal mechanism allowing member states to 
disengage, Varela plans on utilizing Vienna Convention 
mechanisms to effect Panama's exit. Panamanian officials have 
been careful to separate the PARLACEN affair from Panama's 
participation in regional economic integration, including the 
European Union - Central American Association Agreement. End 
Summary. 
 
Background: From Regional Peacemaker to White Elephant 
------------------------------------------ 
 
¶2. (U) PARLACEN, established in 1991, evolved from previous 
regional mechanisms such as the Contadora Group and the later 
Esquipulas Peace Agreement, both of which were efforts during 
the 1980's to end the violent civil wars then raging across 
Central America.  All Central American countries except for 
Costa Rica are currently members. Each member state sends 20 
deputies to PARLACEN, which meets once a month in Guatemala 
City.  Panama's current deputies were chosen according to the 
proportion of the vote that their parties received in the May 
2009 national elections, with two spots reserved for outgoing 
President Martin Torrijos and Vice President Samuel Lewis 
Navarro.  PARLACEN deputies receive $4000 per month in salary 
and expenses and, crucially, immunity from prosecution during 
their five year terms. 
 
It Only Hurts If You Care Too Much 
---------------------------------- 
 
¶3. (U) Panama's PARLACEN exit stems from the 2009 
Presidential campaign in Panama.  Reflecting Ricardo 
Martinelli's low regard for the organization, his Democratic 
Change (CD) party neglected to hold a primary to choose 
candidates for PARLACEN. Later, in a change of heart, CD 
leadership unilaterally chose PARLACEN candidates.  CD's main 
rival, the evolutionary Democratic Party (PRD) then 
challenged the CD nominees before Panama's Electoral Tribunal 
(TE) on a technicality, claiming that the lack of a party 
primary invalidated their selection.   The TE ruled in the 
PRD's favor and disqualified the CD candidates in March 2009, 
two months before the general election.  This meant that the 
PRD would be sending 11 deputies to PARLACEN and CD would 
send none. The pre-election timing and the PRD's method in 
denying CD representation raised Martinelli's blood for a 
fight. He criticized PARLACEN as a sanctuary for corrupt 
politicians to avoid prosecution, and he vowed to withdraw 
Panama if elected. 
 
Loaded For Bear 
--------------- 
 
¶4. (C) The Martinelli administration has staked an unusual 
amount of political capital on withdrawing from PARLACEN.  In 
August, FM Varela met with Panamanian PARLACEN deputies to 
inform them that Panama would leave the regional 
organization.  CD's partner in the ruling coalition, the 
Panamenista Party, has six PARLACEN deputies, including 
Mireya Montemayor, who told an Embassy contact that they were 
asked during the meeting "not to question Martinelli's 
decision in public."  After the deputies complained harshly, 
Minister of the Presidency Jimmy Papadimitriu stepped out of 
the room and came back minutes later to say that all 
Panamenista PARLACEN deputies would be appointed to positions 
in the GOP. In a later meeting the same day, Papadimitriu 
offered 
to pay a salary to all members of the Panamanian 
delegation, including the PRD contingent.  A week later, FM 
Varela, Vice Minister Meliton Arrocha, and political director 
Alfredo Castillero Hoyos all traveled to Guatemala and El 
Salvador to officially submit the request to leave. In bold 
defiance, Torrijos and Lewis traveled to the Dominican 
Republic and were sworn in as deputies. 
 
¶5. (U) PARLACEN member states have invoked legal and 
technical objections to Panama's departure.  FM Varela, 
however, cites the 1969 Vienna Convention on the Law of 
Treaties as his legal justification for departure; Article 56 
mandates a 12 month notice of intention to withdraw, and 
article 65 requires a three month period in which other 
parties to the treaty may raise objections and thus block 
withdrawal.  The MFA's intense lobbying efforts aim to ensure 
that there will be no formal objections. 
 
¶6. (U) Parallel to the diplomatic effort, Panama's corruption 
czar, who is also first cousin to Ricardo Martinelli, opened 
an inquiry into abuses by PARLACEN deputies of their 
exemption from import taxes for automobiles.  Earlier, 
Martinelli stated on television that he would not sign checks 
for Panama's PARLACEN deputies, calling the organization "a 
bunch of losers...drinking with immunity". 
 
¶7. (U) The Martinelli administration has made it clear that 
Panama is still interested in economic integration, with FM 
Varela stating in August that they "will move towards 
economic and trade agreements with the European Union, but 
the PARLACEN will not be a part of these trade agreements." 
On his recent trip to Italy, President Martinelli  asked 
Italian PM Silvio Berlusconi for assistance in Panama's 
efforts to join the European Union - Central America 
Association Agreement without having to join the Secretariat 
Central American Economic Integration (SIECA).  Panama has 
been relegated to observer status in the negotiations due to 
its reluctance to join SIECA. The issue will not likely come 
up before the end of the year, however, as negotions have 
been postponed indefinitely due to the coup in Honduras. 
 
Comment 
------- 
 
¶8. (C) PARLACEN is low-hanging fruit in President 
Martinelli's drive to shake up, and shake down, a complacent 
and corrupt political class in Panama. PARLACEN has few 
supporters in Panama, and due to its ineffectiveness, its 
loss will scarcely be felt. Most importantly for Martinelli, 
extracting Panama from PARLACEN will deprive former President 
Torrijos and the other PRD members of immunity from 
prosecution for corruption during the former administration. 
STEPHENSON