US embassy cable - 03SANTODOMINGO5392

C O N F I D E N T I A L SANTO DOMINGO 005392 
 
SIPDIS 
 
STATE PASS AID; NSC FOR SHANNON 
 
E.O. 12958: DECL: 09/29/2013 
TAGS: DR, PGOV, SOCI, ECON, PINS 
SUBJECT: PROTESTS IN DOMINICAN REPUBLIC DRIVEN BY ECONOMIC 
DISCONTENT 
 
 
Classified By: Charge Lisa Kubiske for reasons 1.5 b and d. 
 
1. (C) Scattered demonstrations disrupted some peripheral 
neighborhoods in Santo Domingo and a few interior towns in 
the Dominican Republic September 29-30, temporarily shutting 
down businesses and a major highway and leaving one person 
dead, a dozen including several policemen injured, and dozens 
under arrest.  The disorders were triggered by sudden 
widespread electrical power outages which hit the capital 
September 27, in connection with the renationalization of two 
major electrical distribution companies October 1 (septel). 
The protests were encouraged by groups of community activists 
who have engaged in such activities in the past.  It is also 
likely that elements of opposition political parties, as in 
past outbreaks of unrest, paid the protesters who threw rocks 
at vehicles and blocked roads with burning tires and rubbish. 
 There have also been shooting incidents. 
 
2. (C) Protests had occurred sporadically in recent weeks, 
especially in the north of the country, which was hit earlier 
and harder by the power outages. Underlying the protests is 
rising economic discontent.  Specific irritants commonly 
cited by the GODR's critics include: 
 
-- the spread of the power outages, which have revived 
unpleasant memories of severe electric power shortages over 
the years; 
 
-- the declining value of the Dominican peso, which has 
driven consumer inflation toward 35 percent, annualized; and 
 
-- Adverse reaction to the government's proposed pay raise 
for public employees of only 9.5 percent. 
 
3. (C) Charge and Defense Attache learned on October 1 during 
a courtesy call on LTG Soto Jimenez that President Mejia had 
just instructed the military to take measures to assure that 
electricity sector facilities such as generating plants were 
watched and protected from protests or destructive strike 
actions. 
 
4.  (C) Comment.  The Mejia administration will want to act 
prudently to contain protests with a minimum of force, 
particularly remembering that the PRD lost three successive 
elections following its heavyhanded repression of riots in 
1984. Opposition parties, thinking they benefit from 
disorder, will be playing the opposite game, encouraging 
resentment.  The eventual risk, over the coming months, will 
be that increasing anger and frustration in the hard-hit 
towns and villages outside the capital will turn destructive. 
 The GODR's mishandling of the electricity sector has been 
like shooting itself in the foot, repeatedly.  The challenge 
now, in the face of provocation, is not to shoot the other 
foot. 
 
KUBISKE