US embassy cable - 03SANTODOMINGO6123

C O N F I D E N T I A L SANTO DOMINGO 006123 
 
SIPDIS 
 
DEPT FOR WHA, WHA/CAR, WHA/EPSC, EB/IFD; TREASURY FOR NANCY 
LEE, LLAMONICA; NSC FOR SHANNON; DEPT PASS USAID 
 
E.O. 12958: DECL: 10/29/2008 
TAGS: PGOV, EFIN, DR 
SUBJECT: PRESIDENT MEJIA VOWS FIRMNESS IN IMF COMMITMENT, 
INSISTS HE WILL KEEP BANINTER OFFICIAL IN JAIL 
 
REF: TD-314 55692-03 OF 29 OCTOBER 
 
Classified By: Ambassador Hans Hertell.  Reason 1.5(b) and (d). 
 
 1. (C) Speaking at length to the Ambassador on October 28, 
President Mejia emphatically took credit for seeking IMF 
support in mid-2003 and for his aggressive campaign to bring 
home to the business sector the need to meet IMF commitments. 
 He was particularly annoyed at the sluggish response of 
business sectors that were benefiting from devaluation: "I 
said there was no alternative.  Do they expect the President 
to shut down the exchange houses, impose a government 
exchange rate and use force to collect revenue and control 
the population?  I will not do those things.  But I said they 
would have to come up with ways to finance the government 
budget."  Dominican businesses are "not used to paying 
taxes," he commented, "and they are bribing the Congress to 
block my tax bills. They are sadists.  They give me smiles 
and suggestions, but up until now they have not contributed." 
 He takes grim satisfaction that he has obliged hoteliers, 
free zone exporters and manufacturers to sign commitments to 
provide specific amounts on a "voluntary" basis until the tax 
code can be reformed in late 2004. 
 
REPRIVATIZATION OF THE 'EDES' 
 
2.  (C) Mejia gave the Ambassador, DCM and EcoPol a copy of 
his just-published decree establishing a committee to report 
in 90 days to propose changes in laws and regulations to 
allow the privatization of the (ex-Union-Fenosa) electricity 
distribution companies serving the north and south, with 
specific provision for GODR ownership to be reduced to 25 
percent. 
 
BANINTER 
 
3.  (C) When Mejia mentioned the bankrupt Baninter in 
passing, the Ambassador told him that several persons had 
commented, following Mejia's visit last week to the Baez's 
father's home, that they expected to see "Ramoncito" Baez 
Figueroa out on bail soon.  Mejia was emphatic: "If he gets 
out, I will put him right back in jail! I will have any of 
them arrested. Those people show a complete lack of respect. 
Their lawyers have gone over to embrace Leonel Fernandez and 
his foundation." 
 
4.  (C) The President showed the Ambassador thick catalogs 
detailing small-scale projects left unfinished for lack of 
government funding.  He spoke of his satisfaction at 
renovations he had authorized and carried out in the Puerto 
Plata area following the September earthquake, with much of 
the work done by the armed forces.  He spoke with distaste of 
the IFIs, emphasizing that he had received "nothing" from the 
World Bank in 40 months. 
 
5. (C)  The ruling PRD will have its convention in three 
weeks, Mejia said.  He expects to win easily; his supporters 
hold 60 percent or more of PRD offices. 
 
EXTRADITIONS 
 
6.  (C) The Ambassador provided a list of 21 fugitives whose 
extradition was pending the required presidential decree. 
Mejia called in a legal technician, who stated that the 
paperwork had not yet arrived from the Supreme Court.  "Find 
it," said Mejia.  "We don't want these people here. Give me 
the decrees tomorrow." 
 
COMMENT 
 
7. (C) Despite the characteristic force and bark of his 
remarks, Mejia was evidently in a good mood.  He responded 
well when the Ambassador urged him to continue his 
leadership, private and public, for the IMF commitments.  The 
President turned to the recently arrived EcoPol chief to 
comment, with satisfaction, "You won't find a country like 
this anywhere else in Latin America, or any President who 
will tell the Americans as straight-out as I do." Fresh from 
a successful bout with business interests, he appeared to 
relish the prospect of getting back into the barrios and up 
on the stage at the party convention. 
HERTELL