US embassy cable - 04PANAMA204

C O N F I D E N T I A L SECTION 01 OF 02 PANAMA 000204 
 
SIPDIS 
 
 
DEPARTMENT FOR WHA/CEN/BRIGHAM 
USTR FOR AGASH-DURKIN 
COMMERCE FOR USDOC4332/ITA/MAC/WH/OLAC/MGAISFORD 
 
 
E.O. 12958: DECL: 01/26/2014 
TAGS: PREL, PGOV, ETRD, ECON, PM, POL CHIEF 
SUBJECT: PANAMA PRESIDENT MOSCOSO DISCUSSES BILATERAL 
TRADE, PASSENGER VESSEL SERVICES ACT (PVSA) WITH SPECIAL 
ENVOY OTTO REICH 
 
 
REF: A. 03 PANAMA 00722 
     B. 03 PANAMA 02382 
 
 
Classified By: AMBASSADOR LINDA WATT FOR REASONS 1.5 (B) AND (D). 
 
 
SUMMARY 
------- 
1.  (C) On January 21 Special Envoy for Hemispheric 
Initiatives Otto Reich, accompanied by Ambassador Watt, met 
with Panama President Mireya Moscoso.  Flanked by Foreign 
Minister Harmodio Arias and Commerce and Industries Minister 
Joaquin Jacome, Moscoso pushed an April 2004 start date for 
the bilateral FTA talks.  The Ambassador told President 
Moscoso that a Commerce Dept. team would conduct research in 
Panama during January 27-30 on the economic effects of 
granting distant foreign port status to Panama under the 
Passenger Vessel Services Act (PVSA).  Moscoso said that 
Cuban President Fidel Castro (and Venezuelan President Hugo 
Chavez) would likely attend the February 2004 Panama meeting 
of the Association of Caribbean Nations, although Castro had 
been asked not to come.  Minister Jacome said a large 
investment by Dell Computers is imminent, adding to its 
existing call center.  End Summary. 
 
 
FTA 
--- 
2.  (SBU) President Moscoso pressed Special Envoy Otto Reich 
and Ambassador Watt for an April 2004 start date for the 
bilateral free trade agreement talks (that is, prior to the 
May 2 national election) in a January 21 meeting.  Amb. Reich 
replied that USTR had agreed to hold the talks the second 
quarter, which means they could start any time between April 
and June.  Minister Jacome confirmed that no specific date 
for the talks has been chosen. 
 
 
PVSA 
---- 
3.  (SBU) When President Moscoso urged a modification to the 
Passenger Vessel Services Act (PVSA) to grant Panama "distant 
foreign port" status, Amb. Watt explained that a Commerce 
Dept. team would be in Panama January 27-30 to conduct 
research on the economic effects of changing Panama's status. 
 The results of that research will help the USG make a 
determination on PVSA. 
 
 
Investment 
---------- 
4.  (SBU) Investor interest in Panama is rising, Minister 
Jacome told Ambassador Reich, and  Americans are buying real 
estate in Boquete, Chiriqui (in western Panama).  Jacome 
added that the Bell South and Manzanillo International 
Terminal (MIT) investment disputes are close to being 
resolved.  Recently, five cruise ships docked in Panama on 
the same day, he added, showing that Panama is growing in 
popularity as a tourist destination.  Panama expects 4% 
growth this year, fueled by tourism and construction.  Amb. 
Reich said he had noticed a big change in Panama City's 
skyline since his last visit 10 years ago.  Jacome said that 
chances are good that Dell Computer soon would decide to 
rapidly increase its call-center personnel and make a 
significant new investment. 
 
 
Drug Lord Arrest 
---------------- 
5.  (SBU) Amb. Watt thanked President Moscoso for Panama's 
excellent cooperation with Embassy and U.S. law enforcement 
officials in the recent arrest and deportation of Colombian 
kingpin Archangel de Jesus Henao Montoya, wanted in New York 
on drug charges.  (Note: Henao Montoya has been described as 
one of the Hemisphere's leading drug lords.) 
 
 
Castro, Chavez Visit 
-------------------- 
6.  (C) Cuban President Fidel Castro (and Venezuelan 
President Hugo Chavez) likely will attend the February 13-14 
Caribbean Heads of State Summit (Association of Caribbean 
States) meeting, President Moscoso said, although Foreign 
Minister Arias said Panama had asked Castro not to come. 
President Moscoso and FM Arias agreed that Venezuela is 
becoming "more like Cuba." 
 
 
Trial of Anti-Castro Cubans 
--------------------------- 
7.  (SBU) Arias added that Panama's Miami consulate had been 
picketed more than once by anti-Castro demonstrators 
demanding the release of four anti-Castro Cubans soon to be 
tried in Panama for conspiring to murder Castro in Panama 
during the November 2001 Ibero-American Summit.  The accused 
are Luis Posada Carriles, Gaspar Jimenez Escobedo (AmCit), 
Guillermo Novo Sampol (AmCit), and Pedro Remon Rodriguez 
(AmCit).  (Note: Panama considers Posada Carriles to be a 
Cuban citizen.)  The first hearing in the trial, subject to 
constant delays, was held September 5, 2003.  (See Reftels A 
and B).  Panama has rejected Cuban demands for extradition. 
 
 
8.  (U) Special Envoy Reich did not have the opportunity to 
clear this message. 
 
 
WATT