US embassy cable - 04SANTODOMINGO1933

UNCLAS SANTO DOMINGO 001933 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/CAR, EB/OMA, WHA/PPSC, SES-CR; TREASURY FOR 
DO:NLEE, RTOLOUI, LLAMONICA; PARIS FOR TREASURY ATTACHE 
 
E.O. 12958: N/A 
TAGS: DR, EFIN, OPDC 
SUBJECT: DOMINICAN PRESIDENT MEJIA WRITES TO ASK FOR 
PRESIDENT BUSH'S SUPPORT AT APRIL 13 PARIS CLUB NEGOTIATION 
 
REF: 3/25 E-MAIL FROM MEIGS 
 
1. (SBU) On March 25 the Foreign Ministry delivered the 
original of a letter from President Mejia for President Bush, 
under cover of a note from the Minister.  Following is 
Embassy's unofficial translation.  Embassy is faxing copy to 
WHA/CAR and to Treasury; original follows to SES-CR by pouch. 
 
2.  (Comment)  Technical Secretary of the Presidency Carlos 
Despradel will meet Treasury DAS Nancy Lee at the IDB meeting 
on March 28 to discuss the GODR's Paris Club approach. 
Despradel confirmed to DCM and econoff yesterday that 
President Mejia has given specific instructions that the 
government is to comply strictly with all IMF goals. 
Despradel is concerned by what he believes is an internal 
contradiction in the program; he will describe this in detail 
to DAS Lee. 
 
3.(begin text of unofficial translation) 
 
 
(Seal of the Dominican Republic) 
 
Hipolito Mejia 
President of the Dominican Republic 
 
March 23, 2004 
 
 
Dear Mr. President, 
 
It is an honor to write to you to ask for your attention to 
an issue of great interest for the Dominican Republic, 
related to the severe banking crisis that we faced last year, 
which cost the equivalent of 20 percent of the Gross Domestic 
Product (GDP). 
 
For this reason I ask for your spirited intervention, since 
in confronting this situation we have had to seek the 
assistance of the International Monetary Fund (IMF) with the 
signature of a Standby Agreement for a period of two years, 
the next quarterly review of which will occur at the end of 
the current month of March.  In this regard we have done 
taken all the measures within our power to comply with the 
strict fiscal and monetary goals agreed with the Fund. 
 
The agreement with the IMF projects, among other things, a 
balance of payments gap of USD 320 million for the year 2004, 
which we agreed to cover by renegotiating part of the 
external debt falling due this year, including only those 
bilateral debts incurred before 1984 with countries members 
of the Paris Club. 
 
The meetings with Paris Club members are set for April 13. 
We are preparing for these with the assistance of experts in 
these matters. 
 
Mr. President, in outlining to you above the economic 
situation, my aim is to seek your spirited personal 
intervention, so that the officials of your government 
attending these meetings help us to conclude a renegotiation 
that enables our country to overcome the serious economic 
problems we face, without incurring future charges so costly 
that they do not justify, in financial terms, the 
renegotiation, especially with private creditors. 
 
Thanking you, Mr. President and my friend, for the courtesy 
of your close attention to this request, permit me to use 
this opportunity to offer, once again, the assurances of my 
personal esteem and personal appreciation. 
 
(signed) 
 
Hiplito Meja 
 
His Excellency 
George W. Bush 
President of the United States of America 
Washington DC 
 
(end text) 
HERTELL