US embassy cable - 05TEGUCIGALPA557

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000557 
 
SIPDIS 
 
STATE FOR - DS/IP/ITA, DS/IP/WHA, WHA/CEN, WHA/EPSC, EB, 
DRL/PHD, INR/IAA 
STATE PASS USTR 
DOL FOR ILAB 
 
E.O. 12958: N/A 
TAGS: ASEC, PGOV, ETRD, ELAB, PREL, HO, KSAC 
SUBJECT: A COALITION OF  GROUPS PROTEST AGAINST HONDURAN 
CONGRESSIONAL APPROVAL OF CAFTA 
 
 
1. Summary - On March 8, several groups protested against the 
CAFTA resolution which was passed by the Honduran congress on 
March 3.  The protesters blocked roads in various locations 
outside of the capital. At approximately 1645 hours, more 
than 800 demonstrators protested in front of the Congress. 
In the outlying areas, there was one incident of violence 
reported and a minor injury to a police officer occurred. The 
protest in front of the Congress resulted in property damage 
to vehicles and buildings located near the National Congress. 
While none of the protests were directed at the embassy, Post 
does not discount that possibility in the future. End Summary 
 
2. On March 8, demonstrators from various groups protested in 
several locations in Honduras. They were protesting against 
the Honduran Congress' passage of the U.S.-Central America 
Free Trade Agreement (CAFTA) agreement. The demonstrators 
blocked roads in various parts outside of the capital of 
Tegucigalpa.  Local authorities estimated that 1,500 
demonstrators blocked the road in Las Mercedes, located near 
Soto Cano airbase near Comayagua. It was reported that 500 
demonstrators blocked the main road outside of Santa Rosa De 
Copan, located six hours northwest of the capital.  Near 
Copan in the Colonia 6 de Mayo, reports stated that 
demonstrators slashed the tires and broke the window of a 
police vehicle. It was in this same area that a police 
officer was hurt by an object thrown by one of the 
demonstrators.  Police reported to RSO that 300 demonstrators 
were present in Siguatepeque, located 45 minutes north of the 
Soto Cano airbase.  (NOTE: Though various routes were blocked 
outside of the  capital, the streets and thoroughfares in and 
around the capital were clear. This is a departure from 
previous large protests organized by Bloque Popular, where 
protesters concentrate on blocking the main roads leading out 
of the capital. Endnote).  Honduran Minister of Finance 
William Chong Wong was quoted in the press saying that the 
road blockages had cost Honduras hundreds of millions of 
lempiras in economic losses, and had caused losses to other 
countries in the region that export via Honduras.  Chong said 
that these kinds of actions could cause El Salvador and 
Nicaragua exporters to export through other countries, 
further damaging Honduras. Finally, he noted, campesinos 
(those whom the protests were allegedly meant to defend) are 
also hurt by the road blockages, as their high value added 
fruit and vegetable exports were blocked and perhaps ruined 
by the protests. 
 
3. It was reported to RSO that the groups protesting in the 
Las Mercedes area were prevented by the police from entering 
the capital to join the other demonstrators in front of the 
Congress.  At approximately 1100 hours, the demonstrators 
boarded buses to travel to Tegucigalpa to protest with other 
groups at the Congress.  En route to Tegucigalpa, their buses 
were stopped outside the capital at a police check point and 
forced to turn around. 
 
4. In Tegucigalpa, at approximately 1645 hours, approximately 
800 demonstrators converged on the Congress.  During the 
protest, there was a strong police presence.  There were many 
reports of vandalism to vehicles and buildings, to include 
breaking windows and spray painting graffiti, in the vicinity 
of Congress.  This happened despite a strong police presence 
of over 200 officers.  The number of demonstrators was 
estimated to be fewer than 100 by the time the congressmen 
arrived to hear their complaints.  Among their complaints, 
marchers highlighted the alleged duplicity of president of 
the Congress Porfirio "Pepe" Lobo, who had reportedly 
scheduled a dialogue with civil society about CAFTA for March 
8, but then engineered an unscheduled vote on the agreement 
on March 3. 
 
5. The demonstrations were organized by the Bloque Popular in 
wake of the congressional ratification of CAFTA on March 3. 
A protest by government workers in favor of higher wages that 
had been ongoing at the time of ratification was unrelated to 
CAFTA.   CAFTA opponents, however, caught off guard by the 
swift unscheduled vote in favor of the agreement, quickly 
mobilized the groups for a spontaneous riot inside the 
congressional hall on the false pretext that the CAFTA would 
prevent the government from granting the sought after wage 
hikes. 
 
6.  On March 4, the Bloque Popular announced a nationwide 
anti-CAFTA protest for March 8, predicting 500,000 people 
would participate. During the event, fewer than 10,000 
participated nationwide, with no single event garnering more 
than 2000 demonstrators. 
 
7.  Various unions, such as some teachers unions, and a broad 
cross-section of populist groups joined the Bloque Popular's 
condemnation of the CAFTA ratification. One leader 
specifically lamented the lack of consultation by the 
Congress which could have produced a consensus position. 
Traditionally, these types of "reforms" have been most 
accepted when the government and Congress have been more 
effective and transparent when including workers in such 
negotiations.  However, in truth, the unions have been 
largely knee jerk in their opposition and no amount of 
consultation, which the GOH did engage in, would have 
resulted in a national consensus in support of CAFTA 
ratification.  The CAFTA opposition plans to contest the 
constitutionality of CAFTA and perhaps its method of 
ratification, neither of which are likely to be ruled 
unconstitutional. 
 
8.  The opposition also used CAFTA ratification to attack 
other pending legislation, such as the competition 
(anti-trust) law, forestry law, and civil service reform law. 
 They also claimed it would lead to the privatization of 
water service, inadequate funding for teachers' and health 
care workers' salaries, and the devaluation of the lempira. 
Sadly, another major point of protest is that the opponents 
say Honduras is not prepared or able to compete against the 
U.S. under the terms of the agreement, a position which 
reveals a lack of understanding of the phase-in protections 
for Honduras' agricultural producers and other key sectors. 
 
Palmer