US embassy cable - 05TEGUCIGALPA1311

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 001311 
 
SIPDIS 
 
DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES 
DEPT. FOR PM AND EB/TRA 
DEPT. FOR WHA/EPSC, WHA/PPC AND WHA/CEN 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, PGOV, MASS, EAID, HO 
SUBJECT: MEDIA REACTION ON MCC AND G-8, JUNE 17, 2005 
 
 
1. Op-ed by Tulio Mariano Gonzales Garcia in San Pedro Sula- 
based liberal daily "Tiempo" on 6/17, entitled "From Debt 
Relief to Development."  "The verbal campaign for relieving 
the suffering of the poor moves forward while, at the same 
time, achieving the goal of the Millennium to reduce extreme 
poverty by half has not been clear. Under these 
circumstances, the currently poor conditions can be turned 
around to become opportunities as long as the ultraliberal 
globalization dogma is not imposed along with its ability to 
generate conflicts and polarization." 
 
"Honduras received with satisfaction the news about the G-8 
group's decision to cancel 100% of the debt for highly 
indebted poor countries which amounts to $1.2 billion. 
Additionally, the Millennium Challenge compact for $215 has 
been signed to improve basic infrastructure, especially the 
construction of highways, health facilities, schools and 
much more.  Mr. Ricardo Maduro is relatively correct when he 
asserts that the next administration will be working under 
better conditions." 
 
"Various conditions are nonnegotiable in order to enjoy the 
new funds.  First among them is the fight against 
corruption. People are familiar with the modus operandi of 
the elite, which exploits, accumulates, and cheats in anyway 
to eat away at the public funds." 
 
"A multitude of citizens in the impoverished countries 
believe that debt relief is only a small step towards 
compensation for the historical exploitation as well as 
small step towards avoiding a worsening of the crisis, 
fighting centuries of hate, division, greed and corruption." 
 
2. The San Pedro Sula-based liberal daily "La Prensa" 
published an editorial entitled "Strategy against poverty." 
"We Hondurans are skeptical towards the real and positive 
effects of the debt forgiveness, even more when politicians 
try to take advantage when a government or credit organisms 
forgives debts." 
 
"This debt forgiveness is supposed to be used in the poverty 
reduction strategy, a plan which we don't know who is 
executing, has invested in and what are the short and medium- 
term projections. That same thing happened with the debt 
forgiveness in the `Stockholm Summit.' Did the money come to 
the country or not? If it came, who managed it? What was the 
total amount?" 
 
"The G-8 forgiveness was produced later when the rich 
nations verified through thorough analysis that Honduras 
deserved to be part of the less-honored `miserable club.' 
The World Bank and the IMF influenced the approval of the 
application of harsher economic and fiscal measures which 
Cardinal Rodriguez thinks is stained with the blood and pain 
of the poor and has served to enrich a few." 
 
"Hondurans have paid a high economic and social cost in 
comparison to the debt forgiveness amount. The former 
government raised sales taxes from 7 to 12% and since the 
90's until now the people have supported eleven `economic 
structural adjustments.' Result: today we are poorer than 
before, even though a transparent, clean, pragmatic 
administration and efficient use of saved resources in 
servicing debt can and should reverse the situation." 
 
3. Op-ed by Gloria Leticia Pineda in "Prensa" entitled 
"Moving debt's phantom further away."  "It is a hard task 
but not an impossible one if the government and the people 
propose to correct it. We have to understand our reality: we 
are born poor and must live poor. If we continue to be 
enemies with each other it would be more difficult. It is a 
commitment for all, for the well being of all." 
 
"Some still don't understand that the debt forgiveness is 
`money that has already flown away.'" 
 
"President Maduro's economic team is composed of honorable 
people, capable and committed to the mission. Being popular 
is not their interest; they want to do their jobs 
objectively. They helped President Maduro in structuring 
`the intentions letter' which was a `green light' in 
obtaining the debt forgiveness. Even though the general 
public doesn't see it, the economy has improved." 
 
"Newspaper `El Heraldo' had the fist scoop of the $215 
million given by the MCC. Our country presented four 
projects, two were approved, and one refers to roads 
infrastructure, specifically the ones that connect with 
agricultural markets. We are not naturally distrustful; we 
prefer to expect the bad. A miracle happened even if we 
hardly understand it we conquered credibility. Then came the 
G-8 debt forgiveness surprise." 
 
"We seize this run of good luck by responding with 
responsibility and dignity. If we are patriots it will be 
easy." 
 
Pierce