US embassy cable - 05TEGUCIGALPA1332

UNCLAS TEGUCIGALPA 001332 
 
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 DEBT FORGIVENESS, JUNE 22, 2005 
 
 
1. On 6/21 the San Pedro Sula-based liberal daily "La 
Prensa" published an editorial entitled "External debt 
forgiveness."  "In the last few days the country has 
accomplished a great triumph. The annual payments that the 
country had with international organizations and countries 
will substantially decrease. Once the relief arrives it will 
be time to finance activities destined exclusively to fight 
poverty and monitor the good use of these resources that 
were destined to pay debt and will also be equally 
collected." 
 
"We have to remind Honduran officials that the credit 
countries have made a just plan. These countries, through 
their agencies and officials, have known for a long time 
where the loans and technical aid they gave us have ended 
up. They know that on several occasions the credit 
procedures have failed." 
 
"An indebted and bankrupt country can't buy automobiles, 
trucks, industrial equipment or new technology. It becomes a 
producer of violence, immigrants and crime. The 
industrialized countries' decision was the surest one for 
their interests and ours. It will only be necessary to know 
if we will learn this lesson to avoid again falling into 
this new unpayable debt carousel in a few years." 
 
 
 
2. The San Pedro Sula-based liberal daily "Tiempo" carried 
an op-ed by Omar Edgardo Rivera entitled "Debt forgiveness: 
erased and final chapter PART II."  "However, some 
specialists believe that all this talk about the foreign 
debt relief for the poor countries of the world is nothing 
more than a publicity stunt by the rich countries and the 
international finance organizations." 
 
"In reality, what we are talking about here, and this is the 
key word, is an announcement of debt relief which is not the 
same as saying that it has already been relieved. What is 
being said is that there will probably be relief and that it 
will be subject to compliance with the Letter of Intentions, 
the conditions established by each creditor country, and a 
frontal attack against corruption." 
 
"And the complexity and confusion grows when in the heat of 
political rhetoric, politicians use the issue to attract 
supporters and gain advantages in the struggle to retain or 
take power." 
 
"In short, the issue begins to become covered in silt, and 
instead of thinking about how to take advantage of this 
historical juncture, we begin to build obstacles that will 
compromise the effectiveness of the clemency measure by the 
international finance organizations and the economic empires 
of the world." 
 
"The fact that we have been classified as a highly indebted 
poor country in not a good thing, what's more, it is 
embarrassing. And any serious leader that is dedicated to 
his people must in the medium and long-term fight to reverse 
this ranking and turn Honduras into a prosperous and solvent 
nation. We must not allow history to repeat itself." 
 
"From now on, the final word has been spoken; that the vices 
and thievery of the past disappear." 
3. The Tegucigalpa-based moderate daily "El Heraldo" carried 
an op-ed by Graco Perez entitled "Debt forgiveness, truth 
and lies."  "The announcements of the possible debt 
forgiveness and funds from MCC have taken most of President 
Maduro's declaration. It's undeniable that any relief 
reduces the links of the long chain that Hondurans carry but 
it is also true that few have had some of the benefit that 
took us into so much debt. It's known who is condemned, the 
whole population but it's not known who is really forgiven." 
"The debt forgiveness means that our country isn't capable 
of honoring its debts, we have lost credibility to fulfill 
our payment obligations. Honduras has become a poor, heavily 
indebted country, or as many prefer to say, a poor country 
without payment capacity." 
"While the issue becomes a flag for political campaigns, 
Maduro will use it to improve his deteriorated image, raise 
his international profile and boost his IADB presidential 
candidacy. Like the gas problem, a national problem that 
puts him on international stage to free himself of 
responsibility and be able to be a protagonist. `The table 
is served,' but for the groups in power and for the Honduran 
people the plate is empty. We need to get the story 
straight, no more lies." 
 
Palmer