US embassy cable - 05TEGUCIGALPA1521

UNCLAS TEGUCIGALPA 001521 
 
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, JULY 21, 2005 
 
 
1. On 07/21 the Tegucigalpa-based liberal daily "La Tribuna" 
published an editorial entitled "Beginning When?"  "Because 
some government people are taking all the credit for debt 
forgiveness and also have an attitude that denies past 
governments' recognition on the matter and blaming it for 
`breaking an agreement with the IMF and that this actual 
government has to redo it,' it is necessary to give them 
[actual government] examples if they ignore, forget and even 
in bad faith express what they are saying." 
 
"The rumors that the former government ended with a broken 
agreement with IMF are completely false." 
 
"The IMF agreement was current for another additional year, 
during the last months of the last administration and was 
extended for another 10 months during the current 
government." 
 
"It is a blessing to receive a current agreement for another 
10 months in the new government but, if the current 
government had negotiated a new agreement with IMF while it 
was still in effect, there would have been more benefits. If 
so, the country would have reached the `culmination point' 
in the first year and instead now." 
 
"The relief was given to the countries included in HIPC but, 
despite the fact that some people from the actual government 
are uncomfortable with recognizing it, it was during the 
past government that the country was categorized as HIPC. We 
must mention Cardinal Rodriguez' valuable negotiation, a man 
who has become an icon of debt forgiveness for the poor 
countries of the world." 
 
2. The San Pedro Sula-based liberal daily "Tiempo" carried 
an op-ed by Ovidio Cubias, from New Orleans, entitled 
"Priorities in the Fight against Poverty."  "Government 
officials in Honduras are very enthusiastic about the debt 
relief of hundreds of millions of dollars granted by the G- 
8.  According to officials, we will finally cease to be one 
of the poorest countries in the world.  The debt relief is 
only a small help from the international financial 
institutions and expectations are higher than what can 
realistically be done with the economy.  However, the 
government can take advantage of this opportunity to combat 
the cancer of corruption, discontinue the policies that 
create indebtedness and set goals to start up development in 
the country." 
 
"Inequality continues to be alarming in the majority of 
countries in the region, with regards to education as well 
as income distribution." 
 
"This situation would change if the funds resulting from the 
debt relief of over half our foreign debt were to be applied 
to poverty reduction strategies. Using these funds in other 
ways not related to the priorities of poverty reduction 
would worsen the levels of indigence in Honduran society. 
Government officials must realize that defeating poverty is 
an ethical challenge and that there must be political will 
to reach this goal." 
 
"To support poverty reduction and food security in the long 
run, it is necessary above all to apply a sustainable model 
that produces growth and development in countries like ours 
where 70% of the poor live in rural areas and agriculture is 
the principal source of food, jobs and income. Development 
of this sector of the population is imperative for the 
success of any national strategy aimed at the reduction of 
poverty and increased access to food." 
 
Tuebner