US embassy cable - 05TEGUCIGALPA1727

UNCLAS TEGUCIGALPA 001727 
 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC 
STATE FOR EB/IFD/OMA (AWONG) 
STATE PASS AID FOR LAC/CAM 
TREASURY FOR DDOUGLASS 
GUATEMALA ALSO FOR COMATT:MLARSEN 
 
E.O. 12958: N/A 
TAGS: EFIN, ECON, KTIA, HO 
SUBJECT: HONDURAS: DRAFT BILATERAL IMPLEMENTATION OF THE 
2005 PARIS CLUB DEBT FORGIVENESS AGREEMENT DELIVERED 
 
REF: A. A) STATE 149880 
 
     B. B) WONG/DUNN EMAIL OF 081505 
 
1. On August 16, EconChief met with Minister of Finance 
William Chong Wong and Director of Public Credit Orlando 
Garner to deliver the draft bilateral debt forgiveness 
agreement (ref B) based on the Agreed Minute on the Debt 
Reduction of the Republic of Honduras, signed on May 12, 
2005.  Copies in both English and Spanish were delivered and 
will be followed by electronic copies.  Pursuant to 
instruction contained in ref A, EconChief explained that the 
documents can be signed only after the final language has 
been agreed and all necessary implementing actions have been 
taken by the GOH. 
 
2. Chong replied that there are no implementing requirements 
save notifying Congress, since new legislation has granted 
him the right to negotiate and sign debt reduction 
agreements.  Chong will provide a written certification to 
this effect prior to signing the document. 
 
3. Concerning timing:  Chong expects that it will take his 
Ministry and the Central Bank two to three weeks to review 
and approve the draft document.  Garner, who glanced through 
the document during the meeting, said he thought there would 
likely be few or no changes, considering that the draft is 
based on the Paris Club Minute.  (He half-jokingly offered to 
sign it on the spot.)  Post will follow up with Garner and 
Chong and will pass any comments or questions about the draft 
agreement to the Department immediately. 
 
4. Concerning venue:  Chong would prefer to hold the signing 
ceremony here in Honduras, "since the last debt forgiveness 
agreement was signed in Washington."  As an alternative, he 
would be willing to sign the document on the margins of the 
International Monetary Fund (IMF) meetings in Washington, 
where Honduran President Ricardo Maduro could also be a 
witness. 
 
5. Comment:  Post remains without an Ambassador pending the 
confirmation hearings for Ambassador-designate Charles Ford, 
hopefully in September. The two to three weeks the GOH have 
requested will delay signature of this agreement until early 
September at the earliest.  Therefore, to best conform to GOH 
wishes for a signing ceremony in Honduras and to offer the 
new Ambassador a high-profile deliverable early in his 
tenure, Post recommends seeking to schedule a signing 
ceremony in late September.  End Comment. 
 
Williard 
Williard