US embassy cable - 05TEGUCIGALPA1859

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 001859 
 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, INR/IAA, DRL/IL, AND EB/IFD 
STATE FOR CA/OCS/ACS/WHA AND DS 
TREASURY FOR DDOUGLASS 
STATE PASS AID FOR LAC/CAM 
DOL FOR ILAB 
 
E.O. 12958: DECL: 09/08/2015 
TAGS: PGOV, PREL, ECON, EPET, ELAB, PHUM, CASC, ASEC, HO 
SUBJECT: HONDURAN GAS PRICE PROTESTS RATTLE PRESIDENT 
MADURO; LEADING PRESIDENTIAL CANDIDATES PLAY POLITICS 
 
REF: A. TEGUCIGALPA 1851 
 
     B. TEGUCIGALPA 1842 
     C. TEGUCIGALPA 1837 
 
Classified By: Charge d'Affaires a.i. James G. Williard; 
reasons 1.4 (b) and (d). 
 
1. (C) A harried Honduran President Ricardo Maduro telephoned 
the Charge late on September 7, saying that he might declare 
a "State of Siege" to deal with the crisis on the streets. 
The president bitterly charged Liberal Party presidential 
candidate Manuel "Mel" Zelaya with inciting insurrection 
throughout the country.  Maduro called Zelaya a political 
opportunist and totally irresponsible.  He blamed the Liberal 
Party for literally feeding the taxi and bus strikers to keep 
the blockades going and particularly blasted Zelaya for 
advocating the elimination of the fuel tax.  Loss of the gas 
tax, according to Maduro, would mean the unraveling of the 
IMF accord, the debt relief package, CAFTA, and the 
Millennium Challenge Account. 
 
3. (C) Maduro asked the Charge to contact important political 
leaders in the Liberal Party to encourage a lowering of the 
political rhetoric, fiscal responsibility, and the rule of 
law.  He further requested that the Embassy consider making a 
public statement in support of the government, underscoring 
that fuel prices are largely determined by the international 
market.  Maduro referred several times to Catholic Church 
Cardinal Oscar Rodriguez's statement earlier in the day 
asking for common sense and the de-politicization of the fuel 
price issue.  (Note:  The Cardinal also stated that gas 
purchased prior to the international price rise should not be 
sold at current market prices.  End Note.) 
 
4. (C) In response, the Charge agreed to contact Liberal 
Party leaders and said that we would carefully consider any 
public statements on the situation.  Subsequently, Charge 
telephoned former President Carlos Flores (Liberal Party) who 
is owner of one of the nation's leading dailies (La Tribuna). 
 A/DCM spoke with Patricia Rodas, chief advisor to Mel Zelaya 
and President of the Liberal Party, and PolChief also 
contacted Rodas and other Honduran contacts (as well as the 
Ops Center).  PolChief emphasized to Rodas that the U.S. 
hoped to see the current problem solved peacefully through 
dialogue.  Charge also spoke with Canada's Mission Director 
who heads the G-16 international donor group and discussed 
the possibility of convening a meeting that would jointly 
call for social peace, rule of law, and fiscal restraint. 
 
5. (C) Former President Flores told Charge that he would be 
meeting within minutes with other news media chiefs to see 
what could be done to calm the situation.  He asked to use 
the Charge's phone call to convey to his colleagues (and 
sometimes political rivals) the seriousness of the situation. 
 Flores also said that the group of media reps would host a 
meeting of the Media Association on September 8 in an effort 
to lessen public tension.  He additionally commented that 
Maduro had failed to manage the situation well, having 
announced a very dramatic price increase with no 
consultations.  Charge responded that this may be a valid 
criticism, but needed to be aired in a dignified, civil 
manner and not be argued on the streets with accompanying 
violence. 
 
6. (C) The crisis was solved in the early hours of September 
8, thanks to a congressional decree reversing the recent gas 
price hikes and naming of a commission of notables to study 
the issue and report back within 10 days (see septel).  The 
solution apparently killed any possible "State of Siege" 
declaration. 
 
7. (C) Rodas told A/DCM and PolChief in a meeting the morning 
of September 8 that the Liberal Party had been feeding the 
taxi driver protesters, but that the Liberal Party had not 
organized the protests, saying it was the drivers themselves 
that had done so.  Rodas said she was deeply suspicious of 
National Party presidential candidate Porfirio "Pepe" Lobo, 
noting how he was using his position as President of the 
Congress to be seen as rescuing the country from a crisis. 
She noted that he was doing this in a way that allowed him to 
distance himself from a not very popular president from his 
own National Party. 
8. (C) Comment: Maduro was overreacting when talking of a 
possible "State of Siege," but the protests did shake him and 
were notable for their staying power.  As with past crises, a 
negotiated solution has brought an end to the gas price 
demonstrations and road blockades.  While Maduro is 
understandably frustrated at the Liberal Party's taking 
advantage to reap political gain in advance of the November 
27 elections, as freely admitted by Rodas to EmbOffs, Lobo's 
actions were also opportunistic, as he tries to triangulate 
himself into being seen as a man for the people.  Neither 
Zelaya nor Lobo's actions should come as a surprise in a 
bitter election battle that essentially appears a dead heat 
less than three months before the vote.  End Comment. 
Williard