US embassy cable - 05SANTODOMINGO4292

UNCLAS SECTION 01 OF 02 SANTO DOMINGO 004292 
 
SIPDIS 
 
DEPT FOR WHA, WHA/CAR, INR; NSC FOR SHANNON; USSOUTHCOM 
ALSO FOR POLAD; TREASURY FOR OASIA-MAUREEN WAFER; USDA FOR 
FAS; USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION; 
USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI 
 
E.O. 12958: N/A 
TAGS: DR, ENRG, EPET, ETRD, UNGA 
SUBJECT: DOMINICAN FUEL CONSERVATION PLAN DOES LITTLE TO 
LIMIT DEMAND 
 
REF: A. SANTO DOMINGO 4215 
     B. SANTO DOMINGO 4269 (NOTAL) 
 
1. On September 11 Dominican President Leonel Fernandez 
issued a second, not much improved version of a promised 
energy conservation plan meant to reassure the country that 
the government is reacting to the recent sharp rises in 
gasoline and diesel prices.  Instead of imposing modest 
restrictions on vehicle circulation, as previously suggested, 
the government is shutting down gasoline stations nationwide 
after 8 p.m at night and all day Sundays.  On Saturday nights 
the stations remain open until midnight. 
 
2. In a speech recorded before his departure on a ten-day 
trip to Washington and New York, Fernandez warned the country 
that cheap fuel "will not be coming back, and we must adjust 
to new realities."  He outlined various measures meant to 
smooth traffic flow, including a decision to limit public 
transport vehicles on the street to only one-half the fleet 
on any given day. 
 
3. Fernandez promised that in New York he would urge world 
leaders to convene a "world summit" to discuss the effects of 
high fuel prices on the world economy, especially upon 
developing nations.  He expressed concern over possible 
effects on inflation, fiscal stability, exchange rates, the 
nation's trade balance, and economic growth. 
 
4. On Monday, September 12 the armed forces sent armed 
soldiers to a number of gasoline stations in the capital to 
make sure they shut off service as required.  The Association 
of Gasoline Distributors complained and said its members 
would lay off half of their employhees. 
 
5. Fernandez's plan provoked initial disappointment and anger 
from many.  The measures are little more than window 
dressing. Closing gasoline stations will shift demand to work 
hours, creating queues and inconvenience without limiting 
demand. 
 
6. Minor fixes to make traffic flow more smoothly -- such as 
express lanes and removal of the ubiquitous speed bumps -- 
are welcome, but immobilizing half the fleet of public buses 
each day will save little and will irritate commuters who 
fight for place on board.  Transport union officials angrily 
insisting to journalists that the many privately owned buses 
have to keep rolling in order to make expenses and meet 
interest payments. 
 
7. Fernandez suggested that public buses should use diesel 
fuel rather than gasoline engines -- as most already do.  The 
plan does nothing to limit the use of subsidised cooking gas 
rather than gasoline for fuel, and garages are reported to be 
busily converting more and newer vehicles. 
 
8. The President's idea of setting up vehicle inspection 
stations and emissions certification is a fine suggestion for 
the medium term, but the inefficiency of traffic law 
enforcement suggests that modest individual bribes will 
undermine enforcement efforts. The President's promise to 
deploy more traffic police is unlikely to be effective in 
enforcing the new rules. 
 
9.  Official vehicles are to remain out of circulation over 
weekends, a change which Fernandez said would save 20 percent 
of official gasoline consumption.  This comment inadvertently 
acknowledged how routinely these government resources are 
improperly used for private transportation, a perk that 
functionaries will not readily give up. 
 
10.  The government will distribute 5 million florescent tube 
lamps in the countryside in its program, "Turn Off a Bulb." 
 
11. In connection with the announced package, Fernandez 
signed a decree renaming the largely discredited Office for 
the Metro to the Office for the Reordering of Transportation 
(OPRET), still headed by Diandino Pena. OPRET has a mandate 
to design and implement an "Autonomous and Single Authority 
of Transit and Transport" to regulate such services 
nationwide.  T 
 
12.  Many people have complained about Fernandez flying off 
to his high-level conferences and leaving Dominicans behind 
to deal with ever higher gasoline prices. So in an 
increasingly characteristic spin, the Palace decided that the 
President will cancel a visit to Puerto Rico scheduled for 
September 19, where he was going to participate in a trade 
mission. 
 
13.  There are supportive voices.  Former president Mejia and 
daily "Listin Diario," immediately supported Fernandez's 
plan, but cautioned that he must set an example by cutting 
back on the government's use of SUVs and fleet vehicles. 
"Listin" columnist Orlando Gil argued that at least the 
authorities are doing something to address an emergent 
problem and that constructive criticism so far has been 
scarce.  He said that one of the proposed measures, 
alternating days for public transport vehicles, were in 
effect years ago in the Dominican Republic and could work 
again.  But he predicted that limiting gas station hours 
would only spawn a black market in fuels. 
 
14.  Santo Domingo mayor Robert Salcedo, with his background 
as an actor and broadcaster, provided his own public 
relations moment last week, getting himself and a clutch of 
aides photographed bicycling in the Mirador Sur park. 
Salcedo promised that the city government would start 
studying, soon, the possibility of establishing bike routes 
across the city. 
 
15. GEORGETOWN MINIMIZE CONSIDERED. 
KUBISKE