US embassy cable - 05SANSALVADOR2636

C O N F I D E N T I A L SAN SALVADOR 002636 
 
SIPDIS 
 
E.O. 12958: DECL: 09/21/2015 
TAGS: EINV, ES, KCRM, KJUS, PGOV, PREL, INL 
SUBJECT: AMBASSADOR, INL DAS FARRAR DISCUSS CRIME AND 
INVESTMENT WITH VICE PRESIDENT 
 
 
Classified By: CDA Michael A. Butler for reasons 1.4(b) & (d) 
 
1. (C)  Summary:  On September 20, the Ambassador and INL DAS 
Jonathan Farrar discussed the relationship between crime and 
economic development with Vice President Ana Vilma de 
Escobar.  Vice President Escobar outlined the government's 
efforts to promote investment and economic growth, 
emphasizing that El Salvador was "open for business", and 
achieving success in attracting investment.  The Ambassador 
urged more attention on the part of both the GOES and private 
sector at combating crime, which he identified as a serious 
obstacle to economic development.  While Escobar did not 
appear to share USG views that crime was the major obstacle 
to creating jobs and prosperity, she conceded that 
gang-related crime is one of the most serious problems facing 
the country, and added that the GOES is working on a plan to 
combat the situation successfully.  The Ambassador also 
underlined the importance of enacting a judicial criminal 
code of evidence.  Escobar said she appreciated USG concern 
and advice.  End Summary. 
 
2. (C)  The Ambassador hosted a lunch for the Vice President 
and visiting INL DAS Farrar to talk about the impact of crime 
on investment decisions and growth, and GOES plans to address 
the issue.  Also present were DCM Michael Butler, USAID 
director Mark Silverman, Economic Counselor Jessica Webster, 
and National Investment Promotion Agency of El Salvador 
(PROESA) executive director Patricia Figueroa.  The 
Ambassador opened the discussion by noting that security is 
one of the barriers companies perceive regarding investing in 
El Salvador.  Escobar stated President Saca has the 
connections with the private sector and leadership to promote 
economic development, but the government is not as certain of 
the right steps to take regarding crime.  She added she 
believes that investors make their preliminary determination 
regarding security as one of the first steps in their 
decision making.  If investors reach the stage of visiting El 
Salvador, few companies continue to see security as an 
obstacle, having seen the reality of the situation. 
 
3. (C)  Escobar noted that the GOES has decided to focus 
their investment efforts on companies in specific sectors: 
auto manufacturers, textiles, and tourism, to increase the 
rate of rural employment and diversify the economy.  She 
added that the Salvadoran banking system was focused on 
commercial development, and that it was difficult to obtain 
financing for industrial development projects like textile 
mills. 
 
4. (C)  Escobar cited gangs as the number one crime problem 
and affirmed that the situation is becoming increasingly 
difficult because of the connections between gang members and 
drug trafficking.  She added that she is pleased with police 
efforts against gangs, but acknowledged they lack the 
resources to adequately combat the problem. She also stated 
that the judiciary remains the weakest link in arresting, 
prosecuting, and incarcerating gang members. 
 
5. (C)  The Ambassador suggested that crime, corruption and 
the lack of resources for education and health are three 
major problems facing El Salvador.  He stated that the keys 
to combating all three problems are increasing tax 
collection, increasing GDP growth, and creating jobs.  He 
suggested the possibility of President Saca taking a more 
active leadership in the anti-crime initiatives and 
emphasized the importance of enacting a criminal code of 
evidence.  The Ambassador also stressed the need to develop a 
viable witness protection program.  Standardized rules of 
evidence and witness protection would lead to more successful 
convictions of gang members and other criminals. 
 
6. (C)  Escobar emphasized the need to change the culture of 
the people of El Salvador, adding that people needed to 
believe they would be safe if they came forward to testify, 
and that Salvadorans need to participate more in the fight 
against crime.  The recent case of the killing of the 
bodyguard of Elmer Charlaix, personal secretary to the 
President, during an attempted robbery at his home could be a 
catalyst.  She mentioned the possibility of President Saca 
trying to enlist the business community in becoming more 
involved in community projects including crime prevention, 
but she did not seem particularly emphatic regarding the 
likelihood of any such initiative.  Escobar further noted the 
prior success of the involvement of the private sector in 
combating kidnapping.  She stated that the GOES needs to set 
priorities regarding economic development and crime 
prevention, but that the situation is under control.  She 
said that the GOES appreciates the U.S. interest in the 
development of her country, and that our advice is valuable 
to her government. 
 
7. (U)  DAS Farrar cleared cable before departure. 
Butler