US embassy cable - 02TEGUCIGALPA2987

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 002987 
 
SIPDIS 
 
DEPT. FOR WHA/CEN, DRL/IL, DS/OP/WHA, AND S/CT 
STATE PASS USTR 
STATE PASS AID FOR LAC/CEN 
DOL FOR ILAB 
 
E.O. 12958: DECL: 10/29/2012 
TAGS: PGOV, PREL, ELAB, ETRD, PHUM, PTER, SOCI, ASEC, HO 
SUBJECT: POPULAR BLOCK AND TEACHERS DEMONSTRATE VIOLENTLY 
AGAINST GOH; MADURO WORRIED BUT PLEDGES TO STAND FIRM 
 
REF: A. TRIVELLI/PIERCE E-MAIL 10/25 
 
     B. TEGUCIGALPA 2928 
     C. TEGUCIGALPA 1342 
     D. TEGUCIGALPA 1298 
 
Classified By: Political Chief Francisco Palmieri; 
Reasons 1.5 (b) and (d). 
 
1. (U) On October 24-25 several thousand demonstrators that 
included the loose political alliance known as the Popular 
Block, the labor union SITRASANAA, secondary teachers 
(COPEMH), and three Democratic Unification Party (UD) 
congressmen clashed with police in violent demonstrations 
that included the reported use of Molotov cocktails.  The 
demonstrators protested against a number of issues, including 
the pay packages for teachers and other workers, the possible 
purchase of GOH housing bonds by teachers' pension funds, the 
installation of fences outside the entrances to Congress, and 
opposition to proposed GOH policies on municipal water, 
forests, and education as well as proposed regional free 
trade agreements. 
 
2. (U) Demonstrators threw rocks at police vehicles, ripped 
down the Congressional fences, and damaged vehicles and 
private businesses, including a Pizza Hut restaurant.  Police 
were forced to use tear gas, fire hoses, and rubber bullets 
against the demonstrators outside of Congress, and several 
policemen, demonstrators, and journalists were injured.  Only 
two protesters were arrested.  Embassy security company 
Inter-Con confirmed that gang members were also among the 
demonstrators.  It is not known if their presence was 
organized or opportunistic. 
 
3. (U) The demonstrations came on the heels of the October 23 
approval by a divided Congress to revise the teachers' 
statute to codify the May accords between primary school 
teachers and the GOH.  The May agreement provides for a 12 
percent salary increase and delinks teacher salaries from the 
minimum wage, thereby ending a key but controversial 
provision in a 1997 law which generously indexed teachers' 
pay to five times the minimum wage (refs C and D).  President 
Ricardo Maduro's National Party supported the bill, which was 
opposed by the Liberal Party, Party of Innovation and 
National Unity (PINU), and UD.  Secondary school teachers 
continue to demand the 40 percent increase provided under the 
original 1997 statute.  In September the Supreme Court ruled 
that the part of the teachers' statute that linked teacher 
salaries to minimum wage was unconstitutional, which 
observers had thought would set the stage for wrapping up the 
strike.  The secondary school teachers pledge to continue 
their protests and to strike until their demands are met. 
 
4. (U) The demonstrations followed an October 11 
demonstration outside the Embassy (ref B), and a string of 
false bomb threats in the country, including one on October 
23 at the Congress.  There are reports of another possible 
Popular Block demonstration October 30 against the IMF and 
proposed GOH privatization policies. 
 
5. (U) Minister of the Presidency Luis Cosenza termed the 
protesters actions "vandalism" and Minister of Public 
Security Oscar Alvarez said that the GOH would maintain a 
"firm hand" against violent demonstrators.  President Maduro, 
in a speech to the nation October 28, pledged that the GOH 
would not back down in the face of violent protests.  Maduro 
specifically defended the GOH's decision to provide up to 
30,000 lempiras (USD 1,818) in subsidies for a low income 
family to buy a house.  While open to dialogue, Maduro said 
that this openness should not be confused with weakness nor 
fear. 
 
6. (C) COMMENT:  Unlike the tame October 11 demonstration, 
the GOH has reason to be worried about this violent turn of 
events.  Notwithstanding their public belief and private 
comments that these protests are being orchestrated to 
undermine the Maduro government, many leading GOH officials 
acknowledge that there are even tougher times ahead.  A 
pending agreement to negotiate with the IMF, approval of the 
2003 austerity budget, the next round of minimum wage 
negotiations - all could serve to spark further public unrest. 
 
7. (C) COMMENT CONTINUED:  President Maduro called WHA/CEN 
Director Trivelli October 25 and told him that the 
demonstrations were disturbing and that the protesters' use 
of Molotov cocktails was a particularly bad sign. Maduro said 
he suspected Liberal Party agitation was behind the 
demonstrations, citing in particular Jorge Arturo Reina, who 
was quoted in the press calling the teachers' law a "blow" to 
the constitution.  Maduro's advisors also acknowledge that 
elements of their own party are fomenting some of the unrest. 
 Post believes that there remains a larger untapped sentiment 
of discontent in the country.  However, historically the 
Honduran public has been lethargic and apathetic about 
demanding public policy changes.  The Maduro government 
should be able to manage the situation if it continues to act 
decisively and to demonstrate its engagement.  END COMMENT. 
PIERCE