US embassy cable - 05PANAMA2152

UNCLAS SECTION 01 OF 02 PANAMA 002152 
 
SIPDIS 
 
SENSITIVE 
 
WHA/CEN PASS TO GREGORY SCHIFFER 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, OVIP, PM, LABOR, HUMAN RIGHTS,POLMIL 
SUBJECT: POTUS VISIT PANAMA 
 
1.(SBU)  Summary.  In an October 21 meeting, FM Lewis told 
the Ambassador of his government's heightened concern about 
the absence of meaningful "deliverables" from the President's 
visit.  While Lewis was careful to emphasize that the visit 
itself was a great symbol of the close relations between the 
US and Panama, he feared that without tangible deliverables 
the local press will turn the visit into a negative.  Lewis's 
main concern is that the FTA won't be concluded before the 
visit.  He welcomed the possibility of announcing the 
establishment of an ad-hoc consultative mechanism between our 
governments as long as its wording did not suggest its sole 
focus was security.  Lewis also asked that we coordinate our 
response to issues such as Unexploded Ordinance (UXO) that 
are certain to surface.  Embassy believes that in the absence 
of an FTA, a strong communiqu highlighting our common 
interests, our shared democratic values, our interest in 
world commerce and the canal, our commitment to open markets 
and free trade, the shared fight against corruption and 
agreement to shore up democracy in the region will send a 
strong signal to the region.  In addition, ongoing bilateral 
programs, if presented correctly, clearly show the strength 
of U.S. commitment to Panama.  End Summary. 
 
GOP worried FTA may not be ready for prime time 
 
2.(SBU)  FM Lewis invited the Ambassador for an urgent 
meeting to discuss the &substance8 of the President's 
visit.  He immediately launched into a discussion of the FTA. 
 Lewis said the GOP had hoped an FTA agreement would be the 
centerpiece of the visit but acknowledged that it looked 
unlikely based on reports he had received from Washington. 
The Ambassador told Lewis that trade negotiations follow 
their own timetable and that just because an agreement is not 
reached by the time the visit takes place does not mean all 
is lost.  Lewis took the Ambassador's advice on board and 
asked what was the likelihood of reaching some sort of 
agreement on:  Panama's request for "near Foreign port" 
designation and/or some sort of debt relief. 
 
3.(SBU)  The Ambassador told Lewis that neither was likely in 
the timeframe of the visit.  He stressed that the President's 
visit is powerful evidence of the strength of the Panama/U.S. 
relationship and that we have an impressive set of bilateral 
accomplishments.  Lewis asked that we coordinate our message 
particularly with respect to sensitive issues such as UXO, 
allegations that the Torrijos Administration is trying to 
militarize the police force, China's influence on the 
management of the Canal, and other issues that surface when 
the opposition or the press try to embarrass the Torrijos 
administration.  The Ambassador agreed to have a coordinated 
approach. 
 
POTUS visit opportunity to highlight mature relationship 
 
4.(SBU)  The Ambassador told Lewis that there are possible 
deliverables for the visit, but not the kind he was looking 
for.  He reminded Lewis that we had discussed the possibility 
of announcing an ad-hoc consultative mechanism on security. 
Lewis responded that such an announcement would fall into the 
hands of those who accuse the Torrijos administration of 
trying to militarize the police force in Panama.  He 
suggested instead that we expand the concept to include 
discussions on the Embassy's democracy initiative and other 
issues.  The Ambassador said the Embassy would look into his 
suggestion and review our assistance program with a view to 
repackage it and highlight the accomplishments of our 
bilateral relationship.  Lewis welcomed this initiative. 
 
U.S. assistance to Panama is broad and deep 
 
5.(SBU) An Embassy review of our assistance programs in 
Panama reflects Panama's status as a mature partner of the 
United States.  While having "deliverables8 would be a 
desirable outcome of the visit, Embassy believes we have much 
to be proud of, to wit: 
 
U.S. provided $32.2 million in assistance to Panama in FY 
2005.  A brief summary of programs administered by U.S. 
agencies in Panama includes: 
 
U.S. AID 
Transparency/Anti-corruption Programs     $2.2 million 
Trade Capacity Building  $4.6 million 
Strengthening Darien Communities    $ .8 million 
 
 
Animal Plant and Health Inspection Service 
(APHIS) Screw Worm eradication and hoof and 
mouth disease barriers              $10 million 
 
 
Department of Labor Child Labor Initiative, 
Trade Development, and Prevention of 
Commercial Sexual Exploitation            $ 2 million 
 
Department of Homeland Security assistance 
to Panamanian Public Forces         $ 5.2 million 
 
 
Office of Defense Cooperation Humanitarian 
Assistance (New Horizons)           $ 6.0 million 
 
Fulbright/Exchange Visitors Programs      $  .4 million 
 
6.(SBU)  Dollar figures alone simply cannot communicate the 
commitment of the U.S. to helping Panama become a developed 
nation.  Many Americans are actively involved in helping 
Panama and provide "deliverables" every day.  Here are just a 
few examples of our commitment to this country. 
 
Peace Corps:  130 volunteers, working in areas where the 
poverty rate exceeds 70%. Over 35% of these volunteers are in 
indigenous areas with poverty rates of 98%. 
 
New Horizons, the  Department of Defense Humanitarian 
Program:  deployed 3,500 military members to Panama who built 
three schools and community centers in Panama's poverty 
stricken interior.  Military doctors and veterinarians also 
provided assistance to Panamanians. 
 
Panama is the beneficiary of two debt-for-nature swap 
programs totaling $21 million for tropical rainforest 
preservation.  Panama is the only country to benefit from two 
such agreements. 
 
The Foreign Commercial Service brought 102 U.S. companies to 
Panama on trade missions and business development programs in 
FY 05 
 
Currently, 294 persons are employed in the APHIS screwworm 
eradication program.  A new $40 million facility is under 
construction which will generate 300 new jobs for Panamanians. 
 
The number of Americans who live permanently in Panama, many 
of them retirees who have purchased homes and other 
properties, continues to grow, and now stands at over 25,000. 
 
Finally, we have also begun construction on a $70 million New 
Embassy Compound, providing many construction jobs and 
contracts to Panamanians. 
 
EATON