US embassy cable - 05TEGUCIGALPA2237

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002237 
 
SIPDIS 
 
GUATEMALA FOR COMATT: MLARSEN 
EL SALVADOR FOR COMATT: DTHOMPSON 
GUATEMALA FOR AGATT: SHUETE 
STATE FOR EB/CBA, WHA/EPSC, WHA/CEN 
 
E.O. 12958: N/A 
TAGS: BEXP, EINV, ECON, HO, BFIF 
SUBJECT: Honduras 2005 BFIF Program Summary 
 
REF:  STATE 189815 
 
1. This is a summary on programmatic outcomes of Honduras' 
use of 2005 BFIF program funds. 
 
2. Embassy Honduras would like to thank EB/CBA for continued 
financial support of our joint Commercial-Economic outreach 
initiatives.  Post worked closely with the Honduran-American 
Chamber of Commerce (AMCHAM) and local Chambers of Commerce 
in designing a "CAFTA Road Show" series of presentations 
throughout Honduras, with particular focus on business 
communities outside of the capital and commercial hubs.  The 
Foreign Agricultural Service (FAS), U.S. Foreign Commercial 
Service (FCS), EconOff, and the AMCHAM have put together 
presentations that highlight CAFTA's advantages, and also 
their services available to assist Honduran importers of 
U.S. goods and services.  In addition to the `Road Show' 
presentation, Econ/Comm representatives met with multiple 
local businesses and business organizations. 
 
3. From June through September 2005, Post presented to 
Chambers of Commerce in nine regions, including:  La Lima, 
Choluteca, El Progreso, Villa Nueva, Puerto Cortes, 
Comayagua, Choloma, Cortes, and Atlantida.  Post provided 
information on FCS and FAS services, and the elements of and 
opportunities presented by CAFTA.  EconOff then engaged 
Chamber members in town hall style question and answer 
sessions.  Executive Directors of the Chambers were 
appreciated the briefing on the services provided by FCS, 
and will be including FCS product and event promotions in 
their newsletters.  Many Chamber Presidents also expressed 
their appreciation for the outreach by the Embassy to their 
region and look forward to continued information sharing 
with Economics Section. 
 
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A taste of results 
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4.  The President of the Chamber of Atlantida committed to 
partnering with the FCS in recruiting for International 
Buyer Program (IBP) shows, and hopes to jointly generate 
success stories from their office.  No companies from this 
region have to date participated in IBPs, a statistic that, 
following our presentation to them, the Chamber of Atlantida 
has committed to changing. 
 
5.  In preparing for this series of presentations, Econ/Comm 
section held planning and promotional meetings in San Pedro 
Sula, Honduras' business center located three hours north of 
the capital.  A septel to follow will outline recent and 
rapid growth and investment in this northern city.  FCS and 
EconOff have now established contacts in important business 
communities throughout the country, which will increase 
efficiency in FCS recruitment for tradeshows and enrich 
EconOff reporting. 
 
6.  In the San Pedro area, Econoff and Commercial Specialist 
met with multiple nearby Chambers of Commerce, the AMCHAM, 
U.S. businesses and trade groups.  In a meeting with the 
Association of Manufacturers, the FCS Commercial Specialist 
successfully used his presentation to recruit for an apparel 
trade show ("MAGIC") in Las Vegas.  In the three days 
following that speaking engagement, he was contacted by 10 
companies interested in more information on the Commercial 
Service, and 6 registered and attended this tradeshow.  This 
was the first time textile maquilas participated in a 
Honduran delegation to this show.  Trade shows are by far 
the number one generator of Export Success Stories for FCS 
Tegucigalpa. 
 
7.  In every Chamber of Commerce presentation, EconOff heard 
concerns about small businesses and their ability to compete 
in an increasingly global world.  In response to this need, 
Econ/FCS capitalized on the visit to San Pedro Sula in 
October of senior Small Business Administration (SBA) 
officials and invited SBA's Assistant Administrator of 
International Programs Manny Rosales to address Chamber of 
Commerce members on the role of small business in the U.S. 
and on the structure and philosophy of the SBA.  Mr. Rosales 
also met with and advised his counterpart within the 
Honduran Ministry of Trade and Industry on possible areas of 
partnership.  In a subsequent editorial in the nationally 
distributed daily newspaper La Prensa, Chamber of Cortes 
Executive Director Raul Reina publicly thanked the SBA for 
Mr. Rosales' offer for continued support and technical 
assistance and challenged the Honduran government to use the 
SBA's successful programs as models for their own small 
business initiatives. 
 
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Finances 
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8.  Per reftel request, Post reports that it spent 
approximately USD 3,153.20 of the USD 3,600 provided for 
CAFTA and Foreign Commercial Service (FCS) outreach.  The 
Commercial Service funded a portion of travel expenses for 
San Pedro Sula programs, which allowed Post to leverage BFIF 
funds and reach more cities.  As requested, post will fax to 
the attention of Gale Grey a copy of all travel vouchers and 
receipts for a detailed accounting of all funds. 
 
9.  Post plans to use this year's program to further 
leverage and consolidate the successes made possible by the 
2005 BFIF program.  Post looks forward to receiving 
additional information on proposal submission guidelines for 
the 2006 BFIF program.  Finally, Post reiterates its 
appreciation for EB/CBA 2005 support and for the highly 
successful program made possible by those funds. 
 
Williard