US embassy cable - 05TEGUCIGALPA2338

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002338 
 
SIPDIS 
 
SENSITIVE 
 
DEPT. FOR WHA/CEN, PM, EB, OES, INR, AND L 
 
E.O. 12958: N/A 
TAGS: PBTS, PREL, PGOV, MOPS, ECON, EFIS, EPET, PINR, HO 
SUBJECT: MARITIME DISPUTE BETWEEN HONDURAS AND NICARAGUA 
HEATS UP AGAIN; ICJ DECISION EXPECTED IN 2006 
 
REF: A. TEGUCIGALPA 2223 
     B. MANAGUA 2639 
     C. TEGUCIGALPA 893 
 
1. (U) Summary - The long standing maritime territorial 
dispute between Honduras and Nicaragua has gained prominence 
recently, with a decision in the International Court of 
Justice (ICJ) in The Hague not expected until 2006.  This 
territory has been sharply disputed since the 1980s with 
intentions for exploration for petroleum bringing this issue 
to prominence in both countries' foreign policy goals.  While 
there has been relative calm on this issue for the past few 
years, the Nicaraguan Energy Institute recently released a 
report claiming that it had the authority to explore for oil 
in the disputed territory, according to press reports.  Both 
countries have already submitted their arguments to the ICJ 
for a ruling, but such a report may be meant to impress or 
affect the ICJ decision.  The issue is further complicated by 
recent border disputes between Nicaragua and Costa Rica over 
the San Juan River, where Nicaragua has responded negatively 
to attempts to invoke the ICJ as a means to settle the 
dispute.  While the Honduran-Nicaraguan dispute has received 
quite a lot of attention from the press, all parties must 
await a decision from the ICJ before further action.  End 
Summary. 
 
2.  (U) The recent escalation in the Honduran-Nicaraguan 
maritime border dispute is largely a rhetorical one.  It 
springs from a report released by the Nicaraguan Energy 
Institute (INE) claiming to have the authority to explore for 
oil in the disputed territory.  This is the second of such 
reports since 2002 and follows closely after the Government 
of Nicaragua (GON) signed a contract with Oklahoma Nicaragua 
SA to explore for oil in 2004.  Acting Honduran Foreign 
Minister Juan Antonio Lara Bueso reported to the press that 
he believed that the map presented by INE was the same one 
that was presented in 2002.  The Government of Honduras (GOH) 
protested the report in 2002, and if it is confirmed that it 
is the same map, promised to protest it again this year.  The 
Acting FM speculated that INE may be trying to sway or 
impress the International Court of Justice (ICJ) preceding 
the beginning of oral arguments.  However, as the written 
arguments have already been submitted before the ICJ, the 
effect on the pending decision should be negligible. 
PolChief discussed the issue October 7 with the Acting FM who 
said that the Honduran-Nicaraguan ICJ case would enter the 
oral phase in 2006, and that the GOH expected an ICJ ruling 
prior to the end of 2006.  The GOH wants to resolve the 
dispute quickly, said the Acting FM. 
 
3. (SBU) Nicaragua's recent border dispute with Costa Rica 
over the San Juan River has caused some degree of concern as 
to the stance that the GON may take towards border disputes 
(ref B).  When the Government of Costa Rica (GOCR) threatened 
international legal action against the GON, members of the 
GON threatened the use of a new "patriotic tax."  (A similar 
35 percent tax was placed upon Honduras in 1999 and revoked 
in 2003 as part of the maritime dispute.)  When meeting with 
MFA Director General for Foreign Policy Allan Oviedo October 
13 PolOffs asked about the potential for a possible 
undiplomatic response from the GON resulting from an 
unfavorable ICJ ruling.  DG Oviedo responded that he believed 
it likely that the GON would respect the ICJ decision for the 
maritime border, as have previous nations with claims in 
Caribbean waters. 
 
4. (SBU) Both counties have historical claims to the 
territories that date back numerous decades, however the 
modern history of the dispute began in the early 1980's when 
both the GOH and the GON actively began to claim the 
territory. The area in dispute is a triangular section of 
oceanic territory formed by the 15th parallel and a diagonal 
extension of the two countries' borders.  Diplomatic tensions 
came to a head in November 1999 when Honduras signed an 
agreement with Colombia, the "Ramirez-Lopez" agreement, which 
Nicaraguan authorities claimed led to the usurping of 130,000 
square km of Nicaraguan maritime territory.  In response, 
Nicaragua imposed a 35 percent tariff on Honduran-made 
products and sued Honduras in the ICJ.  Nicaragua finally 
revoked its retaliatory tariff on Honduran products in March 
of 2003, but the GON maintains that they have a legitimate 
claim under international law.  Although the two countries 
have border disagreements, the armed forces of both countries 
have cooperated recently in counternarcotics exercises in the 
disputed territory.  Post notes it is important that U.S. 
counternarcotics teams include both countries' forces in 
disputed territory so as not to show bias to one side or the 
other. 
 
5. (SBU) Comment.  Overall, little has changed in the 
maritime dispute.  As the oral stage in the case with the ICJ 
draws near, both sides are attempting to strengthen the 
appearance of their case.  The press has grabbed a hold of 
both countries' rhetorical claims and brought this issue back 
into prominence.  Both counties see the potential of finding 
oil a top priority.  One Honduran paper even referred to the 
possibility of finding oil as their "salvation"  from the gas 
price crisis.  These widely held sentiments have also 
contributed to the elevation of this foreign policy issue. 
However, all parties must wait for a decision from the ICJ 
before taking any action or shifting policy dramatically. 
End Comment. 
Ford