US embassy cable - 03TEGUCIGALPA154

UNCLAS TEGUCIGALPA 000154 
 
SIPDIS 
 
FOR PD/WHA (MBUCKLEY); IIP/G/WHA DIPASQUALE; EB/EPPD DCLUNE; 
USTR AGASH 
INFO IIP/T/ES 
EMBASSIES FOR PAOS, IOs, 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, HO, PA, ETRD, USTR 
SUBJECT: MEDIA REACTION: "CAFTA" AETN Program with Barbara 
Bowie Whitman 
 
1. January 16 "La Tribuna," Liberal Party Tegucigalpa-based 
daily, carried an article on CAFTA with the headline "U.S. 
proposes to reinforce security at Central American Ports". 
 
2. "Tiempo," San Pedro Sula-based liberal paper owned by 
businessman and congressional deputy Jaime Rosenthal, 
carried a half-page story: "In CAFTA the U.S. goal is 
lowering subsides in 15 years." 
 
3. "El Heraldo," moderate Tegucigalpa-based daily, carried a 
half-page article entitled "U.S. won't eliminate all 
agricultural subsidies."  The story focused on the U.S. call 
for a worldwide reduction in subsidies". 
 
4. National TV and radio news programs gave full coverage to 
the CAFTA program.  Nation-wide radio station Radio America 
did a live transmission and retransmitted the entire program 
on its nightly news. 
 
6. An editorial in "La Tribuna," 1/12/03, was entitled: 
"Inch by Inch" "Representatives and Negotiators from the 
Honduran Council for Private Enterprise said that Honduras 
is not prepared for CAFTA. On the other hand the Costa Rican 
and El Salvadoran economies are well poised to take 
advantage of CAFTA." 
 
"As for Honduras and Nicaragua, their agricultural sectors 
are more sensitive than countries with economies that have a 
more developed economic system. Does the negotiation team 
have the necessary qualified people who can meet the 
challenges of CAFTA?  And prior to beginning negotiations, 
has the government consulted with the other sectors to 
present a consensus position at the negotiation table?  From 
here, it looks as if no one is in a hurry to workout a 
national position on this important issue that will 
determine our economic and commercial future." 
 
"The fact is, we are lagging behind the process waiting 
until someone else raises an issue or take action. We 
remember that during the NAFTA negotiations with Mexico and 
the Dominican Republic (sic), while other countries were 
taking strong positions and fighting over every inch, here 
everything was off the rails. 
 
7. Editorial in "El Heraldo" 1/12/03 entitled: "Honduras and 
the Free Trade Agreement with the U.S."- "Since the Summit 
meeting in 1994, the process for toward an FTAA has moved 
forward silently, but unceasingly. Honduras along with other 
countries has been involved in this process. But it is clear 
that Honduras and Nicaragua are the two countries in the 
region with the weakest economies when you compare them to 
Guatemala, El Salvador and Costa Rica." 
 
"But we are still have time to recover, if we are able to 
strengthen the fragile economic bases, diversify and make 
the economy more efficient, and emphasize our competitive 
advantages -labor and nearness to U.S. Atlantic ports. But 
these factors are not enough; we need a united position 
among government, the private sector and labor." 
 
"It is necessary to eliminate corruption, end the delays in 
legal procedures, offer legal and physical security, create 
new dynamic opportunities, improve infrastructure, and train 
the negotiation team. And only if we forgo both national and 
special interest concerns can we hope to succeed within the 
regional block. Otherwise we will be condemned to be just a 
small consumer of foreign products and services." 
 
Palmer