US embassy cable - 03TEGUCIGALPA1498

UNCLAS SECTION 01 OF 03 TEGUCIGALPA 001498 
 
SIPDIS 
 
STATE FOR IIP/T/ES; IIP/G/WHA (CBARONE; GLLOYD); WHA/PDA 
(MBUCKLEY) 
EMBASSIES FOR PAO 
 
E.O. 12958: N/A 
TAGS: OIIP, KPAO, HO 
SUBJECT: Evaluation of U.S. Speaker on the U.S.-Central 
American Free Trade Agreement (US-CAFTA), David E. Lewis, 
Tracker #17827 
 
REF: Tegucigalpa 3391 
 
SUMMARY: U.S. Speaker David E. Lewis addressed private 
sector organizations, labor, GOH, congressmen, academics, 
the general public and the media in his weeklong visit to 
Tegucigalpa and San Pedro Sula.  PAS sponsored him the first 
three days and USAID/Honduras programmed him two days.  PAS- 
arranged press events received excellent coverage and 
highlighted his message on the benefits and challenges of 
free trade.  The program served to focus Honduran audiences 
focused on the upcoming V Round of the US-CAFTA Negotiations 
in Tegucigalpa June 16-20.  END SUMMARY. 
 
A) Description of the Activity: Dr. David E. Lewis, Vice 
President of Manchester Trade, Ltd., visited Honduras June 1- 
7, 2003, as a U.S. Speaker on the U.S.-Central American Free 
Trade Agreement (US-CAFTA). During his weeklong program, 
sponsored by PAS for the first three days and by 
USAID/Honduras the other two days, he spoke to private 
sector organizations, senior and mid-level government 
officials, academics, members of the Honduran Congress, 
labor union representatives, and the general public.  He 
also participated in a PAS-organized press conference, a 
live morning TV talk show with the Minister of Industry and 
Commerce, and was guest of honor at a luncheon hosted by the 
PAO. 
 
B) Date: June 1 - 4, 2003 
   Fiscal year: FY-03, Third Quarter 
 
C) Justification and Objective: To discuss with Honduran 
audiences the benefits of free trade in promoting economic 
growth and development. 
 
D) Tracker No. 17827; MPP Goal: Regional Stability, U.S. 
Exports, Economic Development and Mutual Understanding. 
Audience reached: Approximately 350 people directly, 
including representatives from the public and private 
sectors; members of the labor unions; students and 
professors from the National Autonomous University's Central 
American Graduate Program in Economics and Development 
Planning (POSCAE); and the general public.  His 
participation in a live TV program with nationwide coverage 
and a PAS-arranged press conference allowed Dr. Lewis to 
reach a large number of the general public. 
 
E)  Result/Impact: Excellent/Excellent 
 
The post fully met its objective for this program by 
providing forums in which to discuss the opportunities, 
challenges and benefits for Honduras in the CAFTA, what U.S. 
business seeks, the importance of Central American 
integration, and the fact that CAFTA is only the first step 
in a long-term trade relationship with the U.S.  Most 
important of all, Dr. Lewis stressed that CAFTA is an 
opportunity to reform the economy and the legal system.  He 
also noted that it was the Central American countries who 
had requested a FTA with the U.S. 
 
Dr. David Lewis conducted an intensive program during his 
visit to Honduras in his dual role as a U.S. Speaker on the 
U.S.-Central American Free Trade Agreement and a consultant 
with USAID/Honduras. 
 
On his first program day, Dr. Lewis lectured 20 students and 
faculty (among them Dr. Hugo Noe Pino, former Honduran 
Ambassador to the U.S.) at the POSCAE, was briefed by the 
DCM and other Embassy officials, and was guest of honor at a 
lunch hosted by the Honduran-American Chamber of Commerce 
(AMCHAM).  At the end of the day, he held a roundtable 
discussion with members of the Honduran Council for Private 
Enterprise (COHEP). 
 
The following day, Dr. Lewis appeared on "Frente a Frente," 
the interview segment of Honduras's most watched morning TV 
news program, with Minister of Industry and Commerce Norman 
Garcia.  During the 45-minute program, he made the point 
that Central America needs to identify what the U.S. market 
demands and find out how they can supply it, that Central 
America is negotiating with two fronts - the internal 
process among the five countries and with the U.S., and that 
nothing is final until the negotiations end. The program 
moderator expressed appreciation of the U.S. Embassy's 
outreach with publications such as IIP's "The Language of 
Commerce" and the brochure "US-CAFTA." 
 
Afterwards, Dr. Lewis held a roundtable discussion with the 
Vice Minister of Finance, the Director of the Income Tax 
Bureau and Customs officials to discuss how lower tariffs 
will reduce government income and how to substitute for 
them.  He also stressed the political decisions that will 
have to be taken to make the adjustments and noted that 
standardized import/export procedures are an incentive for 
foreign investment. 
 
Following this meeting, Dr. Lewis held a press conference in 
PAS, which was featured in all four newspapers and on 
national TV and four major radio stations 
 
PAO hosted a luncheon for David Lewis with members of the 
Honduran Congress, labor union leaders and representatives 
of private sector organizations.  During the lunch, labor 
union officials asked if we could schedule a meeting with 
Dr. Lewis so that their leadership and the Minister of Labor 
could discuss their concerns in depth.  In addition, one of 
the congressmen attending decided to arrange a meeting with 
the President of the National Congress and several members 
of the Commission on Trade. 
 
Dr. Lewis participated in a public program at the 
Tegucigalpa Chamber of Commerce, using his PowerPoint 
presentation "CAFTA and Honduras: Challenges and 
Opportunities" to address the background and issues 
surrounding CAFTA and initiate a discussion on how 
agricultural, small business and other sectors could take 
advantage of CAFTA. 
 
The following day, Dr. Lewis traveled to the northern city 
of San Pedro Sula, accompanied by the PAO and a USAID 
official, to meet with the Honduran Apparel Manufacturers 
Association ("Maquiladores") and the Cortes Chamber of 
Commerce and Industry (CCIC) and to participate in a public 
program.  The "Maquiladores," by far the best-prepared 
sector in the negotiations, discussed the textile proposal 
on the table vis--vis CBI and GSP benefits and their hope 
that the U.S. would present a more liberal proposal. 
 
Upon returning to Tegucigalpa, Dr. Lewis continued his 
program with USAID/Honduras, meeting with the Minister of 
Industry and Commerce and members of the Honduran 
negotiating team, the President and Vice President of the 
Honduran Congress, and representatives from the labor 
unions. 
 
Throughout his presentations, Dr. Lewis tried to make the 
following points with all his audiences: (1) an FTA is an 
instrument for economic development, not a replacement for a 
national economic development plan to overcome poverty; (2) 
Honduras needs to invest in its human resources; (3) in 
international negotiations each nation must be aware of its 
important national interests in order to get the greatest 
benefit for its economy; (4) Honduras needs to decide where 
it wants to be 50 years from now; (5) CBI and GSP are 
government-to-government agreements and can be cancelled 
anytime, whereas an FTA is a contractual commitment that 
involves all sectors; and (6) countries need to find out 
what the market demands and how they can supply it. 
 
PAS Tegucigalpa highly recommends Dr. Lewis for future 
programs.  His vast experience in international trade and 
his knowledge of Latin America, plus his fluent Spanish and 
hard-working disposition, make him an ideal speaker.  He 
immediately establishes excellent rapport with his audiences 
and manages to keep the discussion on track.  We would 
welcome him back at any time. 
 
Post distributed copies of IIP handouts, a pamphlet 
promoting our IRC, and Dr. Lewis's presentation at all the 
venues. 
 
F) Non-USG Sources of In-country Funding/In-kind Support and 
Amount: The private sector organizations provided venues and 
coffee breaks for the conferences, and the other host 
institutions provided conference facilities for their 
programs. 
 
G) Quality of U.S. Support and IIP Offices Involved:  Very 
Good.  Post appreciates Gloria Lloyd and Camille Barone's 
assistance in making financial arrangements for this 
program. 
 
Palmer