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### Viewing cable 08SANJOSE902, COSTA RICA: AMERICAN BUSINESS LEADERS ASSIST GOCR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08SANJOSE902 | 2008-11-19 15:03 | 2011-03-21 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #0902/01 3241505
    ZNR UUUUU ZZH
    R 191505Z NOV 08
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0283
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUWDQAA/CCGDELEVEN ALAMEDA CA
    RUWDQAC/COMDT COGARD WASHINGTON DC
    RUMIAGH/COMJTF-B SIMS SOTO CANO HO
    RUEABND/DRUG ENFORCEMENT ADMIN HQ WASHINGTON DC
    RHMFIUU/CDR USSOUTHCOM MIAMI FL

` `

    UNCLAS SAN JOSE 000902

    SENSITIVE
    SIPDIS

    DEPT FOR WHA/CEN, WHA/PPC, INL/LP, DS/TIA/OSAC, AND DS/IP/WHA

    E.O. 12958: N/A
    TAGS: PREL PINR ASEC SNAR CONS CS

    SUBJECT: COSTA RICA: AMERICAN BUSINESS LEADERS ASSIST GOCR
    WITH SECURITY ISSUES; TOUT QUEPOS AS FUTURE REFUELING SITE

    ¶1. (SBU) SUMMARY: From October 22-23, Poloff and RSO visited
    the Quepos/Manuel Antonio area, a busy tourist area located
    about three hours from San Jose on the central Pacific coast
    of Costa Rica, to discuss security issues with local U.S.
    investors and government officials.  The RSO spoke with U.S.-
    affiliated business owners about establishing an Overseas
    Advisory Council (OSAC) sub-council in the area.  We also
    visited (largely dilapidated) law enforcement facilities, and
    the construction site of a $250 million, privately-funded,
    marina project.  Local officials and business owners voiced
    concerns that the marina might attract narco-traffickers and
    increase prostitution in the area (which is already a well-
    known destination for sexual tourism.)  Marina developers
    touted the facility as source of jobs and income, and a
    possible refueling point for USCG or USN vessels.  Finally, we
    visited the local Costa Rican coast guard station and
    conducted INL-mandated end-use monitoring on donated
    counternarcotics equipment.  This road trip highlighted the
    security challenges facing communities and tourist
    centers outside of the San Jose area, but also some creative
    solutions, such as informal, private sector-government
    partnerships to help the local security forces.  END SUMMARY.

    -------------------- -------------------- ----
    LOCAL HOTEL OWNER HIGHLIGHTS SECURITY PROBLEMS
    -------------------- -------------------- ----

    ¶2. (SBU) Harry Bodaan, the Amcit owner of the hotel La Mansion
    in Manuel Antonio, told us that he had witnessed a drastic
    increase in the level of violent crime and narco-trafficking
    over the last few years.  He complained that it was difficult
    to find trustworthy law enforcement officials due to
    corruption and their (alleged) links to narco-traffickers.  He
    hoped that this relationship could be changed by assisting
    with the physical improvement of local law enforcement
    stations and by providing new equipment.

    ¶3. (SBU) Bodaan has personally donated thousands of his own
    dollars towards the improvement of the local Fuerza Publica
    (regular uniformed police) barracks, though much of the
    building remains in poor condition.  Bodaan and
    others have also attempted to donate equipment (helmets,
    bullets, vests) to local law enforcement agencies but, for
    liability reasons, have faced bureaucratic constraints in
    transferring the equipment to them.  Finally, Bodaan
    coordinated (and helped finance) the purchase of a new police
    vehicle for the Fuerza Publica.  (NOTE: The budget is such
    that there is no vehicle for the local Chief of Police; Bodaan
    often gives him a ride to work or to crime scenes or even
    lends him his personal vehicle.  However, Bodaan relayed to us
    that this has lead to allegations of corruption/favoritism and
    possibly the Chief of Police's surprising re-assignment to a
    lesser posting.  END NOTE.)

    -------------------- --
    MARINA PEZ VELA PROJECT
    -------------------- --

    ¶4. (U) Harold Lovelady, the Amcit main developer and major
    financer of the Marina Pez Vela project in Quepos, told us the
    marina was a $250 million investment geared towards
    sportsfishing tourists.  He said it should be partially open
    by May and fully operational in three years.  Once in full
    operation, the marina will have 308 slips of varying sizes,
    and landside amenities to include stores, required government
    offices (such as immigration and customs), and limited
    housing.  When the marina partially opens, 98 slips will be
    available for use.  Lovelady estimates that the project will
    provide approximately 3,000 jobs to the local economy: 1,000
    at the marina and an additional 2,000 in the surrounding area
    as a result of investment and services required to host the
    elevated level of tourists.

    ¶5. (SBU) When asked, Lovelady said it should be possible for
    Coast Guard (U.S. or Costa Rican) ships to refuel at the
    marina.  He said that there would be refueling services for
    boats up to 200 feet in length, which could potentially
    service some USCG or USN vessels and all of the Costa Rican
    Coast Guard (SNGC).  (NOTE: This could provide a secondary
    option to the refueling services offered at the Port of
    Golfito.  END NOTE.)

    ¶6. (SBU) Lovelady recognized that this project could lead to
    increased crime.  He plans to contract two private security
    companies to secure the marina.  Lovelady told us he would be
    interested in coordinating with local law enforcement,
    including the SNGC, though his current outreach has not
    produced any firm commitments.  He expressed interest in
    receiving security opinions from Post's ODR and DEA offices
    about this project due to his concern with the marina becoming
    a haven for narco-trafficking.

    ------------
    OSAC MEETING
    ------------

    ¶7. (SBU) The RSO briefed a group of local American business
    owners on the possibility of setting up an OSAC sub-council in
    Quepos.  Local Americans expressed interest in having a sub-
    council in Quepos but needed further discussion amongst
    themselves; we also suggested to Bodaan after the meeting that
    Quepos could simply become part of the San Jose council.

    ¶8. (SBU) The mayor of Quepos, Oscar Monge, also attended the
    OSAC meeting and told us that although tourism had brought a
    great deal of investment and development to Quepos, the
    deteriorating security situation could seriously damage the
    local economy.  Monge underlined that one of his main duties
    was to protect all citizens in the Quepos area, not just Costa
    Ricans.  He welcomed partnership with the U.S. to help reduce
    crime and requested our assistance with training and
    equipment.  We briefed the mayor, in general terms, on the
    Merida Initiative and advised him to work with the GOCR
    leadership in San Jose to see if Quepos could benefit from
    that funding and security assistance.

    ¶9. (SBU) Monge relayed to us that he had recently dissolved
    the Quepos Municipal Police force (a separate law enforcement
    entity from the Fuerza Publica roughly equivalent to "city
    cops"), but would be rebuilding soon with "a fresh group of
    young men."  The new group purportedly would have no links to
    former politicians or law enforcement agencies.  Additionally,
    the mayor stressed that he did not want this group to be
    corrupted by narcotraffickers or other criminals because he
    had seen, first hand, the problems this can cause.

    -------------------- -----
    QUEPOS COAST GUARD STATION
    -------------------- -----

    ¶10. (SBU) Taking advantage of our trip to the area, we visited
    the local SNGC station and conducted end-use monitoring of
    INL-donated equipment.  The building that houses the SNGC
    station was constructed with INL funds in 2003 and is
    noticeably in better condition than other local law
    enforcement agencies' facilities.  The barracks could easily
    house several more coast guard personnel(or for that matter
    other law enforcement such as Fuerza Publica) than the SNGC
    currently has assigned to this station.

    ¶11. (SBU) Also located at SNGC Quepos are six INL-donated
    Rigid Hull Inflatable Boats (RHIBs).  However, these six boats
    have not been operational in some cases for four-five years
    due to maintenance problems and lack of properly trained
    crews.  Some parts of the RHIBs, as authorized by INL, have
    been used to improve other vessels used in counternarcotics
    operations.  Examples of these cannibalized parts include
    radios, GPSs, and radars.  The SNGC has two operational boats
    in Quepos, including one with parts from the RHIBs.  These two
    boats, though running, need to be painted to keep their hulls
    from rusting, but the SNGC lacks the capacity to remove the
    boats from the water easily, which has delayed this needed
    maintenance.

    ¶12. (SBU) The Quepos Coast Guard station has a staff of 30
    men, although nearly half  were unable to work at the time of
    our visit due to sickness and injury.  The local commander,
    Rodolfo Coto, has requested additional staff from his parent
    organization, the Ministry of Public Security.

    -------
    COMMENT
    -------

    ¶13. (SBU) Post is well aware of the security concerns
    expressed by local American businesspersons in the Quepos area
    and has encouraged them to work with local law enforcement to
    address rising levels of crime.  However, we assess those
    local law enforcement agencies to be poorly equipped,
    undertrained and inadequately manned to effectively curb crime
    in the area.  We expect this problem to only get worse as the
    new marina comes into operation over the next three years.
    While the minimal capability of the SGNC to conduct
    counternarcotics operations in the Quepos area is also
    alarming, even more distressing is their limited ability to
    perform "normal" search and rescue operations.

    ¶14. (SBU) For the Quepos economy, the marina represents both
    good and bad: more investment in the tourist industry, more
    jobs, and one of the few boatyards on the Pacific coast south
    of Mexico, but also more petty criminals and, perhaps,
    narcotraffikers.  We are convinced that Bodaan and his
    Security Council will continue to work to improve the security
    environment in Quepos via donations, influence, and
    cooperation with law enforcement and the GOCR.

    CIANCHETTE

`