Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05PANAMA2004, GOP WINS BIG AGAINST CHINESE-OWNED PANAMA PORTS

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05PANAMA2004.
Reference ID Created Released Classification Origin
05PANAMA2004 2005-10-05 12:59 2011-05-31 00:00 CONFIDENTIAL Embassy Panama
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 PANAMA 002004 
 
SIPDIS 
 
DEPT FOR WHA/CEN, EB/TRA/OTP AND EB/TPP 
USTR FOR RVARGO AND AMELITO 
USDOC/MAC FOR GAISFORD 
 
E.O. 12958: DECL: 10/03/2015 
TAGS: EWWT ETRD ECON PREL PM CH ECONOMIC AFFAIRS
SUBJECT: GOP WINS BIG AGAINST CHINESE-OWNED PANAMA PORTS 
 
Classified By: Classified by Ambassador William A. Eaton for reasons 1. 
4 (b and d) 
 
1. (C) Summary:  The GOP and Panama Ports Company (PPC) 
agreed on September 8 to reverse a highly questioned move by 
the former Moscoso administration in 2002 that freed PPC from 
its contractual obligations to pay $22.2 million annually 
plus a variable annual payment of 10% of its gross annual 
income to the GOP.  Moscoso,s action would have cost Panama 
more than $1.3 billion in lost revenues during the remaining 
45 years of PPC,s concession.  Spearheaded by Minister of 
Trade & Industry Alejandro Ferrer, the GOP overcame PPC,s 
hardball tactics and forced PPC (owned by Hong Kong-based 
Hutchison Port Holdings) to drop $40 million in counter 
claims and to pay $102 million in back rent, avoiding a 
prolonged legal fight.  Whatever the reason for PPC,s 
agreement to settle, the GOP showed its clear readiness to go 
the mat with the world,s leading port operator and a 
powerful Chinese-owned company.  Looking ahead to the GOP,s 
future solicitation on a proposed $300 million &megaport8 
at the Pacific end of the Panama Canal, Ferrer told the 
Ambassador September 19 that &the Chinese already have 
enough ports here.8  End summary. 
 
PPC,s 1997 Deal for Ports at Both Ends of the Panama Canal 
--------------------------------------------- ------- 
 
2. (U) In January 1997, PPC signed a 25-50 year concession to 
develop terminals at the GOP,s previously existing Balboa 
and Cristobal ports at the Pacific and Atlantic ends, 
respectively, of the Canal.  PPC agreed to pay the GOP $22.2 
million annually in fixed rent as well as 10% of gross 
revenues.  Among other financial considerations, PPC also 
agreed to pay the GOP $10 million for all existing equipment 
currently at the port facilities, and give the GOP a 10% 
stake in PPC.  Through this deal, PPC took control of more 
than $700 million worth of docks, land &portico8 cranes, 
equipment, buildings, and other assets. 
 
3.  (SBU) As PPC is a subsidiary of Hong Kong,s Hutchison 
International Port Holdings, its winning bid sparked worries 
over potential Chinese influence in the Canal,s operations. 
Hutchison Port Holdings, itself a wholly-owned subsidiary of 
Hutchison Whampoa, Limited (HWL), is the world,s leading 
port developer and operator, with 236 berths in some 40 ports 
around the world, along with a number of 
transportation-related service companies.  The 1996 bidding 
process was marred by controversy, as one competitor, Cooper 
T. Smith Kawasaki Shipping Partnership, complained that the 
GOP had awarded them a ports privatization contract on two 
occasions, only to take it away each time in favor of other 
competitors, Bechtel and Hutchinson Port Holdings. 
 
4. (U) The GOP sought to resolve the controversy by using 
offers of fixed rent as the determining factor to award the 
concession.  Bechtel dropped out after falling short with an 
offer of $5 million per year.  Kawasaki,s $10 million per 
year bid also fell far short of Hutchison Port Holdings, 
winning $22.2 million offer.  Complaints from Bechtel and 
others about irregularities in the bidding process sparked 
concerns in Washington that increased Chinese influence over 
the Canal could enable China to deny passage to U.S. ships. 
 
5. (SBU) In 1996, many believed that HWL,s primary interest 
in bidding on the Panamanian ports was to establish a Pacific 
Ocean hub for its shipping interests.  Two major sites, 
Balboa and the former U.S. naval base at Rodman, are worthy 
of investment necessary to develop a major port on the 
Pacific side of the Canal.  HWL obtained the rights to Balboa 
on the east bank, and the right of first refusal to the 
Rodman facilities.  At the GOP,s insistence, HWL also agreed 
to develop a port on the Caribbean side at Cristobal to 
obtain the Balboa concession. 
 
Moscoso Let PPC Off Hook for $22 Million in Annual Rent 
--------------------------------------------- ----- 
 
6. (U) Each port concessionaire in Panama has an 
&equiparacion8 (&make whole8) clause in its contract with 
the GOP, ensuring that each is afforded the same benefits 
under Panamanian law, i.e., to maintain a level playing field 
for port operators.  In 2001, PPC sought to modify its 
concession agreement, claiming, inter alia, that it was 
paying more per TEU movement than Manzanillo International 
Terminal (MIT) and the Colon Container Terminal (CCT).  In a 
highly controversial move in 2002, the Moscoso administration 
repealed two clauses in PPC,s port contract, effectively 
freeing PPC from its $22.2 million in annual fixed rent and 
other payments, representing about $1.34 billion over the 
remaining 45 years of the concession. 
 
GOP Reverses Moscoso Action ) PPC Will Pay $102 Million 
------------------------------------------- 
 
7. (U) As part of his 2004 campaign, President Torrijos 
promised to overturn Moscoso,s 2002 deal with PPC. 
Following months of difficult negotiations that began in 
September 2004, the two sides appeared far apart as recently 
as the beginning of September, particularly as PPC pressed 
for some $40 million in claims against the GOP for 
non-performance of certain aspects of the original contract. 
As the GOP,s lead negotiator, Ferrer was unyielding and on 
September 8, the GOP and PPC announced a surprise 
breakthrough.  PPC agreed to pay $102 million in back rent 
and committed to invest some $1 billion in facility upgrades 
at Balboa and Cristobal between 2008 and 2015.  PPC expects 
this will create 5,000 jobs in Cristobal and 7,500 in Balboa, 
and increase annual TEU movements from 1.5 to 4 million. 
 
8. (SBU) Ferrer told the Ambassador on Sept. 19 that he held 
firm because he was &fighting for a just outcome for the 
Panamanian people.8  He said he thwarted PPC,s hardball 
tactics, including blackmail, by telling PPC that &you,ve 
got nothing on me, but you don,t want me to come out with 
what I have on you!8  In the end, Ferrer said, he could not 
have prevailed without President Torrijos, strong backing, 
as the president twice rejected PPC,s telephone calls aimed 
at going over Ferrer,s head during the negotiations.  He 
believed PPC ultimately capitulated because it saw little to 
gain from a protracted legal battle.  Second Vice President & 
Maritime Authority Director Ruben Arosemena told the 
Ambassador on Sept. 15 that he believed PPC settled because 
it was falling behind other MIT and CCT in carrying out their 
projects. 
 
Comment 
------- 
 
9. (C) The GOP,s victory over PPC gave an embattled Torrijos 
Administration a sorely needed win, as it continues to 
struggle with its fiscal and social security reform agendas. 
President Torrijos expressed great pride in the PPC outcome 
during the Ambassador,s September 9 presentation of 
credentials.  Whatever the reason for PPC,s decision, the 
GOP showed its clear readiness to go to the mat ) and 
prevail ) in its battle with a powerful Chinese-owned 
company.  Looking ahead to the GOP,s future solicitation on 
a proposed $300 million &megaport8 at the Pacific end of 
the Panama Canal, Ferrer told the Ambassador that the 
&Chinese already have enough ports here.8 
 
 
EATON