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 06MEXICO5148, CALDERON STAFFERS ON ECONOMIC POLICY ISSUES

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. #06MEXICO5148.
Reference ID Created Released Classification Origin
06MEXICO5148 2006-09-11 21:38 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Mexico
VZCZCXRO7425
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #5148/01 2542138
ZNR UUUUU ZZH
P 112138Z SEP 06
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 3158
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 03 MEXICO 005148 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/MEX, WHA/EPSC, EB/ESC 
DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH AND SLADISLAW 
DOC FOR ITA/TD/ENERGY DIVISION 
DOC FOR4320/ITA/MAC/WH/ONAFTA/ARUDMAN 
TREASURY FOR IA (JASPER HOEK) 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EPET MX
SUBJECT: CALDERON STAFFERS ON ECONOMIC POLICY ISSUES 
 
REF: A. MEXICO 3609 
 
     B. MEXICO 1492 
     C. MEXICO 1174 
 
Sensitive but unclassified, entire text. 
 
------- 
Summary 
------- 
 
1.  (SBU) In a September 7 session with Dr. Sidney Weintraub 
of CSIS, President-elect Calderon's transition team member 
Dionisio Perez Jacome (former head of Mexico's Energy 
Regulatory Commission (CRE)) and former Mexican Energy 
Secretary and Calderon advisor Luis Tellez described current 
 
SIPDIS 
Calderon transition team efforts to find high impact projects 
to win over the majority of voters, especially those in the 
Party of the Democratic Revolution (PRD), that did not vote 
for Calderon.  This social agenda would control the early 
days of the Calderon presidency.  Even over the long term, 
Perez and Tellez said the Calderon administration would move 
slowly on difficult fiscal, energy and labor reforms.  Tellez 
told us that the Calderon administration would work with all 
affected government departments on policy initiatives rather 
than follow what he termed President Fox's "uncoordinated" 
approach.  End Summary. 
 
------- 
Setting 
------- 
 
2.  (SBU) Econoff joined CSIS Dr. Sidney Weintraub's 
September 7 meetings with President-elect Calderon transition 
team member Dionisio Perez Jacome (former head of Mexico's 
Energy Regulatory Commission (CRE)) and Luis Tellez (former 
Energy Secretary to President Zedillo).  Perez said he would 
be working on economic policy in the transition team 
including Energy, Telecom, Investment Promotion, Fiscal 
Reform, and Agriculture and Fisheries.  Calderon's plan for 
the Sexenio (his term) would be ambitious.  Tellez added that 
the real challenge would be in getting PRD supporters to 
understand that Calderon sought to take care of them.  The 
transition team was looking for high impact social programs 
that could be done for relatively little political capital, 
while significant reform projects requiring more political 
heavy lifting would be deferred to later in the term.  The 
Calderon team was continuing to list potential high impact 
social projects. 
 
---------------------------------------- 
High Impact Projects to Benefit the Poor 
---------------------------------------- 
 
3.  (SBU) The central theme of Calderon's election campaign 
was employment.  According to Perez, the Calderon 
administration would not change that focus.  To create jobs, 
Mexico needed more investment in infrastructure and to 
promote measures that improved its competitiveness. 
Additional progress was needed on rule of law issues. 
According to Perez, Calderon would be using the 100 projects 
proposal he published in the closing weeks of the campaign 
(ref. A) as a guide to his work plan in the first 100 days, 
though he would not seek to implement all provisions of all 
proposals in that document.  For example, Perez believed that 
Calderon would move forward with the "Oportunidad EnergQtica" 
proposal to subsidize gas and electricity process for poor 
Mexicans.   On the fiscal side, he would not be able to 
institute a flat tax in the short or medium term, but could 
introduce some regulatory or administrative changes to pave 
the way for its introduction.  Of the 100 actions in the 
document, 30-35 could be done through amendments of existing 
laws or through administrative action, but the team would 
have to "find an equilibrium" between the depth of 
congressional involvement required and what could be 
accomplished realistically.  Perez divided the issues with 
one-third being economic, a third social and the remainder 
"political." 
 
4.  (SBU) To benefit Mexico's poorer South, Calderon would 
propose specific work on education and health targeted to the 
region.  He will also propose an extensive series of 
infrastructure improvements, particularly highways focused in 
the area.  The largest project would be to readdress the 
 
MEXICO 00005148  002 OF 003 
 
 
decision of the federal competition commission to stop the 
merger between Ferromex, which operates railroads in Northern 
Mexico and Ferrosur which operates railroads in the south and 
to allow the companies to cooperate on construction of a two 
track rail line across the Isthmus of Tehuantepec from Salina 
Cruz on the Pacific to Coatzacoalcos on the Gulf of Mexico to 
compete with the Panama Canal.  Calderon also plans programs 
for small and medium sized businesses including a measure 
that would harmonize many government requirements.   His 
programs would also give support to fisheries and tourism 
development. 
 
------------------- 
Longer term reforms 
------------------- 
 
5.  (SBU) Perez and Tellez agreed that in the longer term, 
energy, fiscal and labor reforms were essential.  On both the 
energy and social agendas was "Oportunidad EnergQtica," a 
proposal to replace the current system of gas and electricity 
subsidies for all users.  Also on the energy side, the 
Calderon administration would continue to press for the Pemex 
corporate governance reform started during the Fox 
administration (ref. B).  He said strengthening the role of 
the CRE would also be important.  They would be looking at 
electricity and natural gas tariffs to develop more flexible 
options.  Luis Tellez added that the first steps to 
addressing the energy situation would have to be made in 
"feasible" areas like administering and strengthening the 
CRE.  Tellez added personally that the GOM would have to find 
some way to better allocate risk between Pemex and its 
contractors in order to provide the contractors with more 
"upside" potential (i.e. beyond the current "Multiple Service 
Contract" model for partnership with outsiders) (ref. C). 
Perez noted that his personal project would be to allow 
companies controlled by Mexican States to operate those oil 
fields that are no longer profitable for Pemex. 
 
6.  (SBU) On taxation, Perez said he would be working to 
press forward on the flat tax rate that Calderon had raised 
during the campaign.  This would be a gradual process both 
dropping rates and eliminating deductions.  Perez admitted it 
would be difficult to maintain Congressional support.  The 
Calderon team's initial thoughts towards eliminating the 
inherent regressive nature of a flat tax would be to exempt 
from taxation an amount of income five times the minimum 
wage.   He noted that the flat tax effort was already facing 
opposition from Mexican accounting and law firms that stood 
to lose business.  As part of Calderon's efforts to win over 
supporters, Perez suggested that Calderon would start during 
the first 100 days with proposals to allow families to file 
returns rather than individuals only, as is currently done; 
sending taxpayers partially filled out tax forms; and finding 
some way to reward Mexicans that have consistently paid 
taxes. 
 
7.  (SBU) On labor, additional flexibility was necessary, 
although Calderon had assigned labor to the "Political" side 
of the transition effort.  Perez said he believed that 
Calderon would have to develop incentives to move workers 
away from the informal sector.  He added that current Fox 
Administration programs like "Seguro Popular," which offered 
state health benefits to Mexicans de-linked to their 
employment status actually encouraged participation in the 
informal sector.  Calderon's labor reforms would be linked to 
fiscal reforms.  Tellez added that the problems facing Mexico 
were not so much the unions, but specifically the 
public-sector unions.  Private corporations like Daimler 
Chrysler and Ford continued to make billions of dollars in 
investments in the country while negotiating sufficiently 
flexible labor contracts.  The problem was more a lack of 
government will.  Tellez said that the Fox administration had 
caved completely to union demands.  The Mexico City power 
company, Luz y Fuerza del Centro (LyFC), was perhaps the 
worst offender with a labor contracts first negotiated in 
1905.  The company now loses $2.5 billion per year with 
"non-technical" electricity losses of 32% , with the 
company's union in charge of billing. 
 
--------------------------------------------- 
Calderon will be different on Economic Policy 
--------------------------------------------- 
 
 
MEXICO 00005148  003 OF 003 
 
 
8.  (SBU) Tellez noted that the Salinas and Zedillo 
administrations were different from Fox's government.  Under 
the previous Presidents, all economic decisions were taken in 
formal Cabinet sessions, but Fox has held few meetings.  As a 
result, the economic decisions that affect several ministries 
at once, like those on infrastructure, frequently run into 
difficulties.  Without coordination, Hacienda frequently is 
forced to speak out publicly as it did recently on a Fox 
proposal to construct a bullet train from Mexico City to 
Guadalajara.  Tellez stressed that Calderon would not follow 
the Fox model. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
 
GARZA