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Viewing cable 06MANAGUA2701, APRE RENEGOTIATING ALLIANCE WITH ALN

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Reference ID Created Released Classification Origin
06MANAGUA2701 2006-12-15 19:20 2011-06-21 08:00 CONFIDENTIAL Embassy Managua
VZCZCXRO6667
PP RUEHLMC
DE RUEHMU #2701/01 3491920
ZNY CCCCC ZZH
P 151920Z DEC 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 8443
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0868
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 MANAGUA 002701 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN 
 
E.O. 12958: DECL: 12/15/2016 
TAGS: PREL PGOV PINR KDEM NU
SUBJECT: APRE RENEGOTIATING ALLIANCE WITH ALN 
 
REF: A. MANAGUA 2673 
     B. MANAGUA 2646 AND PREVIOUS 
     C. MANAGUA 0392 
     D. 2005 MANAGUA 3246 
 
Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D). 
 
1.  (C) Summary: Alliance for the Republic (APRE) 
President/National Assembly deputy Miguel Lopez Baldizon 
claims that his party's formal agreement with the Nicaraguan 
Liberal Alliance (ALN) expired following Nicaragua's November 
national elections, but he is negotiating a new alliance with 
the ALN and hopes to serve as one of ALN president/incoming 
Assembly deputy Eduardo Montealegre's senior advisers.  Lopez 
Baldizon, who ran on the ALN's slate of National Assembly 
deputies but was not elected, informed recently informed 
polcouns that APRE expects to hold its annual board elections 
in February.  He believes that the ALN and its political 
allies must craft a joint strategy or risk losing momentum, 
arguing that much of the ALN's votes in November were "soft" 
and thanks in large part to the support of its political 
allies.  He claims that the National Assembly's contributions 
of funds to "ghost" foundations is even worse than reported 
and involves both PLC and FSLN lawmakers.  End Summary. 
 
2.  (C) On December 13, APRE President/National Assembly 
deputy Miguel Lopez Baldizon assured polcouns that, while his 
party's formal agreement with the ALN expired following the 
November elections, he is negotiating a new alliance with ALN 
President Eduardo Montealegre and hopes to serve as one of 
Montealegre's senior advisers.  He acknowledged that the 
media had "misinterpreted" his recent remarks to the effect 
that APRE had broken its alliance with the ALN, when in fact, 
the alliance had expired and APRE is negotiating a new 
accord.  This time, APRE will take more time to negotiate, 
however.  (Note:  As APRE President, Lopez Baldizon joined 
the ALN alliance just hours before the Supreme Electoral 
Commission's (CSE) May 11 deadline.  End Note.) 
 
APRE TO HOLD INTERNAL ELECTIONS IN FEBRUARY 
- - - - - - - - - - - - - - - - - - - - - - 
 
3.  (C) According to Lopez Baldizon, who was seventh on the 
ALN's national slate of Assembly deputies but was not 
reelected, APRE should hold its annual board elections o/a 
February 8.  He is seeking financial backing from the private 
sector for the event.  He downplayed former APRE presidential 
candidate Jose Antonio Alvarado's influence in the party, 
noting that after Alvarado reunited with Arnoldo Aleman's 
Liberal Constitutional Party (PLC) and ran as the PLC's vice 
presidential candidate, the vast majority of APRE supporters 
backed APRE's official alliance with the ALN. 
 
IN SEARCH OF A JOINT STRATEGY AND NEGOTIATING SKILLS 
- - - - - - - - - - - - - - - - - - - - - - - - - - 
 
4.  (C) Lopez Baldizon voiced concern that the ALN and its 
political allies lack a joint strategy that will enable the 
alliance to defend its interests in the National Assembly and 
prepare for the 2008 municipal and 2011 national elections. 
Asserting that most of the ALN's votes in November were 
"soft" and thanks in large part to the support of its 
political allies, Lopez Baldizon criticized ALN members, like 
Montealegre confidantes Eliseo Nunez Jr. and Sr., who argue 
that the ALN should run without its allied parties for the 
2008 municipal elections.  He asserted that without its 
allies, the ALN would not have placed second in the 
presidential race -- noting that about 60% of ALN's party 
poll watchers (fiscales) who monitored the November 5 
elections in Managua and defended the ALN's votes were APRE 
members. 
 
5.  (C) Regarding ongoing Assembly negotiations over its new 
Executive Board (Junta Directiva) and committee leadership, 
Lopez Baldizon questioned Montealegre's choice of Yamileth 
Bonilla, Eliseo Nunez, Sr., Luis Callejas, and Jorge 
Matamoros to represent the ALN's interests -- terming them 
"confrontational" intermediaries that likely rile their 
Sandinista National Liberation Front (FSLN) counterparts. 
Further, the personal ambitions of these ALN negotiators to 
occupy key leadership positions in the legislature present a 
conflict of interest, he argued.  Rather, ALN intermediaries 
should negotiate for the "good of the alliance." 
 
6.  (C) Lopez Baldizon, who recently returned from Tokyo 
where he and Assembly President Eduardo Gomez participated in 
the annual Forum of Parliamentarians for Global Action, 
shared his efforts to establish a think tank that would help 
the new opposition to compete against the FSLN government. 
He is meeting with members of the Bolanos government, 
Movimiento por Nicaragua (MpN) and other civil society 
groups, and universities to work on this project.  Lopez 
Baldizon mentioned that INCAE's Eduardo Montiel was receptive 
to the idea of establishing a degree or certificate program 
on "political management." 
 
PLC MILITANTS SIGNAL INTEREST IN JOINING THE ALN 
- - - - - - - - - - - - - - - - - - - - - - - - - 
 
7.  (C) Regarding the possible "recruitment" of "salvageable" 
incoming and lame duck PLC Assembly deputies to the ALN 
caucus, Lopez Baldizon suggested that Jaime Garcia, Guillermo 
Montenegro, Lombardo Martinez, and possibly Carlos Noguera, 
"were ripe for the picking."  Montenegro had complained to 
him, however, that Montealegre was lukewarm in his reception 
of Montenegro (Montenegro was not reelected).  As for PLC 
deputy Enrique Quinonez, Lopez Baldizon opined that Quinonez 
is "not desirable" and the ALN should not seek him out. 
 
CONTRIBUTIONS TO "GHOST" FOUNDATIONS 
- - - - - - - - - - - - - - - - - - - 
 
8.  (C) Responding to polcouns' query regarding the recent 
press coverage alleging that a number of lawmakers have 
misused government funds to support "ghost" NGOs, 
Lopez-Baldizon confirmed that this activity is common.  He 
claimed, however, that the left-leaning daily Nuevo Diario's 
coverage of these irregularities is lopsided because the 
reports almost exclusively point to PLC lawmakers engaged in 
the wrongdoing when FSLN deputies are also at fault.  Lopez 
Baldizon believes the scope of the problem is even worse than 
reported, estimating that PLC and FSLN lawmakers have 
diverted up to 100 million cordobas (about USD 5.5 million) 
to these non-existent NGOs. 
 
9.  (C) According to Lopez Baldizon, the 100 million cordobas 
is in addition to the annual budgeting of 420,000 cordobas 
for each Assembly deputy to dedicate to social projects. 
Members of the Assembly's economic committee should be partly 
held responsible for these irregularities because the 
committee proposes the donations, he said.  (Note: Members of 
the current economic committee include Wilfredo Navarro 
(PLC), Maria Haydee Osuna (PLC), Walmaro Gutierrez (FSLN), 
Bayardo Arce (FSLN), Noel Ramirez (PLC), Enrique Quinonez 
(PLC), Rene Nunez (FSLN), Jose Figueroa (FLSN) Alba Palacios 
(FSLN), Eduardo Mena (PLC), Oscar Moncada (PLC).  End Note.) 
 
WAYS AND MEANS LAW IN THE FAST LANE, FOIA ON HOLD 
- - - - - - - - - - - - - - - - - - - - - - - - - 
 
10.  (C) Lopez Baldizon criticized the National Assembly's 
decision to expedite the passage of a new Organic Ways and 
Means Law (Ref. B) that reinforces the PLC-FSLN power-sharing 
pact and allows Assembly committees to summon individuals and 
entities at whim.  He predicted, however, that President 
Bolanos will veto the law, which would mean that the new 
Assembly Junta would serve only one, not two years and would 
place the onus for reviving the bill on the next assembly and 
President-elect Daniel Ortega.  Lopez Baldizon contrasted the 
Assembly's quick action on the ways and means law to its 
stalling on passing the Freedom of Access to Information Law 
that would provide the public access to government 
information.  He ventured that the ALN is willing to support 
the information law, but while the FSLN claims it will lend 
its 38 votes, it continues to stall.  Polcouns remarked that 
FSLN International Affairs Secretary Samuel Santos had 
assured us the FSLN supports the bill (Ref. A).  She 
encouraged Lopez Baldizo 
n to raise the matter with FSLN/Convergencia deputies Edwin 
Castro and Agustin Jarquin. 
 
COMMENT 
- - - - 
 
11.  (C) APRE, which was part of President Bolanos' effort to 
break Aleman's hold on Nicaragua's Liberals, enjoys little 
political clout and only one APRE deputy, Eduardo Gomez, was 
elected to the new Assembly, on the ALN ticket.  Without the 
ALN, APRE's future is bleak, and we expect that Lopez 
Baldizon will keep his party within the ALN alliance.  Along 
with the other lawmakers who were not reelected, Lopez 
Baldizon is now focusing his energies on finding a new job. 
Thus far, he has shown considerable political mettle and 
appears to support the evolution of Nicaragua's caudillo 
political culture into one that is truly democratic. 
TRIVELLI