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Viewing cable 07BOGOTA5651, SCENESETTER FOR VISIT OF DEPUTY USTR JOHN

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Reference ID Created Released Classification Origin
07BOGOTA5651 2007-08-02 20:10 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bogota
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBO #5651/01 2142010
ZNR UUUUU ZZH
R 022010Z AUG 07
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 7914
INFO RUEHBR/AMEMBASSY BRASILIA 7649
RUEHCV/AMEMBASSY CARACAS 9216
RUEHPE/AMEMBASSY LIMA 5294
RUEHZP/AMEMBASSY PANAMA 0492
RUEHQT/AMEMBASSY QUITO 5894
UNCLAS BOGOTA 005651 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR E STAFF TOM PIERCE 
 
E.O. 12958: N/A 
TAGS: ECON ETRD CO
SUBJECT: SCENESETTER FOR VISIT OF DEPUTY USTR JOHN 
VERONEAU, AUGUST 7-12, 2007 
 
------- 
Summary 
------- 
 
1. (SBU) Post welcomes Deputy USTR John Veroneau to 
Colombia.  With U.S. help, President Uribe has made great 
strides in fighting drug trafficking and terrorism.  The 
economy is growing, the investment climate is strong, and 
there is both anticipation and nervousness over the fate of 
the U.S.-Colombia Trade Promotion Agreement (CTPA) in hands 
of the Congress in Washington.  In January, the GOC 
presented a Plan Colombia consolidation strategy, with a 
heightened emphasis on social development.  USAID programs 
aim to strengthen democratic institutions, foster a culture 
of human rights, create alternative development 
opportunities, and assist people displaced by internal 
violence.  Colombia's human rights record is improving. 
Truth about links between paramilitaries, politicians and 
others is coming out as a result of the paramilitary 
demobilization and the Justice and Peace Law process. 
Talks with the National Liberation Army (ELN) are focused 
on establishing a cease-fire agreement; the Revolutionary 
Armed Forces of Colombia (FARC) have yet to start talks 
with the GOC.  The FARC has held three U.S. citizens for 
more than four years; their safe recovery is a top 
priority.  End Summary 
 
------------------------- 
Positive Economic Outlook 
------------------------- 
 
2. (U) Significant gains in security have helped boost the 
Colombian economy.  2006 GDP growth was 6.8 percent, while 
2007 first quarter growth reached 8.1 percent, the highest 
in Colombian history.  Both exports and imports grew more 
than 20 percent in 2006.  The U.S. is Colombia's largest 
trade partner (approximately 40 percent of exports and 28 
percent of imports).  Colombian exports to the U.S. have 
grown USD 1 billion per year since ATPDEA's inception in 
late 2002, while U.S. exports to Colombia increased 
approximately USD 2 billion.  The largest U.S. investors - 
Drummond (coal), ChevronTexaco and ExxonMobil - are 
planning considerable expansion due to the improved 
investment climate and security situation.  2006 Foreign 
Direct Investment increased to USD 8.9 billion, quadruple 
the FDI in 2002.  Although unemployment has fallen from 18 
percent when President Uribe took office to 11 percent, it 
has remained in 11-13 percent range since 2006. 
 
3. (SBU) The CTPA remains the GOC's highest economic 
priority.  The Colombian Congress approved the CTPA in 
June.  The modification protocol signed in June was 
introduced in the Colombian Congress on July 20.  The GOC 
expects a vote on the protocol in September or October. 
The U.S. Congress has extended trade preferences for 
Colombian exporters under the Andean Trade Preferences Act 
(ATPA) through February 2008. 
 
4. (SBU)  There is tremendous business confidence in 
Colombia, and international investors are eyeing the 
country both for its domestic market and as a platform to 
reach regional markets.  Standard and Poors raised 
Colombia's credit rating in early 2007 to a step below 
investment grade due to the GOC's strong fiscal 
performance.  Political controversies have thus far not 
dampened the business climate; however, the international 
investment community is concerned over the fiscal impact of 
proposed changes in the transfer of funds from the central 
government to local governments.  Inflation remains 
moderate, but has risen gradually in 2007 is expected end 
the year at between 6 and 7 percent.  Meanwhile the 
Colombian peso has increased approximately 25 percent 
against the U.S. dollar in the last year, putting cost 
pressures on Colombian exporters and leading the GOC to 
impose limited currency controls in May. 
----- 
Labor 
----- 
 
5. (U) In June 2006, the GOC, trade confederations, and 
business representatives signed a Tripartite Accord at 
International Labor Organization (ILO) in Geneva, removing 
Colombia from discussion in the ILO's Committee for the 
Application of Standards for the first time in 21 years. 
A resident ILO representative arrived in Colombia in 
 
January to implement the agreement committing the 
government to financing the ILO Special Technical 
Cooperation program and allocated USD 1.5 million to the 
Fiscalia to prosecute cases of violence against trade 
unionists.  The GOC has assigned nearly 100 prosecutors 
and investigators to this task.  Labor leaders and 
the UNHCHR's local representative praise the initiative. 
 
6. (U) Although trade unionists continue to be victims of 
violence for political reasons and due to common crime, 
the GOC is determined protect labor.  In 2006, the GOC's 
Protection Program assisted 1,200 trade unionists and 
10,000 human rights activists, journalists, politicians, 
witnesses and other individuals under threat. 
 
--------------- 
U.S. Assistance 
--------------- 
 
7. (SBU) In January, the GOC presented a Plan Colombia 
consolidation strategy.  The proposal contains a heightened 
emphasis on social development, assigning new resources to 
human rights, displaced people, and Afro-Colombian and 
indigenous communities.  It also aims to reintegrate 42,000 
demobilized ex-combatants and deserters and to promote 
Colombia's competitiveness and licit exports.  The GOC is 
seeking funding from the United States and European 
countries. 
 
8. (SBU) USG security assistance combats drug trafficking and 
terrorism and includes training, material aid, and technical 
assistance to security forces and other institutions.  The US 
is Colombia,s most important ally and the GOC recognizes it. 
 
Colombia is the closest ally of the U.S. in the region and 
the GOC knows that too. 
 
 -- Plan Patriota, the military campaign to re-take areas 
dominated by the FARC has been successful over the last three 
years.  Terrorists have not been successful in mounting a 
major attack against Bogota and its environs since November 
2003, although they have tried.  The military is now 
focused well to the south in the heartland of the FARC and 
in some of the best coca growing regions in the country. 
Landmines, IEDs, disease, logistic issues, limited airborne 
mobility, and distance restrain the public forces, but they 
are nonetheless making progress.  Nonetheless, the FARC 
remains able to launch attacks on isolated or smaller 
government targets, but generally avoids direct contests 
with larger units. 
 
-- Center for Coordinated Integral Action: With U.S. 
support, the GOC formed in 2005 an interagency center to 
facilitate delivery of social services in seven areas that 
have traditionally lacked state presence and been 
controlled by illegal armed groups.  The Center focuses on 
providing immediate social services once security has been 
established, including documentation, medical care, and 
longer-term development projects.  More than 40,000 
individuals have been enrolled in state health care. 
Judges, investigators, and public defenders are moving 
into newly libnerated areas. The showpiece of this effort 
is San Vicente del Caguan, which served as the unofficial 
capital of the FARC's demilitarized zone during the peace 
process with President Pastrana, but now has  government 
schools, clinics, justice services, etc. 
 
--------------------------------- 
Drug Eradication and Interdiction 
--------------------------------- 
 
9. (SBU) Eradication of coca and poppy crops and 
interdiction of cocaine and heroin are at record levels, 
but political support for aerial eradication is 
deteriorating in the US Congress and in Colombia.  Manual 
eradication cannot fully replace aerial eradication 
without a sharp increase in expenditures.  Moreover, the 
National Police and military forces seized over 203 metric 
tons of cocaine (HC1) and coca base in 2006, a near record 
quantity, and destroyed 200 HC1 laboratories, also a 
record. 
 
--------------------------------------------- -------- 
U.S. Assistance to Development and Democracy Building 
--------------------------------------------- -------- 
 
 
10. (U) The USAID Mission in Columbia funds programs in 
four key strategic sectors.  Alternative economic 
development,and economic reform; modernization of the 
criminal justice system, promote access to justice for 
disenfranchised Colombians, and human rights; 
demobilization/reintegration of former members of illegal 
armed; assistance to internally displaced persons 
(Colombia has between 2 and 3 million displaced persons. 
 
--------------------------------------------- ---- 
Military Justice and Improved Human Rights Record 
--------------------------------------------- ---- 
 
11. (SBU) The Uribe Administration continues to make 
progress on human rights cases involving military abuse 
or collaboration with paramilitaries.  Human rights 
training is mandatory for all members of the military 
and police.  Minister of Defense Santos has identified 
military justice reform as a top priority; in October, he 
named the first civilian - and the first woman - as 
director of the Military Criminal Justice System.  In 
January 2007, MOD Santos relieved Colonel Hernan Mejia 
Gutierrez, a highly decorated colonel, from command of the 
13th Mobile Brigade due to allegations tying him to former 
paramilitary leader Jorge 40.  This was the first time the 
MOD had taken such action against an active commander for 
alleged paramilitary ties.  The UN Human Rights Commission 
and private NGOS are all active here to promote human 
rights.  Progress on certain high profile human rights 
cases against the public security forces has been 
agonizingly slow and has injured the GOCs reputation in 
the international community. 
 
----------- 
Extradition 
----------- 
 
12. (SBU) President Uribe is a strong supporter of the 
U.S.-Colombia extradition relationship.  Since taking 
office, he has approved over 450 extraditions to the 
United States ) 72 cases so far in 2007. 
 
-------------------------------- 
Demobilization and Peace Process 
-------------------------------- 
 
13. (SBU) Over 32,000 former paramilitaries have 
demobilized since 2002, and a further 11,000 have deserted 
from all illegal armed groups (about half from the FARC). 
Some renegade former AUC members have joined new criminal 
Groups.  This is the largest such reintegration program 
ever attempted and it is ongoing while the GOC continues 
to battle the FARC and ELN.  Job creation continues to be 
priority one, but many of the recently demobilized have 
few employable skills and need both psychosocial and 
vocational training before they can enter the labor force. 
The lure of returning to illegal activity remains the 
&easy way8 out for them. 
 
14. (SBU) The Justice and Peace Law confessions (version 
libres) of ex-paramilitary chiefs began with ex-leader 
Salvatore Mancuso testifying in December 2006.  Rigorous 
implementation of the law and ensuring the safety of 
witnesses and victims are key to ensuring peace and justice 
in Colombia.  The version libre and related processes 
continue to reveal truths that no other Colombian 
administration has come close to discovering.  President 
Uribe strongly supports the Colombian Supreme Court's 
investigations into links between paramilitaries and 
politicians, even links between political allies and the 
¶s,8 and has called for the Supreme Court,s 
investigative 
unit to probe deeper. 
 
15. (SBU) The ELN has been negotiating with the GOC for 
well over a year, but so far without success. Prospects 
remain doubtful.  Although the ELN retains hostages, 
their military capability has been dramatically degraded. 
 
------------- 
U.S. Hostages 
------------- 
 
16. (SBU) The three U.S. contractors captured by the FARC 
 
in February 2003 are the longest held U.S. hostages in the 
world.  Their safe release continues to be a top priority. 
The Colombians are providing full assistance.  President 
Uribe has assured us that the U.S. hostages will be 
included in any humanitarian exchange. 
Drucker