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### Viewing cable 08BOGOTA3433, VISIT OF SENATOR CHUCK HAGEL TO BOGOTA AND

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BOGOTA3433 | 2008-09-15 19:14 | 2011-05-25 12:30 | CONFIDENTIAL | Embassy Bogota
Appears in these articles: http://www.elespectador.com/wikileaks

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHBO #3433/01 2591914
    ZNY CCCCC ZZH
    P 151914Z SEP 08
    FM AMEMBASSY BOGOTA
    TO RUEHC/SECSTATE WASHDC PRIORITY 4679
    INFO RUEHBR/AMEMBASSY BRASILIA PRIORITY 8375
    RUEHCV/AMEMBASSY CARACAS PRIORITY 0990
    RUEHPE/AMEMBASSY LIMA PRIORITY 6550
    RUEHZP/AMEMBASSY PANAMA PRIORITY 2305
    RUEHQT/AMEMBASSY QUITO PRIORITY 7234
    RUEKJCS/SECDEF WASHDC PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY
    RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
    RHMFIUU/FBI WASHINGTON DC PRIORITY
    RHMFISS/CDR USSOUTHCOM MIAMI FL PRIORITY

` `

    C O N F I D E N T I A L BOGOTA 003433

    SIPDIS

    E.O. 12958: DECL: 09/11/2018
    TAGS: PREL ETRD PTER ENRG SNAR MARR KJUS CO
    SUBJECT: VISIT OF SENATOR CHUCK HAGEL TO BOGOTA AND
    CARTAGENA -- AUGUST 28-31, 2008

    Classified By: CDA Brian A. Nichols
    Reasons 1.4 (b and d)

    ¶1.  (C) Summary.  Senator Chuck Hagel, Southcom Deputy
    Commander General Glen Spears and delegation visited Bogota
    and Cartagena from August 28-31, 2008.  In Bogota, Senator
    Hagel, the Ambassador and delegation met with President
    Alvaro Uribe, who urged support for the U.S.-Colombia Trade
    Promotion Act, and raised concerns over Venezuela, Ecuador,
    and Panama.  The Senator also met with Finance Minister Oscar
    Zuluaga, Prosecutor General Mario Iguaran, and key business
    leaders in Bogota to discuss the country's economic outlook.
    In Cartagena, the Senator met with the mayor and received a
    DEA briefing on counterdrug efforts, toured a port security
    program co-sponsored by the USG and a USAID-sponsored service
    center for demobilized ex-combatants.  End Summary.

    URIBE PUSHES FOR CTPA
    ---------------------
    ¶2.  (C) In an August 29 meeting with President Uribe and
    Foreign Minister Jaime Bermudez, President Uribe told Senator
    Hagel's delegation and Ambassador Brownfield that he
    understood the U.S. political situation that stymied the
    passage of the U.S.-Colombia Trade Promotion Act (CTPA).
    Uribe urged that Hagel try to convince Speaker of the House
    Nancy Pelosi to allow the agreement to come to the floor for
    a vote during the November 2008 lame duck session.  Uribe
    underscored the need for Colombia to attract foreign
    investment so it can better confront terrorists and illicit
    crops by offering alternative development and economic
    growth.  He said Colombia had addressed the labor-concerns
    voiced by the Democrats; Uribe had ratified both the legality
    of strikes bill and cooperative bills into law -- enhancing
    Colombia's labor rights regime.  Uribe noted he would travel
    with a large delegation to the U.S. Congress during the three
    week session in September, urging passage of the CTPA this
    year.  Uribe told Hagel that waiting until a new
    administration took office to bring the CTPA to a vote would
    require the Government of Colombia (GOC) to re-educate new
    congressmen on the issue.

    REGIONAL STRATEGIC INTERESTS
    ----------------------------
    ¶3.  (C) Uribe noted the strategic political interests the USG
    had in maintaining a strong relationship with Colombia, one
    of its strongest allies in the region, particularly regarding
    foreign investment and open markets.  He noted with the CTPA
    the United States had the opportunity to "develop an economic
    and diplomatic front" to counter the anti-democratic,
    anti-capitalistic governments of Chavez, Correa and Morales.
    He noted that Chavez recently expropriated two important
    international banks, signaling an increase in his statist
    approach.  Uribe said Chavez was more worrisome to him than
    Correa, as Correa lacked petroleum resources and would suffer
    more from the economic decline associated with
    anti-international investment policies.  Uribe noted that
    eventually -- perhaps not in the next election, but the
    following -- Correa would face electoral difficulties due to
    his economic policies.

    CONCERN OVER PANAMA
    -------------------
    ¶4.  (C)  Uribe told Hagel he was increasingly concerned over
    Panama's political future.  He said President Martin
    Torrijos' relationship with the U.S. and international
    investment was good, but noted that leading members of
    Torrijos' Democratic Revolutionary Party (PRD), including its
    likely presidential candidate, would likely hold views
    adverse to U.S. and Colombian interests.  If the USG was not
    careful with the fate of Panama's Free Trade Agreement, it
    could face an unfriendly president in Panama, creating a
    hostile climate for U.S. investment.

    ENERGY SECTOR REPRESENTATIVES:  OUTLOOK GOOD
    --------------------------------------------
    ¶5.  (SBU) Representatives from Exxon-Mobil, Chevron,
    Occidental Petroleum, and Ecopetrol jointly briefed Senator
    Hagel and General Spears on the positive state of the
    hydrocarbons sector in Colombia.  All agreed that improved
    security and pro-investment policies had helped spur a
    significant increase in investment since 2002.  Oxy Colombia

    President David Stangor praised GOC efforts to improve
    security and support social programs with the community, but
    noted that transparency of royalty investment at the
    municipal and departmental levels remained weak.  Exxon-Mobil
    Government Affairs Director Jose Noguera said his company was
    optimistic about natural gas exploration, but watchful of
    potential new regulations that might complicate marketing of
    gas.  Ecopetrol Vice President Alvaro Vargas said his company
    planned to double exploration and production to 1 million
    barrels per day by 2015 as well as increase biofuels
    production to 100,000 tons per year by 2009.  Chevron
    Colombia President David Bantz noted that Chevron had
    invested $300 million in Colombia since 2005, and grown its
    gas production 50 percent.  All four representatives told
    Hagel their biggest concern was the continuance of political
    stability and contract sanctity; they remained confident
    pro-investment conditions would prevail for the foreseeable
    future.

    U.S. COMPANIES:  TRADE PROMOTION AGREEMENT KEY
    --------------------------------------------- -
    ¶6.  (SBU)  In a luncheon with the Board of Directors of the
    Council of American Enterprises in Colombia (CEA), U.S.
    company representatives stressed the importance of U.S.
    Congressional approval of the Colombia Trade Promotion
    Agreement (CTPA).  Hagel described the challenges of
    achieving passage during the remainder of the current
    Congress, but expressed optimism that there still existed
    sufficient time for consideration.  The Senator pointed out
    the various challenges facing the United States around the
    world and stated that the CTPA was important for the U.S. and
    Colombia for political, economic, and strategic reasons.  He
    encouraged U.S.-based senior leadership of the major U.S.
    companies in Colombia to engage their members of Congress and
    emphasize the importance of the CTPA to their businesses and
    workers.

    PROSECUTOR GENERAL: HUMAN RIGHTS PROGRESS
    -----------------------------------------
    ¶7.  (SBU) Prosecutor General Iguaran thanked Hagel and the
    DCM for the USG's continued support of Colombia's justice
    system, especially the new accusatory system, and the Justice
    and Peace and Human Rights Units.  Human Rights Unit chief
    Sandra Castro briefed the delegation on recent convictions in
    human rights cases.  Senator Hagel encouraged Iguaran to
    accompany President Uribe to Washington to lobby for the
    passage of the CTPA, and to travel to Washington after U.S.
    elections to brief officials in the new Administration.
    Iguaran, responding to a question from General Spears, told
    the group that information collected from the Raul Reyes
    computers had been useful in advancing investigations of the
    FARC.

    FINANCE MINISTER:  SECURITY AND A STRONG ECONOMY
    --------------------------------------------- ---
    ¶8.  (SBU) In a private meeting with the delegation, Finance
    Minister Oscar Zuluaga told Hagel and the DCM that, despite
    turmoil in world markets, rising inflation and the steep
    appreciation of the Colombian Peso, the long-term outlook for
    Colombia's economy was bright.  Zuluaga highlighted the
    improved security situation and economic liberalization under
    President Uribe as key to Colombia's strong economic
    performance since 2002.  Zuluaga identified the energy and
    infrastructure sectors as prime investment opportunities.  He
    cited the post-Uribe political outlook as the top risk to the
    economy, insisting that strong leadership must continue to
    make economic reforms and security gains permanent.  Zuluaga
    added that the worsening economic situation in Venezuela,
    Ecuador, and Bolivia could hurt Colombia's export sector.  He
    emphasized that conclusion of the CTPA was critical to
    promoting investment, increasing competitiveness and
    achieving investment grade status for Colombian national
    debt.  Senator Hagel reiterated his support for the CTPA and
    noted the political and economic implications of continued
    delay.

    CARTAGENA:  DRUGS AND PORT SECURITY
    -----------------------------------
    ¶9.  (SBU) On August 30, the Ambassador and Hagel delegation
    visited the Embassy Office in Cartagena, and received DEA and
    Colombian Navy briefings on drug interdiction efforts and

    successes in the region.  Hagel also visited the Cartagena
    Seaport, one of eight participating Colombian seaports in the
    USG-sponsored Port Security Program aimed at deterring and
    preventing the shipment of illicit narcotics.  The Senator
    received an orientation brief and walk-through of ongoing
    Colombian National Police anti-narcotics inspections of
    various international cargo, a tour of the port operations
    center, and brief on Port security and expansion plans that
    would more than double the port's capacity.

    ¶10. (SBU) Cartagena Mayor Judith Pinedo told Hagel, the
    Ambassador, and delegation that Cartagena was set to take
    advantage of the CTPA, enhanced security, and tourism in
    order to tackle the city's poverty problem.  She asked for
    assistance with "crazy" World Bank regulations.  Pinedo said
    Cartagena would only be able to improve the lives of its
    citizens -- including many displaced as a result of
    Colombia's armed conflict -- through the benefits of free
    trade and tourism.   Pinedo said Cartagena was trying to
    expand public transport and plan for infrastructure
    development (including water and sewer) to support up to a
    million more residents expected to relocate to the city in
    coming decades.  She lamented "crazy" World Bank regulations
    that forced the city to accept the lowest bids on contracts
    on key infrastructure--terms that led companies to game the
    system, provide poor quality work and later inevitable
    demands for contract re-negotiation.  Hagel asked the mayor
    for details, and said he would be willing to call Bank
    President Robert Zoellick to discuss the problems.

    DEMOBILIZED COMBATANTS
    ----------------------
    ¶11. (SBU) Senator Hagel's delegation, accompanied by the
    Ambassador, also visited a USAID-supported service center for
    demobilized ex-combatants from Colombia's illegal armed
    groups to learn about the scope, advances and challenges of
    demobilization and reintegration.  The Senator had the
    opportunity to meet with a group of the center's
    beneficiaries, including four ex-paramilitaries and one
    ex-FARC member.  The Cartagena service center serves 669
    demobilized ex-combatants--621 collectively demobilized and
    48 deserters.  The Center's director explained that the
    Centers were established to provide access to health care,
    formal education, vocational training, income generation
    opportunities, and psychological assistance to ex-combatants
    and their families.  Senator Hagel told the group that the
    programs to bring former-combatants back into society were
    worthy of continued USG support and represented an example
    for other countries facing post-conflict reintegration
    problems to follow.

    NICHOLS

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