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### Viewing cable 06MANAGUA632, FSLN FOREIGN AFFAIRS CHIEF: "JUDGE US BY OUR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06MANAGUA632 | 2006-03-21 21:31 | 2011-07-27 20:00 | CONFIDENTIAL | Embassy Managua

`

    VZCZCXYZ0003
    PP RUEHWEB

    DE RUEHMU #0632/01 0802131
    ZNY CCCCC ZZH(CCY TEXT ADA90B05 MSI6494-636)
    P 212131Z MAR 06
    FM AMEMBASSY MANAGUA
    TO RUEHC/SECSTATE WASHDC PRIORITY 5651
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHCV/AMEMBASSY CARACAS 0588
    RUEAIIA/CIA WASHDC
    RHEFDIA/DIA WASHINGTON DC
    RHEHNSC/NSC WASHINGTON DC

` `

    C O N F I D E N T I A L MANAGUA 000632

    SIPDIS

    C O R R E C T E D COPY (ADDED TEXT TO PAR 6)

    SIPDIS

    DEPARTMENT FOR WHA/CEN, NEA/I

    E.O. 12958: DECL: 03/21/2016
    TAGS: KDEM NU PGOV PINR PREL KCOR
    SUBJECT: FSLN FOREIGN AFFAIRS CHIEF: "JUDGE US BY OUR
    DEEDS, NOT OUR RHETORIC"

    REF: MANAGUA 0579

    Classified By: Ambassador Paul A. Trivelli. Reasons 1.4 (B,D).

    ¶1.  (C) Summary: Sandinista (FSLN) foreign affairs advisor
    Samuel Santos holds up the FSLN's recent support for CAFTA
    implementation legislation as evidence of his party's
    interest in constructive relations with the United States.
    He suggests that the FSLN might also be willing to vote to
    destroy 651 MANPADS and eventually the remainder if such
    disarmament would lead to more benefits for the Nicaraguan
    military.  He continues to excuse Daniel Ortega's anti-USG
    public rhetoric, insisting that Ortega realizes he needs good
    relations with the United States if he is to successfully
    govern.  He fretted to polcouns and TDY poloff on March 16
    that USG influence in Nicaragua could cost Ortega the
    November national election and is particularly alarmed by our
    cordial relations with Sandinista-dissident Herty Lewites.
    End Summary.

    Strange Bedfellows Rally around CAFTA
    - - - - - - - - - - - - - - - - - -  -

    ¶2.  (C) In his March 16 meeting with polcouns and TDY poloff,
    analyst, FSLN foreign affairs advisor Samuel Santos held up
    the FSLN's recent support for CAFTA implementation
    legislation as evidence of the Sandinista party's interest in
    constructive relations with the United States (septel).
    Santos explained that in light of the Liberal Constitutional
    Party's (PLC) "no amnesty, no CAFTA" pledge, the Nicaraguan
    government negotiated with the bloc of 38 Sandinistas and
    Eduardo Montealegre's seven member ALN-PC caucus, plus a few
    lawmakers from smaller blocs, to muster  support for pending
    CAFTA reforms.  The Sandinistas agreed to the reforms in
    exchange for minor textual changes.

    ¶3.  (C) Note/Comment: On March 16, this odd CAFTA "alliance"
    passed both the 29 articles associated with the copyright law
    reform and the six articles related to the law of satellite
    broadcast signals.  The remaining reforms, to be considered
    March 21, include the 26 articles of the trademark law, 15
    articles of the patent law, the Budapest Treaty and an
    anticorruption law.  We had an inkling that the Sandinistas
    might support the CAFTA-related votes after Santos told us on
    March 13 (Reftel) that the FSLN supports CAFTA in principle
    and would be willing, with assurances that help Nicaraguans
    better compete, to support implementing legislation.  End
    Note/Comment.

    MANPADS Next?
    - - - - - - -

    ¶4.  (C) Taking advantage of the FSLN's support for CAFTA
    implementing legislation, polcouns raised the issue of
    MANPADS destruction, suggesting that a favorable vote on
    MANPADS would help demonstrate the FSLN's commitment to
    eliminating weapons that are of little use but to terrorists.
     Santos explained that some three years ago he had discussed
    MANPADS destruction with Embassy officials, who suggested
    that perhaps in recognition for the destruction the USG would
    contribute helicopters or other items to the Nicaraguan
    military.  However, this initiative had fizzled.  Polcouns
    clarified that, although there is no agreement on the table
    that would directly link MANPADS destruction with the
    donation of specific items, clearly further MANPADS
    destruction would open the way for increased mil-mil
    engagement and assistance.  Santos replied that he will relay
    this message to his party leadership.  (Note: President
    Bolanos' senior political adviser, Frank Arana, told us March
    20 that he will also broach the subject wi
    th the Sandinistas.)

    "Pacts Are How We Do Politics"
    - - - - - - - - - - - - - - -

    ¶5.  (C) Elaborating on the GON-FSLN CAFTA effort, Santos
    asserted that the GON-FSLN pact is more productive than the
    much maligned Ortega-Aleman pact.  "Pacts are how we do
    politics.  They help maintain governability," argued Santos.
    He confided that before Aleman offered to pact with Ortega in
    1997, the Sandinistas were floundering and flailing.  "We
    seized on Aleman's offer and turned it to our advantage,"
    beamed Santos, who added that Aleman's blind personal hunger
    for power had made him vulnerable.  This was not the first or
    last pact, continued Santos, noting that early in President
    Bolanos' term, Bolanos had "pacted" with Ortega to remove
    Aleman's immunity.  The pact continued until Secretary Powell
    visited Managua in fall 2003 and "ordered" President Bolanos
    to break the pact, and was revitalized after the OAS brokered
    a new deal between Bolanos and Ortega in fall 2005 to restore
    governability, said Santos.

    "Watch What We Do, Not What We Say"
    - - - - - - - - - - - - - - - - - -

    ¶6.  (C) Santos resorted to his usual line of "heed our
    actions, not our rhetoric" to polcouns' query over Ortega's
    March 16 verbal assault on the United States when he accused
    the USG of infiltrating the Sandinista party with spies and
    of attempting to wrangle amnesty for PLC leader/convicted
    money launderer Arnoldo Aleman.  Santos cited Ambassador John
    Negroponte's recent statement that the U.S. must monitor
    Nicaragua as the reason for Ortega's allegation.  And, while
    Santos acknowledged that the U.S. is not seeking Aleman's
    amnesty, he argued that about three years ago the U.S.
    Ambassador had approached him on the idea.  (Note: The Ambassador
    at the time clarified that she never supported Aleman's amnesty and
    never approached Santos on the matter or anyone else).  At least the
    anti-U.S. lyrics are no longer in the Sandinista anthem,
    proffered Santos. Polcouns reiterated that Ortega's rhetoric is
    uncalled for and will certainly not lend to improving relations.

    Carter Is Our Friend and We Need U.S. Investment
    - - - - - - - - - - - - - - - - - - - - - - - - -

    ¶7.  (C) Santos held up the Sandinistas' close friendship with
    former President Jimmy Carter as a model for bilateral
    relations.  He said the Sandinistas look forward to Carter's
    visit in July and hope that Carter will be present for the
    November election.  U.S. investment is also welcome, asserted
    Santos, who claimed that while the Bolanos government had
    supported Chinese investment in a canal project for
    Nicaragua, the Sandinistas oppose the project if the Chinese
    are the only foreign investors.  Instead, the FSLN believes
    any eventual canal project should also include U.S. and/or
    European investment. (Note: Ortega is touting an ambitious
    canal project as part of his campaign platform.)

    What's This about You and Herty?
    - - - - - - - - - - - - - - - - -

    ¶8.  (C) Visibly perturbed over our association with Herty
    Lewites, Santos complained that Lewites adviser Victor Hugo
    Tinoco is granted generous access to U.S. officials in
    Washington, while he, Santos, does not even have a U.S. visa.
     "Herty was a gun runner (for the Sandinistas) like me, but
    he seems to have no problem with his visa," grumbled Santos
    (Santos is ineligible for a U.S. non-immigrant visa under 212
    (a) (3) (B) - - terrorism).  Polcouns replied that we meet
    with political leaders from all parties, as evidenced by our
    meetings with him. (Comment: Santos' palpable consternation
    over our engagement with Lewites suggests that Herty does
    represent a real threat to Ortega and could draw enough votes
    from Sandinista sympathizers to prevent an Ortega victory.
    Indeed, the Borge/IRI poll suggests that, while sympathy for
    the FSLN as a party is 33 percent, only 25 percent of the
    respondents would vote for Ortega.  End comment.)

    Why Ortega?
    - - - - - -

    ¶9.  (C) Santos rationalized Ortega's continued leadership of
    the FSLN to the fact that he is the only one who can counter
    the USG's efforts to dismantle the party.  When pressed,
    Santos could present no evidence of this accusation, nor
    could he prove, as Ortega asserts, that the USG is financing
    Ortega rival Lewites' campaign. (Note: According to the
    Borge/IRI mid-March poll, Alejandro Martinez Cuenca enjoys
    considerable internal Sandinista party support, with 27.7
    percent favoring Martinez Cuenca versus 29.2 percent
    supporting Ortega as the FSLN's presidential candidate.)

    Biodata
    - - - -

    ¶10.  (C) Samuel SANTOS Lopez was born December 13, 1938.  His
    grandfather was Somoza's National Guard Chief of Operations
    and Intelligence.  During the Sandinista era, Santos served
    as chief of the FSLN Finance Department and was a member of
    the FSLN Assembly.  He also served as Mayor of Managua and
    Minister of Managua Reconstruction.  Santos helped divert GON
    funds to arm the FMLN in El Salvador.  Now an economist and
    wealthy businessman, Santos was a member of the failed
    Interbank and lost considerable money in the bank scandal.
    Santos owns a hotel in Managua and is the General Manager of
    Best Western, Nicaragua.  He is a major proponent of building
    a canal through Nicaragua and is a close business partner of
    Bayardo Arce's.  He has relatives in the United States,
    including a sister in Los Angeles and sons in San Francisco.

    Comment
    - - - -

    ¶11.  (C) Santos once again sought our assurances that the
    U.S. will refrain from "unhelpful attacks" on Ortega and
    avoid meddling in Nicaragua's political deliberations.  He
    asserted that it is now the Sandinistas' turn for power,
    given that the Liberal governments have failed to deliver
    prosperity to the Nicaraguan people.  To Santos, an Ortega
    victory would close the circle on years of conflict and heal
    the nation.  Once again, we reiterated that the USG maintains
    its reservations over Ortega -- given his track record and
    his continuing anti-U.S. rhetoric -- and rejects any
    political option that is a product of the Ortega-Aleman pact.
     An Ortega victory would likely spark a political spiral
    downward -- what Nicaragua needs is a leader who will break
    Nicaragua's vicious circle of caudillismo.

    TRIVELLI

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