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### Viewing cable 05SANJOSE1753, PRO-CAFTA-DR COSTA RICAN OFFICIAL FIRED

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05SANJOSE1753 | 2005-08-04 21:09 | 2011-03-03 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-03/Investigacion/NotasDestacadas/Investigacion2697430.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotaPrincipal/Investigacion2697496.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697489.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697532.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697535.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2701964.aspx
http://www.nacion.com/2011-03-03/Investigacion/Relacionados/Investigacion2701965.aspx

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 02 SAN JOSE 001753

    SIPDIS

    SENSITIVE

    WHA/CEN
    EB FOR WCRAFT
    E FOR DEDWARDS
    WHA FOR WMIELE
    WHA/EPSC FOR KURS
    H FOR JHAGAN
    STATE PASS TO USTR FOR AMALITO

    E.O. 12958: N/A
    TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
    SUBJECT: PRO-CAFTA-DR COSTA RICAN OFFICIAL FIRED

    REF: (A) SAN JOSE 00058
         (B) SAN JOSE 01294

    ¶1. (U) Summary.  On August 3, 2005, "El Financiero"
    reported that Amparo Pacheco, Vice Minister of the Ministry
    of Foreign Trade (COMEX) was fired, effective August 2,
    2005, due to a lack of confidence from President Pacheco
    (no relation to the ex-Vice Minister) and COMEX Minister
    Manuel Gonzalez.  The contributing factor to her firing,
    reportedly, was her strong opinion that the Administration
    should send the United States-Central America-Dominican
    Republic Free Trade Agreement (CAFTA-DR) to the Legislative
    Assembly as soon as possible, contrary to the President's
    position.  Her exit marks the end of her 18 years at COMEX
    and the departure of the last remaining member of the team
    that negotiated CAFTA-DR.  End Summary.

    ¶2.  (U) Amparo Pacheco strongly advocated swift
    ratification of CAFTA-DR in various forums.  Her articles
    explaining the text of the agreement, clarifying
    misconceptions, and refuting opposition-supported
    misinformation appeared in major newspapers almost daily.
    She attended numerous events hosted by non-government think
    tanks in which she was an effective advocate for CAFTA-DR.
    She was an integral part of COMEX's initiative to educate
    Costa Ricans about the agreement.  As a government
    official, she clearly explained the advantages and
    challenges that CAFTA-DR would bring, as well as the need
    to implement an effective complementary agenda.

    ¶3.  (U) Despite President Pacheco saying, in his weekly
    press conference on August 3, 2005, that Amparo resigned,
    Minister Gonzalez and Amparo herself confirmed to "La
    Nacion" that she was fired, primarily because of profound
    differences between her and the minister about how to
    proceed with CAFTA-DR.  Amparo stated that she believes
    Minister Gonzalez is not defending the agreement strongly
    enough.  An August 3, 2005, COMEX press release stated no
    details about the firing but mentioned who would be her
    replacement--Doris Osterlof Obregon--who served in COMEX
    under ex-President Oscar Arias, and was a consultant and
    principal advisor to the Chamber of Costa Rican Exporters
    (CADEXCO).

    ¶4.  (U) Osterlof states that she supports CAFTA-DR but
    maintains that the decision of when to send it to the
    Assembly is that of the President.  She, among others, was
    a promoter of the initiative "The Third Republic," a
    proposed development strategy for the country.  This
    proposal included an in-depth dialogue with groups such as
    labor unions and other social groups of the country, some
    of whom are the strongest opponents of CAFTA-DR.  "This is
    a country of dialogue," she said "and that is one of the
    best qualities of being Costa Rican; this means that
    whatever the process, we sit down and speak of national
    development with thoughtful people with varying opinions."
    She closed by saying that her work is to support Minister
    Gonzalez.  (COMMENT: CAFTA-DR supporters have been
    surprised by CADEXCO's lack of participation in the debate.
    One senior CADEXCO official told Emboffs that their tepid
    support for CAFTA-DR was being rewarded by earning several
    CADEXCO members positions in COMEX that were vacated by
    officials who had "pushed CAFTA-DR too hard.")

    -------------------------------
    COMMENT - THE PURGE IS COMPLETE
    -------------------------------

    ¶5.  (SBU)  Amparo's exit is the latest in a long list of
    departures from COMEX over the last year (Ref A).  Hers is
    notable because (1) it marks the exit of the last COMEX
    official who was involved in the CAFTA-DR negotiations, and
    (2) it was forced upon her, as opposed to the mostly
    voluntary departures of her previous colleagues.  The mass
    exodus started in September 2004, when then-COMEX Minister
    Alberto Trejos, along with other key members of his
    Ministry and the President's cabinet, resigned, in part,
    because of President Pacheco's conditional support of CAFTA-
    DR.  After Trejos's resignation, 7 of the 8 COMEX officials
    who negotiated CAFTA-DR also left, including the lead
    negotiator.  During the first 5 months of 2005, 18 of the
    top 30 officials at COMEX also departed.  This mass exodus
    left the organization much weaker in its public support of
    CAFTA-DR and with far less expertise in international trade
    issues.

    ¶6.  (SBU)  Minister Gonzalez commenced his tenure as COMEX
    Minister shortly after Trejos's departure and immediately
    began expressing conditional support for CAFTA-DR (Ref B).
    Many CAFTA-DR supporters in Costa Rica do not see him as an
    ally.  He, reportedly, is not well liked or respected
    within the Ministry due to his uneven support for CAFTA-DR
    and a management style that stresses hierarchy over
    teamwork.  The Ministry was increasingly seen as being
    divided into two camps: those supporting Amparo's strong
    and clear support for CAFTA-DR, and those following
    Minister Gonzalez's lead.

    ¶7.  (SBU) It was very clear to Econoff that the
    relationship between Pacheco and Gonzalez was a strained
    one.  There were several instances in which Gonzalez
    publicly questioned her authority and dismissed her
    comments.  The most recent airing of their division
    occurred during a critical point in the CAFTA-DR debate in
    the U.S. House of Representatives when Gonzalez publicly
    denied GOCR support to modify the rules of origin for
    pocket-lining materials, despite the fact that Amparo had
    signed a letter agreeing to the modification two weeks
    prior.  Amparo and others, including Costa Rican Ambassador
    to the U.S. Tomas Duenas, were able to convince Gonzalez to
    modify his statements and issue a letter supporting the
    changes the next day, but only after his public statements
    had done their damage.

    ¶8.  (SBU) The naming of Pacheco's successor, Osterlof,
    appears to put in place someone with little trade
    experience who will follow in the Minister's footsteps and
    echo the President's tepid support for CAFTA-DR.  It is
    clear that President Pacheco will no longer tolerate any
    subordinates who challenge his go-slow plan regarding CAFTA-
    DR ratification.  NOTE: His reluctance to proceed is due to
    his fear of a general strike, street demonstrations, and
    unrest that have been threatened by labor union leaders if
    President Pacheco sends the agreement to the Assembly for
    debate and ratification.

    ¶9.  (SBU) Opponents of CAFTA-DR undoubtedly see Amparo
    Pacheco's exit as a favorable development.  With her
    departure the only remaining consistent and effective
    defender of CAFTA-DR in the Pacheco Administration is
    Ambassador Duenas, and labor union leaders are demanding
    that he be fired next.  (Note: We doubt that President
    Pacheco would in fact fire Duenas as to do so, in the face
    of union demands, would make the President appear to be
    terribly weak.)
    KAPLAN

`