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### Viewing cable 08PORTAUPRINCE1748, POSTCARD FROM CAP HAITIAN: ISSUES, REQUESTS &

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08PORTAUPRINCE1748 | 2008-12-22 14:40 | 2011-06-08 17:00 | UNCLASSIFIED | Embassy Port Au Prince

Appears in these articles:
http://www.haitiliberte.com
http://www.haiti-liberte.com/archives/volume4-47/Washington%20Backed%20Famous.asp
http://www.haiti-liberte.com/archives/volume4-47/Minimum%20Wage%20Fight.asp
http://www.haiti-liberte.com/archives/volume4-47/Des%20c%C3%A2bles%20r%C3%A9cemment%20divulgu%C3%A9s.asp
http://www.haiti-liberte.com/archives/volume4-47/La%20confrontation%20pour%20le%20salaire%20minimum.asp

`

    VZCZCXRO2475
    PP RUEHQU
    DE RUEHPU #1748/01 3571440
    ZNR UUUUU ZZH
    P 221440Z DEC 08
    FM AMEMBASSY PORT AU PRINCE
    TO RUEHC/SECSTATE WASHDC PRIORITY 9326
    INFO RUEHZH/HAITI COLLECTIVE PRIORITY
    RUEHBR/AMEMBASSY BRASILIA PRIORITY 2151
    RUEHSA/AMEMBASSY PRETORIA PRIORITY 1906
    RUEHQU/AMCONSUL QUEBEC PRIORITY 1312
    RUCNDT/USMISSION USUN NEW YORK PRIORITY 1744
    RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITY

` `

    UNCLAS SECTION 01 OF 06 PORT AU PRINCE 001748

    SIPDIS

    STATE FOR WHA/EX AND WHA/CAR
    S/CRS
    SOUTHCOM ALSO FOR POLAD
    STATE PASS AID FOR LAC/CAR
    INR/IAA
    WHA/EX PLEASE PASS USOAS

    E.O. 12958: N/A
    TAGS: PGOV PREL PHUM ECON EINV HA
    SUBJECT: POSTCARD FROM CAP HAITIAN: ISSUES, REQUESTS &
    MOVING FORWARD

    REF: A. A. PORT AU PRINCE 1492
         ¶B. B. PORT AU PRINCE 1359
         ¶C. C. PORT AU PRINCE 1068
         ¶D. D. PORT AU PRINCE 1104
         ¶E. E. PORT AU PRINCE 425

    PORT AU PR 00001748  001.2 OF 006

    ¶1. (SBU) Summary: Cap Haitien officials downplayed security
    issues but highlighted economic hardship and municipal budget
    constraints as key impediments to progress in Haiti's second
    largest city. The delegate for the North Department discussed
    the effects of the recent hurricanes on the region and
    lamented a perceived reduction of U.S. assistance to the
    area. Authorities highlighted the increased presence in Cap
    Haitien and surrounding communes of persons displaced by the
    hurricanes.  Crime, particularly kidnappings, has increased
    in recent weeks.  MINUSTAH is diligently preparing for
    one-third senate elections planned for April.
    Infrastructural challenges persist for the under-utilized Cap
    Haitien port and the Venezuelan-financed electricity plant
    and airport.  Despite difficult economic times, the private
    sector is rallying together to promote northern Haiti as a
    tourist destination and HOPE II is expected to generate 1,000
    additional jobs in the nearby Free Trade Zone. End Summary.

    Cap Haitien Mayors Speak Out
    ----------------------------

    ¶2. (SBU) Cap Haitien, on Haiti's north coast is the capital
    of the North Department and the country's second largest
    city. Econ/Poloff and USAID Specialist met November 19 with
    both Famni Lavalas partisans Deputy Mayors Fritz Joseph and
    Philocles St. Fleur who asked why there is no permanent U.S.
    Embassy presence in Cap Haitien.  They suggested a Haiti
    Stabilization Initiative (HSI) program for Cap Haitien,
    modeled after the one in Cite Soleil, but insisted the city's
    many needs and problems were not security-related.  Joseph
    and St. Fleur claimed that 80 percent of the city's
    constituency is satisfied with the work of the Mayor's office
    (Mairie).  They said they want to change the Mairie's image
    of exclusive association with the Lavalas political party.

    ¶3. (U) Inactivity at the Mairie was attributed to the fact
    that the previous day was the November 18 Battle of Vertieres
    holiday. (Note: All other public offices visited on November
    19, including the port and the Office of the Delegate of the
    North, were open and fully functioning. End note)  The deputy
    mayors complained about the lack of Cabinet or high-level GoH
    participation at the holiday celebration in Cap Haitien.

    ¶4. (SBU) Deputy Mayor Joseph said the Mairie's annual budget
    is not enough for its approximately 4,000 employees and
    therefore runs an annual deficit, citing the police budget in
    particular.  Deputy Mayor St. Fleur opined that the economic
    downturn in the U.S. is having a negative impact on money
    transfers (remittances) to city inhabitants.

    ¶5. (U) The deputy mayors complained that Cap Haitien does not
    have its own garbage collection truck and depends upon the
    Ministry of Public Works and Transportation's National Center
    for Equipment (CNE) to collect the trash.  (Comment:
    Econ/PolOff saw two CNE trucks cleaning drainage canals. End
    comment)

    Delegate's Perspective on USG Assistance
    ----------------------------------------

    ¶6. (SBU) North Department Delegate Georgemain Prophete met
    with embassyoffs to discuss developments in the northern
    region.  (Note: Prophete is the equivalent of a U.S. state
    governor, holds executive power and coordinates all
    government actions in the Department, comprised of
    approximately 1.2 million people in 19 communes, including
    the city of Cap Haitien.  End note) He said his northern
    delegation is committed to carrying out elections in April
    2009, but questioned the international community's level of
    engagement. He lamented the diminishing number of
    USAID-funded projects, citing the Cooperative Housing
    Foundation's (CHF) budget cuts in Cap Haitien in response to
    the need to address severe flooding in the Artibonite
    Department (and Gonaives, its largest city).  He said the
    U.S. has not done enough for Haiti and he was not surprised
    with the lack of USG assistance, especially in Cap Haitien.

    ¶7. (U) Prophete has changed his FY 08 priority of trash
    collection to a focus on electricity, the airport, and
    tourism development (ref A). He complained that the people in
    Cap Haitien, known as Capois, do not have the will to clean
    up the city.  Speaking at length on northern tourist
    potential, Prophete emphasized the importance of
    rehabilitating key sites, such as the Palais Sans Souci in
    nearby Milot.  He hoped that ten percent of Royal Caribbean
    cruise line (RCCL) passengers who disembark at the private
    site in Labadee would also visit Milot and Cap Haitien during
    their one-day visit to the country -- perhaps as part of a
    pilot program.

    ¶8. (U) Prophete noted that there are only 400 police officers
    assigned to the entire North Department.  His plans for the
    region include pushing the GoH to conduct a feasibility study
    for a fuel tanker stop in Cap Haitien to prevent fuel
    dependency on Port-au-Prince, especially in cases of natural
    disaster and high fuel prices. (Note: Cap Haitien was cut off
    from Port-au-Prince for several weeks following the
    hurricanes of August and September due to the collapse of a
    vital bridge at Ennery and which is now a major USG
    post-hurricane reconstruction project. End Note)

    Post Hurricane Condition
    ------------------------

    ¶9. (U) Deputy Mayors Joseph and St. Fleur said there was some
    damage in the communes surrounding Cap Haitien, but no major
    damage in the city itself due to the August and September
    storms.  Delegate Prophete said the storms had
    affected towns, such as Plaissance, Pilate, Le Borgne, Limbe,
    Port Margot, Limonade and Quartier Morin.  Prophete added
    that many internally displaced persons (IDPs) from the
    Artibonite region -- the area hardest hit -- were fleeing to
    Cap Haitien and the North Department.  He complained that the
    central government had not helped the Northern Department to
    accommodate these IDPs.

    ¶10. (U) Fuel prices have stabilized after nearly six weeks of
    increases due to the North being cut off from Port-au-Prince
    and the subsequent limited supplies of fuel following the
    storms. Private sector reps said that they were forced to
    purchase Dominican fuel at nearly USD 8 per gallon on the
    black market.

    MINUSTAH: Security, the Economy, Elections
    ------------------------------------------

    ¶11. (SBU) MINUSTAH Civil Affairs Director Nuhzat Ahmad
    reported that crime had increased in Cap Haitien.  She said
    that three kidnappings occurred during the week of November
    ¶17. (Note: Media has also since reported an increase in
    kidnappings in Cap Haitien. End Note) She attributed the
    uptick in kidnappings to usual holiday season desperation and
    the general weak economy.  MINUSTAH is working with the
    Haitian National Police (HNP) on their kidnapping response.
    Ahmad noted that MINUSTAH has a good rapport with the HNP.
    MINUSTAH is currently working with the HNP on an applicant
    vetting system and helping to organize and prepare for new
    recruits.  In contrast to Prophete's statistics, Ahmad
    admitted there were a few problems with the HNP such as
    report-writing.  Ahmad reported that there are 535 police
    officers in the North Department (Note: This discrepancy may
    be due to whether CIMO riot control police and judicial
    police are counted.  End Note)

    ¶12. (U) Ahmad suggested a need for better international donor
    coordination, especially given tighter donor budgets
    resulting from the current economic recession.  She said that
    coordination is particularly required to overcome the current
    assistance ''vacuum.''  Ahmad said many northern Haitians are
    angry that Gonaives received most of the GoH and
    international community attention after the hurricanes.  She
    added that many NGOs stationed in Cap Haitien, employing
    local residents, had left town to respond to the humanitarian
    crisis in Gonaives.

    ¶13. (U) Ahmad stated that Cap Haitien has been relatively
    calm and quiet since the April 2008 food riots.  There were
    some calls for protests but usually only 10-20 people
    participated.  The friction between President Preval and new
    Prime Minister Michelle Pierre-Louis is also on the minds of
    residents, according to Ahmad.

    ¶14. (SBU) Regarding April elections, Ahmad said there were
    1135 applications for 57 Communal Electoral Bureau (BEC)
    posts.  The applications will be sent to Port-au-Prince upon
    completion of the recruitment process.  Delegate Prophete
    adamantly stated that the electoral process would not be
    corrupt.  The Chilean battalion of MINUSTAH is checking all
    radio communication equipment needed for the election.

    More Workers Needed for Underutilized Port
    ------------------------------------------

    ¶15. (SBU) Emboffs met November 19 with National Port
    Authority (APN) Deputy Port Director Claude Lamothe and
    Director of Security Pierre Gerald Gay to discuss port
    developments in Cap Haitien.  The port is compliant with
    International Ship and Port Security (ISPS) codes.  APN
    focuses on maintaining port infrastructure to safeguard its
    certification.  Gay stated that maintenance is sometimes
    difficult due to meager resources.  Both officials lamented
    poor communication with Port-au-Prince and no communication
    with international ports, such as Miami.  They also
    complained about receiving the ''leftovers'' from what the
    GoH and international community contribute to the main port
    in Port-au-Prince.  Port officials do not have internet
    access.  They complained that the radios provided by USAID
    suffer from technical problems.  Generators are often not
    functioning, and electrical power in the area is
    unpredictable.

    ¶16. (SBU) Lamothe stated that Mayor Michel St. Croix does not
    understand the ISPS certification and is therefore suspicious
    of it.  According to Lamothe, the mayor believes that port
    personnel work for the USG and are not involved in port
    modernization or security.  Port Director Jean Renal
    Latortue, who fled the city one year ago following threats
    from fired APN employees, reportedly "manages" the Cap
    Haitien port from Port-au-Prince.  (Comment:  Port Security
    Director Gay is a close ally of Latortue, and Emboffs
    perceived tension between Lamothe and Gay when discussing
    Latortue. End comment)

    ¶17. (SBU) Lamothe said the hurricanes and economic crisis
    have not severely affected business at the Cap Haitien port,
    as it was under-utilized prior to the hurricanes.  The port
    has an extraordinary amount of debt and APN owes large sums
    of money to the GoH Tax Authority (DGI).  APN only recently
    paid its January 2008 tax bill.  It also owes money to the
    state-owned electricity company, EDH.  Gay said the port's
    financial constraints prevent it from having a stronger
    security force.  The security staff works long hours (12-hour
    shifts) without overtime compensation.  APN employs 83
    personnel, after having fired 170 workers during the past
    year.  (Note: During the Aristide era, the payrolls of APN
    and public utilities were packed with Lavalas supporters,
    many of whom allegedly did not go to work. End note)  After
    complaints of bloated staffing in July 2007 (ref B), the APN
    now needs additional employees to carry out daily tasks.  Gay
    stated that because of a lack of modern equipment, APN needs
    more workers to carry out tasks that could otherwise be
    accomplished by fewer workers.

    ¶18. (SBU) There is a team of approximately 40 immigration,
    customs, port, and police personnel who board ships for
    inspection in an effort to crack down on drug trafficking and
    smuggling.  The team uses unsophisticated methods, such as
    knocking on containers to hear if they are hollow, in an
    effort to determine the contents. Gay explained that port
    efficiency would improve if the APN used dogs, an X-ray
    machine, and/or a patrol boat.  The APN does get some
    assistance from the Haitian Coast Guard.

    Power and Transportation
    ------------------------

    ¶19. (SBU) Haiti is part of a Venezuelan-Cuban-Haitian
    tripartite cooperative agreement.  Cuba and Venezuela provide
    assistance to improve EDH electricity output and to upgrade
    the Cap Haitien airport.  EDH Director James Norca told
    Emboffs that fuel consumption averages more than 24,000
    gallons per year and this cost alone exceeds revenue.  Norca
    reported that the Venezuelan-constructed and Cuban-trained
    electricity plant in Cap Haitien is running on a trial basis.
     The trial period offers limited electricity to three zones
    (excluding Labadee) until about 11 pm: city center of Cap
    Haitien receives 4 megawatts (MW); the zone near the airport
    receives 2.5 MW, and zones toward some provinces such as
    Limbe receive 2 MW.  The plant has eight turbines (1.7 MW
    each) amounting to 13.6 MW (the maximum for Cap is 15 MW)
    (ref. C) (Note: Only six of the eight turbines are currently
    operating, per MINUSTAH. End note.)  The plant currently
    operates on diesel fuel, but EDH plans to change to heating
    fuel (mazout) in two to
    three months.  Cuban technicians trained eight Haitians as
    plant operators in Cuba for two months; eight others were
    trained in Haiti. Cuban technicians are supervising the
    transition to full-power operation.  Although the plant is
    generating increased electricity, officials reported to NAS
    Director that it is also emitting a large amount of
    pollution. End note)

    ¶20. (SBU) There are extensive electrical system logistical
    problems such as grid networking and cable repair.  Norca
    said that EDH urgently needs additional equipment and
    requested U.S. assistance to purchase vehicles and
    transformers.  Norca added that 75 transformers were
    destroyed during 2000 and were never replaced.  He has not
    received a response for replacement equipment from
    Port-au-Prince.  MINUSTAH Civil Affairs Director Ahmad
    believes EDH headquarters in Port-au-Prince has the financial
    resources available to help, but will not part with them.
    She said EDH should assess the dilapidated state of
    electrical cabling.  Norca said electricity is often stolen
    and was concerned about the safety of the illegal tappers.
    Ahmad said MINUSTAH recently extinguished a transformer fire,
    and that her greatest fear for Cap Haitien is fire.  MINUSTAH
    purchased three fire trucks for Cap Haitien in 2005 of which
    Ahmad said none are operable.  She deplored the lack of
    equipment repair and encouraged donors to identify funding
    for this purpose.

    ¶21. (U) The Cap Haitien International Airport is Haiti's
    second busiest airport (ref D).  Delegate Prophete told
    Emboffs that authorities are waiting for perimeter fencing to
    be completed.  Additional gaps in security to accommodate
    international flights remain to be addressed.  Members of the
    private sector believe that 40 percent of outbound passengers
    leaving Port-au-Prince's international airport are traveling
    from Cap Haitien.  A high proportion of the Haitian Diaspora,
    particularly those settled in south Florida, originated from
    Cap Haitien and the northern region.

    Tourism: Selling the North as a Destination
    -------------------------------------------

    ¶22. (U) The Association for Tourism of the North (ATH)
    presented to Emboffs its plans to promote the north as a
    tourist destination.  Members disclosed that the EU's
    development agency, PRIMA, plans to give to the ATH USD
    100,000 to hire a marketing consultant.  The ATH also plans
    to conduct a feasibility study of each business to create a
    tourism package.  The ATH says it needs USD 10 million to
    implement the study.  The ATH has considered borrowing to
    finance this but it is concerned about high interest rates
    ranging from 14 to 17 percent.  There are currently 200 hotel
    rooms in Cap Haitien.  The ATH hopes to expand that number to
    600 rooms.  The Minister of Tourism, Patrick Delatour,
    supports development of the region and pledged USD one
    million for the marketing project, pending submission of
    ATH's budget.  The members expressed concern over the U.S.
    State Department travel warning, complaining that it
    discourages tourism and economic development.

    ¶23. (U) The hotel industry has been severely affected by the
    hurricanes.  The Cormier Plage Resort manager, Jean Bernard
    Simmonet, explained that the hotel (32 rooms) is normally at
    40 percent capacity.  Since the storms, the hotel is at only
    4 to 5 percent of its capacity.  He said it was nearly
    impossible to meet employee payroll and pay for fuel.  ATH
    said that hundreds of jobs were lost when several NGOs left
    Cap Haitien to provide post-hurricane relief.

    ¶24. (U) Members of the private sector anticipate that the
    revitalized airport will allow American Eagle flights to
    operate from Cap Haitien.  The strategy would be to market
    tourism to Caribbean travelers since American Eagle already
    flies to several Caribbean islands. Private sector members
    are confident that the new EU-financed road between the
    border town of Ouanaminthe to Cap Haitien will also boost
    tourism from the Dominican Republic.  Cognizant of competing
    beaches and resorts across the Caribbean, the tourism
    industry would like to position Haiti for its culture,
    history and natural beauty. Adequate security remains an
    issue.

    ¶25. (SBU) Haiti's most successful tourism is the Royal
    Caribbean Cruise Line's (RCCL) private destination of Labadee
    (30 minute drive from Cap city center).  RCCL employs 235
    workers daily and approximately 640 employees and 40
    expatriate contractors on the two to three days per week the
    cruise ships dock in Labadee.  RCCL pays the government USD
    6.00 per person in taxes.  RCCL recently lost USD 500,000 due
    to an employee strike that prevented three ships from entry.
    RCCL Manager Broder Schutt told Emboffs that employees make
    more than four times the Haitian minimum wage (USD 1.75 per
    day).  RCCL explained that employees were upset because they
    were not granted a salary increase despite RCCL's USD 54
    million infrastructural investment project.  Schutt confirmed
    that the dispute had been resolved.

    ¶26. (U) RCCL invested USD 54 million for pier construction
    and Labadee development.  RCCL expects up to 7,000 passengers
    on their new cruise ship Oasis, of which will stop in
    Labadee.  Construction projects include the expansion of the
    beach, living quarters for expatriate employees, and general
    aesthetic improvements.  Schutt said RCCL expects more
    passengers after pier completion in October 2009.  RCCL is
    exploring the possibility of tours to the Palais Sans Souci
    in Milot, provided security and infrastructure are in place.

    HOPE in the Free Trade Zone
    ----------------------------

    ¶27. (SBU) Emboff visited CODEVI apparel plant (owned by
    Fernando Capellan of Grupo M) in the Free Trade Zone --
    situated in Ouanaminthe on the Haitian/Dominican border -- on
    November 21. CODEVI exports to the U.S. from Santiago in the
    Dominican Republic and employs approximately 3,000 workers in
    Haiti at its Dockers, Levi, Nautica, and Hanes-producing
    factories.  CODEVI takes advantage of the Haitian Hemispheric
    Opportunity through Partnership Encouragement Act (HOPE)
    trade preference program for items produced for Dockers, Levi
    and Nautica trousers.  CODEVI applies the CAFTA-DR
    preferences to T-shirts produced for Hanes.  As a result of
    the 10-year HOPE Act extension, CODEVI will soon open a fifth
    factory in Ouanaminthe with an estimated 1,000 additional
    workers and manufacture women's undergarments for Fruit of
    the Loom.

    ¶28. (U) Delegate Prophete is anxious for new investments in
    the northern region.  He requested that those companies and
    individuals interested in building factories in the region
    contact him.  Members of the Cap Haitien private sector share
    his enthusiasm, but appear to discourage the idea of plant
    construction in the city of Cap Haitien to avoid
    overpopulation, which they believe was the case in
    Port-au-Prince.

    Comment
    -------

    ¶29. (SBU) Major challenges remain for Cap Haitien but,
    despite numerous requests for USG assistance, most of the
    tools for development are nearly in place.  The question
    ''what can the U.S. do for us'' came up repeatedly during
    meetings with public sector authorities, who appear
    frustrated with perceived central government indifference and
    lack of support.  Given its close proximity to the U.S., the
    northern region is of strategic importance since many
    Haitians attempt to reach the U.S. from this area. (Note:
    1,043 Haitians attempted to reach American soil by boat in FY
    2008, the majority of them from the northern claw. End note)
    The building blocks for development exist: a completed
    electricity plant, prospects for a modernized airport, a
    port, a new road, numerous beaches, a labor force, and
    historical sites such as the Palais Sans Souci and the
    Citadel.  The question remains:  who will take the lead and
    convert Cap Haitien's assets and opportunities into better
    economic and social conditions for its residents.
    TIGHE

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