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### Viewing cable 06PANAMA2207, FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PANAMA2207 | 2006-11-09 21:44 | 2011-05-28 00:00 | CONFIDENTIAL | Embassy Panama

`

    VZCZCXYZ0001
    RR RUEHWEB

    DE RUEHZP #2207/01 3132144
    ZNY CCCCC ZZH
    R 092144Z NOV 06
    FM AMEMBASSY PANAMA
    TO RUEHC/SECSTATE WASHDC 9317
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHMU/AMEMBASSY MANAGUA 0548
    RUCNDT/USMISSION USUN NEW YORK 0232
    RUEAIIA/CIA WASHDC
    RHEFDIA/DIA WASHDC
    RHMFISS/JOINT STAFF WASHINGTON DC
    RUEKJCS/OSD WASHDC
    RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD//

` `

    C O N F I D E N T I A L PANAMA 002207

    SIPDIS

    SIPDIS

    DEPARTMENT FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD

    E.O. 12958: DECL: 11/08/2016
    TAGS: PGOV PREL PHUM ETRD KCOR PM
    SUBJECT: FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL
    POLITICS

    R...

    C O N F I D E N T I A L PANAMA 002207
    SIPDIS
    SIPDIS
    DEPARTMENT FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD
    E.O. 12958: DECL: 11/08/2016
    TAGS: PGOV PREL PHUM ETRD KCOR PM
    SUBJECT: FM LEWIS ON UNSC, CORRUPTION, FTA, REGIONAL
    POLITICS
    REF: STATE 182267
    Classified By: AMBASSADOR WILLIAM EATON FOR REASONS 1.4 (B) AND (D).
    SUMMARY
    ‐‐‐‐‐‐‐
    ¶1. (C) Panama will be a voice for all of Latin America on
    the UN Security Council and is willing to help the USG spread
    its message, Vice President and Foreign Minister Samuel Lewis
    Navarro told the Ambassador November 8. He also addressed
    corruption, saying the court system is the crux of Panama's
    corruption problem and the GOP plans to increase the size of
    the Supreme Court in an attempt to change the balance of
    power within the court and battle increasing public
    perceptions of corruption. Lewis also voiced his concerns
    about the negative impact of Daniel Ortega's presidential
    election in Nicaragua on that country's democratic
    institutions. He also discussed a range of issues including
    the planned Panamanian Coast Guard and the Free Trade
    Agreement (FTA) with the United States. The Ambassador
    delivered reftel talking points on UN country‐specific human
    rights resolutions. Lewis agreed to pass the USG message to
    the Panamanian UN delegation. END SUMMARY.
    PANAMA AS UNSC MEMBER
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶2. (SBU) Panama will take an active role in representing
    Latin America on the UN Security Council, said Lewis. He
    added that he plans to travel extensively throughout the
    region to make sure Panama represents the GRULAC members'
    opinions and concerns. "It is important for us to know what
    the U.S. position is as well, so that we can help carry the
    water for you," said Lewis. He said that the GOP will invite
    the new UN Secretary General to Panama in June 2007 when
    Panama hosts the OAS General Assembly. He hoped that
    Secretary Rice could attend as well "to send a signal to the
    SIPDIS
    region" of the importance the United States places on
    hemispheric relations.
    ¶3. (SBU) Lewis also said that Torrijos traveled to Guatemala
    on November 8 to thank them for their support of Panama's
    candidacy. Lewis is working with Venezuelan authorities to
    schedule a similarly brief trip to Venezuela. The timing of
    the Venezuela trip is sensitive, he said, since Panama wishes
    to avoid internal Venezuelan electoral politics; Torrijos's
    visit to Venezuela will be strictly to thank them for their
    support.
    THREE MORE SUPREME COURT JUSTICES?
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶4. (C) Lewis brought up the corruption issue on his own,
    noting a recent Transparency International survey that
    indicated the public believes corruption in Panama was not
    only high but getting worse. The GOP's tack, Lewis said, was
    to reduce the perception problem while improving transparency
    in government. The bottom line, he said, was that the court
    system was the "rotten center" of Panama's corruption problem.
    ¶5. (C) Lewis revealed that the GOP's close‐hold plan was to
    add three new slots to the current nine‐member Supreme Court.
    "If President Torrijos appoints three respected jurists,
    that would change the balance of power on the Court," said
    Lewis. He agreed with the Ambassador's observation that such
    a move could be seen as the GOP stacking the Court in favor
    of the PRD (Revolutionary Democratic Party), and said the GOP
    would have to roll out the change very carefully. Lewis said
    the GOP's justification of the move would be the current high
    backlog of Supreme Court cases. The public would understand
    if the GOP could frame the move as a way to reduce backlog,
    explained Lewis. The Ambassador noted that an even stronger
    move to reform the Court would be if notoriously corrupt
    justices would resign and/or face prosecution. Lewis agreed
    but stated that this would never happen.
    ¶6. (C) In a related court issue, Lewis said that former
    Presidents Perez Balladares and Mireya Moscoso were
    conspiring to ensure that the Electoral Tribunal delegate
    appointed by the court system would be loyal to them. This
    is a big concern to the GOP, said Lewis, and Torrijos is
    trying hard to prevent this move. (Comment: Emboffs have
    also heard this reported by others. The person rumored to be
    Perez Balladares and Moscoso's choice is Gerardo Solis,
    currently an electoral prosecutor (fiscal). End Comment.)
    "PANAMA IS NOT NICARAGUA"
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶7. (C) Panama is concerned about Nicaragua's future
    following the election of Daniel Ortega. "It is almost a
    given that Ortega will try to subvert all democratic
    institutions in the country to bring them under Sandinista
    control," said Lewis. He agreed with the Ambassador's
    suggestion that Panama can help encourage Nicaragua to
    maintain its free market and democratic orientation and said
    that Panama will watch the situation in Nicaragua closely.
    (Comment: Given the PRD's past ties with the Sandinistas, it
    is interesting to see Lewis distancing the GOP from the
    Sandinista government. End Comment.)
    ¶8. (SBU) Lewis was also concerned that the Nicaraguan
    election would have negative consequences for Panama. In
    particular, he feared that some people in the United States
    may equate Panama with Nicaragua and that Panama "would be
    tarred with the same brush." He emphasized to the Ambassador
    that it was important for Panama that the USG see Panama in a
    different light from Nicaragua. "Panama is a friend of the
    United States and welcomes foreign investors," he said.
    COAST GUARD AND FTA
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶9. (C) Lewis emphasized that the plan to form a Panamanian
    Coast Guard was still going forward. The Ambassador
    expressed two concerns: 1) that incoming Enduring Friendship
    funds and equipment supplement rather than substitute for
    Panama's own investment in its maritime and air services, and
    2) that USG support for the Coast Guard be seen as an
    investment in the institution, not individuals. Lewis
    answered simply, "message received." (Comment: The
    Ambassador's subtle message, clearly understood by Lewis, was
    that we continue to have concerns regarding potential illegal
    activity by National Maritime Service Director Traad. End
    Comment.)
    ¶10. (SBU) Lewis reiterated Panama's support for the FTA as a
    key anchor for a strong Panamanian economy, job creation, and
    increased transparency. Panama is trying to figure out what
    impact the U.S. midterm elections will have on FTA progress.
    He thought the new U.S. political environment may be less
    favorable to free trade, but thought with Panama's trade
    deficit with the United States the FTA could be seen as a
    market or investment opportunity for the United States.
    GOP CONCERN WITH PUBLISHER
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶11. (C) Lewis stated that Torrijos is increasingly concerned
    about Abdul Waked, owner of the dailies La Estrella and El
    Siglo. (Note: Since Waked's El Siglo group bought La
    Estrella, both papers have been showing surprising
    independence, which might be a matter of GOP concern. End
    Note.) Waked is allegedly bribing National Assembly members
    and Supreme Court justices to get the duty‐free concession at
    Tocumen Airport and other commercial favors, said Lewis.
    Torrijos doesn't understand "why Waked had regular contact
    with the Embassy when the USG pulled his visa," he said. The
    Ambassador said the Embassy was interested in maintaining
    contact with the press as well as the Muslim community in
    Panama. (Comment: It is unclear whether Torrijos's "concern"
    is rooted more in an attempt to muzzle the anti‐GOP
    editorials in Waked's papers, or if there is a legitimate
    concern. Coincidentally, former Vice Minister of Commerce
    Romel Adames told Econ Chief separately on November 2 that
    the GOP pressured the daily La Prensa about two months ago to
    drop his regular economic columns, allegedly because he was
    critical of the Torrijos administration's economic policies.
    He since began writing for La Estrella. End Comment.)
    POLITICAL AMBITIONS
    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
    ¶12. (C) Lewis said Panama's UNSC seat "threw a monkey
    wrench" into his own plans to begin "campaigning"
    aggressively in the countryside in the run‐up to the 2009
    presidential elections. He had planned to spend more time in
    the interior of Panama to raise his profile among
    Panamanians, but, because of Panama's UNSC seat, will now
    have to focus on more regional travel and other duties.
    Lewis refuted the rumor, however, that he would step down as
    Foreign Minister. He said he hoped to get involved with
    Panama's national development plan as a way to leverage his
    political profile among the country's poor population.
    Balancing his Foreign Minister duties and his political
    ambitions will require a lot of time management, said Lewis.
    COMMENT
    ‐‐‐‐‐‐‐
    ¶13. (C) The GOP's plan to add more Supreme Court justices
    seems to be a superficial remedy that does not address the
    core of the problem: that Panama cannot rid itself of the
    corrupt justices already on the Court. Judicial reform is
    clearly a key component of improving transparency in Panama,
    but the GOP's plan merely sidesteps the real issue.
    Furthermore, with widespread rumors of corruption within all
    sectors of the GOP, it is unclear how much traction any of
    the GOP's anti‐corruption measures can get.
    ¶14. (C) It is a hopeful sign that Panama offered to be a
    voice for the United States in its UNSC role. But given
    Panama's desire to be friends with everyone, it remains to be
    seen whether Panama can indeed make the tough decisions when
    the time comes to choose sides. END COMMENT.
    EATON

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