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### Viewing cable 05SANJOSE1720, CHORUS OF VOICES SINGING SEND CAFTA-DR TO THE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05SANJOSE1720 | 2005-07-29 22:38 | 2011-03-03 16:00 | 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 03 SAN JOSE 001720

    SIPDIS

    SENSITIVE

    WHA/CEN
    EB FOR WCRAFT
    E FOR TSMITHAM
    WHA FOR WMIELE
    WHA/EPSC FOR KURS
    H FOR JHAGAN
    STATE PASS TO USTR FOR JYOUNG, CPADILLA, AMALITO

    E.O. 12958: N/A
    TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
    SUBJECT: CHORUS OF VOICES SINGING SEND CAFTA-DR TO THE
    COSTA RICAN ASSEMBLY

    REF: A. (A) SAN JOSE 01713

         ¶B. (B) SAN JOSE 01636
         ¶C. (C) SAN JOSE 01455

    ¶1. (U) Summary.  The second day after the U.S. Congress
    approved the CAFTA-DR implementing legislation, many Costa
    Ricans are expressing the urgent need for President Pacheco
    to send the agreement to the Costa Rican Legislative Assembly
    for ratification (Ref A).  Those asking the administration to
    hasten the process include many of the 57-member Assembly,
    including its president, Gerardo Gonzalez, at least four
    candidates in the upcoming presidential election,
    representatives of business, and many members of the
    President,s own party, the Social Christian Union Party
    (PUSC).  Statements from the administration remain consistent
    with its previous position; that the President will send
    CAFTA-DR for ratification at the time he deems appropriate.
    End Summary.

    ¶2.  (U) The amount of media coverage given to the status of
    CAFTA-DR in Costa Rica has increased since the U.S. Congress
    approved it on July 27, 2005 (local time).  This coincides
    with a definite growing intensity of the debate about the
    status of CAFTA-DR ratification.  Local media coverage has
    shifted its focus from the vote in the U.S. to the GOCR,s
    plan and timetable to ratify CAFTA-DR.  The daily La Nacion
     not only placed this issue on the front page but
    also dedicated its first 8 pages to it.  The call for
    President Pacheco to send the agreement to the Assembly as
    soon as possible was the common theme of many articles.
    Those advocating this position, among many others, include,
    Gerardo Gonzalez, a PUSC Assembly member (deputy) and
    President of the Assembly, Oscar Arias, ex-president of the
    country and front-runner in the next presidential election,
    and Alberto Trejos, the ex-Minister of Foreign Trade (COMEX).
     Of course, there are still those who oppose the agreement
    and who have made their opinions known in the media.

    --------------------------------------------- ---
    THE CHORUS SINGS SEND CAFTA-DR TO THE ASSEMBLY
    --------------------------------------------- ---

    ¶3.  (U)  On July 28, deputies from the National Liberation
    Party (PLN), the Libertarian Movement Party (ML), and the
    National Renovation (RN) Party requested the president to
    send CAFTA-DR to the Assembly so that the deputies could
    start studying it in preparation for the ratification
    process.  The PLN, in a letter to the President wrote, we
    find ourselves in a critical situation where the country
    cannot delay a decision on this issue.  You cannot continue
    to ignore Costa Rican society,s right to debate and decide
    its future on an issue this important(.  The PLN
    representatives specifically stated that they would like
    President Pacheco to introduce CAFTA-DR by August 1, 2005.
    Rolando Lacle, a PUSC deputy who is President of the
    Assembly,s International Relations Commission, recommended
    that President Pacheco not delay in this matter because the
    country could suffer consequences.

    ¶4.  (U) Gerardo Gonzalez, the PUSC Assembly President,
    believes that this issue is so important that he is exploring
    Assembly rules and regulations to determine if it is possible
    for a deputy to introduce CAFTA-DR to the Assembly if
    President Pacheco will not.  Gonzalez stated that if it is
    permitted, he will present the agreement in September 2005.
    (Note: Most political observers and legal scholars agree that
    only the President can introduce a treaty for ratification.)

    ¶5.  (U) Five of the top presidential candidates in the next
    election, including front-runner Oscar Arias (PLN), Ricardo
    Toledo (PUSC), Otto Guevara, (ML), Antonio Alvarez
    Desanti(UPC), and Jose Manuel Echandi (UN), also expressed
    the need for President Pacheco to take action.  Oscar Arias
    stated, I call upon the  Administration and Assembly to
    start discussions of CAFTA-DR as soon as possible.  Ricardo
    Toledo, the PUSC presidential candidate and a fellow
    party-member of President Pacheco, stated that the country is
    lagging behind, and he is worried because the necessary
    legislation to prepare for CAFTA-DR has not been presented.

    ¶6.  (U) Ex-Minister of COMEX, Alberto Trejos, warns that it
    would be devastating for the country to remain outside
    CAFTA-DR.  When asked what he would recommend to President
    Pacheco, he stated that he would recommend that he send the
    agreement to the Assembly immediately.  The President is the
    author of this agreement, he gave instructions on its
    negotiation, he authorized the initiation of the
    negotiations.  He was consulted and gave recommendations; it
    was presented to him.  We have an excellent agreement because
    of this; he played his role.

    ¶7.  (U) Local business leaders are concerned that they may
    begin to lose their competitive edge because of the GOCR,s
    delay in the CAFTA-DR ratification process.  The many
    business chambers are looking for ways to increase  pressure
    on the Administration, the Assembly, and the Commission of
    Eminent Persons (Ref B), all of whom are to make decisions
    about CAFTA-DR.  Jack Liberman, the manager of Costa Rican
    Mills, said that there is a lot at stake here and the only
    forum in which to discuss this issue democratically is in the
    Assembly.  Samuel Yankelewitz, president of UCAAEP, an
    association of business chambers, and General Manager of the
    plastics company Yanber, said that the discussions about
    CAFTA-DR will be a long process ) they will last a minimum
    of six or 8 months in the Assembly.  For this reason, it is
    urgent to send the agreement now in order to have an adequate
    debate.

    ¶8.  (U) In an official press release, the pro-
    CAFTA-DR, Costa Rican-business-backed group, Por Costa Rica,
    stated the 13,886 partners of our organization are
    convinced that the time has arrived to have a serious and
    responsible debate about CAFTA-DR.  The Coalition for
    Development Initiatives (CINDE) made clear its position
    regarding implications of the current situation on foreign
    direct investment (FDI):  Our relation with the United
    States is vital.  In 2004 more that seventy percent of total
    FDI ($446.3 million or $617.3 million) came from U.S.
    sources.  Even more, in the last three years 78.9 percent of
    new business in Costa Rica originated with investment from
    the U.S.

    -------------------------------
    THE BEAT OF A DIFFERENT DRUMMER
    -------------------------------

    ¶9.  (U)  Those who oppose even sending CAFTA-DR to the
    Assembly continue to voice their opinions.  Albino Vargas,
    President of the approximately 15,000-member National
    Association of Private and Public Employees (ANEP),stated
    that if the agreement is sent to the Assembly, it would be
    taken as a declaration of war.  We will use all of our
    available resources, including those that we have never used
    before, to defeat CAFTA-DR. Prominent trade union leader
    Fabio Chavez was equally emphatic:  If CAFTA-DR goes to the
    Assembly, there will be a general strike, marches, and civil
    disobedience never before seen in this country. Otton
    Solis, the presidential candidate for the left leaning
    Citizens, Action Party (PAC) still pursues the idea of
    renegotiating CAFTA-DR.  He said that (this agreement is
    not good for Costa Rica and we should renegotiate
    bilaterally.  It shouldn,t be sent to the Assembly until
    after it is renegotiated.

    --------------------------
    THE ADMINISTRATION,S VOICE
    --------------------------

    ¶10.  (U)  President Pacheco maintains his lukewarm support
    for the agreement by saying that we will move at a slow but
    sure pace on CAFTA-DR.  He further stated that I will not
    decide to approve or reject (CAFTA-DR).  I will send it to
    the Assembly at the right moment which is my duty as
    President.  In an interview with La Nacion, Manuel
    Gonzalez, the Minister of Foreign Trade (COMEX), admitted
    that Costa Rica is the country farthest behind in the
    ratification process of CAFTA-DR, but he goes on to say that
    what is most important is that those who have to make the
    decision to approve or reject CAFTA-DR are the deputies who
    need to weigh the consequences of saying yes or no to the
    agreement.  I, at least, am doing an analysis, and see the
    balance much more in favor of yes.

    ¶11.  (U) When asked if he had spoken with the President about
    this issue since the U.S. House of Representatives, vote,
    Gonzalez stated that he had, and that the President,s
    position is that the approval in the U.S. was expected and is
    a positive and important step.  Minister Gonzales further
    stated that my objective is to present CAFTA-DR to the
    Assembly, let them discuss it and approve it. When asked
    if this was also the Government,s objective, Minister
    Gonzalez reportedly laughed and said, I believe that it is,
    and it continues to be an aspiration of the Executive branch.
     It is the goal that I have always shared with the President,
    and I have never received any indication otherwise, nor have
    I received any instruction to work in another direction(.

    -------
    COMMENT
    -------

    ¶12.  (SBU) The U.S. House of Representative,s vote approving
    the CAFTA-DR implementing legislation was heard loud and
    clear by those who support CAFTA-DR and those who do not.
    The tone of the discussions about the status in Costa Rica
    has definitely sharpened. The strength of voices of those in
    favor of sending CAFTA-DR to the Costa Rican Assembly is
    growing, with support from Assembly members, business people,
    and presidential candidates.  The Administration of President
    Pacheco is maintaining its go-slow approach, still fearful of
    the threats from CAFTA-DR opponents.
    KAPLAN

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