Currently released so far... 3954 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kampala
Embassy Kabul
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Montreal
Consulate Monterrey
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
AF
AM
AE
AG
AR
ASEC
AS
AU
AORC
AJ
AMGT
AGMT
AFIN
APER
ABUD
ATRN
AEMR
ACOA
AEC
AO
AX
AMED
ADCO
AODE
AFFAIRS
AC
AL
ASIG
ABLD
AA
AFU
ASUP
AROC
ATFN
CH
CE
CA
CASC
CU
CLINTON
CO
CI
CVIS
CDG
CIA
CACM
CDB
CS
CBW
CD
CV
CMGT
CJAN
CG
CF
CN
CAN
COUNTER
CIS
CM
CONDOLEEZZA
COE
CR
CY
CTM
COUNTRY
CLEARANCE
CPAS
CWC
CT
CKGR
CB
CACS
COM
CJUS
CARSON
COUNTERTERRORISM
EUN
EG
EAID
ENRG
ETTC
EFIN
ECON
ETRD
EPET
EINV
EMIN
ECIP
ECPS
EINDETRD
EAGR
EU
EN
EZ
ELAB
ER
ET
ES
EUC
EI
EAIR
EIND
EWWT
ELTN
EREL
ECIN
EFIS
EINT
EC
ENVR
ECA
EXTERNAL
EINVETC
ENIV
EINN
ENGR
EUR
ESA
ENERG
EK
ELECTIONS
ECUN
EINVEFIN
IR
IS
IZ
INRB
IAEA
IN
IT
ID
IO
IV
ICTY
IQ
ICAO
INTERPOL
IPR
IRAJ
INRA
INRO
IC
IIP
ITPHUM
IWC
ISRAELI
IRAQI
ICRC
IMO
IF
ILC
IEFIN
INTELSAT
IL
IA
IBRD
IMF
ITALY
ITALIAN
KCOR
KDEM
KNNP
KU
KWBG
KPAL
KN
KS
KZ
KAWK
KISL
KPAO
KCRM
KJUS
KSEC
KIPR
KGHG
KIFR
KTFN
KDRG
KV
KSUM
KWAC
KAWC
KDEMAF
KFIN
KGIC
KTIP
KOMC
KHLS
KSPR
KGCC
KPIN
KG
KBIO
KHIV
KSCA
KE
KFRD
KPKO
KNUC
KMDR
KPLS
KOLY
KUNR
KIRF
KIRC
KACT
KRAD
KCOM
KMCA
KHDP
KVPR
KDEV
KWMN
KTIA
KPRP
KCIP
KCFE
KOCI
KTDB
KMRS
KLIG
KBCT
KICC
KGIT
KSTC
KPAK
KNEI
KSEP
KPOA
KFLU
KNUP
KNNPMNUC
KO
KTER
KHUM
KRFD
KBTR
KDDG
KWWMN
KFLO
KSAF
KBTS
KPRV
KMPI
KNPP
KNAR
KWMM
KERG
KTBT
KCRS
KRVC
KR
KPWR
KMIG
MOPS
MZ
MO
MNUC
MASS
MARR
MY
MEPP
MCAP
MA
MR
ML
MX
MIL
MTCRE
MPOS
MOPPS
MTCR
MAPP
MU
MG
MASC
MCC
MK
MTRE
MP
MDC
MAR
MEPI
MRCRE
MI
MT
MQADHAFI
MD
MAPS
MUCN
PREL
PTER
PGOV
PO
PHUM
PINS
PARM
PK
PINR
PINT
PBTS
PROP
PE
PL
PREF
POGOV
PINL
POL
PBIO
PSOE
PHSA
PKFK
PGOF
PARMS
PA
PM
PMIL
PTERE
PF
PALESTINIAN
PY
PGGV
PNR
POV
PAK
PAO
PFOR
PHALANAGE
PARTY
PNAT
PROV
PEL
PGOVE
POLINT
POLITICS
PEPR
PSI
PU
POLITICAL
PARTIES
PECON
SNAR
SA
SY
SOCI
STEINBERG
SP
SENV
SCUL
SF
SO
SR
SG
SW
SU
SL
SMIG
SN
SHUM
SZ
SYR
ST
SANC
SC
SAN
SIPRS
SK
SH
SI
UNSC
UP
UK
USEU
UG
UNMIK
UV
UZ
UY
UN
US
UNGA
UNO
USUN
UE
UNESCO
UAE
UNEP
USTR
UNHCR
UNDP
UNHRC
USAID
UNCHS
UNAUS
Browse by classification
Community resources
courage is contagious
Viewing cable 08TEGUCIGALPA86, PETROCARIBE AS HONDURAN POLITICAL THEATER
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08TEGUCIGALPA86.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08TEGUCIGALPA86 | 2008-01-28 22:10 | 2011-01-29 21:09 | CONFIDENTIAL | Embassy Tegucigalpa |
VZCZCXYZ0000
OO RUEHWEB
DE RUEHTG #0086/01 0282217
ZNY CCCCC ZZH
O 282217Z JAN 08
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7587
INFO RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0584
RUEHDG/AMEMBASSY SANTO DOMINGO 0419
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RHEHNSC/NSC WASHDC
RUEHIN/AIT TAIPEI 0204
C O N F I D E N T I A L TEGUCIGALPA 000086
SIPDIS
SIPDIS
STATE FOR EB/ESC, WHA/EPSC, WHA/PPC, WHA/CEN, STATE PASS TO
USTR
E.O. 12958: DECL: 01/28/2018
TAGS: EPET EFIN ENRG PREL PGOV VE HO
SUBJECT: PETROCARIBE AS HONDURAN POLITICAL THEATER
REF: A. REF A: 07 TGG 1798
¶B. REF B: 07 TGG 1818
¶C. REF C: 08 TGG 0057
¶D. REF D: 08 TGG 0084
Classified By: Ambassador Charles Ford for reasons 1.4 (b) and (d)
¶1. (C) Summary: Local media report President Manuel Zelaya
will sign an agreement today (January 28) to import
Venezuelan fuel on concessional terms through Petrocaribe.
Venezuelan President Hugo Chavez reportedly signed the
agreement in Caracas over the weekend. The Honduran Congress
approved the outlines of an agreement January 24, even though
President of Congress Roberto Micheletti is known to oppose a
Petrocaribe deal. However, key details were left undefined,
and Post understands Congress will still need to approve the
actual contract -- if one exists -- before it can take
effect. Embassy considers this back and forth over
Petrocaribe to be part of the ongoing Honduran political
theater. It may or may not result in the supply of
Venezuelan oil to Honduras. But it will definitely affect
the balance of Zelaya's term and the campaign to succeed him
in 2009. Meanwhile, we suspect the political price for this
Venezuelan "free lunch" is already being collected. End
Summary.
-------------------------------
Zelaya to Sign Petrocaribe Deal
-------------------------------
¶2. (U) Honduran news media reported January 28 that President
Chavez signed the draft PetroCaribe agreement, discussed
during his January 15 visit to Tegucigalpa (ref C), over the
weekend at the conclusion of the sixth Bolivarian Alternative
for the Americas (ALBA) summit in Caracas. Foreign Minister
Milton Jimenez, who attended the summit as an observer, has
reportedly brought the agreement back to Honduras for Zelaya
to sign. Zelaya told the press he would sign it Monday
(January 28).
----------------
What's the Deal?
----------------
¶3. (U) According to press reports and Embassy sources, the
two-year deal would initially involve purchase of 100 percent
of the bunker fuel (heavy fuel oil) that Honduras uses to
generate 70 percent of its electricity, with automotive fuel
possibly to be included later. Presentations to Congress and
to donors imply the GOH would incur USD 345 million in debt
during the first year of the deal, of which USD 285 million
is expected to fall during 2008 (implying fuel supply would
commence in April). Honduras would be required to pay 60
percent within 90 days, with the balance financed at 1
percent interest over 25 years with a two-year grace period.
During his visit, Chavez said at least part of the bill could
be paid in milk or other agricultural commodities, although
Honduran agriculture reps have said the country does not
currently have an exportable supply.
¶4. (C) According to Liberal Party Congressman Jose Azcona, a
close associate of Congressional leader Micheletti, as
originally proposed by Zelaya's team in November (ref B), the
deal contemplated importing 100 percent of bunker fuel and 30
percent of automotive fuel. The deal currently being
discussed is limited to bunker, possibly to comply with a
debt ceiling being negotiated with the IMF (ref D) or
possibly because of logistical and legal obstacles to
importing gasoline and diesel.
¶5. (SBU) The proceeds to the GOH from the deal (from
acquiring the fuel with 60 percent down, then selling it to
power plants at full price) are to be put into a trust fund
at the Central Bank, to be used for investments under the
supervision of a "committee of notables." Thirty percent
would be used to recapitalize the ailing state electric
utility ENEE, 40 percent to construct hydroelectric plants
and 30 percent for "social investments," primarily in
agriculture. The trust fund idea appears to be in part to
satisfy the IMF (which wants the funds to be used only for
productive investment and prefers that they be sequestered at
the Central Bank), in part to satisfy domestic critics in
Congress and the private sector (who have criticized the
principle of incurring debt for consumption) and in part to
coopt certain private-sector leaders by giving them authority
to spend the funds.
------------------------------------------
Cure for what Ails Honduran Energy Sector?
------------------------------------------
¶6. (SBU) Honduras faces fiscal crises both in electricity
supply and maintaining subsidies for automotive fuel. ENEE
is losing an estimated USD 300 million a year, roughly 3
percent of GDP (ref A). ENEE's rates, despite recent
increases, do not cover costs, and arrears to private power
producers are estimated at 6 billion lempiras (USD 317
million). Enrique Flores Lanza, formerly Presidential Legal
Advisor and now Minister of the Presidency, recently said the
GOH was spending 10 million lempiras a day (USD 194 million a
year) to subsidize gasoline and diesel fuel -- another 2
percent of GDP. President Zelaya has said publicly that his
administration cannot maintain fuel subsidies without a
PetroCaribe deal. He is running political ads on local TV
taking credit for keeping pump prices low and seeking
support for "further measures" to keep them that way -- a
clear reference to Petrocaribe.
¶7. (SBU) However, we understand Petrocaribe requires that
proceeds be used for anti-poverty programs and public
investments, not subsidies or current spending, and the GOH
has committed to the IMF and to Congress that it will comply
with those terms (see above). In fact, Zelaya's own new ENEE
director, Ricci Moncada, stated to TV reporters (carried
January 28) that a Petrocaribe deal would not affect pump
prices but contribute to investments for long-term economic
growth.
--------------------------------------------- -----
Political Theater -- Will Congress Approve a Deal?
--------------------------------------------- -----
¶8. (C) Political sources, including those close to former
President and Liberal Party kingmaker Carlos Flores, tell us
that Zelaya had hoped to sign a PetroCaribe deal during
Chavez's January 15 visit. However, the Venezuelan
delegation reportedly balked on the grounds that too many
logistical details were undefined, and Chavez did not want to
be blamed if he could not implement the deal. Zelaya then
sent to Congress a draft boilerplate agreement, void of
details, hoping Congress would reject it. That would have
allowed Zelaya to blame Congress when he inevitably has to
raise pump prices in the near future. He reportedly even
asked Micheletti to "stick it in the drawer" until details
could be fleshed out. Instead Micheletti, a political rival
of Zelaya's and a leading aspirant to succeed him in 2009,
pushed the decree through the Congress January 24. This put
the ball back in Zelaya's court, placing the onus on him to
negotiate a viable agreement that meets the country's
pressing energy needs while staying within IMF parameters.
-------
Comment
-------
¶9. (C) We suspect this latest turn in Zelaya's on-again,
off-again flirtation with PetroCaribe reflects:
-- his unwillingness to take needed steps to rationalize the
energy sector, or desire to assign political blame for those
steps to others (by sending an unworkable Petrocaribe deal to
Congress, then, when they reject it, blaming them for what
follows),
-- an effort to energize his populist base by aligning
himself more closely with Chavez, and
-- per ref D, an effort to secure enough cash to skate
through the final two years of his Presidency.
Zelaya may also think he can evade the conditions of both
Petrocaribe and other donors and divert the funds to cover
current spending, for corrupt ends or for the political
campaign of his preferred successor, Patricia Rodas.
¶10. (C) As for why Chavez waited until 10 days after his
visit to sign the agreement, we strongly suspect this was to
extract the political "price" for the deal. This came in the
form of: 1) participation as an observer at the ALBA summit,
and 2) stating publicly that Honduras does not consider
Colombia's FARC to be a terrorist group (ref D). End Comment.
FORD IC