HONDURAN AIR NEEDS: CONVERSATION WITH MINISTER OF PRESIDENCY CARLOS FLORES, MAY 31, 1982

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001403370008-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: October 19, 2010
• Sequence Number: 8
• Publication Date: June 2, 1982
• Content Type: CABLE

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ZNY CCCCC ZOC STATE ZZH
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DE RUESTE #4574/01 1522305
ZNY CCCCC ZZH
R 012216Z JUN 82
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC 8275
INFO RUESBG/AMEMBASSY BOGOTA 1176
RUESRS/AMEMBASSY CARACAS 824
RUEHMG/AMEMBASSY MANAGUA 4003
RUEHME/AMEMBASSY MEXICO 660
RUEHMO/AMEMBASSY MOSCOW 18
RUEHZP/AMEMBASSY PANAMA 7325
RUESJO/AMEMBASSY SAN JOSE 7275
RUESAL/AMEMBASSY SAN SALVADOR 8094
RULPALJ/USSOUTHCOM QUARRY HTS PN
RUEHDT/USMISSION USUN NEW YORK 804
BT
C 0 N F I D E N T I A L TEGUCIGALPA 4574
E.O. 12065: GDS 6/1/88 (NEGROPONTE, JOHN D.) OR-M
TAGS: EAID, PEPR, HO, MILI, MASS
SUBJ: HONDURAN AID NEEDS: CONVERSATION WITH MINISTER OF PRESIDENCY
CARLOS FLORES, MAY 31, 1982
REFS: (A) TEGU 2187 (NOTAL; (B) TEGU 3958 (NOTEL);
(C) TEGU 4221 (NOTAL)
2. SUMMARY: TOP HONDURAN CIVILIAN LEADERSHIP IS BECOMING
INCREASINGLY FRUSTRATED OVER WHAT IT CONSIDERS TO BE ITS
INABILITY TO MEET PRESSING ECONOMIC NEEDS OF COUNTRY.
CONVERGENCE OF FACTORS, INCLUDING SLOW PROGRESS OF CBI
THROUGH CONGRESS, ORTEGA VISIT TO SOVIET UNION AND FALKLANDS
CRISIS ARE CAUSING A NUMBER OF THESE SAME LEADERS AND
SIGNIFICANT ELEMENTS OF THE HONDURAN PRESS TO ASSIGN A
GREATER THAN USUAL BLAME FOR HONDURAS' TROUBLES ON THE
UNITED STATES. AS HONDURAN LEADERSHIP LOSES CONFIDENCE
IN ITS OWN ABILITY TO DEAL WITH ITS PROBLEMS AND-IN OUR
WILLINGNESS TO HELP QUCKLY. THE GREATER THE INTERNAL
PRESSURE HERE TO LESSEN THE PRO-U.S. ORIENTATION OF GOH
POLICIES AND A GROWING TEMPTATION TO PLAY WITH "NON-
ALIGNED"ALTERNATIVES. THERE ARE STILL REMEDIES; BUT WE
HAVE LOST GROUND HERE SINCE AMBASSADOR'S SUBMISSION OF
REFTEL A (ENTITLED "HONDURAN MALAISE") ON MARCH 17.
MAY 31 CONVERSATION WITH MINISTER OF PRESIDENCY, CARLOS
FLORES, REFLECTS THESE AND OTHER CONCERNS. END SUMMARY.
3. AMBASSADOR CALLED ON MINISTER OF PRESIDENCY, CARLOS
FLORES, MAY 31 FOR A GENERAL TOUR D'HORIZON. CALL WAS
PROMPTED BY AN EDITORIAL APPEARING JUST TWO DAYS EARLIER
IN FLORES' NEWSPAPER LA TRIBUNA WHICH EXPRESSED EXASPERA-
TION OVER UNCERTAINTIES SURROUNDING CBI AND RELATIVELY
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SMALL AMOUNTS PROMISED TO HONDURAS IN RELATION TO THE
MAGNITUDE OF ITS PROBLEMS. TRIBUNA ARTICLE WAS JUST ONE
OF MANY ARTICLES APPEARING IN RECENT DAYS EXPRESSING
HONDURAN ECONOMIC DESPERATION AND MAKING INVIDIOUS
COMPARISONS BETWEEN OUR SEEMING INABILITY TO PROVIDE
ADDITIONAL HELP AND NICARAGUAN JUNTA MEMBER ORTEGA'S
APPARENT SUCCESS IN ELICITING DOLS 168 MILLION IN CREDITS
FROM THE SJIET UNION ON HIS RECENT TRIP TO MOSCOW.
4. AMBASSADOR OPENED CONVERSATION BY ASKING FLORES IF
TRIBUNA ARTICLE REPRESENTED VIEWS OF GOH. FLORES PRO-
FESSED TO NOT HAVING SEEN OR READ THE ARTICLE BUT THEN
PROCEEDED TO OUTLINE PROBLEM IN OUR RELATIONSHIP IN
MANNER VERY CONSISTENT WITH TENOR OF ARTICLE.
5. STARTING WITH THE BEGINNING, FLORES WENT BACK TO LAST
YEAR'S ELECTION CAMPAIGN AND THE TRANSITION TO FULL CON-
STITUTIONAL RULE. HE ASSERTED THAT IN DEALINGS WITH USG
OFFICIALS DURING THAT TIME, THERE WAS THE REPEATED IMPLI-
CATION IN CONVERSATIONS THAT A SUCCESSFUL TRANSMITION TO
DEMOCRACY WOULD RESULT IN GREATER ECONOMIC AID. FLORES
SAID HE, DOCTOR SUAZO AND OTHERS HAD PICKED THIS UP NOT
ONLY IN CONVERSATIONS WITH OUR EMBASSY HERE BUT ALSO FROM
OFFICIAL WASHINGTON VISITORS AND ON DOCTOR SUAZO'S OWN
VISIT TO WASHINGTON LAST JULY. THEN THE ELECTIONS CAME
AND, TO MAKE A LONG STORY SHORT, IN THE SIX MONTHS SINCE
THAT TIME UNITED STATES ASSISTANCE HAS REMAINED VERY MUCH
AT THE SAME LEVELS AND THE CBI HAS BECOME BOGGED
DOWN IN CONGRESZ. MEANWHILE, THE ONLY CONCRETE ECONOMIC
STEP WE HAVE TAKEN IS TO SLAP SUGAR QUOTAS ON HONDURAS.
AS HE HAS SO OFTEN DONE IN THE PAST, FLORES EXPRESSED
ALARM OVER WHAT CONGRESS SEEMS TO BE DOING TO OUR VARIOUS
PROGRAMS FOR SALVADOR. HE WAS INCENSED THAT A COUNTRY IN
SUCH DEEP TROUBLE AND SO RELIANT ON THE UNITED STATES
SHOULD BE PUSHED AROUND BECAMSE OF THE LAND REFORM
QUESTION, EVEN THOUGH HE DIDN'T AGREE WITH THE REPEAL OR
SUSPENSION OF ANY OF THE REFORMS.
6. TURNING TO HONDURAS' NEEDS, FLORES WENT THROUGH THE
BY NOU FAMILIARY LITANY. THE NEXT FEW MONTHS ARE CRITICAL.
THERE IS ALMOST TWENTY PERCENT UNEMPLOYMENT, PERHAPS AS
MUCH AS SIXTY PERCENT UNDEREMPLOYMENT. IN ORDER TO SHOW
FISCAL RESPONSIBILITY, SATISFY THE IMF AND SO FORTH, GOH
HAS BEEN ADDING TO THE RANKS OF UNEMPLOYED BY FIRING
GOVERNMENT OFFICIALS. THEY WOULD ALSO RELUCTANTLY GO
ALONG WITH RRAISING SOME.TAXES EVEN FURTHER, ALTHOUGH
FLORES HAD GRAVE PERSONAL MISGIVINGS ABOUT WISDOM OF IMF
PRESCRIPTIONS. WHAT HONDURAS REALLY NEEDED NOW, FLORES
SAID, WAS AN INCREASE IN PRODUCTIVITY AND A STIMULUS TO
THE ECONOMY. ALSO, GOH NEEDED SOME BREATHING SPACE.
IT COULDN'T BE EXPECTED TO CLOSE THE BUDGETARY GAP OVER-
NIGHT AFTER YEARS OF IRRESPONSIBILITY AND, INDEED,
CORRUPTION. SO, WHAT GOH HAD BEEN HOPING FOR FROM US ALL
ALONG WAS A QUICK INJECTION IN ORDER TO HELP NEW GOVERN-
MENT SHOW EARLY, POSITIVE RESULTS.
7. NOW, FLORES CONTINUED, GOH IS CONFRONTED WITH STAGNANT
IF WORSENING ECONOMIC SITUATION AND BEGINNING OF SERIOUS
DOMESTIC DISAFFECTION. THE TEACHERS, ONE OF THE COUNTRY'S
LARGEST PRESSURE GROUPS, ARE STIRRING AND THE UNIONS ARE
RESTIVE. THE SOCIAL PEACE OF HONDURAS IS INDEED TOO
FRAGILE TO ALLOW THESE COMPLAINTS AND FRUSTRATIONS GO
UNATTENDED INDEFINITELY. IF THEY PROVOKE SOME SORT OF
VIOLENCE, THEN THE GOVERNMENT'S ABILITY TO SATISFACTORILY
MANAGE THE SITUATION BECOMES PROBLEMATIC.
8. FLORES THEN BROUGHT UP NICARAGUAN JUNTA LEADER ORTEGA'S
VISIT TO MOSCOW. CONTRAST THE RESULTS, HE SAID, OF THE
CBI SO FAR WITH THE MORE THAN DOLS 150 MILLION IN CREDITS
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ORTEGA WAS ABLE TO RECEIVE ON HIS VISIT TO MOSCOW. MORE-
OVER, MEXICO IS STANDING AS THE GUARANTOR FOR MANY
NICARAGUAN LOANS. DON'T MISUNDERSTAND, HE ADDED, HONDURAS
DOESN'T WANT TO ALIGN ITSELF WITH THE SOVIETS BUT WHAT
DOES GOH SAY TO ITS PEOPLE WHEN ORTEGA DELIVERS PROMPT
SOVIET HELP TO NICARAGUA AND NEW GOH IS SEEN TO BE STILL
EMPTYHANDED VIS-A-VIS HONDURAS? OR WHAT DO WE SAY WHEN
CUBA DELIVERS ALL SORTS OF ARMAMENTS TO NICARAGUA. THERE
IS AN ASYMMETRY BETWEEN WHAT USG PROVIDES EACH OF ITS
FRIENDS IN THE REGION AND WHAT CUBA AND THE SOVIETS ARE
DOING FOR NICARAGUA. NEVER RELUCTANT TO OFFER US ADVICE,
FLORES SAID, "WHAT YOU REALLY NEED IS TO MAKE A POLICY
DECISION THAT YOU WISH TO HELP CENTRAL AMERICA AND THEN
CARRY IT OUT". FLORES WONDERED OPENLY ABOUT THE
RELIABILITY OF OUR FRIENDSHIP.
9. AMBASSADOR, NEEDLESS TO SAY, MADE THE OBVIOUS ARGUMENTS
RETURNS AREN'T IN ON CBI; MOSCOW'S LOAN TO NICARAGUA WAS
FOR IMPORTATION OF SOVIET EQUIPMENT AND HYDROELECTRIC
FEASIBILITY STUDY; GOH HAD TO SHOW GREATER UNDERSTANDING
FOR OUR DECISION-MAKING PROCESS, ETCETERA. AMBASSADOR
ALSO POINTED OUT WHERE WE HAD BEEN ABLE TO HELP IN MILITARY
AREA, THOUGH ACKNOWLEDGING THAT WE HAD FALLEN SHORT OF
MEETING ALL HONDURAN REQUESTS.
10. CONVERSATION ENDED WITH A BRIEF DISCUSSION OF THE
FALKLANDS SITUATION, A SUBJECT ON WHICH FLORES IS CAPABLE
OF RELATIVE OBJECTIVITY AND ON WHICH HE DOES NOT GET AS
EXERCISED AS GENERAL ALVAREZ. ALTHOUGH DOWNBEAT ABOUT
THE IMPLICATIONS OF THE FALKLANDS CRISIS FOR US/LATIN
RELATIONS, FLORES MADE CLEAR THAT MATTER WAS PRETTY FAR
DOWN ON HIS LIST OF PREOCCUPATIONS.
11. COMMENT: ALTHOUGH IT OCCASIONALLY TEMPTING TO THINK
THAT FLORES IS JUST SPEAKING FOR HIMSELF, EMBASSY IS
CERTAIN THAT ON SUBJECT OF ADEQUACY US AID HE SPEAKS FOR
PRESIDENT SUAZO AND ECONOMIC CABINET. SEE FOR EXAMPLE
REFTEL C WHERE DOCTOR SUAZO MADE SAME POINT TO PIEDRA AND
CARBAUGH. AND, IN FAIRNESS, GOH INSISTENCE ON URGENT NEED
FOR AID HAS BEEN FAIRLY CONSISTENT REFRAIN SINCE JANUARY 27
INAUGURATION. THE LEVEL OF FRUSTRATION IS HIGHER NOW.
THE AFTERTASTE OF THE IMF TALKS COMBINED WITH GROWING
SIGNS OF IMPATIENCE FROM VARIOUS TRAIDITONAL LIBERAL PARTY
CONSTITUENCIES HAVE CREATED GREATER FEAR BY DOCTOR SUAZO
THAT HE WILL BE "CRUCIFIED" BY HIS ELECTORATE. (THE
PRESIDENT HAS USED HIS PHRASE WITH SEVERAL RECENT AMERICAN
VISITORS.) AND HONDURANS SEEM TO FEEL A SIGNIFICANT
DIFFERENCE BETWEEN THE WAY WE ARE TREATING THEM AND
SOVIETS ARE HELPING NICARAGUA.
12. SUGGESTIONS AS TO HOW WE MIGHT ALLEVIATE THIS
TRICKY SITUATION SUBMITTED SEPTEL.
NEGROPONTE
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