TUESDAY, NOVEMBER 13, 2007

Nicaragua Network Hotline (November 13, 2007)

Topics covered in this Hotline include:
1. Ortega and Chavez anger Spanish monarch during XVII Ibero-American Summit
2. Trivelli suggests there is "a dark shadow" passing over democracy in Nicaragua
3. Dole vows to appeal US case; 3,000 banana workers negotiating settlement in Managua
4. Spiraling price of basic products continues to impact population

Topic 1: Ortega and Chavez anger Spanish monarch during XVII Ibero American Summit


King Juan Carlos of Spain told President Hugo Chavez of Venezuela to "shut up" and then walked out of the auditorium during Nicaraguan President Daniel Ortega's speech during the closing act of the 17th Ibero American Summit in Santiago Chile Nov. 8-10. Chavez angered the King with his comments about former Spanish President Jose Maria Aznar, an active critic of the Venezuelan President, describing him as a fascist and a racist and accusing him of having ordered the Spanish Ambassador in Venezuela to support the 2002 attempted coup d'etat against Chavez' government.

Spanish President Jose Luis Rodriguez Zapatero reacted to Chavez' comments requesting that he show more respect for Aznar who was democratically elected by the Spanish people. Chavez continued in his criticisms of the former Spanish president to which King Juan Carlos undiplomatically responded, "Why don't you shut up?" Chavez replied, "With the truth I do not offend, nor am I afraid."

After Chavez' speech Nicaraguan President Daniel Ortega also managed to anger the Spanish monarch with his fierce criticisms of the Spanish multinational Union Fenosa, which has a monopoly on electricity distribution in Nicaragua. Saying that 90% of the Nicaraguan population is opposed to the company's ongoing presence in the country, Ortega accused Fenosa of providing bad service and of having participated in acts of corruption within the country.

Ortega said that Union Fenosa "came to Nicaragua thanks to a government of front men" and that his government would not have allowed the privatization of electricity distribution. He said that planned investments in the electricity generation sector have been suspended because of the US$35 million debt Union Fenosa has with the national generating companies. Union Fenosa is part of "a mafioso structure, gangster politics within the global economy of which our countries are the victims thanks to the tradition of governments of front men."

During Ortega's attacks on the Spanish multinational King Juan Carlos stood up and walked out of the auditorium. Official Spanish sources said the King was "angered by criticisms of Aznar, of Spain and of the Spanish foreign service." Spanish President Rodriguez Zapatero said that the King had left in order to "express the dissatisfaction of the Spanish delegation." Other Latin American presidents who have criticized the behavior of Spanish companies in the region include Bolivia's Evo Morales, Argentina's Nestor Kirchner and Rafael Correa of Ecuador. Press throughout the region continue to cover the controversy with opinions vying in favor of the royal anger and other opinions pointing out that Latin America threw out Spanish colonialism long ago and that the unelected King of Spain had no business being at a meeting of democratically elected leaders.

Topic 2: Trivelli suggests there is "a dark shadow" passing over democracy in Nicaragua

After being on relatively good behavior since the election of Daniel Ortega, US Ambassador Paul Trivelli once again stepped over the line of legitimate diplomacy on Nov. 6 when he opined in a Managua daily that the institutionalization of Nicaraguan democracy has been significantly weakened as a result of recent political events and that the Nicaraguan people "must decide whether there is a dark shadow passing over Nicaraguan democracy ... and which actions, if any, must be taken." Trivelli's comments are similar to past US government statements when the US has given the green light to a coup or destabilization campaign. Because the Nicaraguan army remains loyal to the State based on its roots in the defeat of the Somoza dictatorship, there seems to be little danger of a military coup. However, destabilization is a real possibility. Nicaragua remains the second poorest country in the hemisphere. The Ortega government is advancing programs that address the losses in health care, education, and food production under the US-supported governments of the previous 16 years. And, the US is concerned that generous foreign aid from Venezuela will allow the Ortega government programs to succeed.

The responses to Trivelli's comments were many and varied. Former foreign minister and Constitutional Liberal Party (PLC) deputy Francisco Aguirre Sacasa said that Trivelli's letter represents the "US turning on the yellow light, not the red light, the yellow light, after a long period during which the traffic lights have been switched off... The US is turning on the yellow light after a period of apparent honeymoon between the US and the Sandinista government." Aguirre went on to suggest that Trivelli should have "greater prudence," saying the publication of a letter of such nature is not within the acceptable norms of international diplomacy.

FSLN deputy Walmaro Gutierrez said that he is more interested in hearing the opinions of Nicaraguan experts, politicians and sectors than that of the US Ambassador. "I'm sure that if the Nicaraguan Ambassador in Washington dared to express such an opinion the North Americans would say he was intervening in their internal affairs."

Supreme Court Justice Francisco Rosales said that Trivelli has "no moral authority to criticize the Nicaraguan institutions when he represents an empire which carries out daily violations of human rights all over the world." President of the Comptroller General's Office Luis Angel Montenegro, meanwhile, said "we work within our own system, our own culture, idiosyncrasies and political system ... I think Trivelli is acting incorrectly by getting involved in what doesn't concern him."

Among those who spoke out in defense of Trivelli's letter were Maximinio Rodriguez and Eduardo Montealegre. Rodriguez, leader of the PLC bench in the National Assembly and one of the most outspoken critics of Aleman within the PLC, said that he agreed with much of what Trivelli said in his letter which was published in El Nuevo Diario. Montealegre, meanwhile, said that the Nicaraguan government should do more to guarantee good relations with the US, by limiting relations with Iran, for example.

On Nov. 7 Trivelli announced that his government plans to donate a further US$1.6 million for those affected by Hurricane Felix in the Northern Atlantic Autonomous Region (RAAN). This money would not be given to the Nicaraguan government to administer, but to "trustworthy associates" of the US government "in order to guarantee that it is distributed in the correct way," said Trivelli. To protest Trivelli's statements and to demand that the US use official channels for its aid, call the Nicaragua Desk at the State Department 202-647-3559.

Topic 3: Dole vows to appeal US case; 3,000 banana workers negotiating settlement in Managua

Last week we reported that a California jury found Dole Food Company and Dow Chemical responsible for causing sterility in six former banana workers exposed to the pesticide Nemagon in Nicaragua. The jury ordered Dole to pay $US 3.3 million. Dole announced that it would appeal the decision. “The six verdicts against Dole are flat wrong and the result of junk science, raw emotional appeals and false testimony," read the company press release.

"These six men were not injured by DBCP [Nemagon] or Dole," the press statement goes on, "and it is unjust for them to be awarded money from us. …. Dole is prepared to litigate cases anywhere in the world where there is a fair and independent judicial process…. Dole will not be intimidated by ugly accusations, fraudulent claims, junk science or threats from U.S. trial lawyers, and is prepared to fully litigate each and every case.”

On Nov. 8 the jury delivered its verdict on the second of the three accusations made against the US companies: Dole and Dow were found to have been fully aware of the damage that exposure to Nemagon would cause the workers. The jury determined that, despite the knowledge of the consequences on workers health, the companies failed to inform the workers about the dangers or provide protective clothing in order to reduce the risk. The jury has yet to deliver its verdict on the final of the three accusations about other punitive damages suffered by workers. Prosecution lawyer Duane Miller said that "in the name of our clients we are very pleased that at last Dole has had its day in court, that at last [Dole] has been made to face up to what it has done."

Meanwhile in Managua the leader of the Association of Workers and Former Workers Affected by Nemagon Victorino Espinales announced that the 3,000 workers represented by this association are negotiating an out-of-court agreement with Dole. "We decided to look for a solution ourselves and not continue to be at the mercy of lawyers who just want to snatch away any money we may win through the courts." The members of this organization of workers affected by Nemagon have been living in a makeshift camp in the Pedro Joaquin Chamorro Park near the National Assembly in Managua since May. According to Espinales the organization has signed an agreement of intention and understanding with Dole. Espinales said he did not think the recent legal victory in the US is significant.

Topic 4: Spiraling price of basic products continues to demoralize population

The spiraling price increases of the most basic products caused by the ongoing increase in oil prices and crop losses from Hurricane Felix and torrential rains, has fast become the most pressing issue for ordinary Nicaraguans. The domino effect begins with the continued increases in the price of gasoline, kerosene and cooking gas. The Nicaraguan Energy Institute (INE) confirmed that last week was the fourth consecutive week that the price of all petroleum derived products increased. A gallon of gasoline now costs US$4.20, affecting the price of public transport and the transportation of goods.

INE authorized the ninth price increase for cooking gas this week. On Nov. 11 the price of cooking gas rose by 3.32%. During the last twelve months the price of cooking gas has experienced a 42.3% rise. Last week INE found that over 40% of gas cylinders sold to the public in Managua were not full. Coordinator of the National Consumer Defense Network Gonzalo Salgado said that INE is irresponsible to authorize the price increase after having found that the companies do not fill the cylinders.

Many families are now unable to buy cooking gas and instead have to use firewood, coal and kerosene to cook with. As a result of the increased demand for firewood, however, there is a shortage causing a doubling of the price in most neighborhoods in Managua during the last two months. This means that many families, unable to afford any means by which to cook, now buy their food already cooked. Most local stores now sell cooked beans in plastic bags.

Meanwhile the Nicaraguan Central Bank estimates that inflation this year will not rise above 10%. For the population on the ground, however, this estimation has nothing to do with the reality. The inflation experienced by ordinary people is approximately 40%. The only explanation for the Central Bank estimate is the need to comply with the conditions imposed on the government by the International Monetary Fund (IMF) to maintain economic stability and keep inflation in single figures.

This hotline is prepared from the Nicaragua News Service and other sources. To receive a more extensive weekly summary of the news from Nicaragua by e-mail or postal service, send a check for $60.00 to Nicaragua Network, 1247 E St., SE, Washington, DC 20003. We can be reached by phone at 202-544-9355. Our web site is: www.nicanet.org. To subscribe to the Hotline, send an e-mail to nicanet@afgj.org

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