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Hotlines Nicaragua Network Hotlines for September 5, 2006

Topics covered in this Hotline include:

Topic 1: Ambassdor Trivelli Tries Again for Right-Wing Unity While Momentum Shifts to FSLN

US Ambassador Paul Trivelli once again stepped well over the line appropriate for a foreign diplomat last week when he promised some "surprises" in coming weeks in the Nicaraguan presidential campaign and threatened a cut-off of Millennium Challenge Account aid if the FSLN wins in November. Trivelli has been shameless about his intervention in Nicaragua's election, working tirelessly to unite the right wing behind Nicaraguan Liberal Alliance (ALN) presidential candidate Eduardo Montealegre and to damage FSLN candidate Daniel Ortega's presidential bid. “I don't know what [Constitutional Liberal Party, PLC, candidate] José Rizo thinks about the situation, but the Liberal party forces can negotiate and reach an agreement,” said Trivelli. These comments were interpreted by the press and by the PLC as implying that Rizo would renounce his presidential candidacy in order to join Montealegre's alliance.

On Aug. 29 Trivelli also traveled to the northern municipality of Ocotal where he held private meetings with representatives of the ALN, the PLC, the Sandinista Renovation Movement (MRS), the electoral observation organization Ethics and Transparency, and the civil society organization Movement for Nicaragua, which was created and funded by the US International Republican Institute. According to representatives of these political alliances, Trivelli asked how prepared their organizations were to claim victory over the FSLN. When asked whether the US supported the ALN on leaving the meetings Trivelli responded “our support is related to the democratic process and the democratic forces.”

It is important that each time Trivelli interferes in Nicaragua's democratic process that solidarity activists complain to the State Department (202-647- 3559 for the Nicaragua desk or 202-647-6575 to leave a recorded comment) and to your elected representatives (Capitol Switchboard 202-224- 3121.) You should demand that Trivelli be removed as Ambassador to Nicaragua. His threats to cut off Millennium Challenge money is simply an attempt to scare Nicaraguans into voting for the US-backed candidate. His threat was directly challenged by the head of the Millennium Challenge Foundation in Nicaragua, Juan Sebastian Chamorro, who said, “We see it as very difficult that a government would be in violation," adding, “I believe that all the parties agree with the rules of democracy and free enterprise.” It will not be long before Trivelli threatens Nicaraguans with a cut-off of remittances by their relatives in the United States. That lie worked very effectively in El Salvador's last election.

Also on Aug. 29 convicted former president Arnoldo Alemán asked, “Who is Trivelli to be announcing imminent surprises?" He went on to say that the only surprise would be Montealegre's resignation. Alemán's daughter and National Assembly Deputy María Dolores Alemán said she feels ashamed of President Bolaños and of the Foreign Minister for not doing anything to prevent Trivelli from making such comments. PLC Vice President Wilfredo Navarro said, “We are not worried with what foreign officials have to say because it is of no importance.”

On Aug. 31 Rizo made his own “urgent” call to “all Liberals” to unite so as to avoid a Sandinista electoral victory. According to the PLC candidate, “Peace, development, liberty and democracy are at stake in the upcoming elections." Although Rizo did not mention Montealegre's name in his media statement, the allusions he made to the ALN candidate were clear. “Nicaragua cannot afford to run the risk of carrying out experiments that do not guarantee victory.” Rizo has often said during recent months that he would be very willing to allow Montealegre as his running mate. Current PLC vice presidential candidate José Alvarado has also said that he would be willing to sacrifice his own candidacy for Liberal unity. Montealegre responded to Rizo's “urgent” call on Sep. 2 by reiterating his determination not to ally himself with the PLC so Trivelli's campaign for right-wing unity is still stalled despite increasing US pressure.

In fact, momentum seems to be going Daniel Ortega's way with some former Somocistas and MRS activists joining the FSLN-led United Nicaragua Triumphs alliance. At a public political event in Matagalpa on Aug. 31, 60 Constitutional Liberal Party (PLC) activists and local leaders announced their decision to join the alliance. The group of former PLC members and representatives includes people like Enrique Bustamante who had land confiscated by the FSLN government of the 1980s, as well as the head of the PLC electoral campaign in the municipalities of San Isidro, Waslala and Matiguás.

At a similar event which took place in Masaya's Arts and Crafts market on Sep. 3 an even larger list of activists and representatives of the PLC, the Nicaraguan Liberal Alliance (ALN), the Sandinista Renovation Movement (MRS), the Nicaraguan Resistance Party (PRN), the Nationalist Liberal Party (PLN) and former members of the Somoza National Guard joined the United Nicaragua Triumphs alliance. Among those to join the FSLN alliance was the PLC departmental president Léster Sáenz. In the crowd flags of all the above mentioned political alliances were flown as a symbol of unity.

At the Matagalpa event Ortega was asked to explain his policy towards the United States and the prospective alliance with Venezuelan President Hugo Chávez should he become president. Ortega responded, “The US should understand that it is necessary for the Latin American countries to unite for the common good of the region. The United States of America had to unite so as to become an international force as did the European countries.” “We have never attacked the US,” Ortega went on, “we have always respected their government. The US has attacked Nicaragua, though." As for his relationship with the Venezuelan President, Ortega said “Chávez is working towards Latin American unity so that we can all work together.”

Meanwhile, a number of local leaders abandoned Montealegre's campaign and that of Eden Pastora's Alternative for Change party (AC) and joined Edmundo Jarquin's candidacy under the MRS banner. In San Rafael del Sur, members of the ALN leadership, including Edgard Cerna, President of the “Let’s Go with Eduardo” Movement, Douglas Guttierez, President of the Nicaraguan Resistance Party (PRN) and David Pavon, President of the Liberal Independent Party (PLI) denounced “verticalism and lack of attention” to their local needs on the part of Eduardo Montealegre’s coalition The leaders said that they were bringing with them the majority of ALN members in 36 small communities. In Chinandega local leaders of Pastora's campaign also joined the MRS. Mariano Suarez, one of the founders of the party said that they were leaving because “Jarquin is the best candidate and because the AC has not even the most minimum possibility of getting even one deputy” in the National Assembly.

Edmundo Jarquin, MRS presidential candidate, said, “You are joining a pluralistic alliance, where all allies have a part in making the most important decisions. We are grateful for the injection of enthusiasm and optimism that you bring to the cause!”

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Topic 2: Shell Attempts Arbitration to Avoid Nemagon Conviction

On May 17 of this year the multinational company Shell Brands S.A. asked the World Bank's International Center of Investment Disputes (ICSID) in Washington to open a process of arbitration with the Nicaraguan government. In 2002 a Nicaraguan court ruled that Shell, Dow Chemical, and Standard Fruit must pay US$489 million to 500 former banana workers affected by their exposure to the pesticide Nemagon. Shell is countersuing the Nicaraguan government for the same amount claiming lost profits. Thousands of banana workers have suffered excruciating physical conditions as a result of working with the chemical Nemagon which had been banned in the US when it was shown to cause sterility.

On Aug. 28 Attorney General Alberto Novoa confirmed that the Nicaraguan government has until Nov. 11 to name its arbitrator. Novoa said that if the tribunal rules against the government then the Nicaraguan state will have to pay the sum of US$489 million to the multinational company because the country has signed international agreements of investment protection. Even if the tribunal rules in favor of the government the process will still be very costly because the sum of US$60,000 must be paid in order to participate in the arbitration and on top of that the government's arbitrator will charge US$3,000 a day for the duration of the process.

On Aug. 29 a letter signed by Novoa and the Minister of Trade and Industry Alejandro Arguello was sent to Claudia Frutos Peterson, the ICSID judicial adviser, in which it was claimed that the arbitration was legally invalid because Shell Brands had appealed against Judge Benavente's ruling in the Nicaraguan courts, which shows that the company recognizes the national judicial system. As yet the government had received no official response to this letter from ICSID.

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Topic 3: Electricity Crisis Continues

Power cuts of between three and eight hours affected neighborhoods across Managua and in other parts of the country this week prompting the Consumer Defense Network to call for protests against the Spanish electricity distributing company Unión Fenosa. On Sep. 1 the entire department of Rivas was without electricity between 2am and 5pm. The ongoing energy crisis has provoked severe anti- Unión Fenosa feeling among the population and last week resulted in the Comptroller General's Office issuing a resolution of nullification of the multinational's contract with the Nicaragua state. This resolution must now be implemented or rejected by Attorney General Alberto Novoa.

In an interview with El Nuevo Diario, Novoa denied claims made by Comptroller General Guillermo Arguello Poessy that he would not implement the resolution saying he would “analyze it...and design a strategy which does not affect the nation's interests.” Novoa said he must “anticipate any situation” which could negatively affect the country, for example if Unión Fenosa decided to take the government to court for prematurely bringing the concession to an end.

Meanwhile Unión Fenosa issued a press statement on Aug. 28 in which it claimed that “certain sectors” plan to carry out “violent actions against our personnel and our offices in the department of Leon” and to “prevent our customers from entering our offices.” “It is worrying,” the statement went on, “that some sectors are attempting to create an even deeper energy crisis.”

Consumer Defense Network representative Gustavo Salgado called on Union Fenosa and on the León police to reveal more details about the supposed plots. He did not discard the possibility that some Unión Fenosa customers could be angry enough to resort to violence. According to Salgado his organization has received an “avalanche” of complaints about Union Fenosa over the last few days due to the fact that this month's electricity bills have been sent out and in many cases customers are being charged more than last month despite having experienced daily power cuts of between 3 and 15 hours.

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Topic 4: Nicaragua Network Reforestation Brigade Returns; Election Fact Finding Delegation Prepares to Go

Working with the water catchment and reforestation organization, FEDICAMP, a Nicaragua Network delegation helped plant trees in Yalaguina, near the border with Honduras and visited farms using sustainable farming methods in the Miraflores nature preserve. The Nicaragua Network raises money for FEDICAMP's innovative reforestation program using only trees indigenous to the locale and its project to provide cisterns to store rain water for use by families during the dry season. Tax deductible donations can be made to Nicaragua Network with FEDICAMP in the memo line and mailed to the address below. You can contribute online at Nica net donate here..

A follow-up to the June delegation to investigate and expose US intervention in Nicaragua's election will be co-sponsored by Nicaragua Network and Quixote Center/Quest for Peace. It will travel to Nicaragua October 8-15 and will meet with groups representing the entire political spectrum as well as US government agencies and international election observer missions. A few slots remain on the delegation. For more information or to ask for an application, email nicanet@afgj.org.

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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.