[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
NICARAGUA'S DEMOCRATIC COLLAPSE
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON
THE WESTERN HEMISPHERE
OF THE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
__________
SEPTEMBER 15, 2016
__________
Serial No. 114-235
__________
Printed for the use of the Committee on Foreign Affairs
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__________
COMMITTEE ON FOREIGN AFFAIRS
EDWARD R. ROYCE, California, Chairman
CHRISTOPHER H. SMITH, New Jersey ELIOT L. ENGEL, New York
ILEANA ROS-LEHTINEN, Florida BRAD SHERMAN, California
DANA ROHRABACHER, California GREGORY W. MEEKS, New York
STEVE CHABOT, Ohio ALBIO SIRES, New Jersey
JOE WILSON, South Carolina GERALD E. CONNOLLY, Virginia
MICHAEL T. McCAUL, Texas THEODORE E. DEUTCH, Florida
TED POE, Texas BRIAN HIGGINS, New York
MATT SALMON, Arizona KAREN BASS, California
DARRELL E. ISSA, California WILLIAM KEATING, Massachusetts
TOM MARINO, Pennsylvania DAVID CICILLINE, Rhode Island
JEFF DUNCAN, South Carolina ALAN GRAYSON, Florida
MO BROOKS, Alabama AMI BERA, California
PAUL COOK, California ALAN S. LOWENTHAL, California
RANDY K. WEBER SR., Texas GRACE MENG, New York
SCOTT PERRY, Pennsylvania LOIS FRANKEL, Florida
RON DeSANTIS, Florida TULSI GABBARD, Hawaii
MARK MEADOWS, North Carolina JOAQUIN CASTRO, Texas
TED S. YOHO, Florida ROBIN L. KELLY, Illinois
CURT CLAWSON, Florida BRENDAN F. BOYLE, Pennsylvania
SCOTT DesJARLAIS, Tennessee
REID J. RIBBLE, Wisconsin
DAVID A. TROTT, Michigan
LEE M. ZELDIN, New York
DANIEL DONOVAN, New York
Amy Porter, Chief of Staff Thomas Sheehy, Staff Director
Jason Steinbaum, Democratic Staff Director
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Subcommittee on the Western Hemisphere
JEFF DUNCAN, South Carolina, Chairman
CHRISTOPHER H. SMITH, New Jersey ALBIO SIRES, New Jersey
ILEANA ROS-LEHTINEN, Florida JOAQUIN CASTRO, Texas
MICHAEL T. McCAUL, Texas ROBIN L. KELLY, Illinois
MATT SALMON, Arizona GREGORY W. MEEKS, New York
RON DeSANTIS, Florida ALAN GRAYSON, Florida
TED S. YOHO, Florida ALAN S. LOWENTHAL, California
DANIEL DONOVAN, New York
C O N T E N T S
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Page
WITNESSES
Mr. Juan Gonzalez, Deputy Assistant Secretary, Bureau of Western
Hemisphere Affairs, U.S. Department of State................... 6
The Honorable Marcela Escobari, Assistant Administrator, Bureau
for Latin America and the Caribbean, U.S. Agency for
International Development...................................... 13
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
Mr. Juan Gonzalez: Prepared statement............................ 9
The Honorable Marcela Escobari: Prepared statement............... 15
APPENDIX
Hearing notice................................................... 32
Hearing minutes.................................................. 33
The Honorable Jeff Duncan, a Representative in Congress from the
State of South Carolina, and chairman, Subcommittee on the
Western Hemisphere: Material submitted for the record.......... 34
NICARAGUA'S DEMOCRATIC COLLAPSE
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THURSDAY, SEPTEMBER 15, 2016
House of Representatives,
Subcommittee on the Western Hemisphere,
Committee on Foreign Affairs,
Washington, DC.
The committee met, pursuant to notice, at 10:00 a.m., in
room 2172 Rayburn House Office Building, Hon. Jeff Duncan
(chairman of the subcommittee) presiding.
Mr. Duncan. A quorum being present, the subcommittee will
come to order. I would now like to recognize myself for an
opening statement on the hearing Nicaragua's Democratic
Collapse.
We meet today to register our deep concern over the
collapse of democracy in Nicaragua and conduct oversight of the
Obama administration's priorities in the country, in view of
U.S. interests and recent events.
While Nicaragua does not suffer the same problems with
citizen security, gang wars, or migration to the United States
as the Northern Triangle countries have experienced, it is the
poorest Central American country and second poorest in the
Western Hemisphere, only after Haiti.
Under President Ortega's multiple terms as President, he
has taken increasingly blatant steps to concentrate political
power into a single party FSLN-ruled system controlling the
majority at executive, legislative, judicial, and electoral
branches of government. In 2011, 2012, 2014 elections, the
State Department and other observers found fraud and other
major irregularities had occurred. Since then, the State
Department has documented in several reports that Nicaraguan
Government agents have committed arbitrary or unlawful
killings, used excessive force and torture in prisons, and
limited the Nicaraguan people's freedom of speech, religion,
and the press.
Compounding these problems, in 2014 the FSLN-dominated
National Assembly passed 97 constitutional amendments and
Ortega pushed through a new military code and reform of the
National Police, giving Ortega more political control over the
country. Ortega also appointed his sons and daughters positions
of Ambassador, Presidential advisor, and his wife holds the
post of communication minister, government spokesperson and now
is a Vice Presidential pick ahead of the November 6 elections,
even though Nicaragua's Constitution bars those related to the
President from being a candidate for Vice President.
In June, the Supreme Court stripped the opposition
Independent Liberal Party, PLI, and the Citizen Action Party,
PAC, of their chosen leaders.
In July, the Supreme Electoral Council removed 28 PLI
National Assembly members from their democratically elected
positions. Ortega has even announced that no international
election observers will be allowed for the November election,
despite the wishes of the Nicaraguan civil society. Such an
erosion of democracy and freedom and utter disregard for the
rule of law and human rights should elicit cries of outrage
from democratic countries in Latin America, and the Caribbean,
and from the Obama administration. Yet, while a few countries
have made statements and the OAS, Organization of American
States, and Human Rights Foundation have expressed concerns,
nothing more has happened.
Today, there appears to be no cost to Ortega for
undermining democracy and the rule of law in the pursuit of his
own personal interests.
The United States has national interests at stake in
Nicaragua and Central America. Nicaragua is a member of the
Central American Free Trade Agreement, CAFTA-DR, thus,
benefitting from access to U.S. markets. There are multiple
U.S. businesses operating in the country, 177 Peace Corps
volunteers reflecting the U.S. spirit of compassion, and many
U.S. citizens have chosen to retire there.
Strategically, Nicaragua occupies the geographic center of
Central America and is, therefore, key not only for legitimate
commerce but also for drugs, contraband goods, migrant flows,
and potential security challenges to the Northern Hemisphere.
That said, we want to see a stable, prosperous Nicaragua that
adheres to democratic principles, respects the rule of law and
separation of powers, supports human rights, and responds to
the will of the Nicaraguan people. We want to see that
Nicaragua and all Central America achieve greater security and
economic growth, limit migration north to the United States,
and minimize the strategic influence of actors like China,
Russia, and Iran from establishing a greater presence in the
region. Unfortunately, under Ortega's tenure just the opposite
is occurring.
Furthermore, Ortega has displayed clear contempt for the
common accepted principles of government-to-government
relations with the United States through the expulsion of three
U.S. citizens traveling on official U.S. business in June from
the country. This follows the expulsion of Freedom House's
Latin American programs director and students from Mexico
National Autonomous University earlier this year.
Ortega has also continued to pursue deeper relations with
China through the Inter-Oceanic Canal Project, even though
there appears to be limited progress on this canal and
tremendous public opposition to his construction, Ortega has
given the Hong Kong-based company HKND enormous discretion in
building and operating the canal. Moreover, Russia has also
been building stronger military ties to Nicaragua. Russia
recently sold 50 T-72 tanks to Nicaragua, established and is
expanding a large law enforcement training center in Managua,
and gained access to Nicaragua's air space and ports.
Iran has also continued courting Nicaragua, sporadically
pursuing interest in Nicaraguan ports during the last decade, a
strong diplomatic presence, and student exchanges with Iranian
religious schools. Iran's continuing interest in Nicaragua was
highlighted by a visit last month by Iranian Foreign Minister
Zarif, where Zarif expressed interest in collaborating with
Nicaragua on the Inter-Oceanic Canal and extending economic
energy and trade ties.
So, given the U.S. interest in Asia, the Middle East, and
Europe, I am left wondering what the Obama administration is
doing to understand and respond to the strategic implications
of these countries' overtures to Nicaragua and to reassure our
friends in the region, such as Costa Rica and Colombia, that we
have particular concerns with Nicaragua's expanding military
relationship with Russia.
The State Department's fiscal year 2017 budget requests
included over $14 million for Nicaragua. Although I support
providing assistance to promote U.S. interests, given the
current landscape in Nicaragua, I am deeply skeptical as to the
effectiveness of the administration's priorities and efforts in
the country. After all, the situation looks very bleak ahead of
the November elections.
If Ortega continues with his current activities, perhaps
instead it is a time for the administration to consider a re-
think of its constructive engagement policy toward Nicaragua.
To that end, what has the current U.S. policy achieved? Is
Nicaragua more or less democratic? To what degree has the
administration's policy help dissuade Nicaragua from pursuing
partnerships with countries like Iran and Russia that
potentially threaten U.S. interest in the region? If things do
not change before the election, I believe the State Department
should very strongly consider sanctions denying Nicaragua the
benefits of CAFTA-DR and work with the Treasury Department to
vote against loans in the international lending institutions
until the Government of Nicaragua takes steps to respect
freedom, fair and open elections, democracy, and the rule of
law.
So with that, I will turn to the ranking member for his
opening statement.
Mr. Sires. Thank you, Mr. Chairman, for holding this
hearing and thank you to our witnesses who have joined us here
today.
Since winning the presidency a decade ago, Daniel Ortega
has pursued a goal of gaining absolute political control over
Nicaraguan society. With the November 6th Presidential election
in Nicaragua approaching, and with his control over all the
nation's public institutions, Ortega is poised to win his third
consecutive term, this time with his wife serving as his
running mate.
How has Ortega been able to concentrate his power? Not
satisfied with simply winning an election widely deemed
fraudulent in 2006 and 2011, as President, Ortega has used his
influence to gain control over the courts, rescind Presidential
term limits, disqualify opposition leaders from running for
office, remove opposition lawmakers from the National Assembly,
and ban international election observers from the country.
The opposition party including the largest, PLI,
Independent Liberal Party, are fractured and in no position to
effectively confront Ortega's overwhelming political power and
influence. Both the Obama administration and Congress have
expressed grave concerns over Ortega's blatant, undemocratic
power grab, as well as his expulsion of the opposition
legislators and U.S. citizens.
Earlier this year, Ortega's Government needlessly expelled
an American scholar from the American War College doing
research on the supposed Nicaragua Canal. Additionally, they
have also expelled two U.S. Embassy officials without cause and
routinely harassed American visitors traveling down to
Nicaragua.
Congress and the administration need to work together and
find ways to empower the Nicaraguan people and counteract
Ortega's hostile behavior toward innocent civilians. That is
why I was proud to work with my good friend from Florida,
Congresswoman Ros-Lehtinen and our Chairman Duncan, among
several other colleagues from both sides of the aisle to
introduce and pass H.R. 5708, the Nicaragua Investment
Conditionality Act, NICA.
H.R. 5708 calls on the U.S. Government to oppose loans at
international financial institutions for Nicaragua, unless the
Nicaraguan Government takes effective steps to hold free, fair,
and transparent elections and commits to upholding democratic
principle. It is my hope that this legislation will pass the
Senate and quickly be signed into law by President Obama.
I look forward to hearing from our witnesses their points
of view regarding the current situation in Nicaragua and how
the U.S. and the international community can effectively
respond to the non-democratic actions of Daniel Ortega.
Thank you.
Mr. Duncan. The Chairman will now recognize the former
chairwoman of the full committee and now chairwoman of the
Subcommittee on Africa and the Middle East--or Middle East and
North Africa, I guess is what is called. Isn't that right?
Ms. Ros-Lehtinen. I will take that.
Mr. Duncan. You are recognized for 5 minutes.
Ms. Ros-Lehtinen. Thank you, Mr. Chairman. And that beard
looks pretty sexy on you.
Mr. Duncan. Well, thank you.
Ms. Ros-Lehtinen. I like it.
Thank you for holding this hearing, Mr. Chairman. I think
it is so important for your subcommittee to shine a spotlight
on Nicaragua and the abusive actions orchestrated by Daniel
Ortega and his decrepit regime. You have described them. The
ranking member Albio Sires, has described them. We all know it.
And on December 1, 2011, when I was chair of the Foreign
Affairs Committee, I held a hearing on elections in Nicaragua.
And now here we are, 5 years later, nada has changed.
In February 2016, Ortega detained and expelled Freedom
House Latin America Director Dr. Carlos Ponce. And in June
2016, Ortega expelled three United States Government officials.
Ortega has also forced the Nicaraguan Supreme Court to not
recognize the leaders of two opposition political parties. He
has even removed 28 opposition deputies and alternates from the
National Assembly without any due process and in the most
undemocratic way possible. Then, he chose his wife to be his
running mate in the upcoming illegitimate elections in an
effort to extend the Ortega dynasty at the expense of the
people.
We have seen Ortega send his cronies to break up peaceful
marches by Nicaraguan civil society and peaceful protestors who
are simply calling for inclusive elections to be observed by
international and domestic experts.
If these problems sound familiar to you, Mr. Chairman, it
is because we have seen these deplorable acts in the Western
Hemisphere just a bit too often. Ortega has taken a page out of
the Maduro and Castro playbook on how to silence the opposition
and maintain a grip on power. And while the failed policies
toward Cuba and Venezuela tend to grab the headlines, we cannot
forget about the other rogue regimes in the region like
Nicaragua that subvert democratic principles.
What is it going to take for us to take action? Russian
tanks are in Nicaragua. What do we think they are going to be
used for? Of course, it is going to be scare and intimidate the
public, just like the National Police and the military is being
used by Ortega to abuse the people and violate their human
rights, as we speak. We cannot give Ortega a free pass on these
actions.
I know that State Department officials will say that at
least Nicaragua is cooperating with the U.S. on counter-
narcotics operations, but the truth is cooperation is very
limited and it is designed to detract our attention away from
its bad actions. These rogue regimes in the region know how to
play us like a violin. Bad actors in the region understand that
as long as they can cooperate, even under a limited basis with
U.S. authorities on counter-narcotics, then we typically turn
the other way when it comes to democracy and human rights. This
charade must not be allowed to continue. We have got to start
holding Ortega and his ilk accountable.
And thank you, Mr. Chairman, for the markup earlier. I am
honored to be the Republican lead, alongside my good friend
Debbie Wasserman Schultz, in introducing H.R. 851. Thank you
for its passage. This resolution, as you pointed out, expresses
the profound concern of Congress about the ongoing political,
economic, social, and humanitarian crisis in Venezuela. It
calls for the release of all political prisoners, for
Venezuelan officials to respect constitutional and democratic
process. As we know, the economic situation continues to
deteriorate. Inflation has caused high food prices, making it
difficult for people to afford even the most basic necessities.
Also, Maduro continues to unjustly detain Venezuelan
political prisoners from the opposition. The regime is even
extrajudicially holding American citizens.
So, I think you for the markup on that resolution and I
thank you for the markup for supporting the Nicaraguan
Investment Conditionality Act, a bill that I am proud to have
introduced with the ranking member of your subcommittee, Mr.
Sires, as well as the chairman of our subcommittee, Mr. Duncan.
Taking his cues from Ortega and seeing the tepid response
from the international community, Ortega has ignored the
Nicaraguan Constitution, manipulated the nation's Supreme Court
and its Electoral Council to empower his regime and silence his
opposition.
So, I thank you for the markup and the passage of this
resolution to say that they have got to hold free, fair, and
transparent elections, promote democracy, strengthen the rule
of law, respect the right of freedom of association or they
don't get these loans from the United States and the
international community.
Thank you so much, Mr. Chairman.
Mr. Duncan. And you got all that done in just 4 seconds
over your time. Thanks for the comment on the beard. I don't
know how long it will stay.
And we can all take a page out of your playbook for
leadership on issues with regard to Latin American. So, thank
you for that. Congratulations on passage of that.
Ms. Ros-Lehtinen. Thank you.
Mr. Duncan. The Chair will now recognize Mr. Castro for an
opening statement.
Mr. Castro. Thank you, Chairman, and thank you for holding
this hearing today.
The United States has an interest in making sure that
around the world, particularly with allied nations, human
rights and democracy are respected, whether their leaders fall
on the right side of the spectrum or the left side of the
spectrum, whether they are liberal, or conservative, or
communists, or fascists, making sure that these nations have
leaders who respect their people. That means respecting the
institutions of democracy. And what we have seen in Nicaragua
is especially troubling.
And so, I look forward to the testimony and thank you for
holding the hearing. I yield back.
Mr. Duncan. I thank the member. No other member seeking
recognition. We will go ahead and start the hearing.
Before I recognize the witnesses, there is a lighting
system in front of you. Just try to adhere to 5 minutes. We are
not really pressed today, other than members are trying to get
out of town for their weekend, back in the District,
campaigning, and other things. So, if we can just stay on time,
that would be great.
Bios were provided to the members. So, I am not going to
read the bios.
Welcome again. I think I know Mr. Gonzalez has been here
before and I welcome the young lady. So, I am going to
recognize you in order. Mr. Gonzalez, you are recognized for 5
minutes.
STATEMENT OF MR. JUAN GONZALEZ, DEPUTY ASSISTANT SECRETARY,
BUREAU OF WESTERN HEMISPHERE AFFAIRS, U.S. DEPARTMENT OF STATE
Mr. Gonzalez. Thank you, Mr. Chairman, ranking members, and
members of the committee. It is an honor to testify before you
today. I have submitted my testimony for the record and I
thought, with your concurrence, I would use my time just to
highlight the main points.
Mr. Duncan. Can you pull that microphone just a little bit
closer? We are trying to record all of this for posterity.
Mr. Gonzalez. Understood. Without your objection, Mr.
Chairman, I would like to submit my testimony for the record
and just highlight the main points in my opening remarks.
I last testified, as you mentioned, when this committee
held a hearing on border security in March, which remains an
incredibly issue and a national security priority for the
administration. And thank you for your leadership in chairing
that hearing.
And I cannot let an opportunity go by to also thank this
committee for its support for Central America. To be frank, we
would be nowhere without you and we are actually very working
aggressively to implement the U.S. strategy for engagement in
Central America and it is all thanks to the work of this
committee and the Members of Congress.
Today we also celebrate the 195th anniversary of Central
America's independence. The region's history is closely
intertwined with ours and the region's prosperity and security
has always mattered to the United States. Throughout, we have
seen positive signs, like the region's active efforts to
integrate and cement trade partnerships with the United States,
Europe, Asia but challenges abound as well. Corruption is
rampant throughout. Transnational criminal organizations
challenge the state in some areas.
Equally concerning is the state of democratic institutions
in various parts of Central America but I would say most so in
Nicaragua, where President Daniel Ortega has been working to
transform the country into a de facto one-party system.
The government's recent actions restrict free and fair
elections and to dismantle democratic institutions, such as
independent political parties are troubling to us. While
certain freedoms continue to exist and elections are still
being held in November, the Sandinista National Liberal Front
has applied the tools of incumbency, influenced the judiciary,
and manipulated the political influence and intimidation to
eliminate the system of checks and balances necessary for a
vibrant and functioning democracy. The cumulative effect of
these actions threatens to render the upcoming elections a
pantomime of democracy.
And the question before us is how to respond. In sum, the
approach we are taking if four-fold. First, we are voicing our
concerns and exposing such authoritarian actions for what they
are. To avoid bilateralizing the issue, we need to work with
multi-lateral organizations and we are doing this.
Second, we are standing in solidarity with Nicaraguan civil
society and supporting democratic institutions in every way we
can. To be clear, ours is not an anti-Ortega strategy; it is a
pro-Nicaragua strategy and we are working with the opposition,
as well as elements of the Sandinistas.
Third, we are engaging directly with the Nicaraguan people.
The future of Nicaragua will not be determined in Washington
and only by the Nicaraguan people. So, our Ambassador is out
there every day making the case for better U.S.-Nicaraguan
relations and speaking on behalf of strong democratic
institutions. Actually, I don't think Ambassador Laura Dogu
sleeps. She is an active advocate on behalf of the United
States.
And fourth, we continue to have interests in the country
and we need to continue advancing those interests. So, we will
continue to cooperate with them in areas where we have a direct
interest, like counter-narcotics and combating transnational
criminal organizations.
Again, we continue to closely monitor the developments as
they relate to the election. It is something incredibly
concerning. And we look forward to working with members of this
committee on the best ways to promote our interest in
Nicaragua. Thank you very much.
[The prepared statement of Mr. Gonzalez follows:]
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Mr. Duncan. Thank you, Mr. Gonzalez.
Now, I will recognize the Honorable Marcela Escobari for 5
minutes.
STATEMENT OF THE HONORABLE MARCELA ESCOBARI, ASSISTANT
ADMINISTRATOR, BUREAU FOR LATIN AMERICA AND THE CARIBBEAN, U.S.
AGENCY FOR INTERNATIONAL DEVELOPMENT
Ms. Escobari. Chairman Duncan and Ranking Member Sires, and
members of the subcommittee, thank you for the opportunity to
testify before you today and for speaking out on the Government
of Nicaragua's efforts to restrict democracy.
I am grateful for the committee's support for the work of
USAID and for your leadership in our engagement in Central
America. I have actually just come back from the Northern
Triangle and I saw firsthand how our support is making a
difference. This is a historic opportunity to help these
countries in their effort to improve the lives of their
citizens and the political will for reform is definitely there.
Despite significant challenges, citizens are demanding
accountability and local institutions are responding from CICIG
in Guatemala to the show of independence in the Attorney
General offices of each of these three countries, they are
making significant strides in accountability and transparency.
These gains are in stark contrast to the situation in
Nicaragua, where the Ortega administration continues to close
democratic space and consolidate power. Nicaragua is the second
poorest nation in the Western Hemisphere. The country has yet
to reach the levels of income per capita it had in 1978.
Criminal activities and violence are on the rise on the
country's Caribbean coast, which is also the area with the
worst poverty indicators, where 40 percent of boys and girls do
not attend school. This is not a country that can afford a
government that refuses to be held accountable and respond to
those most in need of assistance.
We must continue to support the people of Nicaragua in
their efforts to participate in the democratic process. And
two-thirds of USAID's bilateral assistance focuses on this
priority. We are supporting over 60 civil society organizations
to help them be effective in advocating for citizens' rights.
We are also helping nurture the next generation of civic
leaders. We work with a network of over 2,000 young people who
have participated in our leadership programs. They are leading
local initiatives that matter to them, from bringing drinkable
water to their communities to advocating for human rights but
they are also increasingly making up the ranks of leadership in
public and private organizations. These efforts are allowing
them to exercise their political muscle and see results.
As a result of USAID efforts, citizens are also holding
municipal governments accountable, exercising democratic
principles at a local level. Citizens have submitted nearly 200
proposals to extend services for youth, women, and the disabled
in nine municipalities and nearly half of these proposals,
worth over $1.6 million, have been incorporated in municipal
budgets.
We are also strengthening independent media, as they face
restrictive regulations and dwindling resources as advertisers
pay a political cost for their support. USAID works with over
20 organizations in press, radio, and television to strengthen
their operations and help them be more effective.
While democracy and governance remain USAID's priorities in
Nicaragua, we also support citizen security and education in
the autonomous Caribbean coast, where the worst poverty
indicators exist. USAID education programs help improve early
grade reading, which is an important determinant in keeping
kids in school. Our vocational programs with the private sector
are helping youth become employable with skills in carpentry,
plumbing, car repairs, and ultimately become productive members
of their society. The autonomous Caribbean region is home to
the most isolated and vulnerable populations in Nicaragua and
helping these populations prosper is also crucial to a thriving
and healthy democracy.
USAID will continue to evaluate and adjust our programs in
Nicaragua so that they remain effective and, looking forward,
will continue to elevate Nicaragua's most prominent civil
society organizations and connect them with organizations
around the globe who are facing similar challenges. It is
imperative that the U.S. Government continue to engage and
stand by the people of Nicaragua. We are a lifeline that helps
them advocate for their rights and freedoms in an increasingly
challenging environment.
We share a commitment to democratic governance with our
regional neighbors. As stated in the Inter-American Democratic
Charter, the peoples of the Americas have a right to democracy
and their governments have an obligation to promote and defend
it.
I want to thank this committee again for your leadership
and support and I look forward to your continued counsel and
welcome your questions.
[The prepared statement of Ms. Escobari follows:]
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
----------
Mr. Duncan. I thank both the witnesses and will step out of
the norm here and recognize the ranking member first for 5
minutes.
Mr. Sires. I want to thank the chairman for his
consideration. You know it is always bewildering to me how the
second poorest country in the Western Hemisphere, basically, is
buying tanks, is buying planes, is buying all sorts of arms and
yet, the need of the people seems to be ignored.
So, I am just wondering if this is the typical intimidation
factor that leaders that abolished democracy or tried to
circumvent democracy usually use. Or why do you think he needs
so much artillery, Warren--or I am sorry--Mr. Gonzalez? Like my
buddy.
Mr. Gonzalez. Thank you, Congressman. So, you are exactly
right, actually, Nicaragua is the second poorest country in the
Western Hemisphere. What we have seen, however, is that even
though he won and actually observed the 2006 election when
Ortega came back to power. He won with just roughly 38 percent
of the vote.
Today, he enjoys 60 percent or so level of popularity and a
lot of that has been as a result of a lot of the social
investments that he has made in the country. There have been
reductions in poverty, even though the level of poverty remains
above 39 percent but a lot of it is a result of Venezuela's
largess. And in our view, it is not sustainable, particularly,
in the absence of strong institutions.
Every country has the right to buy military equipment. And
is it something that they are using as a tool of intimidation?
What is clear to us is that the approach that Ortega has
actually been using since 2006 have been overt efforts to
consolidate one-party control, something he has been working on
since he returned, remove even independent allies within
Sandinista, repress civil society, independent media, and the
opposition, control the private sector and advance an active
propaganda for the Sandinista party.
But to answer your questions, sir, there is this old Latin
American saying, which is for our friends, anything and for our
enemies, the law. So, they are using a way to actually
technically using legal systems to undermine the opposition in
a way that is bad for the country's democracy and for the
thriving of civil society.
Mr. Sires. Thank you. Marcela?
Ms. Escobari. So, I would just agree with your comment that
we agree that the Nicaraguan Government should be focusing more
on its poor, particularly the Caribbean Coast, which is an
isolated area with the most vulnerable populations and we have
seen violence and poverty increase in those areas.
Mr. Sires. Thank you. And through this process, Daniel
Ortega and his family have become very wealthy in the last few
terms, I understand that one of the richest in Nicaragua. Is
that accurate?
Mr. Gonzalez. Well, I know that the wealthiest 10 percent
receive roughly 39 percent of all income and that right now the
bottom 30 percent receive roughly 8.3 percent. So, there is a
huge level of inequality that endures in Nicaragua.
Mr. Sires. Yes, but I am talking about the President and
his family.
Mr. Gonzalez. I could get you information. I don't have the
details on his personal wealth.
Mr. Sires. But he is doing much better than he has done
before, right?
Mr. Gonzalez. I imagine, yes.
Mr. Sires. You are being a good politician here.
Thank you, Mr. Chairman.
Mr. Duncan. I thank the ranking member.
I am now going to go ahead and recognize Mr. Yoho for 5
minutes.
Mr. Yoho. Thank you, Mr. Chairman. I appreciate the meeting
here.
And I want to spin off of my colleague, Mr. Sires, about
here we are the second poorest country in the Western
Hemisphere, yet, they are buying tanks and planes from Russia.
And we engage in the IMET Initiative, the International
Military and Education Training. What are we benefitting out of
this? Are we showing them our techniques and our skills and all
that? And they are using Russian forces. Is that benefitting us
and who are they preparing for an invasion from? Or is it like
Ms. Ros-Lehtinen said, to keep oppression on the people?
Mr. Gonzalez. Congressman, thank you for your question.
The IMET support that we provide to Nicaragua, I have got
to say that they are not allowing members of the Nicaraguan
military to actually come up here. And I think it is, my
interpretation is because what we actually do through IMET
training is create a professional military. We promote the
respect for human rights. We find synergies between U.S. and
foreign militaries and it has been an effective took for us to
cooperate with foreign militaries around the world.
Mr. Yoho. Let me interrupt you there. You said we respect
their rights for human rights or their initiative on that.
Mr. Gonzalez. Well, the types of classes that we teach
through IMET where we will bring people up here is a series of
classes that include human rights, better interoperability with
U.S. military, those types of trainings. They have not actually
allowed Nicaraguan military to come up for the training.
Mr. Yoho. All right, I want to drop back and come back to
that because how do you hold a dictatorship like Ortega
accountable when we know they are doing what they are doing?
They are dealing in human trafficking. They said there is not a
lot of narco trafficking but how do we know that is true? We
know the heroin is coming across the Mexican border. Where does
the heroin come from?
Mr. Gonzalez. Well, we have actually concrete results in
cooperating with them on counter-narcotics.
Mr. Yoho. Well, again, where is the heroin coming from? We
know it is coming across the Mexican border into America. Where
does it come from in South America?
Mr. Gonzalez. Well, the source countries include Colombia,
I would say, primarily but----
Mr. Yoho. Okay, so how does it get from there to Mexico, to
the United States, if it is not coming through Nicaragua? Are
they going around that? Are they going through that and we
don't know about it and we are facilitating with our military
intelligence, giving them foreign aid and teaching them our
counter narcotics methods?
Is that helping us or is it helping them circumvent our
counter narcotics interdiction?
Mr. Gonzalez. It actually helps us because it instills, it
aligns values, in a way, actually, of how you manage
responsible and a political military.
In terms of the flow of drugs, cocaine and heroin that come
up to the United States, they go by land and by air. Mostly,
they will skip over Nicaragua, even though they are, right now
I think in 2015 we seized over 4.3 metric tons of cocaine but a
lot of them are overshooting and going to other countries or
going, obviously, still through land but in lower numbers
because Nicaragua has actually been very active on the counter-
narcotics front.
Mr. Yoho. All right and then let me ask you this, Ms.
Escobari, if you would answer. How are we going to respond if
the elections are run as a mockery to democracy in their
country with a constitution that says he can't run another
term, his wife can't be there? How are we going to respond?
And I would also like to know about the hypocrisy of what
happened in Honduras when their President ran for the third
term and the people of that country stood by their constitution
and pulled him out but, yet our administration, along with Ms.
Clinton, said that we can't do that; we have to stand by that
President of that nation. But yet, the opposite is happening
here and where is the outcry from the administration?
So, what are we going to do, the first question is, after
this election and it is a mockery? What is this
administration's response going to be?
Ms. Escobari. Well, thank you, Congressman for your
question.
And it is true, we are also very troubled about the lack of
electoral observers in this election. Through USAID, we are
working to continue to push for accountability. We are even
running up to the election. We are working with youth
organizations that are able to monitor fraudulent election
practices and misuse of funds. During the election, we are also
going to have volunteers who are going to try to be in polling
stations and report on----
Mr. Yoho. How effective is that? I mean you have got youth
monitoring that but you have got a country that has tanks and
all that other stuff. How realistic is that?
Ms. Escobari. No, absolutely, this is not the ideal
situation. And we very much regret the setbacks in a fair
electoral procedure.
And we are mentioning here the things that we are trying to
do just not to stay quiet and to continue to try to push for
accountability and at least make sure that there are observers
and they are able to share with the Nicaraguans and outside, if
things continue to proceed as they----
Mr. Yoho. I am out of time and I will yield back. If there
is another round, we will come back to that. Thank you.
Mr. Duncan. Thank you, Chairman.
Now, we will go to Mr. Castro.
Mr. Castro. Thank you, Chair.
Let me ask you all about Nicaragua's involvement with
Russia and China. What is the extent of those two nations'
involvement with Nicaragua?
Mr. Gonzalez. Thank you, Congressman. So, separate from
Russia and China, whenever a third country is involved in Latin
America or Central America and promoting a hemisphere that Vice
President Biden calls secure middle class and democratic and is
abiding by international rules, it is not a zero sum game. We
say welcome. You can't take those roads with you when you build
them.
Specifically to your question, sir, Russia has seen itself
specifically isolated over the past several years, as they face
international outcry over its incursions in other parts of the
world. And so they have tried to increase their engagement. If
you seize the countries that they have an opening with, like
Nicaragua, are few and far between. The engagement tends to be
transactional. And it is something we are watching very closely
but we see it as limited and to arms sales and resulting spare
parts and training as a part of the main part of the
relationship.
Mr. Castro. Is there a foreign aid component from either of
those countries over Nicaragua that you all know of?
Mr. Gonzalez. Well, with regard to Russia, they will
provide credits. As you know, they sold the tanks to Nicaragua.
But beyond that, it has been mostly just a transactional arms
trading exercise.
It is something that we are watching very closely and it is
something that we would welcome an opportunity to brief you in
a classified setting. I know we have discussed this with the
chairman in a classified setting before and welcome that
opportunity.
Mr. Castro. Sure. Did you have something? Okay.
And can you describe the status of our security cooperation
under CARSI and how that is coming along?
Mr. Gonzalez. Yes, so Congressman, our assistance that
focuses on Central America is one that does not go directly to
the government. We providing training, equipment and so on and
so forth. Overall, we are going to provide $13 million in 2016
funds and the impact is one where we have actually worked with
the Nicaraguan Navy, which even though it has really limited
assets, conducts regular patrols and interdiction operations in
their internal waters in the Pacific and in the Caribbean
Coast. We have donated equipment. They are actually using
donated Nor-Tech Boston Whalers and refurbished boats under
Section 1033 authority, which is the DoD money but it something
that has synergies with the Central American Regional Security
Initiative.
And the support, again, is the work that we do is there
will be training and we will provide equipment that is
specifically focused toward the counter-narcotics operation.
The results have been, as I mentioned earlier, 4.3 metric tons
in seized assets last year. So far, they have arrested over 135
people, seized $2.8 million and 55 go-fast boats and other
means of transport. And so we are having a lot of results in
that area of cooperation.
Mr. Castro. And also, Nicaragua is party to CAFTA, right?
Mr. Gonzalez. That is correct.
Mr. Castro. What effect has that had on the country?
Mr. Gonzalez. Well, it has actually been significant.
Actually, our trade, two-way trade has doubled in the past
decade. We have a $5 billion trade relationship and our exports
have increased 25 percent in 2015 or up 18 percent as far as
July of this year.
But Congressman, to the point on the democracies, we could
do so much more to cooperate with Nicaragua in the way that we
do with other parts of Central America. But because of the
limiting of democratic freedoms, we have a very limited scope
in which we work with the government.
Mr. Castro. Okay, thank you.
Mr. Duncan. We will take just a second.
[Recess.]
Mr. Duncan. For the record, Chairwoman Ros-Lehtinen was a
great chairwoman of the Foreign Affairs Committee. She was very
fair to me when I was a freshman member. So, I would do
anything for her.
I let her catch her breath and the Chair recognizes----
Ms. Ros-Lehtinen. Thank you, Mr. Chairman. Thank you. And I
have been listening to the testimony and the questions from the
side room. So, I appreciate your testimony and the questions
from the members.
Secretary Gonzalez, I would first like to thank you for
working closely with our committee and staff. My staff has
briefed me on how helpful you have been with providing
information and briefings regarding Nicaragua. So, I want to
say gracias, that we appreciate your work on this issue. And as
you have just witnessed, before the hearing, we had the markup.
We passed the Nicaragua legislation in a bipartisan manner.
Do you think that this legislation helps advance U.S.
efforts to hold the Ortega regime accountable for its
violations against human rights and electoral manipulation?
Mr. Gonzalez. Madam Chair, thank you for your words. First
of all, I think the most important lesson Vice President Joe
Biden taught me was taking very seriously the advice and
consent role of the U.S. Congress. So, it has been a pleasure
to work with you and your staff.
So, while we cannot comment on pending legislation, I will
say, Madam Chair, that we share the principles behind it and,
frankly, the work that this committee and that you personally
doing to spotlight the challenges in Nicaragua. So, we share
the principles but I cannot comment on the specifics.
Ms. Ros-Lehtinen. Absolutely. I understand.
Also, press reports have indicated that the Ortega regime
will now exercise control over diplomatic pouches. This is very
troubling. Is this accurate? And if so, how will this impact
the work of our U.S. Embassy officials and its staff?
Mr. Gonzalez. Madam Chair, my understanding is that they
are going to--they have announced that they will begin using an
x-ray of packages, which is something that they can do under
international law but it is something we are watching very
closely because any step beyond that to maybe move to open it
would be something that would be in violation of their
international obligations and would be troubling to us in the
course of----
Ms. Ros-Lehtinen. Well, thank you for that.
And Administrator Escobari, thank you so much. It was a
pleasure meeting with you just yesterday.
Congress brought back USAID back into Cuba, as we fast
tracked your congressional notification last year, yet it took
over 6 months to get the program dollars out the door. In
Venezuela, USAID decided to cut the democratic program dollars
last year to $3.2 million. While this was quickly corrected
after congressional intervention, I worry about the signal that
this sends about USAID's commitment to promoting democracy
efforts. We can't let the fear of possibly being expelled from
the country from scaring USAID from cooperating in closed
societies. And in Nicaragua, USAID has failed to improve the
democracy programs in Nicaragua for years. And in 2012, I sent
a letter to USAID stating that funds to Nicaragua have not been
spent wisely and prohibited funds from being used in the
Ortega-controlled municipalities or from being used to work
with the Ortega regime. Yet, just months ago, committee staff
traveled to Nicaragua and USAID officials requested flexibility
in order to work with officials from the Ortega regime and that
is just simply unacceptable.
How can we work together in order to improve the democracy
programs in Nicaragua? I know that is your goal. That is our
goal as well. How can we help Nicaraguan civil society who are
being oppressed on a daily basis? And related to that, if you
can share with us some success, in terms of human rights and
democracy, the program that you have from USAID programs. Is
the country more democratic and with stronger civil society and
empowered human rights organizations now? Thank you.
Ms. Escobari. Thank you very much Madam Chairman.
At USAID, we totally share your concerns and your focus on
democratic programming. And it actually makes up the priority
of our bilateral funding to Nicaragua. If you ask me, I think
the last years have witnessed more democracy and governance
setbacks than gains and it has become a more challenging
environment to work in.
That said, we continue to support over 60 civil society
organizations, local organizations, both through international
partners and through directly with many of them and we are
trying to strengthen them. For many of them, we are their only
lifeline, as many other donors have left.
We have also started working with younger people and
organizations that advocate for democratic principles at a
local level. And we are also working with independent media,
which we believe is a very important force that needs to remain
open and is facing increasing challenges in this environment.
Ms. Ros-Lehtinen. Thank you very much, Mr. Chairman. Thank
you for allowing me to speak and for the markup earlier today.
Thank you, sir.
Mr. Duncan. You are welcome. Anytime.
I now recognize myself for 5 minutes. And I would like to
start with the expulsion of three U.S. citizens in Nicaragua,
Mr. Gonzalez.
On June 13th, three U.S. citizens traveling on openly
cleared U.S. official government business were kicked out of
Nicaragua. Such actions suggest flagrant disrespect by the
Ortega Government for commonly accepted principles of
government-to-government relations.
Given the erosion of democracy in Nicaragua, the clear
contempt that Nicaragua has displayed in its government-to-
government relationship with the U.S., is it appropriate to
continue to reward Nicaragua with a virtually unrestricted
access to U.S. markets that the nation receives under CAFTA?
Mr. Gonzalez. Mr. Chairman, thank you for that question.
While it is the right of every nation to control its
borders and who enters and, obviously, official interaction, we
agree. We coincide entirely with you that the expulsion was
unwarranted and inconsistent with a constructive and positive
bilateral relationship.
Immediately after, the two officials who were actually
there to facilitate trade on textiles, I, personally, spoke
with Ambassador Campbell and made clear the potential
ramifications of going down this road. We communicated a
diplomatic note and, since then, actually, clarified the travel
procedures with the Nicaraguan Government.
Since then, we have not had problems. And we know that
there have been religious organizations and faith-based
organizations that have been interested in doing work, we have
had journalists and others.
Since the new travel procedures have been established, we
have been able to go forward without incident but we have made
it clear that we will have to reconsider how we respond if this
is something that continues.
Mr. Duncan. Given the fact that Nicaragua is one of the
poorest countries in Central America, who do you think benefits
the most from a free trade agreement with the United States,
the United States or Nicaragua?
You don't need to answer that. I think Nicaragua does. You
are a diplomat. I am a politician.
Nicaragua benefits from that access to the United States
but we continue to see things like this happen and the United
States goes right back in and continues to cozy up to these
countries, when the countries have sort of thumbed their nose
at the U.S. This has happened in Venezuela in the past. It is
now happening here. And it is definitely happening in Cuba.
So, let me ask you this. I have got concerns with U.S.
Ambassador Dogu's actions. So, on June 8th, the Nicaraguan
Supreme Court stripped the opposition Independent Liberal Party
from its recognized leader and Ortega's 2006 Presidential
challenger, Eduardo Montealegre--I can't pronounce that. My
Spanglish isn't that good. So, it put in the party under
control of a government-allied leader.
On June 17th, the Supreme Court invalidated the leadership
of the Citizen Action Party, the only remaining party with a
legal standing to present a Presidential candidate. This also
disqualified the Presidential candidate Luis Callejas and
Ortega's main challenge for the November 6th election.
So, let's get rid of all of our political opponents, using
the Supreme Court to do that. But then recently, U.S.
Ambassador Laura Dogu paid a visit to Nicaragua's Supreme
Court. She shouldn't have dignified them by visiting them. So,
why did that visit take place?
Mr. Gonzalez. Mr. Chairman, first on the trade point, I
just want to say that it is in our interest to actually engage
with the Nicaraguan people and trade. While it does benefit the
economic elites, it also benefits the people.
But we are looking at, as the elections progress and
coincide with everything that you have said on the treatment of
political opposition, we are looking at all of our tools at our
disposal, understanding that there is no silver bullet and that
the Nicaraguans have to be the ones that decide the future of
their country.
The Ambassador Dogu, who has been very active on the
ground, we coincided that diplomatic engagement is not a
reward. It is an opportunity to actually make very clear what
our concerns are. And whenever she meets with the Supreme Court
and she meets just as much with members of the opposition,
civil society and youth, and the government, makes very clear
what our concerns are and where U.S. policy is headed. And so
we feel like she has been very effective in that regard.
Now, just very briefly on the political situation. I don't
need to tell this committee that the political process involves
constant compromise. But in the United States, we are not
perfect. Our democracy is always improving. But we speak out on
these sorts of issues not because we are perfect but because we
think the ideal of not persecuting people if they disagree with
you is the right ideal, number one. And we do not have, as
Americans, confidence in a system where one person or one
family is making all of the decisions.
And we believe that in a democracy, if we believe in
democracy, it means everybody has to have a chance to speak out
and actually offer their views. And that is what being
undermined in Nicaragua and I think, in the long-run, will not
be good for the country.
Mr. Duncan. Let me just say this. I think if a country is a
recipient of the money from the U.S. taxpayers for economic
assistance and USAID and all of this, and we are trying to
court or support democracy and free elections, and individual
liberties, humanitarian rights, and those sort of things, these
countries ought to, personally ought to be a little more
friendly to the United States. And kicking out diplomats, and I
don't know all of the details of that, but I disagree from what
I know.
So, let me just ask one other question and then I will move
on. The United States supports OAS. OAS supports democratic
principles throughout the region. And you are not representing
the OAS but I would ask your opinion on why the OAS hasn't been
any stronger in its stance over what has gone on in Nicaragua
with regard to the elections because the elections are the core
of democracy.
So, why would you think the OAS hasn't been stronger in
this instance? And we have seen the OAS really take not
stringent enough positions against Venezuela. So, why wouldn't
the OAS be stronger here?
Mr. Gonzalez. Mr. Chairman, on your first point, we
coincide entirely. One of the strategies that the Ortega
administration has taken is to actually essentially control the
private sector, under the presumption that as long as they have
good counter-narcotics cooperation with the United States and a
good relationship with the private sector, they pay their
international debts, that we will turn a blind eye to the
undermining of democracy.
This will have, I think--we are approaching a situation
where in November they will be free, in the sense that people
will be allowed to vote in the election. But they will not be
fair and it is something that over time will undermine, I
think, how the institutions work and it will have implications
for the private sector. And it is something that in Nicaragua
but around the hemisphere and around the world, Secretary
Kerry, our Acting Assistant Secretary Mari Carmen Aponte have
made anti-corruption efforts a priority.
And we have taken actions even with our allies in places
like Honduras. You have seen our work in Guatemala and it is
something that we are looking at everything we have in our
diplomatic toolbox to see how we can actually tackle these
sorts of issues of corruption, violations of human rights, et
cetera. I look forward to working with you and your committee
on developing those tools most effectively.
On the OAS briefly, sir, we have done everything possible
to try to get the Government to agree to invite an electoral
observation machine. I will note that the OAS is observing the
U.S. election. So, it is not that we are saying do what we say
and not do what we do, we are actually walking the walk in this
case.
And the OAS is actually looking very closely at the
situation in Nicaragua. I understand they are working on a
report that they will release. And the reality is that
currently the time is closing for there to be an international
observation mission and that the conditions maybe don't exist
for there to be a fair election, as I mentioned.
Mr. Duncan. I didn't mean to put you in a predicament there
talking about the OAS but when I read of the history of the
OAS, I am pro-OAS. I know what it was founded for. I know what
it is supposed to be doing with regard to democratic principles
in the region but I think we are approaching at point, to use
your term, we are approaching a point where the OAS is becoming
less effective because they continue to kind of deviate or
water down their traditional stances in those regards, with
regard to Nicaragua, in this case, Venezuela.
So, I would say that if the OAS was sitting here. I think
they need to go back, reread their founding documents, reread
their charter and come to a meeting of the minds on what they
exist for because this is a prime example, where they need to--
it shows a little bit more outrage with regard to what the
Supreme Court in Nicaragua has done and taking it even one step
further, what Maduro is doing in Venezuela with not allowing a
recall when the Constitution of Venezuela calls for that. And
when you believe in those democratic constitutional principles,
you have got to adhere to that and OAS says we are going to
support the democratic principles. So, where is the outrage for
those founding principles?
So, I am going to stop there. And I will now go to Mr.
Castro, if he has got another round of questions.
Mr. Castro. Thank you, Chairman.
I have a question on Nicaragua and energy. Nicaragua does
not produce oil and has long been dependent on imported fuel
oil to generate electricity. My understanding is that Nicaragua
has recently invested heavily in renewable energy, wind, solar,
and geothermal, in particular. So, my question is, has the U.S.
played a supporting role in this transformation and can
Nicaragua's renewable energy transformation be replicated
across the hemisphere.
Mr. Gonzalez. Thank you, Mr. Congressman, for that very
important question.
One of the initiatives that when I was with Vice President
Biden that we launched with our State Department Special Envoy
for Energy Issues, Amos Hochstein, was the Caribbean Energy
Security Initiative in June 2014 but then it is something that
we also rolled out in Central America.
And on the premise that the region's dependence on
expensive imported fuel provides headwinds to development and
efforts to actually reduce poverty. And what we have been doing
in Nicaragua has actually been we have been taking a regional
approach.
The countries have what is called the SIEPAC line, which
allows them to coordinate in the transmission of electricity
and it is something that is not being taken full advantage of.
And it is something we are trying to provide technical
assistance through kind of the regional energy market to help
them actually take full advantage and get to the point where
they can expand the capacity but also, because cooperation on
energy issues between states is incredibly complicated, try to
find a way to ensure that renewable energy is something that is
integrated into the grid and not just traditional fossil fuels.
Costa Rica and Nicaragua have actually taken very active
steps on renewables. Honduras is making investments. And I
think the positive consequences or results of our engagement
have been that we are trying to streamline the way they do
regulation, the way they take advantage of the line, and how
they actually start expanding the use of renewables.
Mr. Castro. Thank you. And then a question about the
Chinese canal that is being built. How likely is it that Inter-
Oceanic Canal underwritten by Chinese billionaire Wang Jing
will actually be completed? And what implications does
construction of the canal have for China-Nicaragua relations
and Chinese involvement in the country?
Mr. Gonzalez. Congressman, perhaps this will sound
undiplomatic but I am skeptical. We have not seen a single
shovel being used in the building of the Nicaragua Canal. And
so the position we will take is we will believe it when we see
it.
But it is something that we are watching, I think, very
closely. The expansion of the Panama Canal is something that
benefits U.S. ports in a significant way, because it allows us
to reduce our shipping costs. And so, it is something that we
are watching.
With regard to China's involvement, whether it is in
Nicaragua or in the Caribbean, where they have also been very
present, the message we have always conveyed to them is that
there are international standards that all of us have to uphold
and that insofar as they are upholding those and they are
promoting secure, prosperous, and democratic region, we are
welcoming their engagement. But we maintain a yearly active
dialogue with the Chinese on Latin America and how best to
actually maximize their cooperation in a productive way.
Mr. Castro. Thank you. I yield back.
Mr. Duncan. Great questions, Mr. Castro.
I will go to Mr. Yoho for 5 minutes or as much time as he
needs.
Mr. Yoho. Thank you, Mr. Chairman. I appreciate it.
And I kind of want to spin off a couple of things here but
I want to read a statement here that Mr. Ortega said in Cuba.
The current President Daniel Ortega gave a speech in Havana,
Cuba, affirming Sandinista policies and ideology in joining the
Non-Aligned Movement and in excoriating the imperialism of the
U.S. That was a statement he made. Do you feel he has wavered
from that or varied from that in his stance toward the U.S.?
Mr. Gonzalez. I can't pretend to know what is in the mind
of President Daniel Ortega but I know that often, be it
Nicaragua or be it Venezuela, often the moniker of U.S.
imperialism is a foil to distract from problems inside the
country but also, I think, as a way to I think maybe brandish a
sort of socialist--or not socialist--a sort of way of governing
and try to push out any sort of----
Mr. Yoho. I think we can tell where he stands with actions,
when you see what they do. You know you are looking at the
amount of corruption there and you look at the wealth. He is
one of the wealthiest people in the country that is the second
poorest country in the Western Hemisphere. And then you look at
the loan that Venezuela gave them back a few years back, I
think it was $457 million with no third-party oversight, it is
a very convenient situation.
And then they are buying Russian military equipment. They
are putting up Russian military radar systems. And I am not
feeling the love here. And I, along with the chairman, you know
he was talking about the trade, the free trade agreement that
we have with them, I don't see the benefit we do. I see we do
export but I think they are benefitting a whole lot more. And
the benefit to them is they have a lot of money coming into
their country that is promoting a rogue--a dictatorship, I will
say. And with the administrator's misstep of sending our
Ambassador Dogu down there and allowing them to basically give
credit to their Supreme Court for ruling out any competing
parties in the political process, I just think that is a very
poor judgment and misstep on this administration.
We have all these conditions on trade. We have all these
conditions on human rights. We have all these conditions on
free and open elections and he has already said there is not
going to be free and open elections because there is not going
to be any monitors but yet, we are relying on the students to
tell us how fair they are.
How intimidated are those students going to be and how well
are they going to speak up? And at what point does
administration say, you know what, if you are going to play by
the rules, we are done and pull out of the trade agreement?
Do we have the backbone to do that? Does this
administration have it or any administration? When is America's
word going to stand for what we say?
Mr. Gonzalez. Congressman, I will say two things. And thank
you for your comments. We coincide entirely on the democratic
backsliding in Nicaragua.
Two things. First----
Mr. Yoho. Well, then we are not doing it with action.
Let me ask Ms. Escobari. Is that close? What is your
opinion on that? At what point does America say if you are
serious about being an ally of ours? Because we have weakened
the OAS and it is because of the actions. If our action is not
standing up to--our words aren't backed up by our actions.
Ms. Escobari. Thank you, Congressman. For our case, the
majority of our programming is trying to strengthen the few and
usually harassed organizations that are trying to defend
democratic institutions and citizens.
Mr. Yoho. How do you see them strengthening, if they are
throwing people out that have diplomatic or regular passports
and our administration is validating their Supreme Court?
Ms. Escobari. No, you are absolutely right that there has
not been progress. There has been backsliding but we believe
that we should still be there to stand with those organizations
to continue to maintain some openness and to have these
organizations that can speak for the citizens as that closes.
Mr. Yoho. Yes, but if we are not willing to take something
back for that government to lose, it is not going to get
better. I mean history repeats itself. And until we are willing
to stand up and make a strong stand, they are going to keep
doing what they are doing and we are going to keep
capitulating. And yes, we can say we are helping the people,
which I think we should, but you have to hold that government
accountable and you have to be willing to do that is what I
see.
And I yield back and I appreciate the second round,
Chairman.
Mr. Duncan. All right. This has been great. Do you have
anything further?
I want to thank the panel. Nicaragua is not a country that,
since I have been here 6 years, other than when Chairwoman Ros-
Lehtinen was active in my first term, have we really delved
into this. But what we are seeing, as brought out today, is
just some things that we may not agree with going on with free
and fair elections, and humanitarian rights, and strong
military changes, and whatnot down there.
So, we are going to continue focusing on it and I want to
thank the service of our witnesses to our great Nation. And it
is not lost on us, the sacrifices you make as well. So, thank
you so much.
I want to thank the committee for all of their
participation, not only on the hearing but also on the markup.
And without anything further, we will stand adjourned.
[Whereupon, at 11:43 a.m., the subcommittee was adjourned.]
A P P E N D I X
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