Honduras This Week Central America

OAS says Guatemala, Belize agree on territory dispute negotiations

WASHINGTON, D.C. -- Guatemala and Belize have agreed to establish a series of confidence-building measures designed to resolve their long-standing territorial dispute, the Organization of American States (OAS) announced.

The agreement, signed by representatives of the two countries after their July 17‑20 meetings at the OAS, commits Guatemala and Belize to a set of procedures for establishing military-to-military contacts and cooperation, and to holding a high-level defense policy meeting presided over by their ministers of defense on or before Aug. 15, the OAS said in a statement.

The two countries further agreed to invite the OAS secretary general to serve as "Honor Witness" to the negotiation process, to serve as a "convener" of the parties, and to make recommendations on ways to settle the dispute, the OAS said.

Heading the delegations at the OAS meetings were Guatemalan Foreign Minister Gabriel Orellana Rojas and Belize's senior ambassador with ministerial rank, Assad Shoman.

According to U.S. State Department background documents, the dispute between the two countries involves Guatemalan claims to Belizean territory.

Negotiations to settle the dispute went on for many years, including one period in the 1960s during which the United States sought unsuccessfully to mediate, the Department said.

Negotiations between Belize and Guatemala, with the United Kingdom as an observer, were resumed in 1988. Guatemala recognized Belize's independence in 1991, and diplomatic relations were established, but Guatemalan claims to Belize's territory remain unresolved.

USAID says living standards improved for people of Americas

WASHINGTON, D.C. -- Latin America and the Caribbean have made enormous progress in improving the lives of their citizens, but environmental degradation remains severe and poses serious consequences for the people of the region, especially the poor, says Carl Leonard, deputy administrator of the Bureau for Latin America and the Caribbean in the U.S. Agency for International Development (USAID).

Testifying July 25 before a Senate subcommittee, Leonard said that in the 30 years he has worked in the region, he has witnessed positive trends for building democratic governance, cutting the rates for infant and child mortality, providing access to primary education, and in boosting economic growth.

"But degradation of the environment is one area where the trends are going the other way," Leonard told the Senate Foreign Relations Committee's Subcommittee on the Western Hemisphere, Peace Corps, Narcotics and Terrorism at a hearing exploring the topic

"Environmental Protection in an Era of Dramatic Economic Growth in Latin America."

Leonard said he remains optimistic about the region's future, pointing to the countries of Central America that have made "a great deal of progress" in bettering the lives of their citizens. As for South America, he singled out Bolivia for its progress in fighting narco‑trafficking.

However, because of the drug threat facing Colombia and economic conditions in Haiti, these are the two countries about which he worries most, Leonard said.

Leonard expressed alarm at the rate of environmental destruction in the area. He said, for example, that the Americas have lost more than 84 million hectares of forest between 1980 and 1995. Brazil, with the greatest hectarage of tropical forest in the world, loses more than one percent annually, he said.

Another negative trend, Leonard said, is that the region has suffered the world's largest per capita decrease of fresh water over the past 50 years. The culprits, he said, are poor watershed management, misuse of fertilizers and pesticides, and the lack of wastewater treatment. The consequences of water mismanagement, he said, include severe health problems, water shortages, reduced hydroelectric potential, and increased costs for industry, agriculture, and homes.

Leonard said those most grievously affected by environmental degradation are poor people, "who have no choice but to live in the most vulnerable and degraded" conditions. The poor, he said, are the ones who depend most directly on natural resources to meet their basic human needs, and who have limited access to safe and productive lands.

A witness from the U.S. Treasury Department, Joseph Eichenberger, warned the subcommittee about U.S. congressional funding constraints on what is called the Global Environment Facility (GEF), which is the principal international funding source for addressing global environmental challenges such as biodiversity, ozone depletion and climate change.

Eichenberger, who is director of the Treasury Department's Office of Multilateral Development Banks, said the constraints stem largely from the inability of the United States to deliver on its financial commitments. U.S. arrears to the GEF now total $204.2 million, he said, and will expand further if low funding levels contained in the current Congressional Foreign Operations Appropriations bills for fiscal year 2001 are maintained.

Eichenberger said that in fiscal year 1999 alone, the GEF financed $270 million for Latin American environmental projects. Every dollar provided by the United States, he said, has leveraged about $10 from recipient governments, other bilateral donors, the private sector, and other multilateral institutions.

GEF projects have helped develop renewable fuel technology in Brazil, aided Colombia, Costa Rica, Panama and Nicaragua in reducing pesticide runoff to the Caribbean Sea, and helped Argentina finance a project off the Patagonian Coast that will allow for profitable fishing while protecting endangered whales, elephant seals and penguins, Eichenberger said.

Also testifying was former U.S. assistant secretary of state for Inter‑American Affairs, Alexander Watson, now of the Nature Conservancy, who said the linkages between natural resource depletion in developing countries and the national security of the United States "are real and growing in this age of economic globalization."

However, he said his organization does not see this situation as "necessarily development versus conservation." In virtually all situations, he said, "it is possible to achieve both. In fact, in the long run there can be no development, especially in countries that depend heavily on natural resources as most poor countries do, without careful management of the countries' natural heritage."

Conversely, he added, "there cannot be effective conservation if the people living in or near areas that should be protected have no economic alternatives to consuming the natural resources of those areas simply to survive. The answer is thoughtful economic development that recognizes the importance, limitations and fragility of natural biological systems.

OPIC cites benefits of investing in Central America, Caribbean

WASHINGTON, D.C. -- Central America and the Caribbean are "uniquely positioned" to turn U.S. investment in that region into profits, says George Munoz, president of the Overseas Private Investment Corporation (OPIC).

Speaking at a July 19‑21 investment forum in Panama City organized by OPIC, Munoz said the region -- the United States' sixth-largest trading partner -- has taken "brave steps" to open its markets to external trade. This indicates, he said, an area "confident in the capacity of its human capital to deliver on investment, and that is why President Clinton recently signed the U.S.-Caribbean Basin Partnership Act as part of the Trade and Development Act of 2000."

The Central American and Caribbean Investment Forum in Panama attracted more than 200 U.S. and regional business people, including a 30‑member delegation from the United States, OPIC said. Among those in the delegation were Kenneth "Buddy" MacKay, the White House special envoy to the Americas, and members of the U.S. regional diplomatic corps. The event in Panama capped a series of conferences on investing in the region that were held earlier in five U.S. cities.

Munoz said the Panama forum was important to U.S. businesses because "they understand that Central America and the Caribbean have turned the corner to become a dynamic emerging market." He added: "And that level of interest will result in millions of dollars in investment in the region."

Panamanian President Mireya Moscoso said: "It is a matter of pride that OPIC is holding its regional meeting for Central America and the Caribbean in our country. This forum sends an important message to the international business community that our governments are aware that the creation of an investor-friendly environment brings with it more and better investments."

OPIC said that between 1995 and 1999, it has assisted 38 projects in the region involving total investments of $3,200 million. Those projects, OPIC said, are expected to generate $1,500 million in U.S. exports that will in turn support nearly 4,500 U.S. jobs.

First South American presidential summit set for August

WASHINGTON, D.C. ‑‑ The United States views "very positively" the first South American Heads of State Summit to be held Aug. 31‑Sept. 1 in Brasilia, says White House Special Envoy to the Americas Kenneth "Buddy" MacKay.

MacKay said in a statement that the Brasilia summit "helps consolidate the continent and brings us closer to hemispheric integration."

Noting that the hemisphere is five years into a 10‑year negotiation of a Free Trade Area of the Americas (FTAA), he said: "At this half‑way point, there is a very encouraging story in the hemisphere where recent elections in Chile, Argentina, Uruguay, Dominican Republic, and Mexico were won by candidates seeking to advance the FTAA."

The presidents of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela will meet for the first time as a group to discuss the strengthening of democracy, trade expansion, increased infrastructure integration, and drug trafficking and related crimes, an official from the Brazilian embassy in Washington said.

The official said the idea for the meeting originated with Brazilian President Fernando Henrique Cardoso in hopes of expanding trade within South America. He added that Cardoso seeks greater economic cooperation between the Andean Pact trade group of Bolivia, Colombia, Ecuador, Peru, and Venezuela, and the Mercosur trade countries, consisting of Argentina, Brazil, Paraguay and Uruguay.

The leaders are expected to sign a document called the "Brasilia Declaration," which will reflect the areas of consensus that emerge from the meeting.

A statement from the Brazilian embassy said emphasized that the meeting does not "aim to create any mechanism or forum that will replace or compete with those already in existence, such as the Rio Group or the Ibero‑American Summit," adding: "This initiative does, however, seek to consolidate our region's specific contribution towards strengthening these entities and keeping them up‑to‑date."

Brazilian Ambassador to the United States Rubens Barbosa is scheduled to discuss the summit at a Sept. 1 news conference in Washington.

U.S. trade experts examining effects of embargo on Cuba

WASHINGTON, D.C. -- Two U.S. trade experts are on a July 16‑23 fact‑finding trip to Cuba at the request of the U.S. Congress, examining the potential effects of lifting the 38-year-old U.S. embargo against Cuba, according to the U.S. International Trade Commission (USITC).

The investigation, called the "The Economic Impact of U.S. Sanctions with Respect to Cuba," was requested by the House Ways and Means Committee in a letter received by the USITC March 15. The committee has jurisdiction with respect to U.S. sanctions policy against Cuba, as it applies to imports.

The experts intend to analyze the effect of U.S. sanctions on both the U.S. and Cuban economies, such as in the agriculture, banking, telecommunications, and service industries, said an official from the USITC, which is an independent, fact-finding federal agency.

The official said the trip has proved "very productive so far" in gathering information on the potential effects of lifting the embargo. The trade experts are meeting with Cuban government trade officials, as well as with farmers and foreigners doing business in Cuba.

The experts hope to get an indication, said the official, of whether Cuba would be able to export "a whole lot [of goods] very quickly" to the United States if the sanctions were lifted. In addition, the experts hope to learn which U.S. industries would benefit from an end to the embargo. The official said the experts will make a report on their findings, which will include a description of the Cuban economy, Cuban trade and investment policies, and trade and investment trends. The USITC report will be submitted to the House committee this Feb. 15.

A public hearing in connection with the investigation will be held Sept. 19 at USITC headquarters in Washington, where interested parties can express their opinions on the Cuban embargo. The USITC said requests to appear at the hearing should be filed no later than Aug. 29. Written statements are also accepted by the USITC. The statements should be submitted no later than Oct. 4. More information about the hearing can be found on the USITC web site at <http://www.usitc.gov>.

Supporters of the embargo on Cuba maintain it must remain in place in order to exert pressure on the Communist government of Fidel Castro to permit a peaceful transition to democracy. However, opponents say the embargo has failed in its aim of forcing Castro to create a more open society.

Debt relief for Honduras to be approved, says World Bank

WASHINGTON, D.C. -- Debt relief under the Heavily Indebted Poor Countries Initiative (HIPC) will be approved for nine countries -- including Bolivia and Honduras -- by the time of a July 21-23 economic summit of major industrialized countries, the World Bank has announced.

The Bank said in a statement that debt relief under the HIPC will be high on the agenda for the heads of state at the Group of Eight (G-8) summit in Okinawa, Japan. The Bank said that when completed, the HIPC initiative will more than halve the unsustainable debt of the world's poorest, most heavily indebted countries.

Besides Bolivia and Honduras, debt relief will also be approved for Benin, Burkina Faso, Mauritania, Mozambique, Senegal, Tanzania and Uganda by the G-8 summit, the Bank said.

To qualify for relief, countries must show that subsequent savings from debt will be used to fight poverty.

The State Department said in a July 14 fact sheet that the United States strongly supports debt reduction for the poorest

heavily-indebted countries which institute specific economic reforms and poverty reduction programs. This allows these countries to use the freed-up money for poverty reduction programs such as health care and education, the Department said.

The Department pointed out that during a 1999 economic summit in Cologne, Germany, the United States led the way to expand the HIPC initiative to provide deeper, broader and faster debt relief. The Cologne summit provided for cancellation of up to $90,000 million in debt owed by 33 of the world's poorest countries, the Department said.

Participating at the G-8 summit in Okinawa will be the United States, Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the European Commission.

IDB, Jewish leaders to discuss fighting poverty in Latam

WASHINGTON, D.C. -- Strategies for fighting poverty in Latin America will be the focus when leaders of the hemisphere's Jewish community and senior executives of the Inter-American Development Bank (IDB) meet July 20‑21 in Montevideo, Uruguay.

The IDB said in a July 17 statement that poverty affects vast sectors of Latin American society, including Jewish communities. The IDB quoted statistics that show, for example, that poverty affects 60 percent of the children in the region.

Topics for the conference, called "The Struggle Against Poverty: Projects and Alternatives," will include the region's unemployment problem, high school dropout and repetition rates, lack of access to health care, crime, and the weakening of the family structure because of poverty.

IDB President Enrique Iglesias said that in Latin America "there is a perverse, contagious mechanism that reproduces and amplifies poverty, a kind of intergenerational poverty." He identified poverty and inequity as "the two challenges" that have brought the IDB and the hemisphere's Jewish leaders together.

The IDB pointed to the "important role" played by the region's Jewish community organizations in fighting poverty, including "forming networks for social protection and assistance during emergencies and catastrophes."

Iglesias, who will preside over the Montevideo conference, said that for the IDB, "it is stimulating to count on allies in the fight against poverty that have the quality of the Jewish communities in Latin America, who are masters in the field of ... volunteer service."

Participants attending the meeting from the United States will include Ronald Lauder, chairman of the Conference of Presidents of Major American Jewish Organizations; and Daniel Mariaschin, executive vice president of the Jewish service organization called B'nai B'rith.

FAA gives Costa Rica IASA rating of Category 1

WASHINGTON, D.C. ‑‑ The Federal Aviation Administration (FAA) announced July 3 that Costa Rica complies with international safety standards set by the International Civil Aviation Organization (ICAO), giving the country a Category 1 rating following a reassessment of the country's civil aviation authority on May 23‑25. Costa Rica previously did not comply with ICAO standards.

This announcement is part of the FAA's International Aviation Safety Assessment (IASA) program, under which the agency assesses the civil aviation authorities of all countries with air carriers that operate to the United States, and makes that information available to the public.

The assessments are not an indication of whether individual foreign carriers are safe or unsafe; rather, they determine whether or not foreign civil aviation authorities are meeting ICAO safety standards, not FAA regulations.

Travelers may call 1‑800‑FAA‑SURE (1‑800‑322‑7873) to obtain a summary statement about whether a foreign civil aviation authority has been assessed and the results, if available.

Countries with air carriers that fly to the U.S. must adhere to the safety standards of ICAO, the United Nations' technical agency for aviation that establishes international standards and recommended practices for aircraft operations and maintenance.

The FAA, with the cooperation of the host civil aviation authority, assesses countries with airlines that have operating rights to or from the United States, or have requested such rights. Specifically, the FAA determines whether a foreign civil aviation authority has an adequate infrastructure for international aviation safety oversight as defined by ICAO standards. The basic elements that the FAA considers necessary include: 1) laws enabling the appropriate government office to adopt regulations necessary to meet the minimum requirements of ICAO; 2) current regulations that meet those requirements; 3) procedures to carry out the regulatory requirements; 4) air carrier certification, routine inspection, and surveillance programs; and 5) organizational and personnel resources to implement and enforce the above.

The FAA has established two ratings for the status of these civil aviation authorities at the time of the assessment: (1) does comply with ICAO standards, (2) does not comply with ICAO standards.

Category 1. Does Comply with ICAO Standards: A civil aviation authority has been assessed by FAA inspectors and has been found to license and oversee air carriers in accordance with ICAO aviation safety standards.

Category 2. Does Not Comply with ICAO Standards: The Federal Aviation Administration assessed this country's civil aviation authority (CAA) and determined that it does not provide safety oversight of its air carrier operators in accordance with the minimum safety oversight standards established by the International Civil Aviation Organization (ICAO).

This rating is applied if one or more of the following deficiencies are identified: (1) the country lacks laws or regulations necessary to support the certification and oversight of air carriers in accordance with minimum international standards; (2) the CAA lacks the technical expertise, resources, and organization to license or oversee air carrier operations; (3) the CAA does not have adequately trained and qualified technical personnel; (4) the CAA does not provide adequate inspector guidance to ensure enforcement of, and compliance with, minimum international standards; and (5) the CAA has insufficient documentation and records of certification and inadequate continuing oversight and surveillance of air carrier operations.

This category consists of two groups of countries. One group is countries that have air carriers with existing operations to the United States at the time of the assessment. While in Category 2 status, carriers from these countries will be permitted to continue operations at current levels under heightened FAA surveillance.

Expansion or changes in services to the United States by such carriers are not permitted while in category 2, although new services will be permitted if operated using aircraft wet‑leased from a duly authorized and properly supervised U.S. carrier or a foreign air carrier from a category 1 country that is authorized to serve the United States using its own aircraft.

The second group is countries that do not have air carriers with existing operations to the United States at the time of the assessment. Carriers from these countries will not be permitted to commence service to the United States while in Category 2 status, although they may conduct services if operated using aircraft wet‑leased from a duly authorized and properly supervised U.S. carrier or a foreign air carrier from a Category 1 country that is authorized to serve the United States with its own aircraft.

No other difference is made between these two groups of countries while in a category 2 status.

The FAA has assisted civil aviation authorities with less than acceptable ratings by providing technical expertise, assistance with inspections, and training courses. The FAA hopes to work with other countries through ICAO to address non‑compliance with international aviation safety oversight standards.

The FAA will continue to release the results of safety assessments to the public as they are completed. First announced in September 1994, the ratings are part of an ongoing FAA program to assess all countries with air carriers that operate to the United States.

World Bank, IMF to support debt reduction package for Honduras

Package to save more than $900 million in debt service

WASHINGTON, D.C. ‑‑ The World Bank and the International Monetary Fund (IMF) have agreed to support a comprehensive debt reduction package for Honduras that will save the country more than $900 million in debt service over the coming years, the two multilateral financial institutions have announced.

In a July 10 statement, the World Bank said it will start providing debt relief immediately, and the IMF will do so once creditors representing more than 80 percent of Honduran external debt have assured their participation in the enhanced Heavily Indebted Poor Countries (HIPC) initiative. This initiative was launched by the IMF and the World Bank in 1996 as the first comprehensive effort to eliminate unsustainable debt in the world's poorest, most heavily indebted countries.

The two institutions said that the Inter‑American Development Bank has also agreed to provide debt relief to Honduras.

Honduras' eligibility for debt relief under the enhanced HIPC initiative is a recognition by the international community of the country's progress in implementing reforms in macroeconomic, structural, and social policies, the institutions said, pointing to figures that show inflation was reduced to 11 percent in 1999 from 23 percent in 1990, while the overall fiscal deficit (excluding grants) was reduced to 2.3 percent in 1999 from 7.7 percent of gross domestic product in 1990.

The institutions said Honduras has made a strong structural reform effort in recent years, including public‑sector modernization and financial liberalization. While Honduras remains one of the poorest countries in the Americas, it has been estimated that the proportion of the population living in poverty declined to 66 percent in 1999, from 75 percent in 1991, the institutions said. They added that notable improvements in social indicators have also been recorded, especially in the areas of education and health care.

Some 36 countries are expected to qualify for assistance under the enhanced HIPC initiative, of which 29 are sub‑Saharan countries. By the end of July, 16 countries will have been reviewed under the enhanced initiative, for packages amounting to about $25,000 million in debt service relief over time.

U.N. agency says 36 developing countries face serious food shortages

WASHINGTON, D.C. -- Serious food shortages continue in 36 developing countries around the world -- including Cuba, Honduras, Nicaragua, Venezuela, El Salvador, Guatemala and Haiti -- where the international community is still providing food aid, says a report released in June by the United Nations Food and Agriculture Organization (FAO).

The FAO said most of the food shortages in the Americas followed the natural disasters that struck the region in the last several years. However, in Haiti, food aid is needed due to structural economic problems, the FAO said in its bi-annual report called "Food Outlook." The report provides a global perspective on the production, stocks and trade of cereals and other basic commodities through an analysis of trends and prospects.

Discussing this year's growing season in the region, the FAO reported that the number of hectares devoted to coarse grains such as maize is expected to remain at its usual level in Costa Rica, Guatemala, and Nicaragua, but in El Salvador will likely remain slightly below average, similar to last year. In Honduras, the outlook has improved for the maize crop, and a recovery in production is expected from last year's low level. In Mexico, dry weather persists over most of the country and, to date, prospects remain satisfactory for the spring/summer maize crop currently being planted.

The report said that in the Caribbean, normal rains have resumed in the Dominican Republic, benefiting the developing cereal and minor food crops. In Haiti, the maize and bean crops are about to be harvested, and average outputs are forecast. In Jamaica, a long dry spell has seriously affected the country's main food crops, but no food shortages are reported.

The FAO said that in South America, successful planting of the 2000 wheat crop will depend on whether the region can avoid heavy rains and flooding, which has been reported in the last few weeks in some areas.

Harvesting of South America's coarse grain crops, principally maize, is underway in such countries as Argentina, where about 53 percent of the maize crop had been collected by early May, compared to 56 percent by the same time last year. An above-average output in Argentina is forecast. In Andean countries such as Bolivia, land is being prepared for planting of the winter sorghum and potato crops. Some difficulties are being encountered in certain areas as a result of excessive moisture left by heavy rains and flooding in March. In Colombia, where heavy rains and flooding are also reported, planting of the 2000 maize crop continues and an average return is forecast. In Venezuela, planting of maize and other minor food crops is underway and slightly below-average harvests are expected.

The FAO said production of sugar in Latin America and the Caribbean for 1999‑2000 is forecast at 40.1 million tons, one million tons more than in 1998‑1999, due largely to increased production in Brazil and Cuba. Production in Brazil is expected to increase by 300,000 tons to reach 19.8 million tons. In Cuba, output is expected to reach 4 million tons: 400,000 tons more than in the previous year. Sugar production in Mexico is estimated to remain stable at 5.1 million tons, despite worse than anticipated weather conditions and a strike by sugar mill workers.

From a global perspective, the FAO said food shortages are particularly serious in Africa, because of civil strife, drought‑induced crop and livestock losses, and floods. In eastern Africa alone, some 16 million people are said to face critical food shortages.

INS announces successful settlement of immigration lawsuit
Small number of Honduran plaintiffs had cases adjudicated

WASHINGTON, D.C. ‑‑ The Immigration and Naturalization Service (INS) has entered into a settlement with attorneys for a small group of Honduran plaintiffs in New York who filed an application with INS for Temporary Protected Status (TPS) benefits prior to August 20, 1999. The lawsuit challenged certain INS procedures relating to the adjudication of applications filed by Hondurans for TPS and the related employment authorization at the Vermont Service Center.

Since the lawsuit was filed, all the plaintiffs have had their cases adjudicated and INS has met several times with the plaintiffs' attorneys in an attempt to address their more general concerns. Today, INS announces the resolution of the lawsuit, which will affect applications filed by certain Hondurans. INS has elected to provide the same benefits set forth under the settlement to Nicaraguans whose country was designated simultaneously with Honduras.

As part of the Clinton Administration's ongoing efforts to assist countries affected by Hurricane Mitch, on December 30, 1998, INS announced the Attorney General's designation of TPS for Honduras and Nicaragua for a period of 18 months. This status was scheduled to expire on July 5, 2000. However, on May 5, 2000 INS announced a one‑year extension of TPS for eligible Hondurans and Nicaraguans.

During the designation period, eligible Hondurans and Nicaraguans are not subject to removal and are lawfully authorized to work in the United States. Only Hondurans and Nicaraguans who were in the United States by December 30, 1998 qualify for TPS benefits.

This extension covers only Nicaraguans and Hondurans who have been continually present in the United States as of January 5, 1999 and who have continually resided in the United States since December 30, 1998, unless they are eligible for late initial registration. An extension of TPS does not change the required dates of continuous physical presence and residence in the United States. However, late initial registration is possible in some circumstances.

More information can be obtained at the INS Web site, <http://www.ins.usdoj.gov>.

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