Honduras THE MILITARY: WILLING TO DEAL BY VICTOR MEZA Sunday afternoon at Palmerola Air Base, nome to me 1,zuu troops or me Joint IaSK -rorcebravo. IN HONDURAS TRAPPED LATE a high1979 tideFOUND of revolution. On one side, the euphoric and victorious Sandinistas launched an ambitious transformation of the social order; on the other, the perhaps overconfident Salvadorean guerrillas announced their final offensive. And, powerless to stop it, Hondurans watched as thousands of defeated Somocista guardsmen crossed the border, seeking the protection of the Honduran military. All these factors would complicate domestic politics during the 1980s. After 16 years of almost uninterrupted military rule, Honduras was eager for a political opening. But that was not in the cards, as Washington was quick to grasp Honduras' strategic potential on the new Central American chessboard. The country's geopolitical position is extraordinary. Bordering Guatemala, El Salvador and Nicaragua, Honduras also has two coasts, the western on the pivotal Gulf of Fonseca. Cashing in on traditional Honduran political 14 subservience, Washington proceeded to turn the country into a staging ground for its regional strategy. This conversion could not, however, be carried out without brusque changes in the political and military structures of Honduran society, altering the roles played by traditional actors: the U.S. Embassy; the military, the country's most powerful force; and the civilian government, representing Honduras' political elite. While the three claim to co-exist in harmony, in practice the relationship is rather tumultuous. Each seeks greater autonomy, while attempting to reduce the jurisdiction and influence of the other two. This power struggle has formed the backdrop for Honduran politics since 1980. OMMENSURATE WITH THE STRATEGIC role Washington had assigned Honduras, U.S. economic and military aid mushroomed. Over 80% of REPORT ON THE AMERICAS total support for the decade following 1975 was dispersed after 1980. In the last five years of the 1970s, military aid amounted to $16.3 million. But in the first five years of the 1980s, the figure hit $169 million. Honduras received over $1 billion between 1980 and 1987, 27.8% of it in military subsidies.' A study by San Francisco's Institute for Food and Development Policy notes that U.S. aid rose almost five times from 1980 to 1985-from $57 to $283 million. Even this dramatic increase does not tell the whole story, for there was fundamental change in the aid's composition. In 1980 security monies-in the form of Economic Support Funds and direct military aid-represented 7% of the total package; by 1985 this had risen to 76%. Support for development projects dropped from 80% of total aid in 1980 to 16% in 1985.2 But this massive flow of U.S. support has been repaid in-kind by Honduran willingness to make territory available and adjust domestic and foreign policies to Washington's directives. Honduran law stipulates that each commander-inchief of the armed forces must serve a fixed term of office, yet from 1980 to 1987 there were four chiefs, precisely the number of U.S. ambassadors during that period. 3 It is as if each military chief had his corresponding political chief in the person of the U.S. ambassador. Relations were so chummy that some top embassy officials became godparents for officers' children. FAMILIAR WITH THE COUNTRY'S PRECIPItous terrain, Washington was surprised when Honduras decided to acquire tanks for its arsenal. But the Honduran officer negotiating the purchase quickly set the record straight: "Who told you we wanted tanks to fight in Honduran territory? We want them to fight in El Salvador!"4 The strategic reassessment of Honduras occurred at a time when the Honduran military was still smarting from the infamous 100-hour "Soccer War" against El Salvador in July 1969. Honduran officers were trained throughout the 1970s in a spirit of revenge. Rapidly modernizing and professionalizing, the Hondurans sought to ensure success in any new confrontation with their adversary. From 1979 on, the North Americans sought to convince the Hondurans that the situation had changed substantially. Both scenario and actor were now different. Salvadoreans, the traditional enemies, should now be seen as important allies in the struggle against communism in Central America. And the Nicaraguans, the old peaceful neighbors to the south, were now the new enemies; but not all Nicaraguans, only the Sandinistas. The others, the anti-Sandinistas, would become allies in a common cause. Washington's pressure to end the virtual state of war prevailing since July 1969 ultimately pushed aside the Honduran officer corps' own agenda. On October 30, JANUARY/FEBRUARY 1988 1980, Honduran Foreign Minister Col. C6sar Elvir and his Salvadorean counterpart, Fidel ChAvez Mena signed a peace treaty in Lima, Peru. Although this treaty did not definitively solve the border dispute, a foundation was laid for rapprochement between the two governments and armies. Honduran collaboration with El Savador's counterinsurgency war reached its zenith on June 14, 1983, when 120 U.S. Green Berets landed at Puerto Castilla on Honduras' northern coast to open a school for Salvadorean soldiers. The Regional Military Training Center (CREM) would later prove a historic blunder. A provocation to the Army's nationalist sentiments, the CREM helped generate a crisis of stability continuing to this day. A S THE HONDURAN ARMY BECAME increasingly docile in North American hands, new forces committed to the National Security Doctrine * arose within the ranks. Led by Gen. Gustavo Alvarez Martinez-whose command officially lasted from January 1982 until March 1984-these officers pursued real and imagined enemies, attempting to quell social discontent.5 Battalion 3/16, a special counterinsurgency force which many considered a kind of death squad, was formed in 1980. Gen. Humberto Regalado, the current chief of the armed forces, defined it in May 1987 as "a technical and professional squadron that processes information and whose strategic conception is to support each of the brigades comprising the National Army. "6 Yet in an extensive interview with The New York Times, Florencio Caballero, a former battalion member now a political refugee in Canada, described a clandestine paramilitary structure for repressing leftists. 7 Caballero, who studied interrogation techniques in Houston in 1980, said the CIA was extensively involved in training squad members, though he claimed the North Americans did not advocate or participate in physical torture. Even some officers became alarmed about 3/16. While in Mexico in August 1982, Col. Leonidas Torres Arias, former intelligence chief of the armed forces, publicly denounced the activity of these units and held Alvarez Martinez personally responsible for inspiring and creating them.i But the denunciations came too late for scores of Hondurans and foreigners, especially Salvadoreans, who were subjected to the "Argentine method," disappearing into hidden prisons. With copious aid from the U.S. military and instruction from Argentines, this new policy of domestic repression was preventative, selectively applied and clandestine. De*The doctrine of the national security state is associated with the Brazilian and Argentine military dictatorships, which believed that by suppressing "internal enemies" they were in fact waging war against international communism and Soviet subversion. 15 Honduraso e Amcas Honduras IN "Inousanas or bomocista guaras crossed mne Doroer.-' signed to "prevent" the upsurge of a strong revolutionary movement, its targets were those the security forces considered "potentially subversive." In particular, the repression aimed to break up support networks that Salvadorean revolutionaries had successfully organized in Honduras. Further, this policy was framed completely outside the law, with its own secret prisons and methods of killing and "disappearing." Some 130 Hondurans "disappeared" as a result, and the Honduran government has won the distinction of being the defendant in the first case brought before the Inter-American Court of Human Rights of the Organization of American States.' Hondurans gradually submitted to collective fear and paralysis, while the civilian government yielded ground to the impetuous, authoritarian Gen. Alvarez. The impunity with which the state's repressive forces acted made the population feel defenseless; many chose the complicity of silence, daring to share fears and opinions only with close friends. Americas Watch reported in 1982: The practice of arresting individuals for political reasons and then refusing to acknowledge their 16 whereabouts and status seems to have become established in Honduras. In case after case, the pattern is the same: persons who are politically active are taken, in full view of eye-witnesses, by heavily armed men in plain clothes and moving in unmarked cars. Although they are generally not in uniform, and do not identify themselves in any way, these men are able to stalk their victims in crowded places, and to enter houses and places of business without ever being intercepted by regular police forces. After the initial arrest, the authorities steadfastly deny the prisoner's presence in any detention center. Through the accounts of survivors, it is established that they are taken to clandestine jails, or at least to facilities with very restricted access. The relatives file habeas corpus writs and administrative inquiries, by and large without success. The prisoner has become a desaparecido, a missing person."' FORTIFYING THE MILITARY, WASHington weakened democracy-indeed, rendered it virtually impossible. According to an unwritten law of Honduran society, strengthening the military apparatus almost inevitably brings a proportionate weakening of civil institutions. Thus, the United States closed the door to political negotiation and democracy. But the U.S. scheme was to meet a temporary setback. Gen. Alvarez' growing authoritarianism, his almost total submission to Washington's will and his Messianic vocation to lead "the war against communism in Central America" bred internal discontent, and young officers began plotting his overthrow. This episode serves to illustrate Washington's ignorance about its own ally. Convinced the armed forces were not anti-American, U.S. diplomats headed by then Ambassador John D. Negroponte, quickly concluded that neither were they nationalistic. But the officer corps' nationalism is motivated by deep-seated animosity toward El Salvador. What the military could never forgive was Alvarez' willingness to train Salvadorean soldiers in Honduras. But there was more. Alvarez, in his zeal to consolidate power, stepped on the toes of one of the military's most basic institutions, the Superior Council of the Armed Forces (COSUFFAA). COSUFFAA, dubbed "the parliament of the Honduran military," is a sort of general assembly which meets periodically to discuss basic problems of the country in general and of the armed forces in particular. Its decisions normally be- come official military policy. COSUFFAA meetings are the stage on which political struggles are played out, influence and control won and alliances formed amidst constant plotting. There the power of each officer is tested on the personal, group and factional level. Numbering 52 at the time, Alvarez tried to cut membership to 21, and virtually replace COSUFFAA with an eight-person Commanders' Junta where he could REPORT ON THE AMERICAS play lord and master. The ensuing tension, combined with the young officers' fear of being dragged by Alvarez and the North Americans into a war with Nicaragua, came to a head on the morning of March 31, 1984, when the general was taken prisoner and packed off to Costa Rica. Days later, a witness offered this account: Gen. Alvarez was captured at the San Pedro Sula Air Base. He was handcuffed and with a pistol trained on him, they demanded that he sign a prepared letter of resignation. . . . When the general refused they threw him on the ground, kicking and hitting him all over his body except for the face. . . . Gen. Alvarez didn't sign the resignation despite the blows and insults. . . . "" A LVAREZ' ABRUPT OUSTER TOOK THE North Americans by surprise. Their chief-who they had ceremoniously awarded the "Legion of Merit" in June 1983-had been most unceremoniously overthrown. Despite a sophisticated U.S. intelligence network, a secret plot had incubated, developed and succeeded in overthrowing "Washington's man in Honduras." * Alvarez' fall allowed the armed forces "parliament" to return to business as usual. Once norms and procedures violated by Alvarez were restored, the COSUFFAA regained its former importance, and the personal power of the new head of the armed forces was substantially reduced and subordinated to the will of the council majority. Alvarez' ideological ways, however, had deeply affected the behavior and attitudes of many of his colleagues. The new head of the High Command, Col. Efrain Gonzalez, told the press that "It is important to note that in the armed forces high command there has been no philosophical change. There is no different ideological or political attitude, but rather a new military structure to attempt to do things in a more correct manner. .. .,12 Significantly, Alvarez' successors did not dismantle repressive units such as Battalion 3/16, but merely "froze" them-lowered their semi-public profile, keeping them hidden and inactive until they might again become indispensable. The new team that replaced Alvarez, headed by Gen. Walter L6pez, almost immediately sought to renegotiate the military alliance with the United States, to tailor agreements and commitments to Honduran interests. The men felt that greater advantage could be extracted in exchange for continuing to provide the *See "Breakdown in Honduras: U.S. Policy in Trouble," Report on the Americas, Vol.18, no.4 (JulyAugust 1984). Salvadoreans. the traditional enemies, now imDortant allies in the struaale aaainst communism. JANUARY/FEBRUARY 1988 17 legucigalpa hosts the contra's human rights organization. Reagan Administration with a regional platform for its military policy. One result was the removal of a particularly painful thorn in the officers' side. In April 1985, the training of Salvadorean soldiers at the CREM was banned. 3 And during the celebration of the 21st anniversary of the First Infantry Battalion, Col. Leonel Riera, one of the Honduran Armed Forces' three strong men at the time, reminded his comrades in arms that " . .. the original causes of the war with El Salvador still persist and 4 could bring about a repetition of that episode."" Yet the Pentagon gave the Hondurans points for magnanimity. In a February 1987 memorandum to a Senate subcommmittee, Gen. Paul Gorman, former chief of the U.S. Southern Command in Panama, observed: Honduras has been induced to show extraordinary generosity toward its old enemy, El Salvador, training Salvadorean troops in Honduras and patrolling its border areas where Salvadorean insurgents have their sanctuaries. ... .5 Alvarez' fall was a hard blow to U.S. policy in Honduras. It is no accident that after the general's removal the U.S. Embassy in Tegucigalpa stepped up efforts to penetrate and control the military structure. According to Maj. Ricardo Ziniga Morazin, while U.S. diplomats tried to attract and co-opt some young Army officers, they also induced purges-by retirement-of officers considered less docile. At one point a list was circulated of 21 officers whom the embassy deemed 18s "unreliable." One of those was Maj. Zdniga, who would be retired from the Army in August 1984.'6 But although the removal of Gen. Alvarez meant a serious setback to U.S. plans for Honduras-especially with regard to Nicaragua-the essence of Honduras' political and military collaboration with the Reagan Administration remained unaltered. During Alvarez' reign the anti-Sandinista contras operated freely within Honduras and openly maintained offices in the capital. Alvarez' succesors were more cautious. Distancing themselves from his political style, they suggested that the counterrevolutionaries keep a low profile and stick to their camps along the border, avoiding the press as well as the country's urban centers. Yet the change was only cosmetic. The Honduran military has remained tolerant of anti-Sandinista activities, finding room for maneuver as an institution as well as opportunities for personal enrichment. HERE IS AMPLE EVIDENCE THAT THE MILitary has come to view the contras as the ultimate trump card in relations with Washington. The decision to permit the counterrevolutionaries to deploy freely in Honduran territory and maintain a network of encampments along the Nicaraguan border is the armed forces' exclusive responsibility; civilian authorities can do little but reinforce the military strategy with diplomatic activity. The government's detached attitude toward the con^"""'"^' u KIP'OUKI UN TLE, AIVCIMA- tras has at times bordered on the absurd. In June 1982, when Ed6n Pastora was expelled from Costa Rica and hurriedly sought temporary refuge in Honduras, he appealed directly to Gen. Alvarez, sidestepping civilian immigration authorities. With Pastora already in Honduras, Foreign Minister Edgardo Paz Barnica said on June 27 that "Ed6n Pastora is not in Honduras, nor has he requested entry into this country. ... ,,"7 Paz Barnica did not know that Pastora had already met twice with Gen. Alvarez and his closest military advisers. And there has been confusion within the National Congress. On June 25, 1986 Congress President Carlos Montoya announced that the legislature would ask the armed forces to explain the contra presence. Yet that same day Congress deputies defeated such a motion.'" In exchange for tolerating the contras, the Honduran brass continually demand more military aid from Washington, both quantitatively and qualitatively. One of their highest aspirations, many Hondurans believe, is to obtain as much U.S. military support as El Salvador. During his official visit to Washington in June 1983, Gen. Alvarez made it known that the military needed "at least $400 million over a period no greater than three years."'" But the officer corps has found other ways to make the point. Whenever Washington appears reluctant to increase aid or satisfy other demands, contra movement within Honduras is restricted. In 1985 at the end of the presidency of Roberto Suazo Cordova, when the North Americans dragged their feet in shelling out $67 million from the U.S. Agency for International Development (AID), a contra plane loaded with weaponry, medicine and food which had landed at Tegucigalpa's Toncontin airport was sent back to the United States. 20 A ND THERE HAVE BEEN UNDERthe-table negotiations with the Sandinistas. Many observers of the Central American political scene are astonished to learn that the Honduran military and the Sandinistas have gradually built a network of underground contacts. Directly or through intermediaries, these contacts have on several occasions served to defuse tensions, averting war between the two countries and facilitating personal communication which on any public or official level would seem virtually impossible. It all began on October 18, 1984 when Halima Sirker L6pez arrived in Tegucigalpa.' Trusted by Daniel and Humberto Ortega, she came with a message from "my brother Daniel, future president of Nicaragua" for Gen. Walter L6pez and other Honduran military men. Gen. L6pez authorized his chief of military intelligence, Col. H6ctor Aplicano, to hear out the Sandinista emissary. And on January 27, 1986, while Honduras' newly elected head of state, Jos6 Azcona Hoyo, JANUARY/FEBRUARY 1988 was receiving the presidential sash, two high-ranking Honduran Army officers met with Nicaraguan military officials on Honduras' southern border; details of these talks remain secret. 22 On the night of March 17, 1986, when Sandinista troops crossed the border in hot pursuit of the contras, Honduran soldiers were conspicuously absent. A contingent of 500 Hondurans showed up a week later in U.S. helicopters laden with C-rations provided by the Pentagon. Reports leaked to the press some time later confirmed that the Honduran military had previously talked to the Nicaraguans about the operation, and set up a means of communication. It was even asserted that the Hondurans agreed to the Sandinista incursion on the condition that they would not advance beyond a certain point and would use neither heavy artillery nor helicopters within Honduras. Finally, in late 1986-with the mediation of Panamanian Gen. Manuel Antonio Noriega-the Sandinistas sought another communication channel to the Honduran military. Conversations were held in Panama City in October and November 1986, and it appeared the Sandinistas would have a green light to pursue the contras into Honduran territory without reprisal. However, on the night of December 4 a mysterious incident occurred: a Sandinista contingent attacked an observation post, killing two Honduran soldiers. In one of the most dangerous incidents between the two countries, the Honduran Air Force retaliated, bombing two Nicaraguan villages, Wiwilf and Murra, on December 7. T HE CONTRAS ARE ALSO A SOURCE OF juicy commissions for officers and civilians. When investigating the fate of the infamous $27 million in "humanitarian" contra aid, the U.S. General Accounting Office discovered that between October 1985 and February 1986 the contras' local suppliers had received $5.4 million in return for goods and services actually or supposedly delivered to the anti-Sandinistas.2" Business flourished, soon arousing the ambitions of certain top brass interested in a piece of the pie. On the morning of August 8, 1986, a company of Los Cobras anti-riot police stormed the residence of Congressman Rodolfo Zelaya, owner of the Hermano Pedro Supermarket, chief contra purveyor and civilian beneficiary of contra-destined dollars. The point of the exercise was to intimidate Zelaya into abandoning the milliondollar business to military men. Zelaya sold out, and sought refuge in Miami. The Zelaya case illustrates the form sometimes taken by internal Army squabbles. Spurred by the possibility of taking over the lucrative contra business, some officers took the opportunity to upstage colleagues who were Zelaya's business partners and protectors. Thus some commanders killed two birds with one stone19 Honduras broadening their influence within the armed forces while gaining entrance to the flourishing million-dollar contra trade. This particular incident led to a purge within the armed forces. Two casualties were Cols. Thomas Said Speer and H6ctor Aplicano, respectively chief of the Tank Corps and ex-chief of intelligence, both closely linked to contra operations and to Zelaya. But certain politicians have also benefitted from the anti-Sandinista funds. During congressional debate on June 25, 1986, Rep. Michael Barnes (D.-Md.) said that $75,000 was apparently paid to the wife of the Honduran officer known to be the contras' chief Tegucigalpa contact, while $40,000 landed in the dinista groups. Many Honduran officers understand the grave risk of that presence and are concerned about the prospect of Nicaragua's war ending in defeat for the contras, who would likely remain in Honduras. Yet these dissident officers also understand that the high level of dependency on U.S. military aid allows the Honduran Army little leverage. Unable to expel the contras, they reason their best bet is to use them for their own benefit-institutional as well as personal. Professional scorn for the contras runs high. "I don't believe in a military victory by the contras," military chief Humberto Regalado said last May. 26 The armed forces consider the rebels a mercenary army, unable to defeat the Sandinistas militarily. And they blame the contras' Somocista leadership for having lost power in the first place. When the contras, fleeing Sandinista attacks, hastily retreat to their bases across the border, the Honduran military is openly contemptuous. On the night of May 30, 1987, this contempt led the Hondurans to prevent the contras from crossing the border. The armed forces' greatest concern is to avoid a large-scale confrontation with Nicaragua. They know, however, that free contra deployment from Honduran territory is a permanent provocation, and could ignite war at any moment. Four main reasons for the Honduran military to avoid war with its neighbor stand out: First, the officers know well that this war is not theirs, so why get mixed up in it? Second, they understand that it is a difficult war, perhaps impossible to win. The armed forces are not about to risk an adventure that could end in extravagant defeat, their second in less than twenty years. They know that defeat on the battlefield would immediately be followed by complete loss of their waning prestige, and the consequent weakening of their enormous influence in Honduran society. Third-and this is very important-they know that in the unlikely case of a victory over the Sandinistas, the victors would not be the Honduran military, but the contras and North Americans. And finally, they can easily deduce that if the contras do win, a large part of the aid Honduras now gets from Washington would be diverted to Nicaragua to reconstruct the economy and strengthen the newly installed contra government. Thus, they conclude, a war against Nicaragua would be so peculiar that the Hondurans would lose even if they win. This reasoning has led the military to a policy which many describe as "cynical pragmatism"maintaining the latent threat of war without letting it become reality. This dangerous equilibrium allows them to extract the maximum benefits in U.S. economic and military aid without crossing the demarcation between potential war and real war. Palmerola: The U.s. presence is not in question. pockets of well-known local politicians.24 The corruption fostered by the contra money has joined the graft that for years has characterized the Honduran political scene. In a chronology published in September 1985, the Honduras Documentation Center identified more than 100 recent cases of corruption in the Suazo C6rdova Administration inaugurated in 1982.25 Like the mythical Hydra, corruption has slowly invaded every available space in public administration. Bribery, buying and selling influence, fraud and simple robbery of public funds have become an indispensable lubricant without which state machinery does not turn. OF COURSE NOT ALL OF THE MILITARY benefit from the contra business. And not all of the military agree with the presence of armed anti-San- N APRIL 6, 1987, RICHARD ARMITAGE, assistant secretary of defense for international se-- 20 --------- REPORT ON THE AMERICAS I C "Constant joint military maneuvers allow for an endless and sizeable flow of U.S. troops through Honduras." curity affairs, speaking before a Senate subcommittee, defined the U.S. military presence in Honduras as "appropriate and temporary, although of an indefinite nature," conditional upon the moment when, in his own words, "the Sandinistas cease to be a threat to the true democracies of the region." 27 The permanent nature of the U.S. military presence in Honduran territory has been a topic of great debate, above all in the U.S. Congress. In Honduras, on the other hand, very few have doubted its permanence. One need only survey the military installations housing U.S. troops, especially the central base at Palmerola, where the 1,200 soldiers of Joint Task Force Bravo are permanently stationed. Furthermore, constant joint military maneuvers allow for an endless and sizeable flow of U.S. troops through Honduras. Between October 1981 and August 1987, 58 joint military operations were conducted, from large-scale maneuvers like Ahuas Tara I, II and III, to simple medical training exercises in rural areas. All this has had considerable repercussions on Honduran society, which no doubt will continue. And the U.S. military presence may yet provoke nationalistic officers into demanding substantial change in the politico-military alliance with Washington. The same forces who oppose war with Nicaragua and reject the permanent contra presence, are demanding a new Honduran foreign policy, a policy based on effective neuJANUARY/FEBRUARY 1988 trality and non-interference in the domestic affairs of neighboring countries. These tendencies are not yet strong enough to prevail or change the course of events. But it is increasingly clear that their numbers are growing. Young officers who participated in the March 1984 overthrow of Gen. Gustavo Alvarez now control the main channels of power within the Army, exercising the day-to-day command of the most important battalions. They are the Lieutenant Colonels of the 6th Promotion, including Alvaro Romero, Mario Amaya, Ren6 Fonseca, Ram6n Rosa and Reynaldo Andino. Almost all were junior officers during the 1969 Soccer War and directly confronted the Salvadorean Army on the battlefield, a deeply formative experience. This group controls almost half of the Superior Council of the Armed Forces; in alliance with other promotions, chiefly the 8th and 10th, they constitute a majority within the COSUFFAA. In an institution as unique as the Honduran Armythe "only parliamentary Army," as some analysts call it-the rise of new promotions and displacement of the old can have extraordinary importance. To a great extent, however, the short-term future will depend on Washington's ability to co-opt young Honduran officers and neutralize their nationalist impulses. And also, of course, on the region's peace process in the months ahead. U 21 Honduras vate foreign obligations, yet no one has been indicted. CONADI's debtors are prominent among the country's private and public sector elites. Washington frequently cites the CONADI fiasco in justifying AID's aggressive push to sell off public enterprises. The logic is strange, since CONADI was, if anything, an elite private sector subsidy boondoggle. Moreover, it appears CONADI firms will be sold back to the same cast of characters who caused the scandal, with losses the government estimated at $300 million." The Administration proposes to revolutionize Honduras' outdated "crony capitalism." The vehicle for this top-down transformation is a private sector/foreign investment model based largely on non-traditional exports. This, the Reagan team hopes, will vindicate its claim that the free market offers a sure path to Third World development. Gilberto Goldstein, a prominent Honduran businessman of CONADI fame.47 The difficulty with development based on non-traditional exports is that, as two analysts of Latin American debt observed, "capturing export markets requires time and sustained promotional effort, even after a country's products have become more competitive through devaluation." 4 8 Experience with such exports in Honduras is woefully lacking, especially in the marketing and distribution so crucial to success. 49 Despite AID gimmicks like President Azcona's declaration of 1987 as the "Year of Export," the non-traditional export program has failed. Indeed, the first six months of 1987 registered a decline over 1986.50 Non-traditional exports accounted for only 21% of Honduran exports in 1985 down from 27% in 1980." MOST EAGAN'S ECONOMIC POLICIES FOR HONduras are beset with contradictions. First, the attempt to revitalize the economy through private investment (both foreign and domestic) will not work in a climate of declining investor confidence. Honduras was classified a "high-risk" for investors by Frost and Sullivan in 1986 and ranked 19 out of 24 countries in credit rating and debt capability, according to 75 international banks surveyed by Institutional Investor."2 Second, AID's private sector approach clashes head on with huge government deficits largely caused by U.S.-fostered militarization. Honduras' is increasingly a war economy, in which a free market system is decreasingly viable. Lastly, Tegucigalpa has come to rely on ever greater levels of U.S. assistance to finance its budget and generally "bail out" the economy. Reagan's rhetoric about free enterprise does not jibe with the reality of large-scale foreign aid. Honduras is becoming an international welfare case. And as one AID dissident told me, "When AID steps in and runs things, becoming a shadow government, it hardly works to build Honduran institutional abilities. Yet that is the supposed goal of AID in Honduras, to help create a modern functioning state and economy." Yet the worst danger is not that Reaganomics might fail, but that it might, however improbable, succeed. Rapid private sector-led growth would surely create new elites, deepen inequality in this desperately poor society and lead to more repression and instability. Honduran exceptionalism, if it ever existed, would disappear forever. U STRIKING ABOUT AID'S PLAN IS that it simply amounts to more of the same. Honduras already has one of Latin America's most open, export-dependent, private enterprise economies. How, then, can greater openness and privatization make it better? How can the state be the fundamental obstacle to progress when, at least until recently, it played an almost neglible role in economic matters? Similarly, the idea that development presupposes more U.S. investment is undercut by its already overwhelming presence in Honduras. Nowhere else in Central America is U.S. business more prominent and important. 45 North Americans have long dominated agribusiness, with the partial exceptions of coffee and cattle. Furthermore, the AID privatization plan continues to depend on government help in the form of tax breaks, subsidies, low-cost loans, training and other forms of assistance. Apparently the irony of a private sector capitalist revolution led by a large government bureaucracy in the form of AID has not been recognized. The Reagan revolution in Honduras will likely prove a sham. "New" entrepreneurs will not emerge; the same old faces will back "new" enterprises. An AIDinspired non-traditional export project recently announced with much fanfare is one example. This multimillion dollar endeavor uses advanced Israeli drip irrigation to produce melons for export. 46 But harvesting-by poorly paid, unskilled women-remains labor-intensive. The project is run by sugar plantation owner References The Military: Willing to Deal 1. See U.S. Agency for International Development, Congressional Presentations, various years (Washington, D.C.). In- cluded in the total are the $59.75 million approved as additional aid by the U.S. Congress in late June 1987. Note that in official U.S. reports military aid totals are notoriously understated, so that Economic Support Funds (ESF) are listed as "economic 38 38 R aid." A large part of ESF goes to finance the state's growing deficit, which increases yearly due partly to the high costs of militarizing the country. 2. Phillip Berryman and Medea Benjamin, Help or Hindr- ance? United States EconomicAid in CentralAmerica (San Francisco: Institute for Food and Development Policy, 1987) p. 16. 3. Until 1985 the constitutional term of the head of the armed forces was five years, one year more than that of the President of the Republic. But in October 1985 the National Congress amREPORT ON THE AMERICAS REPORT ON THE AMERICAS mended the constitution to provide for a three-year term. The military chiefs were as follows from 1980: Gen. Policarpo Paz Garcia (1975-1982), Gen. Gustavo Alvarez (1982-1984), Gen. Walter L6pez (1984-1986), Gen. Humberto Regalado (1986-). Over the same period the following U.S. Ambassadors were posted to Tegucigalpa: Jack Binns (1980-1981), John Negroponte (19811985), John Ferch (1985-1986), Everett Briggs (1986-). 4. Author's interview with Maj. Ricardo Zuiniga, May 1984. 5. Paradoxically, Gustavo Alvarez Martinez, the armed forces' youngest and most professional chief in their short history, did not receive his military education in Honduras. He studied at the Military College of Argentina from 1958-1962, where junta leader Jorge Rafael Videla was among his most admired instructors. 6. Diario de la Tribuna (Tegucigalpa), May 4, 1987. 7. New York Times, May 2, 1987; See also Human Rights in Honduras: Central America's Sideshow (New York: Americas Watch, May 1987) pp.126-143. 8. Excelsior (Mexico City), September 1, 1982. 9. In April 1986 the Inter-American Commission on Human Rights filed three cases against Honduras in the Inter-American Court of Human Rights. The cases seek to hold the government responsible for the 1981 and 1982 disappearances of four persons, two Hondurans and two Costa Ricans. The case is still pending, and the first ruling is expected in mid-January. 10. Human Rights in Honduras: Signs of "The Argentine Method" (New York: Americas Watch, December 1982) p.5-6. 11. La Prensa (Tegucigalpa), April 6, 1984. 12. DiarioLa Tribuna, October 13, 1984. 13. The proportion of Salvadorean soldiers trained at the Regional Military Training Center (CREM) was three Salvadoreans for each Honduran. 14. El Heraldo (Tegucigalpa), July 22, 1985. 15. Testimony of Paul Gorman before the Military Construction Subcommittee of the Senate Appropriations Committee, April 6, 1987, Washington, D.C. 16. Author's interview with Maj. Ricardo Zdiniga, May 1984. Zdniga was mysteriously murdered in September 1985, some fear in response to testimony he gave to U.S. congressional contacts about death-squad activity. See Christian Science Monitor, November 19, 1985. 17. La Tribuna (Tegucigalpa), June 27, 1982. 18. Tiempo (Tegucigalpa), June 26, 1986. 19. La Tribuna, June 11, 1983. 20. Traveling in the plane were Mario Calero, brother of Adolfo Calero, chief of the contra Nicaraguan Democratic Force (FDN), and two NBC television journalists. The Honduran military privately used this argument as a pretext to reject the shipment and return the plane to the United States, its country of origin. 21. Halima Sirker served as Nicaraguan Consul in Houston, Texas; a member of the Nicaraguan United Nations delegation; and later as ambassador to India. Sirker later retired from the diplomatic corps and lives in the United States. 22. See Victor Meza, "Una historia para John Le Carre," Tiempo (Tegucigalpa), April 25, 1986. 23. "La Contra: un buen negocio," Boletin Informativo No. 61, May 1986, p. 14 (Tegucigalpa: Centro de Documentaci6n de Honduras, CEDOH). 24. "Quienes fueron?" Boletin Informativo No. 66, October 1986, p 3. (Tegucigalpa: CEDOH); Congressional Record, June 26, 1986. 25. La corrupci6n en Honduras 1982-85, CronologiaNo. 3 (Tegucigalpa: CEDOH, September 1985). 26. La Tribuna, May 4, 1987. 27. Testimony of Richard Armitage before Military ConstrueJANUARY/FEBRUARY 1988 tion Subcommittee of U.S. Senate Appropriations Committee, April 6, 1987, Washington, D.C. Campesinos: Between Carrot and Stick 1. Honduras is unique in Central America in that, as late as 1974, up to one-third of its land was still public-either national or ejidal (community owned). Charles D. Brockett, "Public Policy, Peasants, and Rural Development in Honduras," Journal of Latin American Studies, Vol.19, p. 79. 2. J. Mark Ruhl, "The Honduran Agrarian Reform Under Suazo Cord6va, 1982-85; An Assessment," Inter-American Economic Affairs, Vol. 39, no. 2 (Autumn 1985), p.65, quoting statistics from CEPAL (Comisi6n Econ6mica Para America Latina). 3. The ceilings ranged from 100 to 2000 hectares, with most of the country falling in the 250-500 hectare category. Ley de Reforma Agraria: Reglamentos y Otras Disposiciones (Tegucigalpa: Instituto Nacional Agrario, 1978), p. 22. 4. One hectare equals 2.47 acres. 5. In 1963, when FENACH leaders were imprisoned and their offices destroyed, founder Lorenzo Zelaya and a group of followers fled to the mountains to form a guerrilla front. The front was crushed by the Army in 1965. 6. Everyone I interviewed at AID insisted on anonymity. 7. Marcial Euceda has since formed a new group called Peasant Organization for Honduran National Agriculture (OCANH), which operates in the department of Santa Barbara. 8. INA claims it pays almost $250,000 a year for the salaries of peasant activists. In 1987 FECORAH reportedly received $50,000; ANACH $105,000; and the UNC $90,000. 9. El Tiempo (San Pedro Sula), June 29, 1987. 10. La Prensa (Tegucigalpa), May 6, 1987. 11. El Tiempo, July 9, 1987. World Bank, World Development Report 1987 (New York: Oxford University Press, 1987). 12. Mario Ponce, "Honduras: Agricultural Policy and Perspectives," Honduras Confronts its Future (Boulder: Lynne Rienner Publishers, 1986), p. 133. 13. FY 1988 Congressional Presentation, Annex 111, Latin America and the Caribbean(Washington, DC: Agency for International Development, 1987), p. 134. 14. Andlisis y propuestas sobre las seis recomendaciones en materia agrariaformuladas por la misidn presidencial agricola de los Estados Unidos de America a Honduras, (Tegucigalpa: Instituto Nacional Agrario, no date). 15. Boletin Informativo, No. 30 (September 1987). This total represents roughly 16% of the rural population (although the subsequent abandonment of the land by many families probably reduces it to about 10%), and some 11% of the land. 16. Ilja Luciak, "National Unity and Popular Hegemony: the Dialectics of Sandinista Agrarian Reform Policies, 1979-1986," Journal of Latin American Studies, Vol.19, p. 113. 17. Instituto Hondurefio de Desarrollo Rural, 84 meses de reforma agrariadel gobierno de lasfuerzas armadas de Honduras (Tegucigalpa: IHDER, 1980), pp. 258-259. 18. Andlisis y propuestas. 19. Brockett, "Public Policy," p. 82. 20. Andlisis y propuestas. 21. Peter Peek, Agrarian Structure and Rural Poverty: The Case of Honduras (Geneva: InternationalLabour Organisation, 1984), p. 17. 22. Andlisis y propuestas. 23. Andlisis y propuestas. 24. Brockett, "Public Policy," p. 76. 25. Ponce, "Honduras: Agricultural Policy," p. 146. 26. World Bank, 1987. 27. La Tribuna (Tegucigalpa), December 16, 1986. 28. In These Times, March 18-24, 1987, p. 9. 39
© Copyright 2026 Paperzz