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ACTION WHA -00 NCLASSIFIED 16

INFO LOG-00 AID-00 CRA-01 CIAE-00 CTME-00 INL-00 DNI-00DODE-00 DOTE-00 PDI-00 DS-00 B-00 XIM-01 E-00FAAE-00 FBIE-00 VCI-00 FRB-00 H-00

EDE-00 INR-00ITC-01 LAB-01 L-00CIE-00 NRC-00 NSAE-00 ISN-00

NSCE-00 OE3-00 OMB-00 NIMA-00 GIWI-00 ISNE-00 DOHS-00FMPC-00 SP-00 30-00 SS-00

TR-00 BBG-00 EPAE-00IIP-00 DSCC-00 PRM-00 DRI-00 G-00 FAT-00 SAS-00SWCI-00 004W

INFO ALL US CONSULATES IN MEXICO COLLECTIVEDEPT OF COMMERCE WASHDC 1 , 1.4(D)DEPT OF ENERGY WASHINGTON DCDEPT OF TREASURY WASHDC

CONFIDENTIAL MEXICO 003609

SIPDIS

FOR WRA/MEX, WHA/EPC, EB/IEDTREASURY FOR IA MEXICO DESK: JASPER HOEICCOMMERCE FOR ITA/MAC/NAFTA: ANDREW RUDMANENERGY FOR KDEUTSCH AND SLADISWAN

E.O. 12958: DECL: 06/27/2016TAGS: ECON, EFIN, ENRG, MX, PGOV, PINR, PRELSUBJECT: CALDERON'S 100 ACTIONS

REF: MEXICO 2577

lassified By: Acting Econ Chief Jonathan Kesslerfor reasons 1.4 (b) and (d)

(SBU) Summary. Only a few days prior to the Presidentialection Felipe Calderon, candidate of the National Actionarty (PAN), presented 100 actions that he will take durings first 100 days as president. These actions divide intove main themes: public security, economics, equalportunity, development, and effective democracy andsponsible foreign policy. His proposals include energy,cal and electoral reforms, yet he fails to address greatlyeded

labor reform. Additionally, he offers to granttonomy to the Public Ministry, improve the justice system,mote security, institute a life sentence for kidnappers,rk to eradicate addiction and piracy, and improve support

UNITED STATES DEPARTMENT OF STATEREVIEW AUTHORITY: OSCAR J OLSONDATE /CASE ID: 17 FEB 2009 200704261 UNCLASSIFIED

EB905C 291409Z /38R 2914482 JUN 06FM AMEMBASSY MEXICOTO SECSTATE WASHDC 1910

RELEASED IN PART

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UNCLASSIFIEDfor abused women and children, among other proposals. EndSummary.

Energy, Fiscal and Electoral Reforms

2. (SBU) Calderon announced that he would negotiate withCongress to allow Pemex to create technological associationswith businesses for exploration of deepwater oil fields andto allow for complementary investment in the refinery andpetrochemical sectors. Additionally, he proposes to boostnatural gas production by thoroughly revising some existingprojects such as those in the Burgos Basin and providegreater resources to those projects that are more likely toincrease production. He promises to install an independentauditing company in both Panex and CFE to clean up both statecompanies and guarantee transparency.

3. (SBU) Without specifics, Calderon proposed to negotiatewith Congress a reduction in the tax rate applicable to rent

and simplify taxation.

4. (SBU) Calderon calls for an electoral reform to shortenthe length of political campaigns and lower the fundingdestined for political parties.

Employment and competitiveness persists as his main focus

5. (C) As expected, most of his proposals fall under theconomic rubric with special emphasis on boosting employment

nd competitiveness, while preserving macroeconomictability. He offers to reduce bureaucratic expenses byevising the federal government's administrative structure toliminate redundancies. He intends to promote equalmployment opportunity through fiscal incentives tousinesses and to strengthen financial support for small andedium-size businesses, though he fails to provide specifics to the amount of incentives slated for businesses or byhat percentage bureaucratic expense will be reduced.

(C) Telecommunications. Calderon promises to define thechnical and economic aspects that will allow local number

rtability in the second semester of 2007. He will act one CFC's recommendations to eliminate regulatory barriersd allow a complete convergence in all telecommunicationated services./

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7. (SBU) Infrastructure and Agrarian Development. Ininfrastructure he promises to continue highway and hospitalconstruction already in progress, specifically on highways inthe Southeast and seven hospitals throughout the country. Aplan to reduce agrarian production costs to U.S. and Canadianlevels would be articulated to prepare for the elimination oftariffs in 2008. Calderon intends to reduce migration to theU.S. through the promotion of agricultural programs thatguarantee earnings to farmers for their crops, increasecredit to young farmers to facilitate the acquisition ofparcels and provide technical assistance and education inorder to improve productivity and innovation.

Health, education and poverty reduction

8. (SBU) Calderon offers to provide medical insurance to allnewborns after the first trimester of 2007, to send small

medical units to the rural communities in the states ofOaxaca, Guerrero and Chiapas, to endorse campaigns fordisease prevention and health education, and to increase thesupply of medicines in hospitals and clinics throughout thecountry.

9. (SBU) Calderon stresses that education is an essentialarea that needs to be improved. He proposes to increase theudget destined for government scholarships to more than 7.5

million children, boost security in schools with thearticipation of the entire community, and enhance educationt university level and for advanced degrees.

0 . (SBU) To reduce poverty he intends to develop a supportrogram to facilitate and provide housing for poor families.e intends to subsidize electricity destined to the poorest

amilies in the country and to promote the construction ofater plants in Mexico City.

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Visit Mexico City 's Classif ied Web Site athtt p : / / www.state.sgov.gov/p/wha/maxicocit y

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