[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]






                               


 
                      THE U.S.-HONDURAS BILATERAL
                      RELATIONSHIP: ANALYZING THE
                        SOCIALIST GOVERNMENT OF
                   PRESIDENT XIOMARA CASTRO DE ZELAYA

=======================================================================

                                HEARING

                               BEFORE THE

                   SUBCOMMITTEE ON WESTERN HEMISPHERE

                                 OF THE

                      COMMITTEE ON FOREIGN AFFAIRS
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                            OCTOBER 25, 2023

                               __________

                           Serial No. 118-55

                               __________

        Printed for the use of the Committee on Foreign Affairs
        
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Available: http://www.foreignaffairs.house.gov/, http://docs.house.gov, 

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                        ______

             U.S. GOVERNMENT PUBLISHING OFFICE 
 55-693             WASHINGTON : 2024                      
                       
                       
                       
                       
                      COMMITTEE ON FOREIGN AFFAIRS

                   MICHAEL T. McCAUL, Texas, Chairman

CHRISTOPHER H. SMITH, New Jersey     GREGORY MEEKS, New York, Ranking 
JOE WILSON, South Carolina               Member
SCOTT PERRY, Pennsylvania            BRAD SHERMAN, California
DARRELL ISSA, California             GERALD E. CONNOLLY, Virginia
ANN WAGNER, Missouri                 WILLIAM KEATING, Massachusetts
BRIAN MAST, Florida                  AMI BERA, California
KEN BUCK, Colorado                   JOAQUIN CASTRO, Texas
TIM BURCHETT, Tennessee              DINA TITUS, Nevada
MARK E. GREEN, Tennessee             TED LIEU, California
ANDY BARR, Kentucky                  SUSAN WILD, Pennsylvania
RONNY JACKSON, Texas                 DEAN PHILLIPS, Minnesota
YOUNG KIM, California                COLIN ALLRED, Texas
MARIA ELVIRA SALAZAR, Florida        ANDY KIM, New Jersey
BILL HUIZENGA, Michigan              SARA JACOBS, California
AUMUA AMATA COLEMAN RADEWAGEN,       KATHY MANNING, North Carolina
    American Samoa                   SHEILA CHERFILUS-McCORMICK, 
FRENCH HILL, Arkansas                         Florida
WARREN DAVIDSON, Ohio               GREG STANTON, Arizona
JIM BAIRD, Indiana                   MADELEINE DEAN, Pennsylvania
                                     JARED MOSKOWITZ, Florida
MICHAEL WALTZ, FloridaJ              ONATHAN JACKSON, Illinois
THOMAS KEAN, JR., New Jersey         SYDNEY KAMLAGER-DOVE, California
MICHAEL LAWLER, New York             JIM COSTA, California
CORY MILLS, Florida                  JASON CROW, Colorado
RICH McCORMICK, GeorgiaBRAD SCHNEIDER, Illinois
NATHANIEL MORAN, Texas
JOHN JAMES, Michigan
KEITH SELF, Texas

   
                     Brenda Shields, Staff Director

                    Sophia Lafargue, Staff Director
                                 ------                                

                   Subcommittee on Western Hemisphere

                     MARIA SALAZAR, Florida, Chair

KEN BUCK, Colorado                   JOAQUIN CASTRO, Texas, Ranking 
MARK GREEN, Tennessee                    Member
BILL HUIZENGA, Michigan
WARREN DAVIDSON, Ohio
KEITH SELF, Texas

                                     GREG STANTON, Arizona
                                     JARED MOSKOWITZ, Florida
                                     SYDNEY KAMLAGER-DOVE, California

          Maggie Goessler, Acting Subcommittee Staff Director
                            C O N T E N T S

                              ----------                              
                                                                   Page

                               WITNESSES

Jacobstein, Eric, Deputy Assistant Secretary for the Bureau of 
  Western Hemisphere Affairs of the Department of State..........     8
Guilarte, Mileydi, Deputy Assistant Administrator for the Bureau 
  of Latin America and the Caribbean, United States Agency for 
  International Development......................................    14

                                APPENDIX

Hearing Notice...................................................    32
Hearing Minutes..................................................    34
Hearing Attendance...............................................    35

             ADDITIONAL STATEMENTS SUBMITTED FOR THE RECORD

Statement submitted for the record from Arturo Zacapa............    36
Statement submitted for the record from Erick Brimen.............   185

            RESPONSES TO QUESTIONS SUBMITTED FOR THE RECORD

Responses to questions submitted for the record..................   187


                      THE U.S.-HONDURAS BILATERAL



 RELATIONSHIP: ANALYZING THE SOCIALIST GOVERNMENT OF PRESIDENT XIOMARA 
                            CASTRO DE ZELAYA

                      Wednesday, October 25, 2023

                          House of Representatives,
            Subcommittee on the Western Hemisphere,
                      Committee on Foreign Affairs,
                                                    Washington, DC.

    The subcommittee met, pursuant to notice, at 3:08 p.m., in 
room 2200, Rayburn House Office Building, Hon. Maria Elvira 
Salazar (chair of the subcommittee) presiding.
    Ms. Salazar. Sorry that we are a little bit delayed, but 
you know we were just picking a new Speaker of the House. And 
thanks to all of you for being here, and the Subcommittee on 
the Western Hemisphere will come to order.
    The purpose of this hearing is to discuss the bilateral 
relationship between the United States and Honduras and to 
examine the leadership of the current president of the country, 
Xiomara Castro. I now recognize myself for an opening 
statement.
    As I said, let's talk about Honduras. And once again I 
thank all of you for being here. Sorry that we are a little bit 
delayed. Thank you for my colleague Mr. Castro and for the 
witnesses to have--having waited at this time, but like I said, 
you know, it is--we were on the floor.
    So I am very happy to be here talking about Honduras. We 
have so many constituents in District No. 27, people that I 
represent that are of Honduras--Honduran background. And for 
the last decade the country, a beautiful country in Central 
America, has been fighting for its political life. In 2006, 
then the president of the country, Manuel Zelaya, tried to push 
Honduras to the left to embrace socialism. Case in point, he 
was the first Honduran president to visit Cuba in 46 years 
since Fidel Castro took over.
    In the next 3 years of his presidency Mr. Zelaya tried to 
take a copy out of Hugo Chavez' socialist playbook and 
implement it in the country. Zelaya tried to stay in power and 
challenged democracy by calling a referendum on a new 
constitution. A change to the Honduras constitution was--
obviously his intention was to try to stay in power 
indefinitely like Hugo Chavez has done. But the Honduran 
Supreme Court stuck it out, did its job, and struck that 
initiative as--or labeled it as unconstitutional. Then the 
Honduran democracy stood strong; thank God for that, and the 
armed forces abided by their duty to uphold democracy and Mr. 
Zelaya was out of office.
    But unfortunately socialism is like a plague that it always 
fights back. While President Zelaya was in exile he hatched a 
plan to make his wife president of the country and now that 
is--President Castro is his proxy.
    Zelaya is the real president at this hour although 
President Xiomara Castro has the title.
    During the 2-years that Mrs. Castro has been in power there 
are many details and many instances that prove their socialist 
ideology. Earlier this year at CELAC, which is a pro-China 
Latin American summit, President Castro announced that her 
government was following in the steps of Hugo Chavez. In a very 
proudly fashion she explained that new idea.
    On August 31 of 2021, 2 years ago, a video celebrating what 
would have been Fidel Castro's 95th birthday, Fidel Castro, 
President Zelaya doubled down on his socialist ideology saying 
that our ideals are the same as those of Fidel and the Cuban 
Revolution. In other words, disaster, poverty, destruction, 
repression, despair, and exile.
    In other words, Honduras is in trouble.
    And there are more examples that I can point out. Like for 
example, the president--the government of President Castro has 
threatened to expropriate foreign companies, and one of those 
instances is a project called Prospera in the island of Roatan.
    The government of Honduras has broken relations with the 
island of Taiwan and recognized Communist China as a new 
diplomatic partner. They have created the so-called 
collectivos, which are armed civilians composed of civilians, 
activists, and all they do is intimidate political opponents. 
And the best collectivos were seen during the Chavez years in 
Venezuela. I happen to have interviewed a couple of their 
leaders.
    Last month at the United Nations President Castro defended 
Cuba and Venezuela again and she said that capitalism only 
causes misery. As if Cuba and Venezuela are paradises, right? 
You have 7 million people who have left Venezuela; 2 more 
million Cubans to have left the island. And for what reason? 
Because it is unbearable to live under socialism.
    Unfortunately socialism is not her only sin. Corruption is 
also on her list. And here is the proof: President Castro has 
given top positions to 13 close family members. That is called 
nepotism. One of President Castro's first acts upon becoming 
president was to forgive all those from her husband's 
Administration. Everyone served under Zelaya's Administration 
that was accused of corruption was forgiven.
    In 2020 President Zelaya was detained with $18,000 in cash 
at the airport in Tegucigalpa and he just couldn't explain 
where the money came from. But unfortunately those who try to 
expose corruption within the Zelaya or the Castro government 
were punished. For instance, perfect example is the Consejo 
Nacional Anticorrupci"n. Her name is Gabriela Castellanos and 
she had to flee the country.
    What surprises us and worries us in this committee is the 
shocking response from the Biden Administration toward the 
Zelaya-Castro government. The Biden Administration, our 
president, has celebrated the election of Xiomara Castro and 
wished her great success. In January 2022 the Vice President of 
the country attended her inauguration. Not even President Lula 
from Brazil got the Vice President at his inauguration for 
president.
    The White House has continued to make Honduras their 
partner of choice in Central America despite all the warning 
signs that I just enumerated, among a few of them. While El 
Salvador, Guatemala, and other countries have been cast aside 
by this Administration, Honduras is being showcased as a 
success story in Central America.
    El Salvador at this hour is trying to pledge in wanting to 
help with the United States in order to stop those migrants who 
are crossing the country trying to get to the United States and 
is trying to help the United States with crime. Guatemala is 
offering help also to the United States by continuing to 
recognize Taiwan, refusing to do business with China, and 
trying to stop the flow of migrants.
    But El Salvador and Guatemala, they are not getting the 
same type of treatment from this Administration as Honduras is.
    Honduras does not help the United States with crime, with 
migration, with China, and still it gets all the glory.
    So I ask the Biden Administration to reassess its strategy 
for Central America. When somebody tells you that they do not 
like the United States and they do not like capitalism and they 
like Fidel and they like Hugo Chavez, you got to listen to them 
because they have a completely different agenda than what is 
the one that we have in the United States.
    So I just wanted to send a little message in Spanish as I 
usually do to
    [speaking in Spanish].
    So having said that, I now recognize the ranking member, 
the gentleman from the great State of Texas, Mr. Castro, for 
any statements he may have.
    Mr. Castro. Thank you, Chairwoman Salazar, for convening 
this hearing to discuss the very important bilateral 
relationship between Honduras and the United States.
    And welcome back to both Mr. Jacobstein, who now gets to 
sit on the other side of the dais here; welcome home, and Ms. 
Guilarte, who testified here a month ago.
    When the Honduran people elected President Castro in 2022, 
they did so with the hope that her Administration would be a 
change from the status quo. Her victory was historic, not only 
because it made her the first female president of Honduras, but 
also because of how she worked to bring marginalized Hondurans 
into the political sphere.
    The election of President Castro presented a new 
opportunity to strengthen the U.S.-Honduras cooperation on a 
range of issues including supporting the rule of law, 
migration, development, and building on the strong record of 
security cooperation between our two nations. This hearing is 
an opportunity--is an opportune time to take stock of where our 
relationship is and how we can move forward together.
    At the beginning of the Biden Administration I raised the 
importance of establishing a U.N.-backed anti-corruption body 
in Honduras and I was encouraged by the Castro Administration's 
decision to pursue the establishment of such a commission, now 
known as CC. I have consistently fought to include funding in 
our congressional appropriations for this commission and am 
glad that the United Nations has also been very supportive, but 
I know that progress on establishing this commission has been 
slow. And I share the concerns of many in civil society about 
whether CC will have sufficient independence, accountability, 
and prosecutorial powers.
    As we support Honduras in the establishment of 
institutional anti-corruption mechanisms, I hope the Castro 
Administration will also continue to prioritize key tenets of 
democracy such as human rights, an independent judiciary, and 
the protection of civil society. This is particularly important 
as the country looks to choose its next attorney general and 
aims to address gang violence and public safety which should be 
done in a way that respects due process and access to justice.
    Honduras has consistently been ranked one of the most 
dangerous countries in the world for land defenders who have 
often faced violence, murder, and forced disappearance by 
illegal developers and organized crime. While progress has been 
made, the Honduras government with our support must do more to 
protect indigenous populations and land.
    I also must raise the concerning developments in corporate 
lawsuits against Honduras over the Employment and Economic 
Development Zones, or ZEDE, which ask for $10.8 billion in 
damages, which is one-third of the entire Honduran economy. 
Although I support efforts to create a strong environment for 
private sector investment, I have serious concerns about the 
scale and scope of the lawsuits.
    The United States has the option under the Central America-
Dominican Republic Free Trade Agreement to weigh in with the 
Investor State Dispute Resolution Tribunal, and I hope that the 
State Department seriously considers doing so.
    As we discuss our economic bilateral relationship we cannot 
ignore that Honduras is the most recent country to switch 
diplomatic recognition from Taiwan to China. This is 
disappointing as Taiwan has been a strong partner for many 
countries in the region. While this decision has been made I 
urge Honduras to be clear-eyed about the risks of deepening its 
relationship with China. The United States should present 
alternatives to the PRC including on development and should 
actively support Honduras' ability to advocate for itself when 
it engages with China including through technical support with 
investments or contracts involving PRC entities.
    The Biden Administration has rightly recognized that the 
challenge of migration in the Western Hemisphere is one that we 
do not face alone and I appreciate the Honduran government's 
collaboration on regional migration issues. A key effort by the 
Biden Administration to address root causes of migration has 
been the establishment of USAID's Centroamerica Local, a pilot 
program to pursue locally led development in Central America.
    I was glad to work with Administrator Power and my 
colleagues to get the authorization for this provision into law 
and I look forward to working on more initiatives to promote 
inclusive economic growth and support community stability. But 
we also must go beyond root causes and ensure that U.S. 
immigration policies reflect the needs of the region and 
support the integration of migrants both in our partner 
countries and across our hemisphere.
    I was extremely disappointed that the Biden Administration 
did not redesignate TPS for Honduras earlier this year, as 
Chairwoman Salazar and I have called on the Administration to 
do for multiple years.
    Before I close I want to note that the Republican State and 
Foreign Operations Funding Bill significantly reduces funding 
for programs in the Western Hemisphere and the long delay in 
electing a speaker has only further delayed the necessary 
enactment of a funding bill that adequately represents our 
Nation security interests.
    We must be more engaged with our Latin American neighbors, 
a view that I know many of my Republican colleagues share, and 
I hope that members will reject these drastic cuts that would 
make it harder for the United States to defend our values and 
interests in the Western Hemisphere.
    With that, chairwoman, I yield back.
    Ms. Salazar. Thank you, ranking member, Mr. Castro.
    And now I want to recognize and welcome the panel of 
witnesses from State Department and the USAID who work closely 
on the issues surrounding this bilateral relationship between 
the United States and Honduras. And I welcome and I thank you 
very much for being here.
    Mr. Eric Jacobstein is the Deputy Assistant Secretary for 
the Bureau of Western Hemisphere Affairs of the United States 
Department of State, the right person to answer the right 
questions.
    So thank you for being here.
    And Mileydi Guilarte is the Deputy Assistant Administrator 
for the Bureau of Latin America and the Caribbean at the United 
States Agency for International Development.
    Thank you again for both of you being here, and your full 
statements will be made part of the record. I will ask each of 
you to keep your remarks to 5 minutes. And I now recognize Mr. 
Jacobstein for his opening statement. Welcome.

 STATEMENT OF ERIC JACOBSTEIN, DEPUTY ASSISTANT SECRETARY FOR 
 THE BUREAU OF WESTERN HEMISPHERE AFFAIRS OF THE DEPARTMENT OF 
                             STATE

    Mr. Jacobstein. Thank you. Thank you, Chairwoman Salazar, 
Ranking Member Castro, and members of the subcommittee, for the 
opportunity to testify today on Honduras. I am very pleased to 
testify alongside my USAID colleague and friend, Deputy 
Assistant Administrator Guilarte. And as Ranking Member Castro 
said, it is a particular honor to be back here at the Foreign 
Affairs Committee, a place where I worked for over a decade, 
including on this subcommittee. The role of the Foreign Affairs 
Committee and the Western Hemisphere Subcommittee could not be 
more significant as we look to deepen relations with our 
partners in the hemisphere.
    Honduras is an essential partner. We share a host of common 
objectives including countering corruption, creating 
employment, improving education, protecting human rights, 
enhancing security conditions, combatting drug trafficking, and 
humanely managing migration.
    Under the Root Causes Strategy we work with the Honduran 
government and non-governmental actors to achieve results in 
these areas. This is certainly not an easy undertaking. 
Honduras faces long-standing challenges including poverty, 
inequality, crime, endemic corruption, narco trafficking, 
extreme weather catastrophes, and policies that inadequately 
support economic growth.
    To address shared challenges we partner with Honduras in a 
range of areas with an emphasis on overlapping interests. 
President Castro's November 2020 election victory presented an 
opportunity to break with the corruption and democratic 
backslating--sliding that took place under former President 
Juan Orlando Hernandez, who currently awaits trial in New York 
on drug trafficking charges.
    Earlier this year I joined a delegation to Tegucigalpa to 
participate in a bilateral, strategic, and human rights dialog 
during which we sat down with Honduran leaders and took stock 
of the bilateral relationship after the government's first 
year. We discussed how we could move forward together on shared 
objectives that support the goals of the Root Causes Strategy.
    In September we hosted President Castro on a visit to the 
U.S.-Mexico border which served to improve our shared response 
to managing migration and to strengthening border security. We 
applaud Honduras' progress in passing legislation regarding 
internally displaced persons and also for working with us on 
enforcement efforts.
    We have a long-standing security cooperation relationship 
with Honduras including through our presence at Soto Cano Air 
Base. For decades Joint Task Force-Bravo, which is stationed 
there in Honduras, has enabled robust security cooperation, 
humanitarian assistance, and disaster relief, both in-country 
and throughout the region. We look forward to continuing this 
cooperation with Honduras.
    We also look forward to continued collaboration to make 
progress on effective governance and on the rule of law.
    This hearing has committed to addressing corruption and 
impunity and President Castro has invited the U.N. to establish 
an independent anti-corruption commission. We applaud this 
effort, but we urge its rapid establishment in accordance with 
U.N. guidelines. And we also urge the government to fund 
existing units that investigate corruption.
    On security the Honduran National Police continue to 
prioritize our relationship on a wide range of issues. Earlier 
this year we also announced our intent to collaborate with the 
Honduran government to address gender-based violence, a key 
pillar in the Root Causes Strategy.
    The Honduran government states its foreign policy is to 
meet its international cooperation needs by opening the door to 
new countries, including the People's Republic of China. While 
we acknowledge that diplomatic recognition is a sovereign 
decision, we note the PRC often makes promises in exchange for 
recognition that ultimately remain unfulfilled.
    Amid a highly politicized environment that is marked by 
charged language on all sides we have been concerned by 
inflammatory rhetoric to attack those who have raised 
legitimate concerns. This includes civil society actors, 
journalists, the private sector, and members of the 
international community, including our own Ambassador. We have 
firmly pushed back on this rhetoric in public and in private.
    With regard to the economy we aim to mobilize additional 
investment in Honduras through the Vice President's Central 
America Forward initiative which has already brought $4.2 
billion in investment commitments and new jobs in northern 
Central America. Future commitments of course will depend on a 
favorable investment climate and sound economic decisions.
    We applaud the government of Honduras' prioritization of 
human rights, but tragically human rights, environmental, and 
labor activists continue to work under threat of violence and 
death. We continue to call upon the Honduran government to 
protect activists like Miriam Miranda, Jose Ramiro Lara, who 
face serious threats, and to completely timely and transparent 
investigations into killings of activists like Jairo Bonilla 
and Aly Dominguez.
    On the topic of civic space, in the context of the recent 
supreme court election, the ongoing attorney general selection 
process, we continue to emphasize the fundamental importance of 
legal, transparent, and peaceful democratic processes.
    The situation in Honduras is complex, but we remain 
committed to a strong bilateral relationship given our two 
countries' cultural, economic, familial, and geographic times. 
The best way forward in our view to advance U.S. interests in 
the region is to engage deeply with Honduras. In sum, the 
success of Honduras will be our success.
    Before I close I would be remiss not to mention a final 
topic of import to this subcommittee. On October 20 the 
Administration made a supplemental request to Congress on 
migration which includes $1.3 billion to the State Department 
USAID to address urgent migration management requirements in 
the Western Hemisphere and to sustain enduring commitments 
through the end of Fiscal Year 2024. We expect the number of 
displaced persons in the hemisphere, including families and 
children, to increase to nearly 25 million by the end of 2024, 
so these funds are urgently needed.
    Thank you and I look forward to your questions.
    [The prepared statement of Mr. Jacobstein follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] 
    
    Ms. Salazar. Thank you, Mr. Jacobstein.
    Now I recognize Ms. Guilarte for her opening statement.

 STATEMENT OF MILEYDI GUILARTE, DEPUTY ASSISTANT ADMINISTRATOR 
   FOR THE BUREAU OF LATIN AMERICA AND THE CARIBBEAN, UNITED 
          STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

    Ms. Guilarte. Chairwoman Salazar, Ranking Member Castro, 
members of the subcommittee, thank you for the invitation to 
discuss our work in Honduras and for your bipartisan support. I 
am also happy to join my colleague Deputy Assistant Secretary 
Jacobstein and also, just as you mentioned be back--just a few 
weeks, I think about 3 weeks ago, where I was here discussing 
PRC's malign influence in the Western Hemisphere.
    I am often asked about the most important element for 
successful development. As someone who was born in Cuba and 
emigrated to the United States the clearest answer to me is 
simple: democratic governance. Responsive and transparent 
governance-and an independent judicial system allows people to 
have faith in their government. Without it people often 
emigrate in search of a better environment, creating a vacuum 
of human capital that impedes a society from flourishing.
    The Administration's Root Causes Strategy recognizes that 
and is focused squarely on improving governance, promoting 
respect for human rights and a free press, increasing citizen 
security, growing economies, and reducing gender-based 
violence, key push factors for migration to the United States.
    Across USAID's programs we are increasing our partnerships 
with local actors under the Centroamerica Local Initiative so 
that communities drive and sustain these efforts in the long 
term. Our partnership is with the people of Honduras,
    [speaking in Spanish], and it has endured through changes 
of parties and Administrations. We work with the current 
Honduran Administration in areas where we find common ground 
and like in every bilateral relationship we engage in frank and 
open conversations about areas where we have differences.
    We welcome President Castro's commitment to establishing an 
anti-corruption commission and we encourage both the government 
of Honduras and the United Nations to expeditiously reach a 
final agreement to implement a commission that will provide 
tangible results.
    We have also been disturbed by the high levels of impunity 
for attacks on environmental, labor, and human rights defenders 
and the increasing rates of femicide in Honduras. Observer 
groups estimate that at least 23 environmental activists have 
been killed since the beginning of 2022 and there have been 225 
deaths of women and girls in less than a year. That is one 
killed nearly every single day.
    In our engagements with the Honduran government we 
routinely raise human rights issues and advocate for robust 
funding for the Ministry of Human Rights' Protection Mechanism. 
We also encourage the Honduran Congress to select a new and 
independent attorney general in a transparent process so the 
public ministry, a crucial institution for the promotion of 
justice in Honduras, can operate effectively to the benefit of 
all Hondurans.
    Given these challenges USAID remains committed to helping 
the Honduran people build a stronger, more secure future. We 
are particularly proud of our work with the National 
Anticorruption Council, a Honduran civil society organization 
that has exposed corruption across multiple--multiple U.S. and 
Honduran Administrations. This type of civil society oversight 
channels Hondurans' demand for transparent and responsive 
governance.
    USAID has also worked with the Supreme Audit Institution 
and the Transparency Secretariat to improve access to public 
information and oversight capacity in municipal governments, 
and over the last 18 months we have worked with the Ministry of 
Education to reopen schools and get kids back in the classroom. 
USAID reached almost half a million primary and second 
education students in areas of out-migration and refurbished 
many schools this year so kids have a safe and healthy learning 
environment. This is a clear area of mutual interest where we 
have seen progress.
    And we have championed economic growth by working with our 
private sector partners including three of the world's largest 
coffee buyers who committed $109 million to connect 70,000 
farmer households with global markets. That is more than half 
of all Honduran coffee farmers. And last year as a direct 
result of USAID's assistance and these partnerships the yields 
of nearly 18,000 farmers increased by about 30 percent, giving 
hope to many rural families.
    As we look ahead we hope to build on these efforts so 
Hondurans can grow and thrive in their own communities. You 
only have to look to Honduras' neighbors to see how important 
it is to defend democratic values at all times. For this reason 
USAID's presence and programming in the region has never been 
more critical. USAID will continue to put the Honduran people 
first so families, communities, and the country as a whole can 
thrive and prosper.
    Thank you and I look forward to your questions.
    [The prepared statement of Ms. Guilarte follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] 
    
    Ms. Salazar. Yes, thanks to you, Mrs. Guilarte. And I like 
your comments: Honduran people first. And that is exactly what 
we all have in common, Republicans and Democrats.
    I now recognize myself for 5 minutes of questioning. And I 
once again thank you, both of you for being here.
    And, Mr. Jacobstein, look, I have a problem every time a 
government says that they like Fidel Castro or Hugo Chavez. I 
have a very big problem and I can only think that poor country 
that has a government that wants to implement or install those 
types of economic or social model or ideological model.
    So my question to you is if you know that Manuel Zelaya, 
the husband of the actual present president, has been very 
close to Fidel Castro and Hugo Chavez, and President Castro has 
said many times that capitalism leads to misery, I just would 
like you to tell me briefly how do you rate those comments? Do 
they concern your Administration?
    Mr. Jacobstein. Thank you very much for the question, Madam 
Chair. From my perspective the most important thing is actions, 
not words. So we are really focused from--advancing U.S. policy 
interests in Honduras through the Root Causes Strategy. So we 
are focused on the actions of the government and ways we can 
collaborate to advance U.S. foreign policy interests rather 
than rhetoric.
    Ms. Salazar. But when you are telling me actions, Xiomara 
Castro just kicked out Taiwan and welcomed Communist China. So 
right there it is something that no other nation--or it is very 
difficult to take that political position. So what do your 
Administration says to that?
    Mr. Jacobstein. Yes, thank you for that. Well, we recognize 
that diplomatic recognition is a sovereign decision. We 
certainly cautioned Honduras that China often makes promises in 
exchange for recognition that ultimately remain unfulfilled. 
There are many recent and ongoing examples of such behavior in 
Latin America and around the world. And we share those concerns 
with the Honduran government at the highest levels.
    Ms. Salazar. And what have they answered? What do they say?
    Mr. Jacobstein. They ultimately decided to move forward 
with the PRC, but this is something that--a conversation we 
continue to have because we see a lot of promises unfulfilled. 
There are countless examples, as I know you all pointed to in 
your recent hearing on the PRC.
    Ms. Salazar. Right. That is socialism, which I repeat just 
mentioning those two presidents, we do not have to explain to 
the audience or to you the consequences of installing an 
Administration or ideology or a business model as Cuba or 
Venezuela. That does not need to even be mentioned.
    But let's now go into corruption. I am sure that you know 
about the Engel list that in my understanding has become a 
political tool of the left and many times has been used by the 
present Biden Administration to punish some of the conservative 
governments in Central America. I am just going to give you 
some facts.
    In El Salvador you have eight members of the Salvadorian 
Administration on the list. You have 15 members of Guatemala. 
You have zero names on Honduras on the--of Honduran--members of 
the government or Honduran nationals in the Engels list. And I 
just mentioned that one of the most important anticorruption 
members had to flee because of threats. So how could that be 
that the Engels list does not include anyone from Honduras? I 
think that would be the simple question.
    Mr. Jacobstein. Thank you. So the most recent iteration of 
the 353 list, which is sometimes referred to as the Engel list, 
was released earlier this summer. It included a number of 
individuals from Honduras, Guatemala, and El Salvador. I would 
say in the case of El Salvador this iteration included former 
president, certainly not of the party of Bukele. I think if you 
look at the list in sum, it is really ideologically diverse. It 
includes a number of members. And we found it has been 
effective. I mean, if you look----
    Ms. Salazar. But it does not include anyone from the--
Xiomara Castro's government.
    Mr. Jacobstein. Each time we make a different evaluation 
about what is the most impactful way to use this tool to affect 
corruption, and we will continue to do so as long as we have 
that tool.
    Ms. Salazar. And what about the 13 family members that are 
in the current government? That is called nepotism. What about 
those individuals?
    Mr. Jacobstein. You mentioned the anticorruption 
organization run by Gabi Castellanos, the commission. And I 
know they have done some important work on nepotism that looked 
both this Administration but also looked at previous 
Administrations. So I think nepotism is certainly something we 
have to look at across all----
    Ms. Salazar. Oh, no, no. I am not saying the Honduran 
people have endured many different Administrations that do not 
necessarily serve their interests. It is just that this has--
this Xiomara Castro Administration has the caveat of being 
socialist which brings other hardship to the Honduran people.
    Now we will go back to the--to corruption, but let me just 
give you other--another information that could be helpful. You 
know that we have a very big problem with migration. And 
according to my sources and to my research is that you have two 
very important members of the Administration, of the Honduras 
Administration--Xiomara Castro's Administration. One of them is 
La Gobernadora de Choluteca. Her name is Ilse Villatoro. And 
you have the Comisionado del Instituto Hondureno del Transporte 
Terrestre. His name is Rafael Barahona.
    What do they do? They are in the business of charging 
people who are going from point A to point B trying to get to 
the United States. They are charging $150 for a salvoconducto, 
which is a little piece of paper that you are supposed to be 
receiving in order to cross the country to get to Guatemala. 
Are you aware of that?
    Mr. Jacobstein. Thank you for your question. We certainly 
agree that managing irregular migration is a top priority. In 
2023 Honduras waived its fee for regular migrants entering by 
land to prove its ability to track migrants.
    Ms. Salazar. No, but listen. Let's get down to--do you know 
that these two people that I just mentioned, their positions--
and they were put there specifically by the president--are 
charging $150 for those who want to come to the United States? 
Does the Biden Administration is aware of this and have you 
mentioned this to the Honduran government?
    Mr. Jacobstein. I am not tracking this particular case and 
we would be happy to take it back. More----
    Ms. Salazar. But I am going to tell you exactly. Look, La 
Gobernadora de Choluteca, her name is Ilse Villatoro, and 
Rafael Barahona, el Comisionado del Instituto Hondureno del 
Transporte Terrestre--these people are--these are officials. 
These are bureaucrats that are charging. Where do you think 
this money is going to? A hundred and fifty bucks per person. 
You know how much money is that? A lot of money. Because most 
people go from el Darien and they have to go through Honduras 
to get to Guatemala to get to Texas. So Xiomara Castro's 
government is making a lot of money.
    So No. 1, were you aware of it?
    Mr. Jacobstein. We would be happy to take this back. I 
would say----
    Ms. Salazar. No, I am just asking you if you were aware of 
this. If I know it, you have to know it.
    Mr. Jacobstein. I am aware that in 2023 Honduras waived its 
fee for regular migrants entering by land to improve----
    Ms. Salazar. What do you mean waived their fees? I am 
telling you they are charging $150 for a salvoconducto.
    Mr. Jacobstein. The official----
    Ms. Salazar. Don't you know this?
    Mr. Jacobstein. The official fees have been waived.
    Ms. Salazar. Yes. Well, on paper, but not in practice. It 
is like communism. It is great on theory and it is horrible in 
practice. So the Biden Administration does not know this? If I 
know it, how come you guys do not know it?
    Mr. Jacobstein. We are aware that official fees that have 
been waived and we will take back this information.
    Ms. Salazar. So you are telling me that it has, but I 
repeat that--you know that it has been waived, but right now I 
am telling that it has not. That is being charged by these two 
people that belong to the government. You are not aware of 
this? Am I the first person telling you this?
    Mr. Jacobstein. We will take this information back.
    Ms. Salazar. Honduras completa knows this. So the Biden 
Administration that is trying to stop and curtail the legal 
migration--and not only that, as Mileydi could tell you, it is 
not only charging, is using these people as human cargo. So 
could you please go back to the people in the State Department 
and tell them that it would be a good idea to talk to the 
President about this? Could you do that for me?
    Mr. Jacobstein. Would be happy to take back your inquiry.
    Ms. Salazar. Thank you very much.
    All right. I know I am over time, so I do not want to 
fatigue your patience, so I am going to then stop my 
questioning right now and I am going to ask--I want to give 
time to my ranking member. Thank you.
    Mr. Castro. Thank you. A priority for the Biden 
Administration and for my work on this committee has been 
addressing root causes of migration and improving regional 
migration management. Both State Department and USAID play a 
key role in that effort, so I have a few questions for each of 
you.
    Ms. Guilarte, it has been a year since USAID launched the 
promising Centroamerica Local initiative, which you and I both 
mentioned in our comments earlier. So what is the status of 
this initiative and what lessons about locally led development 
has USAID learned through its experiences there?
    Ms. Guilarte. Thank you, Congressman. Yes, thank you again 
for all your support in our Centroamerica Local initiative, but 
really localization at large at USAID.
    As you mention, Centroamerica Local, it is a three--five-
year initiative for $300 million to empower local organizations 
in all of Central America: El Salvador, Guatemala, and 
Honduras, and through this initiative our missions, our 
leaders, and the agency.
    I am happy to report that on the first year of 
implementation for Fiscal Year 2022 we reached 14 percent of 
total funding obligations going to local organizations, which I 
think it is quite remarkable knowing what our baseline was and 
where we are today.
    I will give you a specific example in Honduras specifically 
on localization. Our work has been at the core of implementing 
the Root Causes Strategy. So we have a number of projects that 
we implement, but we are ensuring that that work is done 
through local organizations. They are the ones that have the 
skills, the know-how to be able to do this work.
    A recent example is that we have partnered with Fundacion 
Nacional para el Desarrollo de Honduras, FUNADEH, to increase 
opportunities in communities with the highest crime and out-
migration, specifically working with youth and returnees. So 
those that are returning migrants have an opportunity to 
integrate. Again, it is scaling up and wanting to do more in 
these areas of violence and out-migration.
    Just in the last year we have worked with over 75,000 youth 
and have worked in 61 youth outreach centers, again focusing in 
areas of most need. And that is just one of the many examples 
we have on localization.
    Mr. Castro. Well, and let me ask you, because I mentioned 
earlier that there is some very serious and deep appropriation 
cuts here at stake. And I want to ask you why is it important 
that we continue funding this particular initiative?
    Ms. Guilarte. Well, it is essential because, as I mentioned 
in my remarks, our commitment, our work, it is for the Honduran 
people, and youth in particular. Highest unemployment rate, 
whether it is gender-based violence. So there is a set of 
different factors that have already alluded to in our remarks 
and comments that it is--that is why it is essential to stay 
engaged, to continue working on areas where we are seeing 
improvement. So it is essential. That is what I would add.
    Mr. Castro. Thank you.
    And, Mr. Jacobstein, in the State Department's 2022 Country 
Reports on Human Rights Practices in Honduras the State 
Department painted a deeply troubling picture regarding the 
State of civil and human rights in the country. The report says 
there were significant human rights issues in the country 
including credible reports or documented cases of unlawful or 
arbitrary killings, torture, and cases of inhumane punishment 
by government agents, life-threatening prison conditions, 
serious restrictions on freedom of expression, gender-based 
violence, and crimes involving violence or threats of violence 
against indigenous, Afro-descendant communities, the LGBTQ 
communities.
    Given these conditions can you say that Honduran nationals, 
particularly those who have been in the United States for 
years, are safe if deported to Honduras?
    Mr. Jacobstein. Thank you very much for your question. We 
are very concerned over the killings and attacks of several 
activists this year. These deaths certainly heighten questions 
about security in Honduras and the ability for civil society 
members to freely express their legitimate concerns.
    And the Human Rights Ministry is working on the 
government's national protection mechanism. The mechanism 
reduced its staff recently. Several contacts assert that the 
combination of reduced personnel and lack of financial and 
technical assistance stands in the way of fully implementing 
needed security measures and protecting vulnerable populations. 
So the Human Rights Ministry is working to hire more staff for 
the protection mechanism and we look forward to working with 
the government to support improvements. But we do have concerns 
about violence against human rights defenders, certainly 
Garifuna indigenous communities.
    Mr. Castro. And then one last question in this round for 
me. What considerations went into the State Department's recent 
decision to recommend only an extension of TPS to Honduras and 
not a redesignation?
    Mr. Jacobstein. Thank you. So as you know, the Secretary of 
Homeland Security ultimately makes the designation with a 
recommendation from the Secretary of State. And we consistently 
assess country conditions and welcome your thoughts as we 
continue to do so.
    Mr. Castro. Thank you. I yield back.
    Ms. Salazar. Thank you, ranking member.
    And now I recognize Representative Stanton of the State of 
Arizona for 5 minutes. Thank you.
    Mr. Stanton. Thank you very much, Chairwoman Salazar.
    Thank you for convening today's hearing.
    Thank you to DAS Jacobstein and Deputy Assistant 
Administrator Guilarte for joining us today.
    Arizonans are directly impacted by increased migration from 
Latin America driven by violence and lack of opportunity. My 
bill, the American Cooperation With Our Neighbors Act, focuses 
on addressing these issues via cross-border collaboration, 
particularly with Mexico. That bill received bipartisan vocal 
support from this committee.
    And now that we have a Speaker of the House, I look forward 
to moving it soon to the House floor, but today I want to focus 
on the United States and how it partners with our Honduran 
neighbors to address migration and its root causes.
    DAS Jacobstein, our Customs and Border Protection officers 
encounter more migrants from Honduras than almost any other 
country. President Castro recently met with Secretary Mayorkas 
about the flow of migrants from Honduras to the United States 
and announced a plan to open four new consulates in the United 
States. How will the additional consulates support legal 
pathways for Hondurans seeking to come to the United States as 
visitors and workers?
    Mr. Jacobstein. Thank you for the question, Congressman. So 
President Castro's visit to the U.S.-Mexico border certainly 
move our cooperation on migration management forward. Among the 
commitments the Honduran government made during that trip was 
an announcement that Honduras would open four new consulates in 
the United States.
    So these consulates from the Honduran government will 
improve coordination with the Department of Homeland Security, 
the Department of Health and Human Services to help us humanely 
and securely manage migration, including with regard to those 
without a lawful basis to remain.
    Additional Honduran consulates in four new cities could 
also help identify potential U.S. employers for participation 
in the H2 Temporary Work Program. Together the U.S. and 
Honduras have significantly increased the number of Hondurans 
participating in the H2 Program over the past year. Approval of 
H2 visas have risen 45 percent in just a 12-month span. This 
supports our commitment in the Administration to expanding 
lawful pathways in the Western Hemisphere. And I know that 
USAID has done some really important work on the--in this space 
in the H2 field as well.
    Mr. Stanton. Are you aware of any plans to open a regional 
processing center in Honduras for those migrants heading to the 
United States?
    Mr. Jacobstein. Yes, thank you. So there are no plans to 
open a safe mobility office in Honduras at this time, but we 
are committed to working with partners around the region on 
improving all access to lawful pathways.
    Mr. Stanton. Deputy Assistant Administrator Guilarte, the 
U.S. and Honduras met for a strategic dialog last January where 
they announced partnerships on education and food security. 
What is the status of the Alliance for Education and U.S. 
Agricultural Assistance and how would these efforts target root 
causes of migration?
    Ms. Guilarte. Thank you, Congressman, for your question. As 
you mentioned, the Alliance for Education--it is a public/
private partnership that was signed earlier this year. It is 
$28 million over 3 years. We are engaging with the government 
of Honduras, the private sector--Ficohsa for example is one of 
our partners--and is really aimed at improving the basic 
education for at least 300,000 children and youth in Honduras.
    So far we have refurbished dozens of schools. Our aim is to 
have 51 schools. And the focus and the target areas will be in 
areas of high out-migration. Again, this is directly where 
communities are impacted by lack of opportunity, jobs, and so 
forth. So our investment through the Alliance for Education 
will be targeting youth in areas of high out-migration.
    And in terms of the agriculture assistance, we announced 
$10 million this year to increase agricultural productivity to 
offset rising fertilizer prices due to Russia's brutal war in 
Ukraine. So this will support our local production, but it also 
will be an extra tool to use--to--again for fertilizers, for 
crop productivity. So that is how the investment will be used.
    Mr. Stanton. Thank you. I want to--a discussion about 
nearshoring in my remaining time. Obviously tensions with China 
leads to nearshoring opportunities--Mexico, Central, and Latin 
America. Such potential investments could create productive 
local options for Hondurans who might otherwise join gangs or 
migrate north to the United States. Obviously there are major 
obstacles including inadequate energy, poor infrastructure, and 
concerns about rule of law. What do you think the United States 
should be doing differently to help Honduras attract 
nearshoring investment opportunities? And that is for either 
witness.
    Mr. Jacobstein. Thank you, Congressman. Happy to start off 
here. This is really important to us. And through the Central 
America Forward Initiative, which is the Vice President's 
flagship initiative on investment in the region, we are working 
with the private sector in the United States and in Central 
America to identify more opportunities for nearshoring in 
Honduras and the region.
    Central America certainly benefits from its geographic and 
cultural proximity to the United States and the region is well-
positioned for growth with an opportunity to nearshore more 
textiles, technology, and service jobs.
    Yesterday, the New York Times published an interesting 
story about the success of a Central America Forward partner 
company. Columbia Sportswear has found and shifting production 
from Asia to Central America due to trade barriers and 
disruptions in the shipping industry.
    So we continue to work with the Honduran government, with 
the El Salvadoran and Guatemalan government, other partners in 
the region to find more opportunities for nearshoring, and 
appreciate interests on both sides of the aisle on this 
important topic.
    Mr. Stanton. All right. I will submit my final question on 
human rights for the record. Madam Chair, I yield back.
    Ms. Salazar. Thank you, Congressman Stanton.
    Now I recognize Representative Kamlager-Dove of the State 
of California for 5 minutes.
    Ms. Kamlager-Dove. Thank you, Madam Chair. And thank you to 
our witnesses for being here again. Once again I take issue 
with the framing of this hearing, a very tired and old 
McCarthyism trope of yesteryear, which is both antidemocratic 
and counter to the U.S. interests to evaluate an entire 
bilateral relationship really according to partisan domestic 
political views. We should be a consistent partner to all 
democracies in the region and that want to work with us 
regardless of--political party in power. So I would like to 
focus my question on some of those issues.
    President Castro's June visit to China resulted in the 
signing of 17 MOUs with the PRC. These reportedly included an 
agreement on Chinese telecommunications. It also resulted in an 
arrangement for the State-run China media group to broadcast 
PRC news programs on Honduran state-owned television channels.
    So, Deputy Assistant Secretary Jacobstein, do we know if 
the MOUs include an agreement for Huawei to build out Honduran 
telecommunications networks which would be especially 
concerning given that the U.S. has a military base in that 
country? And how is State responding to the PRC's broader 
attempts to manipulate the news and information environment in 
Honduras?
    Mr. Jacobstein. Thank you for raising this critical issue. 
And as I mentioned earlier, we certainly--while it is a 
sovereign decision of the Honduran government to switch 
recognition, we certainly raised our concerns and continue to 
do so and continue to note that China's promises often are 
unfulfilled.
    With regard to Huawei and our presence at the Soto Cano 
base, that is absolutely critical and it would be very 
concerning if we saw a Chinese presence in any way at the base. 
And this is something that we have made clear, both publicly 
and privately to our Honduran partners.
    Ms. Kamlager-Dove. OK. Remittances make up 29 percent of 
Honduras' GDP, so clearly the Honduran diaspora in the United 
States including the Honduran-American community in my 
district, could be sources of investment into Honduras. So once 
again is the State Department working to connect the Honduran 
diaspora in the United States with investment opportunities in 
Honduras?
    Mr. Jacobstein. Thank you for that question. This is 
something that I think we would love to collaborate more 
closely with you on. Just this morning I was at the White House 
for an event with the Salvadoran diaspora which focused on a 
lot of ways that we can link up our domestic policy and our 
foreign policy to benefit communities in the United States and 
would love to work with you to find ways to leverage 
remittances in a positive way.
    So under Central America Forward we are pushing for more 
private investment, but I do think there is more we can do to 
link diaspora communities and would welcome the opportunity to 
work with you and your office.
    Ms. Kamlager-Dove. Thank you for that. Well many groups do 
talk about the challenges with DFC. I had a meeting with the 
Ambassador just yesterday and he said well, we would love to 
have more American businesses here. He mentioned groups like 
StarLink as it relates to telecom.
    So how aggressive are we being in helping to make our trade 
presence known or trade opportunities known? Because countries 
are coming saying oh, I love America. That is my No. 1 best 
friend. But we need more than defense and aid. We also need 
trade. And we are hearing that more and more from our partners 
in the Western Hemisphere who feel like we are overlooking 
them.
    Mr. Jacobstein. Absolutely. We think that is critical. And 
that is why the Vice President has galvanized $4.2 billion in 
private sector investment commitments in northern Central 
America, which I think are not just--it is not just money. That 
includes creating real jobs, connecting 4 million people to the 
internet, bringing more than a million people into the formal 
financial sector, training almost half a million people to 
enhance their workforce skills.
    So absolutely agree with you. I think it is very important. 
The efforts through the Vice President's--through Central 
America Forward and our partner, the Partnership for Central 
America that does a lot of good work, not only encouraging 
investment in the region, but also encouraging the rule of law, 
good jobs, and good governance, ensuring that these aren't just 
any jobs, but jobs that respect labor rights.
    Ms. Kamlager-Dove. OK. And last, Deputy Assistant 
Administrator Guilarte, I am going to give you these last 
moments just to talk about gender equality, women's rights. We 
know that Latin America suffers from the highest rate of 
femicide. So has this political focus of President Castro 
translated into any meaningful steps to improve gender equality 
in Honduras or had an impact on USAID's operating environment 
at all?
    Ms. Guilarte. Thank you, Congresswoman, for your question. 
As I mentioned in my opening remarks, this is one of major 
concerns that we have. As I mentioned, there has been 225 death 
this year. That is almost one girl, one woman or girl a day 
being murdered in Honduras.
    We have a breadth of activities in Honduras that--for us 
gender-based violence and the way that we tackle and address 
the issue, it is cross-cutting. It could be through our work 
with the private sector. It could be through local 
organizations, institutions that we support.
    So the answer is yes, we are addressing these issues 
through a number of different activities that we have on the 
ground. And we have actually double, dare I say triple the 
amount of funding commitment that we have to address gender-
based violence through the Root Causes Strategy. This is one of 
the main pillars. It is one of the reasons why women flee at 
higher numbers from the region. And I have to say this is one 
of the largest foreign assistance packages we have seen since 
the Civil War, what this Administration has done for Central 
America.
    Ms. Kamlager-Dove. Thank you.
    And, Madam Chair, thank you for indulging me with that last 
question and allowing it to be answered. With that I yield 
back.
    Ms. Salazar. Thank you, Representative Kamlager-Dove of 
California.
    And we will now begin a second round of questioning, and I 
am going to recognize myself for a few minutes. I am going to 
go back to Mr. Jacobstein. And I am sorry that I was 
mispronouncing your last name as Jacobstein. They just 
corrected me.
    So I wanted to congratulate you. Hey, wow. Because we know 
that you met with Johana Tablada, who is a top Cuban official. 
And when she reached out to this Administration through you and 
she said that once again the Cuban regime is asking for the 
United States to lift the embargo you said that they need to 
liberate and lift the imprisonment that they have on more than 
1,000 political prisoners, 55 of them less than 16 years old. 
So bravo. Thank you for that.
    And I just wanted to see if you could share a little bit 
more of what else transpired in that meeting. What else was 
said that you can share with us?
    Mr. Jacobstein. Thank you, Madam Chair. I really appreciate 
that. So on October 10, yes, I met with Johana Tablada. We 
discussed diplomatic facilities, consular services, and 
irregular migration And yes, I pressed Ms. Tablada for Cuba to 
release the approximately 1,000 unjustly detained political 
prisoners incarcerated and to allow Cubans to exercise their 
fundamental freedoms.
    Ms. Salazar. And what did she say?
    Mr. Jacobstein. We obviously did not get a very positive 
response, but we will continue to press on these issues.
    Ms. Salazar. No, just give me--if you can share with us, it 
is like what do they say when you present the fact that there 
are 1,000 people that are in jail just for going out on the 
street and saying hey, we want freedom?
    Mr. Jacobstein. Yes.
    Ms. Salazar. And 55 of them are 16 years or older--I mean 
or younger. So what do they say?
    The. Clerk. I appreciate that.
    Ms. Salazar. What is the justification? What is it that 
they know that we do not?
    The. Clerk. Yes, I appreciate that. I think Cuban officials 
generally do not acknowledge that these are political 
prisoners, and that is a long-standing concern of ours and 
yours. And we appreciate your leadership on this issue.
    Ms. Salazar. Of course.
    Let me just ask a few questions to Mrs. Guilarte. I notice 
you are Cuban-American just like I am, so regardless of the 
political party we understand that everything that has to do 
with socialism is never good for whatever people have to 
confronted, specifically Cuba or Venezuela. You mentioned 
Democratic values, Honduran people. And I think that USAID has 
always done a fantastic program in bringing the American values 
to whatever programs, whatever it touches.
    So I am asking you specifically what can USAID and the 
taxpayers' money can do in Honduras at this hour having a 
government that is socialist? What can we do in order to open 
the eyes of the average Honduran to continue believing in 
democracy, something that has not really given too much 
dividends to the average Honduran and not move to the Chavez 
and Fidel ideology?
    Ms. Guilarte. Thank you, Congresswoman, for your question. 
I think USAID--I am proud to work for an agency whose mandate 
is to improve the lives of the people in the countries that we 
serve. As an immigrant myself I am also proud of the Biden-
Harris Administration and the real commitment, me as an 
immigrant working in government to make sure that my 
perspective also counts. So I really appreciate the opportunity 
to be here as well with you, because it is very personal, as 
you said.
    I think the breadth of our programs have a reach that is 
really hard to measure. Part of my role, I get to visit the 
countries where we work and for me it is extremely humbling 
when I am in a cab--with a cab driver who says USAID paid for 
my son's scholarship to go to college. Now he is a professor. 
Kids that had--through nutrition programs in the most remote 
areas of Honduras were able to have a healthy life, right?
    Or we have youth that are part of a youth corps program 
that we have that are being allowed to have internships because 
we broker those partnerships with the private sector. And youth 
in the community--so they have opportunity to flourish and to 
stay in their country. Because we really believe that that is 
where the hope lies, right, for them to have these 
opportunities, to remain home and not to take the dangerous 
journey north. So I think that would be one way where I think 
our foreign assistance and the work that USAID does is most 
impactful.
    Ms. Salazar. Thank you.
    OK. Mr. Jacobstein, another question that I would like to 
pose to you is that if--we understand that the whole Central 
American area right now is in a difficult situation. I would 
like to hear your opinion--and if it is possible you can give 
us the most honest opinion of the government of Xiomara Castro. 
What are your major concerns at this hour with the Castro 
government or Administration? If there is one concern that the 
State Department has about this government. I just explained to 
what is mine. Now what is yours?
    Mr. Jacobstein. Thank you. I appreciate that question. And 
I would just say the top--our approach is to meet our partners 
where they are because we want to find ways to collaborate in 
areas that advance U.S. interests. But in terms of concerns I 
mentioned earlier that we had concerns over shifting 
recognition from Taiwan to the PRC. Certainly a concern. 
Something we raised. Ultimately it is not our decision. And we 
remain concerned about what this could mean for the future of 
Honduras. But again, this is----
    Ms. Salazar. But that is foreign policy. I am talking about 
internal policy, things that you know, you notice and you 
document internally. What is your No. 1 concern?
    Mr. Jacobstein. As I mentioned earlier, I think our No. 1 
concern right now looking ahead is ensuring that there is a 
free, fair process for an independent attorney general. And 
this is something we are very focused on and really matters a 
great deal. Because if you look at a country like Guatemala 
when you have a rogue attorney general who is going after 
individuals who are actually fighting corruption, you have a 
really bad situation in an area where you can completely 
undermine democracy. And we do not want to see that elsewhere 
in the region. So it is really important that there be a free, 
fair independent attorney general selection process. So we look 
forward to working with the Honduran government and partners to 
support that.
    Ms. Salazar. And what would be those instances where it 
will not--where the Honduran government will not pick the 
correct AG?
    Mr. Jacobstein. Ultimately this a decision of the Honduran 
congress, so we look forward to working with the Honduran 
executive branch and the congress, the various parties in 
Congress.
    Ms. Salazar. What do you see that you may have concerns on 
how they are going to pick that position?
    Mr. Jacobstein. That process is still ongoing. It is taking 
a long time. So obviously we would like----
    Ms. Salazar. It is taking a long time.
    Mr. Jacobstein [continuing]. We would like it happen 
expeditiously, but ultimately at the end of the day----
    Ms. Salazar. Why do you think it is taking a long time?
    Mr. Jacobstein. Gridlock in Congress. As we see in 
congresses throughout the hemisphere that sometimes these 
things are hard to do, but we hope that can move expeditiously 
in a free and fair manner.
    Ms. Salazar. Right. But do you recognize or do you see the 
same thing the same way I do that for the Biden Administration 
the Honduran government has become the poster child versus 
Guatemala, versus El Salvador--obviously Nicaragua is not part 
of the equation--but that the Biden Administration is treating 
Honduras and the current presidency or the Administration with 
better eyes than the other partners who happen to be 
conservative governments, not perfect, but conservative?
    Mr. Jacobstein. I do not, no.
    Ms. Salazar. Why not? Where am I mistaken?
    Mr. Jacobstein. You see today my boss, Assistant Secretary 
Brian Nichols, is in El Salvador where he will be meeting with 
President Bukele. I recently visited the country. There are 
certainly areas of concern, but we also have a lot of areas 
where we collaborate. Secretary Blinken recently met with the 
El Salvadoran foreign minister to find ways that we can move 
forward. So I think these are complicated relationships. We are 
not naive about the challenges that the region faces, but we 
work with all governments in perfect context to try to advance 
U.S. interests.
    Ms. Salazar. Thank you.
    I now recognize the ranking member, Mr. Castro, for 5 
minutes.
    Mr. Castro. Thank you.
    And thank you, Mr. Jacobstein. And listen, I agree with 
you. I think that there are leaders on both the left and the 
right who over the years have abused their people and have 
abused their neighbors, but I think part of our standard has to 
be that the people of a nation get to elect who they want and 
as long as those leaders are respecting their people, the 
rights of their people and respecting their neighbors, then we 
can work together on common interests including on interests of 
the United States and allies.
    I do want to ask you a little bit more about this--what is 
a very big and consequential lawsuit for Honduras. Just to give 
some context the Castro Administration has worked to revoke the 
implementation of Zones of Economic Development and Employment, 
known as ZEDEs, which have been deemed, or were deemed by the 
Honduran supreme court as unconstitutional and illegal in their 
violations of basic human rights, labor and environmental 
obligations.
    As I mentioned in my opening remarks, US, LLC is suing the 
Honduran government for one-third of their GDP, which seems 
fairly egregious, but as you know this lawsuit is being handled 
through the ISDS under CAFTA-DR which allows non-disputing 
parties including the United States to weigh in.
    In response to inquiries earlier this year from two of my 
colleagues the U.S. Trade Representative said that President 
Biden does not believe that corporations should receive special 
tribunals in trade agreements that are not available to other 
organizations as well.
    So do you believe that suing Honduras for a third the size 
of its economy is reasonable and has the State Department 
submitted or do you plan to submit a comment weighing into this 
litigation particularly on the side of labor and the 
environmental rights and inclusive economic prosperity?
    Mr. Jacobstein. Thank you. Appreciate that question. And 
you are right, in the run-up to the 2021 national elections 
opposition to these so-called ZEDEs galvanized across the 
political spectrum.
    The State Department, our U.S. Embassy in Honduras closely 
followed developments in the case and remain engaged with U.S. 
investors as we try to promote a positive investment climate in 
Honduras. We have raised the Prospera issue on multiple 
occasions with the Honduran government at the highest levels 
and ultimately have encouraged both sides to reach a consensual 
resolution. But ultimately in terms of the question the United 
States is not taking a position on the merits of the dispute.
    Mr. Castro. So right now is it fair to say the State 
Department is not planning to weigh in?
    Mr. Jacobstein. That is fair, yes.
    Mr. Castro. And how is the United States engaging with 
private sector actors to ensure a good environment for 
investment as well as an environment that protects basic 
rights?
    Mr. Jacobstein. Yes, thank you very much. Appreciate that 
question. Recently I was in Costa Rica for the Central America 
Donors Forum that the Seattle International Foundation put on. 
And the Partnership with Central America, which I mentioned is 
a critical partner working with the Biden-Harris Administration 
on Central America Forward, announced new initiatives to invest 
in anticorruption efforts in the region. So this continues to 
be front and center as we think about investment. It cannot 
just be investment. It has to be support for the rule of law, 
support for labor rights, and the environment. So we continue 
to robustly look at these issues.
    Mr. Castro. Sure. Thank you. Then one last question for me. 
The election of President Castro was for many Hondurans seen as 
a new opportunity for democracy to truly work for the people 
after years of widespread corruption and insecurity. The United 
States has publicly supported the effort to establish a U.N.-
backed anticorruption agency known as CC. So I wanted to ask 
you, Mr. Jacobstein, could you provide me with a detailed 
update on the progress of CC's establishment?
    Mr. Jacobstein. Yes. No, thank you and really appreciate 
your leadership in this space, as you noted. I know you have 
been talking about this from before even the inauguration, so 
thank you for that.
    So we are glad that the United Nations team began its 
technical assessment of the legal and institutional changes 
that would be required for CC to operate effectively. The U.N. 
will ask Honduras to make a number of important changes 
including potentially repealing the amnesty law. The Honduran 
people I think will view quick action to implement the 
necessary changes as proof of the Honduran government's 
seriousness in combatting corruption. So we obviously laud the 
Honduran government for putting this forward, but we urge 
expeditious action because this needs to get--needs to happen 
quickly, as you noted.
    Mr. Castro. Thank you. I yield back, chairwoman.
    Ms. Salazar. Thank you, Ranking Member Castro.
    And I think I want to thank the witnesses for their 
valuable testimony and the members for their questions.
    The members of the subcommittee may have some additional 
questions for the witnesses and we will ask you to respond to 
them in writing.
    And pursuant to the rules all members may have 5 days to 
submit statements, questions, and extraneous materials for the 
record subject to the length limitations.
    So without objection, the committee stands adjourned. Thank 
you for your time once again.
    [Whereupon, at 4:17 p.m., the subcommittee was adjourned.]

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