Thomas "Mack" McLarty, Kissinger McLarty Associates.
- will need more social safety net to help adjust 
- be careful out there in trade
- buyers & exporters
- involved in NAFTA & 1st summit of Americas in Miami
- democratic rights & property rights go together
- now have open democracies & trade but neither fully developed.
- Mexico & Brazil most important markets.
- stick to business you know
- pick partners carefuly
- gateways in Miami, LA, Houston & N.Orleam with out having to move to S.America.
- need sustained engagement with region

Joseph Ha, Vice-President, Nike Corporation
we pick manufacturing & distribution countries by conditions for business.
- Mexico now distributor for N.America, encouraged by new regime of Fox.
- use surprise inspections to keep quality.
- with micro loan program
- need to legalize gray market small entrepreneurs in latin Amer.

Edward Young, Senior VP, Verizon
Half of world has no phones (Maibach: only 20% in Latin America.  1988 Deregulation unbundled in US - BUT not to export this model- use WTO model instead. Open regime for competition.
Question Time.
Ha: half of latin sales of Nikes are fake. Need legalization of under ground economy.
Hernando de Soto book Spirit of Capital.
Mack - tax collection also disadvantaged by informal sector.
Ha - need to find lady beavers for micro loans

3:00 Discussion Groups and Workshops. At Hotel

Group 9: Terrorism in Latin America - Steve Monblatt (State)
State Department Deputy Coordinator of of Counter Terrorism.
Launched world net US Govt; Faculty US War College; OAS chair of counter Terror ctee.

Notes by Prof. Jeremy Lewis, Montgomery Council.

Some years ago, US diplomats kidnapped and ransomed in Brazil & Mexico.
Afghan war:
* mopping up -- CC destroyed , heart stilled if not killed.
* treasure of intell -- some from WSJ reporter who bought AL Qaeda computers from bazaar & US read HD.
* phase of seeking other cells.  Analyzing next place to go -- & implications for allies.  May be economic or other, not just military attack.  Tracing cells.
* Isolate terrorists, slow money movemens.
* May get both Osama as well as finances, but money more imp. 
* Reduce his ability to fund raise around world.
* Latins' response among best.  OAS was meeting on 9-11, invoked Rio Ty for self defense - & boosted priority of counter terror committee.
* Draft Treaty but still no definition of terror.
* Homeland Security council will include Canada & Mexico, and US has long exchange on security with Canada.  Cooperation with Mexico probably would have been harder before Fox.
* No indicaton of any Qaeda cell in Latin America. 
* Other groups like Hisbollah & Islamic Jihad have developed fundraising nets eg triangle of Brazil Argentina & Paraguay.
* Terror biggest issue in Colombia but US law limits US to counter drug action. 
* FARC has accepted kidnappees from other groups.
* Shining Path regrouping in Peru.
* Fundraising in Chile also.
* Ease of crossing borders in Latin has let some enter US; document forgery is a persistent problem for drugs & terror.  Informal border crossing common.
* Committee now dealing with these two issues.  Information clearinghouse & emergency hotlines for technical experts.  Training eg for banks to spot laundering.  Add modules to existing courses.
* Training for crisis  resp;onse for each country, finding auth and numbers.
Question Time:
Jane Wales -- dangers coming from small states.
* Now database linked to interpol for border checks, installing 14 in 2 yrs in several countries. 
* But coop with Mogadishu difficult -- govt only controls downtown, not rest of country. 

*Iraq as bad guy case?
Steve was in Pentagon command center when crash happened. But incandescent rage is not basis of policy.  Iraq developing weapons & is threat to Kuwait, shooting opponents.   No claim of organized link to Qaeda. 
Problem with Iraq predates Qaeda.
No connecton between Ramzi Youssef and Terry Nichols, different methods.
Reid shoe bomb bothers us because small sophisticated device like Ramzis.  See Qaeda as evil Foundation -- but grantees are autonomous.
* Qaeda approach is like Turner diaries, and like best business school practices for delegation. 
* Steve's default is more open information is better but actionable intelligence eg biological agents, bright line must not be crossed.   Current flights of US planes from air base sometimes revealed. 
* Afghans saying best when governed least.  Qaeda ran off with Afghan national bank, has resources.
* Ashcroft rules on trials have not had repercussions from allies yet but no actual trial yet.  Seeking charges under law & method of trial.  Grey area between war and criminal problem. 
* Probably a variety of solutions some repatriated but others court martialled with appeal rights and others military tribunal like WW2 but with rules to be decided.  Protects intel and judges.
* Crime & drugs are larger problems in Latin than terrorism.
* Dealing with actions brings consensus but 
Definitions:
state: threatened acts of violence by subnational groups intended to bring political ends perpetrated against civilians.
* Kidnappings for politics rather than money are terrorism. 
* IRA was on terrorist lists of State till joined peace negot like PLO -- but now would have funding cut off if returned to action. 
* Pakistan now trying to register religious schools -- and improve secular education.
Madras schools have funding trails to some extent. 
* Saudi madrases are not alternative to secular system -- religion is mandatory curriculum. 
Jane Wales:
* amorphous problem
* new phase entails risk of fall off of support
* foundation is formidable foe

Group 10: Brazil: Regional Superpower? - Paolo Sotero (Sao Paolo journalist)
Group 11: Human Rights: Improving or Not? Jose Vivanco (HRW)
Group 12: Democracy in Latin America: Real or Apparent? - Howard Wiarda (CSIS)
Group 13: Hemispheric Migration & Immigration - Susan Martin (Georgetown U)
Group 14: Megacities and Urbanization - Ellen Brennan-Galvin (UN Population Div.)
Group 15: Microenterprise: Lending to the Poor-Maria Otero (Accion)
Group 16: Operations Wrkshp: Relations with State & Congress – Jerry Leach 

Notes by Prof. Jeremy Lewis, Montgomery Council.

DCM Juan Esteban Orduz (Colombian charge')

Amb Tony Gillespie (army, diplomat, Colombia 1986, now Scowcroft group)

Gillespie-- Salvador had 10-1 superiority before  got peace settlement.