IAN HARRIS – Honduras has for a long time been a “banana republic†controlled by U.S. interests. With the lowest per capita income in Central America, but with a strong military, Honduras in the 80s was viewed as a “U.S. surrogate†in the region, providing a base for counter-insurgency operations especially in Nicaragua. The Central American Free Trade Agreement (CAFTA) signed in 2005 further cemented U.S. economic influence with Honduras.