SUPREME COURT PRESIDENT URGES WORLD BANK LOANS

C O N F I D E N T I A L CARACAS 003369

SIPDIS


NSC FOR CBARTON
USCINCSO ALSO FOR POLAD
STATE PASS USAID FOR DCHA/OTI

E.O. 12958: DECL: 09/10/2014
TAGS: PGOV PREL PHUM KDEM KJUS VE
SUBJECT: SUPREME COURT PRESIDENT URGES WORLD BANK LOANS


Classified By: Abelardo A. Arias, Political Counselor, for
Reason 1.4(d)

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Summary
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1. (C) Ivan Rincon Urdaneta, President of Venezuela's Supreme
Court (TSJ),touted past judicial cooperation with the U.S.
and World Bank in a meeting with the Ambassador October 25.
Rincon suggested it would be in Venezuelan and U.S. interest
for the World Bank to approve the $45 million loan for the
National Modernization Project of the TSJ. The Ambassador
reminded Rincon of the consequences of the September 2004
trafficking in persons (TIP) sanction which required the U.S.
to vote against loans to Venezuela. The Ambassador asserted
that support for the World Bank loan would probably be tied
to the perception of independence and autonomy the TSJ could
project through its future decisions. End Summary.


2. (C) The Ambassador met with Ivan Rincon Urdaneta,
President of Venezuela's Supreme Court (TSJ) and its
Constitutional Chamber, on October 25 at Rincon's invitation.
Rincon reviewed judicial cooperation between the U.S. and
Venezuela and lauded the training of criminal judges in
Puerto Rico. He fondly reminisced about his own
participation in the International Visitor (IV) program in

1993. Regarding Venezuela's work with the World Bank, he
called it one of the World Bank's most successful projects
that should serve as a model for other Latin American
countries. The project, he said, has helped the Supreme
Court earn a 59% credibility vote from the people.

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The Pitch
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3. (C) After touting past success in judicial cooperation,
Rincon said the National Modernization Project for the TSJ he
presented to the World Bank in 2003 had received verbal
approval, but was not signed in May 2004 as planned because
of the referendum. Venezuela did not need the $45 million
dollar World Bank loan, Rincon told the Ambassador, but the
support of the World Bank name was important and a decision
was needed. Rincon dismissed World Bank concerns about
political risk with the project in Venezuela, citing the
TSJ's cooperation with the U.S. Federal Courts and the U.S.

SIPDIS
Embassy as an endorsement. In regards to trafficking in
persons (TIP),Rincon asserted that strengthening the TSJ was
a way of gaining some control over the situation, and one way
to help could perhaps be to provide training regarding
prostitution, especially that of minors.

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It's All About Perception
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4. (C) The Ambassador agreed that cooperation with the TSJ
has been positive in the past. Nevertheless, the September
2004 TIP decision meant that the U.S. would have to vote
against the loan. But the level of U.S. objection and future
support of the World Bank proposal would be tied to how
independent and impartial the Supreme Court is perceived to
be. The Ambassador noted the following examples that worry
the U.S.: the appointment of twelve new members of the TSJ,
the proposed media law, the changes to the penal code that
would make foreign contributions to nongovernmental
organizations (NGOs) illegal, the Sumate case, unresolved
allegations of CNE fraud, and increased oil royalties in
apparent violation of existing contracts. Did Rincon believe
that TSJ decisions on these issues would contribute to
concerns about judicial independence?

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The Defense
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5. (C) Rincon reacted defensively citing the TSJ's
independence, autonomy and distance from some of the issues.
He said he could not prevent the National Assembly from
contemplating the proposed media law, but if the proposed law
came before the TSJ and violated the definitions of free
press defined in the constitution, it would be overturned.
Rincon warned the Ambassador to be wary of politics and the
opposition. He asserted that he had recommended Henrique

Capriles be set free, but the Sumate case was still under
investigation by the Attorney General and the prosecutor's
office and had not reached the Court. Alluding to the
National Endowment for Democracy, Rincon said it was not the
fault of the U.S. if a bipartisan group designated money for
democracy building that was then used for unintended
purposes.


6. (C) Rincon also said he was disappointed that all the
judges that had been trained had failed the judicial exam and
would need to reenter training. He noted the decision to
dismiss judge Franklin Arrieche from the TSJ was due to
falsified credentials, and reiterated that the TSJ needed
credibility. Rincon reasserted the TSJ's independence
claiming that 80% of its decisions went against the
government. However, he said, he could not do something like
delay the regional elections at the request of some when the
population was prepared to vote. Noting that much of the
Venezuelan judicial system is based on the American system,
Rincon reiterated the need for U.S.-Venezuelan judicial
cooperation.

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Comment
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7. (C) Rincon got the message: If he wants USG support for
judicial reform projects, the TSJ better not be a Chavez
rubber stamp. Rincon reacted defensively but tried to stay
upbeat by suggesting that issues had already been resolved or
passing the buck to other institutions. That said, the
judicial reform project is worth supporting, if for no other
reason than giving us continued leverage on TSJ decisions.
Brownfield


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2004CARACA03369 - CONFIDENTIAL