C O N F I D E N T I A L CARACAS 003779

SIPDIS


STATE FOR WHA/CCA
NSC FOR CBARTON
USCINCSO ALSO FOR POLAD

E.O. 12958: DECL: 12/02/2014
TAGS: PREL ETTC VE CU
SUBJECT: VENEZUELA: RESPONSE ON TITLE III OF CUBA LIBERTAD
ACT

REF: A. STATE 248337


B. STATE 259685

Classified By: Abelardo A. Arias, Political Counselor,
for Reasons 1.4(b).


1. (C) In response to tasking in ref a, Post sees no evidence
that the GOV has undertaken policies or actions to advance
democracy, human rights, or fundamental freedoms in Cuba over
the last six months. President Hugo Chavez is a close ally
of Fidel Castro and often praises Cuba as a "bastion of
dignity" in the face of U.S. imperialism. Chavez has
publicly differed with Castro over the communist model, but
this has never approached the level of criticism.


2. (C) We are not aware of investment in Cuba by host country
nor of joint ventures with the GOC. In the past year, there
have been press reports about proposals for PDVSA to partner
with Cuba's state oil company, CUPET, in projects such as the
overhaul of the Cienfuegos Refinery. We have to date seen no
information that such proposals have been acted upon.


3. (C) Venezuela maintains a significant trading relationship
with Cuba, the principal factor of which is oil. Under a
bilateral agreement, the GOC purchases Venezuelan oil on
concessional terms. Under the agreement, Venezuela provides
Cuba with 53,000 b/d of crude and other products. In fact,
however, we believe that daily exports exceed this number.
The GOC, in return, provides the GOV with non-monetary
support, such as Cuban doctors to work in poor Venezuelan
neighborhoods or curricula for the Venezuelan literacy
program "Mission Robinson." Although the GOV does not
publish data regarding the oil trade with Cuba, private
estimates suggest the GOC is US$1.5 billion in arrears with
the Venezuelan state oil company, PDVSA.
Brownfield


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2004CARACA03779 - CONFIDENTIAL