VENEZUELA: RESPONSE ON TITLE III OF CUBA LIBERTAD

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 NNNN 2004CARACA03779 - CONFIDENTIAL