AMBASSADOR VISITS VALENCIA, CAPITAL OF CARABOBO

C O N F I D E N T I A L CARACAS 003936 SIPDIS STATE PASS USAID FOR DCHA/OTI, NSC FOR BARTON, USSOUTHCOM FOR POLAD E.O. 12958: DECL: 12/23/2014 TAGS: PGOV PREL ECON VE SUBJECT: AMBASSADOR VISITS VALENCIA, CAPITAL OF CARABOBO STATE Classified By: WILLIAM R. BROWNFIELD, AMBASSADOR, FOR REASON 1.4 (d). -------------- Summary -------------- ¶1. (C) Ambassador's visit to the central city of Valencia on December 9 - 10, 2004 included meetings with the Governor and Mayor, although for the third consecutive trip, the military declined to meet. Newspaper coverage was excellent, and there was an abundance of media reporters and questions at most events. Press focused on the bilateral relationship and reaction to the upcoming Media Content Law. Valencia is an industrial center, attracting Venezuelans from all regions for job security, relatively inexpensive housing,and a clean, well-run community. Carabobo state has two airports, and the largest port in Venezuela, through which enters approximately 65% of Venezuela's merchandise. The port of Puerto Cabello was highlighted as a strong point of the region's continued economic success. Among all parties, most especially in the political and economic sectors, and in the business community, there is a "Wait and See" attitude with the new Chavista governor. End Summary. -------------- Political Climate -------------- ¶2. (C) Governor Luis Felipe Acosta Carles formally received the Ambassador in the governor's office. A former National Guard commander of the region, Governor Acosta Carles was recently elected governor in October 2004, ending the 12 year hold on the governor's seat of the Salas family. Acosta Carles stressed the need to reach out more to the public, and to all elected officials in Carabobo state, in an effort to bring to a close the political strife and animosity that has reigned in Venezuela in recent years. He expressed a desire to increase economic collaboration with the United States, especially working with the three major auto industries operating in Valencia (GM, Ford, Daimler-Chrysler),and working to further develop the two major airports in the region, that at Puerto Cabello, and the Valencia International Airport. He was positive on recent dialogue with Coca-Cola, whose local plant he had seized as National Guard commander during the national strike in 2003. ¶3. (C) Mayor Francisco Cabrera Santos, a popular figure re-elected in October for his third term, is regarded as having devoted his time and office to the revitalization of Valencia. He described himself as a political independent, believing in social investment in the people of his district-- by providing jobs, health programs and training. Mayor Cabrera hopes to work with Governor Acosta Carles on various projects, specifically a low-cost housing project for the poorest citizens, slated to begin construction in January ¶2005. 2005 marks the anniversary of Valencia and the mayor requested the assistance of the US Embassy in scheduling cultural events. ¶4. (C) An informal meeting with former governor Henrique Salas Feo provided an opportunity for the opposition perspective. Salas Feo, defeated in the October 31 elections by Acosta Carles, expressed his concern over the election procedures and probable fraud, and the difficulty in obtaining information or help from the National Electoral Council. As regards the new governor, he expressed a "Wait and See" attitude. Since the election, his Proyecto Venezuela party is struggling to maintain momentum and support. ¶5. (C) The Boston Group, comprised of pro-government and opposition legislators, has formed a permanent group in Valencia as a platform for discussion, conflict resolution and building a common agenda. Twelve members attended a meeting with the Ambassador and openly discussed their concerns and issues. Each one expressed satisfaction with the group and progress, and viewed it as a very positive experience. They hoped that the Valencia group will be a model throughout Venezuela, reducing dissension between pro-government and opposition and building a better bilateral relationship with the United States. -------------- Economic Interests -------------- ¶6. (U) The Valencia regional chapter of the Venezuelan- American Chamber of Commerce hosted a luncheon for the Ambassador with approximately 40 participants representing a variety of the industries present in the region, including the auto industry, banking, agriculture, and construction. The Q & A session immediately following the luncheon concentrated on economic growth in the region, and how to collaborate bi-nationally for the continued economic vitality of the region. ¶7. (C) In a separate meeting, the Venezuelan Presidents/General Managers of Ford, Daimler/Chrysler and General Motors offered their general impression of the new governor and his effect on their industry. Production is expected to rise for all three companies; however GM is currently negotiating with its union, and tensions are up. Chrysler and Ford also expressed concerns with their unions and the relationship with their employee force. Chrysler wants to invest more in local social programs, especially environmental education in local area schools. ¶8. (C) The Ambassador visited Protinal/Proagro, a pioneer in the agriculture and aviculture business in Venezuela, producing poultry, animal feed and deli products. The company employs 3,000, and is majority owned (51%) by Ag Processing Inc. (AGP),the largest farmer-owned cooperative and soybean producer in the US. Protinal distributes its animal feed products to the meat producing states to the south, and its grain and deli products throughout Venezuela. Economically, the company has improved its production, growth, and profits in the last six years, and has an innovative housing program for its employees, co-sponsored by a Venezuelan bank. -------------- Media/Education -------------- ¶9. (U) El Carabobeno newspaper, the leading conservative daily paper in the central region of Venezuela, met with the Ambassador, conducted an interview, and provided substantial coverage in the next day's edition on his visit. Radio Lago conducted an on-air 30 minute interview, filmed by a local TV station for future presentation. Preceeding the interview Notitarde, the second largest newspaper in the region, attended a breakfast for the Ambassador, which was hosted by Radio Lago. 10,(U) The Ambassador met with the Rector of the University of Carabobo, a public university located on four campuses with a combined student population of over 40,000. Also in attendance were the major deans and a former International Visitor Program (PAS) grantee, who expressed in glowing terms the impact of her experience in the IV program. Issues of discussion included stronger collaboration between the university and the US, expecially in the area of exchange programs with American universities, scholarships and opportunities for research (to include American Studies), visiting scholars, and PAS assistance with cultural and arts programs on the campuses. The rector said the American private sector represented in Valencia could also be instrumental in providing financial suppport in the programs and activities of the university. -------------- Social Support -------------- ¶11. (C) The Ambassador also visited a recent recipient of a USAID grant, the Organization "Refugios Pana," a small house for at risk street children, located in the center of Valencia. Founded in 1998, the building houses street children, who live in a family-like setting, attend local schools, and learn social skills and receive counseling from professional social workers. A USAID funded industrial kitchen, inaugurated with the Ambassador's visit, will provide food for the house, and an opportunity for the students to manage a restaurant/lunch delivery business. ¶12. (C) Press coverage was excellent, offering the Ambassador the opportunity to deliver our message on the importance of the bilateral, people-to-people US/Venezuela relationship. The visit clearly caught the Chavista governor's attention; he dispatched his wife uninvited to join the event midway through the visit. Brownfield NNNN 2004CARACA03936 - CONFIDENTIAL