Identifier
Created
Classification
Origin
05CARACAS651
2005-03-03 14:27:00
CONFIDENTIAL
Embassy Caracas
Cable title:
AMBASSADOR VISITS BOLIVAR STATE
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available. 031427Z Mar 05
C O N F I D E N T I A L CARACAS 000651
SIPDIS
NSC FOR CBARTON
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 09/10/2014
TAGS: PREL PGOV ECON EAID PINR VE PIR
SUBJECT: AMBASSADOR VISITS BOLIVAR STATE
Classified By: Abelardo A. Arias, Political Counselor, for Reason 1.4(d
)
-------
Summary
-------
C O N F I D E N T I A L CARACAS 000651
SIPDIS
NSC FOR CBARTON
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 09/10/2014
TAGS: PREL PGOV ECON EAID PINR VE PIR
SUBJECT: AMBASSADOR VISITS BOLIVAR STATE
Classified By: Abelardo A. Arias, Political Counselor, for Reason 1.4(d
)
--------------
Summary
--------------
1. (U) The Ambassador,s visit to the state of Bolivar on
February 16 and 17, included meetings with the Mayor of
Ciudad Bolivar, Director General of Ciudad Guyana, a local
Chavista university, local press, various business leaders,
American citizens in the area, as well as visits to
USAID-supported social projects. Bolivar State, located in
southeastern Venezuela and bordering Brazil, is home to Angel
Falls, large mineral deposits, and a stronghold of supporters
of President Hugo Chavez. The climate for American business
there remains generally positive, despite the political
disagreements between the U.S. and Venezuela. Businesses
reported some challenges, but said that they work with
whoever governs. The Ambassador focused on areas of business
cooperation. End Summary.
--------------
Background
--------------
2. (U) Ciudad Bolivar, the state capital, is rich in
Venezuelan history with colonial architecture and has a large
student community. By contrast, Ciudad Guayana is a young
city, founded in 1952. It was formed by two cities, San
Felix, home to workers and small businesses, and Puerto
Ordaz, described as a Corporacin de Venezolana de Guayana
(CVG) company town and more planned community.
--------------
Political Climate
--------------
3. (C) Bolivar State Governor, Francisco Rangel Gomez, and
his staff did not meet with the Ambassador citing an
emergency. In Ciudad Bolivar, the Ambassador ultimately met
with the Director General of the Municipality, not the mayor.
Press sources informed us that the government officials, all
representatives of the MVR, Chavez,s political party, did
not see the Ambassador for political reasons. This is
consistent with governors' performance in other recent
internal travel.
4. (U) Ciudad Guayana Mayor Clemente Scotto, a former
participant in the International Visitor,s program, formally
received the Ambassador in his offices. The Ambassador
stressed interests in continued collaboration between the
both countries, close relations with the Mayor, and support
for the private sector. Acknowledging the strong presence of
the American firms, Scotto said he wanted to work with the
private sector to meet community needs, particularly
environmental and social needs. The Mayor expressed an
interest in participating in an exchange with U.S. cities
that, like his, are located near rivers.
5. (U) Student protesters at the Universidad Nacional
Experimental Simon Rodriguez (UNESR) greeted the Ambassador
with anti-imperialist and anti-U.S. chants. As the
Ambassador met with the Board of Directors and four student
representatives to discuss areas of disagreement, and common
interests, protesters could be heard from outside. The
student representatives voiced the university's
anti-imperialist position and their opposition to U.S.
policies. Responding to the student's concerns, the
Ambassador invited the UNESR faculty and students to
participate in exchange programs. At the end of the visit he
startled the student leader by smilingly presenting him with
a gift book wrapped in American flag paper. To the student's
probably annoyance, this became the main press photo of next
day's papers.
--------------
Economic Climate
--------------
6. (U) From meetings with the Camara de Industriales y
Mineros De Guayana, local American citizens, and U.S. company
Hecla Mining, the Ambassador found a business climate
generally receptive to U.S. companies - albeit with some
challenges. The Ambassador,s message was that he would try
to: support the commercial interests of U.S. companies in
Venezuela; maintain as positive a tone as possible; and
stress the benefits for the community from private sector
investments in the region, such as jobs and social projects.
In all three meetings, participants praised the Ambassador,s
visit.
7. (U) In a lunch discussion hosted by the Camara de
Industriales y Mineros De Guayana, the Ambassador said that,
sometimes, political matters impact economics. Chamber
President Igor Villegas Vivas asked for the Ambassador,s
assistance regarding Venezuela,s ranking as a Tier 3 country
for trafficking in persons. -The Ambassador noted the
requirements of U.S. law and our unsuccessful efforts to
obtain appropriate information from the GoV to overcome the
hurdle.
--------------
HECLA: Largest Gold Producer
--------------
8. (C) The Ambassador had a private meeting with Hecla Mining
Company, a publicly-traded U.S. company that mines silver
and gold. Hecla Venezuela is the largest producer of gold in
Venezuela and the largest private employer in southern
Bolivar State, supporting 800 direct jobs and 1,200 indirect
jobs. Hecla hopes to increase its production by 20 percent
in 2005. During Hecla,s five years in Venezuela, said Hecla
de Venezuela President Tom Fudge, political instability had
chased out competition when gold prices dropped. Hecla has
not seen competition return in greater numbers since gold
prices have started to rise. ike other U.S. companies doing
business in Venezuela, Hecla says they face bureaucracy;
inefficiency; difficult to enforce legal rights and
contracts; and corruption. Hecla is now concerned about the
changes the new Ministry of Basic Industries and Mining may
bring, according to Fudge.
--------------
Social support
--------------
9. (U) Stressing the benefits that come from the relationship
between the U.S. and Venezuelan people, the Ambassador
visited USAID-supported social projects. Local educational
officials plus the press attended the event at the Center
Helen Keller. This center currently helps 35 blind students.
The new facilities, financed by a grant of $34,000 from
USAID, will allow the center to accommodate 15 wait-listed
students, bringing the total number of students to 50. This
grant will pay for equipment, such as braille printer and
software, and materials for facility repairs, such as tiles,
metal doors, lights, and plumbing work. The Ambassador also
visited Ma-Jokaraisa, a preschool that meets the educational
needs of 120 children from ages 3 ) 5. USAID is supporting
the preschool with $32,000 to replace the plumbing and
electrical system, the roof, the floor, repair of the
semi-industrial kitchen, and painting. Local press covered
both visits.
--------------
Justice system and human rights
--------------
10. (U) Three judges who had previously traveled to the
United States on public affairs grants provided their
perspective on the justice system and the problems with long
delays for defendants to reach trial. They noted that
defense attorneys at times cause further delays by advising
their clients to postpone trial until they have been in jail
for two years, when they will automatically be released. The
judges also cited a lack of clear rules of evidence,
contributing to disparate treatment under the law. Finally,
the judges cited a need for politically independent judges,
and the political will to address many of the system,s
issues.
11. (U) Ateneo Ecologico, a non-partisan NGO working both to
promote human rights and on environmental issues, also
provided information on the justice system and human rights
concerns in the region. This project,s prior work included
gathering 550 journalists, photographers, radio announcers
and producers, and communication/journalism students to
expose human rights violations. Journalists presented
examples from this work that included seven deaths and 15
injured in local jails, the poor conditions of the jails; and
impunity for criminals and officials. The Ambassador focused
on the U.S. support for human rights. Two mining
conglomerates, Hecla and Gold Reserves de Venezuela, provide
$33,854 each to this project for a total of $67,708 this
first year.
--------------
Press coverage
--------------
12. (U) The Ambassador called on local daily &El Expreso,8
a centrist paper with a circulation of approximately 15,000
in Bolivar State, Amazonas and Anzoategui, and provided a
simultaneous television and radio interview in Ciudad Guayana
Correo del Caroni group. The president of this chain is
David Natera, President of Bloque de Prensa, Venezuelan
Editor,s Association. Press also attended various events.
The Ambassador spoke about the benefits of bilateral trade:
more jobs, more economic wealth, and a better way of life.
He focused on areas of collaboration, noting disagreements
between the two countries on democracy issues. In response
to questions about US concerns about Venezuelan purchasing of
arms, the Ambassador stressed the importance of transparency.
Regarding the case of captured FARC leader Rodrigo Granda,
the Ambassador stressed the bilateral nature of the Granda
case between Colombia and Venezuela, but noted the U.S.
interest in FARC as a terrorist group, that kills and kidnaps
U.S. citizens and exports illicit drugs. While the
Ambassador shared his positive impression of the economic
development of the region, he underlined that stability and
clear and concrete rules are important for the private
sector. Press coverage, even for the Ambassador,s most
contentious meeting at the university, was favorable.
Brownfield
NNNN
2005CARACA00651 - CONFIDENTIAL
SIPDIS
NSC FOR CBARTON
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 09/10/2014
TAGS: PREL PGOV ECON EAID PINR VE PIR
SUBJECT: AMBASSADOR VISITS BOLIVAR STATE
Classified By: Abelardo A. Arias, Political Counselor, for Reason 1.4(d
)
--------------
Summary
--------------
1. (U) The Ambassador,s visit to the state of Bolivar on
February 16 and 17, included meetings with the Mayor of
Ciudad Bolivar, Director General of Ciudad Guyana, a local
Chavista university, local press, various business leaders,
American citizens in the area, as well as visits to
USAID-supported social projects. Bolivar State, located in
southeastern Venezuela and bordering Brazil, is home to Angel
Falls, large mineral deposits, and a stronghold of supporters
of President Hugo Chavez. The climate for American business
there remains generally positive, despite the political
disagreements between the U.S. and Venezuela. Businesses
reported some challenges, but said that they work with
whoever governs. The Ambassador focused on areas of business
cooperation. End Summary.
--------------
Background
--------------
2. (U) Ciudad Bolivar, the state capital, is rich in
Venezuelan history with colonial architecture and has a large
student community. By contrast, Ciudad Guayana is a young
city, founded in 1952. It was formed by two cities, San
Felix, home to workers and small businesses, and Puerto
Ordaz, described as a Corporacin de Venezolana de Guayana
(CVG) company town and more planned community.
--------------
Political Climate
--------------
3. (C) Bolivar State Governor, Francisco Rangel Gomez, and
his staff did not meet with the Ambassador citing an
emergency. In Ciudad Bolivar, the Ambassador ultimately met
with the Director General of the Municipality, not the mayor.
Press sources informed us that the government officials, all
representatives of the MVR, Chavez,s political party, did
not see the Ambassador for political reasons. This is
consistent with governors' performance in other recent
internal travel.
4. (U) Ciudad Guayana Mayor Clemente Scotto, a former
participant in the International Visitor,s program, formally
received the Ambassador in his offices. The Ambassador
stressed interests in continued collaboration between the
both countries, close relations with the Mayor, and support
for the private sector. Acknowledging the strong presence of
the American firms, Scotto said he wanted to work with the
private sector to meet community needs, particularly
environmental and social needs. The Mayor expressed an
interest in participating in an exchange with U.S. cities
that, like his, are located near rivers.
5. (U) Student protesters at the Universidad Nacional
Experimental Simon Rodriguez (UNESR) greeted the Ambassador
with anti-imperialist and anti-U.S. chants. As the
Ambassador met with the Board of Directors and four student
representatives to discuss areas of disagreement, and common
interests, protesters could be heard from outside. The
student representatives voiced the university's
anti-imperialist position and their opposition to U.S.
policies. Responding to the student's concerns, the
Ambassador invited the UNESR faculty and students to
participate in exchange programs. At the end of the visit he
startled the student leader by smilingly presenting him with
a gift book wrapped in American flag paper. To the student's
probably annoyance, this became the main press photo of next
day's papers.
--------------
Economic Climate
--------------
6. (U) From meetings with the Camara de Industriales y
Mineros De Guayana, local American citizens, and U.S. company
Hecla Mining, the Ambassador found a business climate
generally receptive to U.S. companies - albeit with some
challenges. The Ambassador,s message was that he would try
to: support the commercial interests of U.S. companies in
Venezuela; maintain as positive a tone as possible; and
stress the benefits for the community from private sector
investments in the region, such as jobs and social projects.
In all three meetings, participants praised the Ambassador,s
visit.
7. (U) In a lunch discussion hosted by the Camara de
Industriales y Mineros De Guayana, the Ambassador said that,
sometimes, political matters impact economics. Chamber
President Igor Villegas Vivas asked for the Ambassador,s
assistance regarding Venezuela,s ranking as a Tier 3 country
for trafficking in persons. -The Ambassador noted the
requirements of U.S. law and our unsuccessful efforts to
obtain appropriate information from the GoV to overcome the
hurdle.
--------------
HECLA: Largest Gold Producer
--------------
8. (C) The Ambassador had a private meeting with Hecla Mining
Company, a publicly-traded U.S. company that mines silver
and gold. Hecla Venezuela is the largest producer of gold in
Venezuela and the largest private employer in southern
Bolivar State, supporting 800 direct jobs and 1,200 indirect
jobs. Hecla hopes to increase its production by 20 percent
in 2005. During Hecla,s five years in Venezuela, said Hecla
de Venezuela President Tom Fudge, political instability had
chased out competition when gold prices dropped. Hecla has
not seen competition return in greater numbers since gold
prices have started to rise. ike other U.S. companies doing
business in Venezuela, Hecla says they face bureaucracy;
inefficiency; difficult to enforce legal rights and
contracts; and corruption. Hecla is now concerned about the
changes the new Ministry of Basic Industries and Mining may
bring, according to Fudge.
--------------
Social support
--------------
9. (U) Stressing the benefits that come from the relationship
between the U.S. and Venezuelan people, the Ambassador
visited USAID-supported social projects. Local educational
officials plus the press attended the event at the Center
Helen Keller. This center currently helps 35 blind students.
The new facilities, financed by a grant of $34,000 from
USAID, will allow the center to accommodate 15 wait-listed
students, bringing the total number of students to 50. This
grant will pay for equipment, such as braille printer and
software, and materials for facility repairs, such as tiles,
metal doors, lights, and plumbing work. The Ambassador also
visited Ma-Jokaraisa, a preschool that meets the educational
needs of 120 children from ages 3 ) 5. USAID is supporting
the preschool with $32,000 to replace the plumbing and
electrical system, the roof, the floor, repair of the
semi-industrial kitchen, and painting. Local press covered
both visits.
--------------
Justice system and human rights
--------------
10. (U) Three judges who had previously traveled to the
United States on public affairs grants provided their
perspective on the justice system and the problems with long
delays for defendants to reach trial. They noted that
defense attorneys at times cause further delays by advising
their clients to postpone trial until they have been in jail
for two years, when they will automatically be released. The
judges also cited a lack of clear rules of evidence,
contributing to disparate treatment under the law. Finally,
the judges cited a need for politically independent judges,
and the political will to address many of the system,s
issues.
11. (U) Ateneo Ecologico, a non-partisan NGO working both to
promote human rights and on environmental issues, also
provided information on the justice system and human rights
concerns in the region. This project,s prior work included
gathering 550 journalists, photographers, radio announcers
and producers, and communication/journalism students to
expose human rights violations. Journalists presented
examples from this work that included seven deaths and 15
injured in local jails, the poor conditions of the jails; and
impunity for criminals and officials. The Ambassador focused
on the U.S. support for human rights. Two mining
conglomerates, Hecla and Gold Reserves de Venezuela, provide
$33,854 each to this project for a total of $67,708 this
first year.
--------------
Press coverage
--------------
12. (U) The Ambassador called on local daily &El Expreso,8
a centrist paper with a circulation of approximately 15,000
in Bolivar State, Amazonas and Anzoategui, and provided a
simultaneous television and radio interview in Ciudad Guayana
Correo del Caroni group. The president of this chain is
David Natera, President of Bloque de Prensa, Venezuelan
Editor,s Association. Press also attended various events.
The Ambassador spoke about the benefits of bilateral trade:
more jobs, more economic wealth, and a better way of life.
He focused on areas of collaboration, noting disagreements
between the two countries on democracy issues. In response
to questions about US concerns about Venezuelan purchasing of
arms, the Ambassador stressed the importance of transparency.
Regarding the case of captured FARC leader Rodrigo Granda,
the Ambassador stressed the bilateral nature of the Granda
case between Colombia and Venezuela, but noted the U.S.
interest in FARC as a terrorist group, that kills and kidnaps
U.S. citizens and exports illicit drugs. While the
Ambassador shared his positive impression of the economic
development of the region, he underlined that stability and
clear and concrete rules are important for the private
sector. Press coverage, even for the Ambassador,s most
contentious meeting at the university, was favorable.
Brownfield
NNNN
2005CARACA00651 - CONFIDENTIAL