SPAIN: MFA LATIN AMERICA DG VIEWS ON BOLIVIA,

C O N F I D E N T I A L SECTION 01 OF 02 MADRID 003792 SIPDIS DEPARTMENT PASS TO WHA COLLECTIVE AND USAID; DEPARTMENT ALSO FOR EUR/WE, USOAS, WHA/CCA, WHA/AND, AND WHA/BSC E.O. 12958: DECL: 10/28/2015 TAGS: PREL SP SUBJECT: SPAIN: MFA LATIN AMERICA DG VIEWS ON BOLIVIA, VENEZUELA AND COLOMBIA Classified By: ESTHOFF KEN FORDER PER 1.4 (B/D). -------------- SUMMARY -------------- ¶1. (C) SUMMARY: MFA Latin America Director General Javier Sandomingo told visiting USAID Assistant Administrator Adolfo Franco October 27: (1) Evo Morales was not a "lost cause" and could evolve into someone we could do business with; (2) pushing Chavez too hard could actually increase rather than limit the clear erosion of Venezuelan democracy; and (3) Prime Minister Zapatero recently told President Uribe that Spain would contribute one million euros to Colombia's ongoing demobilization efforts. END SUMMARY. ¶2. (C) USAID Assistant Administrator Adolfo Franco, accompanied by USAID Senior Advisor for Cuba David Mutchler, met October 27 with MFA Latin America Director General Javier Sandomingo, Spanish Agency for International Cooperation (AECI) Director General for Cooperation with Latin America Aurora Diaz Rato, and AECI Deputy Director General for Cooperation with Mexico, Central America and the Caribbean Pascual Navarro. After thanking his interlocutors for Spain's provision of assistance to U.S. victims of Hurricane Katrina, Franco engaged in a tour d'horizon of USAID activities throughout Latin America. Franco then explained U.S. views on recent developments in Bolivia and Venezuela and requested GOS financial support for Colombia's ongoing demobilization initiative. Franco's latter remarks provoked the following responses. -------------- COLOMBIA -------------- ¶3. (C) Diaz Rato and Sandomingo said that President Uribe, during a recent meeting with Prime Minister Zapatero, requested Spanish financial support for the Colombian demobilization initiative. Zapatero told Uribe that Spain would contribute one million euros. Diaz Rato and Sandomingo noted that the funds had not yet been identified or disbursed but that should be accomplished shortly. They were well aware that the funds should be made available during this calendar year. Sandomingo characterized Colombia's demobilization law as "terrible" ("pesimo"),but stressed that we have to support it even if it is not ideal. Diaz Rato also noted that AECI has ongoing programs in Colombia that directly assist demobilization (e.g. retraining former irregular soldiers),albeit outside the framework of the new Colombian law. -------------- BOLIVIA -------------- ¶4. (C) Sandomingo noted that Evo Morales had visited Spain last month and that most of his Spanish interlocutors had concluded that "we can work with him." He said that the international community "should not drive Morales into Castro and Chavez's arms" and that he is "no worse that several other Latin leaders that we have dealt with in the past and are dealing with today." When Franco asked if REPSOL (the Spanish oil company with significant assets in Bolivia) agreed with this analysis, Sandomingo admitted it did not, but underscored that other unidentified Spanish investors in Bolivia thought they could work with Morales. -------------- VENEZUELA -------------- ¶5. (C) In response to Franco's request that Spain try to influence Chavez to halt the steady erosion of democracy in Venezuela (e.g., "winning an election is not enough; one must govern democratically"),Sandomingo said "we have to proceed with great caution" as "too much pressure on Chavez could actually produce the results we are trying to avoid." Sandomingo said the international community needs to decide "where is the line" that Chavez should not be allowed to cross. He noted that concerns about both regional stability and the current world energy climate (e.g., high prices and large Venezuelan reserves) would clearly have an impact on how we engage Venezuela. Sandomingo stressed that Spain "was in line with U.S. views and was just as concerned" about the erosion of Venezuelan democracy, but believed we needed to carefully calibrate any pressure we put on Chavez. ¶6. USAID Assistant Administrator Adolfo Franco has cleared on this cable. MANZANARES