PM CONCERNED ABOUT PETROCARIBE, MOVING ON LNG

C O N F I D E N T I A L NASSAU 001323

SIPDIS

STATE FOR WHA/CAR WBENT

E.O. 12958: DECL: 07/20/2009
TAGS: ENRG PREL PGOV BF
SUBJECT: PM CONCERNED ABOUT PETROCARIBE, MOVING ON LNG


Classified By: Ambassador John Darrell Rood, Reasons 1.4 b and d


1. (C) Ambassador met privately with PM Perry Christie on
July 20. The PM discussed several energy matters as well as
his political future.

PetroCaribe: We Have Concerns
--------------


2. (C) The PM indicated that he "has concerns" about the
PetroCaribe agreement signed on behalf of The Bahamas on June
29 by Trade and Industry Minister Leslie Miller (reftel). He
stated that Minister Miller "got way out in front of the
Cabinet" on the issue and suggested that Cabinet's eventual
consideration of the PetroCaribe agreement would not be
favorable. Some ministers, the PM continued, were brought
into the Cabinet because of their qualifications; others,
like Minister Miller, were included in an effort, at times
unsuccessful, to keep an eye on what they're doing.


3. (C) The PM recalled that there were no disruptions to
local fuel supplies during last year's busy hurricane season.
He doubted that government, given its poor record running
hotels, airlines, and utilities, would be able to do as well
as the international oil companies had done.


4. (C) The PM confided that the Trinidadian government had
expressed to him its displeasure that Minister Miller signed
the PetroCaribe agreement.

LNG: One of My Top Three Issues
--------------


5. (C) Moving on to the the liquefied natural gas facility
proposed for the northern Bahamas, the PM indicated that it
was one of his top three priorities. He said he didn't want
Cabinet to take it up while he was away recovering from a
mild stroke. He acknowledged that certain Cabinet members --
Foreign Minister Mitchell, Tourism Minister Wilchbombe, and
Transport Minister Hanna-Martin -- were resolutely against
LNG, but that many others saw the benefit the project would
have for The Bahamas. The PM gave his assurances that LNG
"would be dealt with."

Political Future Decided by November
--------------


6. (C) The PM reported that he was recovering well from the
mild stroke he suffered in May. He is continuing to work
half-days and has postponed a trip to London he had planned
for this summer. After consulting with doctors at Johns
Hopkins, he also has decided not to have surgery on his knee
at this time.


7. (C) The PM stated that he has already begun internal
discussion on the timing of the next elections, which he must
call no later than May 2007. He believed he would know by
his party's annual convention in November whether or not he
is strong enough to lead the party into elections for another
five-year term. If he is fit enough to run, the PM is
confident that no one will be able to defeat him.

COMMENT
--------------


8. (C) Local reaction to PetroCaribe has been skeptical ever
since its signing. Minister Miller's actions have been
criticized in terms of process (not having Cabinet's
authorization) and on substance (creating another inefficient
government entity, relying on a single source of supply, and
endorsing Venezuela's political agenda). Unnamed government
sources were quoted in today's newspapers as "having
concerns" about the agreement, using essentially the same
language that the PM used. Minister Miller has stated he
will have a press conference to push PetroCaribe on Thursday,
but it seems that the PM intends to walk away from
PetroCaribe without ever implementing it. END COMMENT.

ROOD