LULA BACKS CHAVEZ, CNE DIRECTOR AND OPPOSITION BALK

C O N F I D E N T I A L CARACAS 003413

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E.O. 12958: DECL: 11/15/2026
TAGS: PGOV PREL VE
SUBJECT: LULA BACKS CHAVEZ, CNE DIRECTOR AND OPPOSITION BALK


Classified By: POLITICAL COUNSELOR ROBERT R. DOWNES FOR 1.4 (D)


1. (U) During the inauguration of a second bridge connecting
Venezuela and Brazil across the Orinoco River on November 13,
Brazilian President Lula gave his strongest endorsement of
President Chavez in years. Lula proclaimed that the same
people that had elected him and the Presidents of Argentina,
Nicaragua, and Bolivia, would "without a doubt" re-elect
Chavez. Lula praised Chavez for proving that economic
development with social justice was possible and said they
should work together on Latin American integration during
their second terms. Lula also took a swipe at the opposition
saying that Chavez' critics, like his, came from governments
that had only governed for the elite and could not accept
leaders that thought differently and focused on the poor.


2. (U) A glowing Chavez responded praising Lula and
announcing that Brasilia would be his first trip upon
reelection. Chavez also announced a USD two million
investment for a third bridge across the river that would be
built, like the second one was, by the Brazilian company
Norberto Odebrecht. The two leaders later visited the
Venezuelan state of Anzoategui where Petrobras is currently
involved in the certification of reserves in a block in the
Faja region. Pro-government daily Diario Vea lauded the
event as proof that bilateral ties and the Bolivarian
revolution's influence in the region are as strong as ever.

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Reaction
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3. (U) The opposition blasted Lula's remarks, while trying
to play up Chavez' failures. Speaking at a rally in Caracas,
opposition presidential candidate Manuel Rosales said Lula's
intervention resembled similar disrespectful incidents by
Chavez in other regional elections this year. However, he
promised supporters that "neither Lula, nor any other
President, could save the government," which he said has
failed miserably in delivering results. Rosales campaign
chairman Jose Carrasquero dismissed the incident as Lula
helping out a client and, thus, securing more business for
Brazilian companies. He said they would not file an election
complaint with the National Electoral Council (CNE) to avoid
distracting from more serious issues in the campaign.
Radical Cause leader and prominent labor voice Andres
Velasquez called the remarks disrespectful, said Lula didn't
know the reality of Venezuelan workers, and outlined how
Chavez had allowed an unprecedented level of worker
exploitation. Velasquez questioned why Lula would allow
Chavez to manipulate him. Lone opposition-leaning CNE
director Vicente Diaz, making clear he was speaking in a
personal capacity, blasted the comments as "a gross
interference in Venezuelan affairs" and, on behalf of the
Political Participation and Finance Committee that he heads,
has formally petitioned the CNE board to sanction Lula.

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Comment
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4. (C) With this ringing endorsement, Lula appears to have
reversed course from keeping Chavez at arms' length. Lula's
comments won't make a difference in the election, which
Chavez has long been expected to win. They do however
support Chavez' credentials as a regional player and are sure
to be rewarded with future business for Brazilian enterprise.
The intervention also suggests Chavez has lowered the bar
for interfering in others' domestic affairs in a region
notoriously reluctant to do so.

BROWNFIELD