PREVAL ANNOUNCES HAITI TO JOIN PETROCARIBE

UNCLAS PORT AU PRINCE 000692 SIPDIS SIPDIS STATE FOR WHA/CAR WHA/EPSC FOR FAITH CORNEILLE EB/IFD STATE PASS TO USAID FOR LAC/CAR INR/IAA (BEN-YEHUDA) TREASURY FOR JEFFREY LEVINE COMMERCE FOR SCOTT SMITH E.O. 12958: N/A TAGS: ENRG ECON EFIN EINV EAID PGOV HA SUBJECT: PREVAL ANNOUNCES HAITI TO JOIN PETROCARIBE REF: A. 05 PAP 2720 ¶B. 05 PAP 2596 ¶1. President-elect Preval announced to the press April 18 that Haiti will soon join Venezuelan President Hugo Chavez's energy initiative, PetroCaribe. Preval made the announcement after returning from a five-day trip to Cuba, where he discussed the subject of Petrocaribe with the Venezuelan Ambassador to Cuba. Preval's economic advisor Gabriel Verret confirmed Preval's intention to Post, but said that Preval is not aware of the constraints and the problems that need to be addressed before Haiti can receive preferential oil rates. Verret said that they will need a state-owned oil company, which the country does not currently have, as an example of one obstacle. ¶2. Comment: President-elect Preval has emphasized the importance of showing his supporters immediate improvements following his inauguration. Given the recent rise in oil prices and the lack of electricity in Port-au-Prince, Preval is under pressure to join PetroCaribe. By announcing his intention to join, he shows his supporters a concrete effort to improve two of Port-au-Prince's most pressing concerns. Post will continue to pressure Preval against joining PetroCaribe. Ambassador will see Preval's senior advisor Bob Manuel today. In previous meetings, he has acknowledged our concerns and is aware that a deal with Chavez would cause problems with us. End comment. SANDERSON =======================CABLE ENDS============================