PDVSA EXPANDING INTO PARAGUAY AND ELSEWHERE?

C O N F I D E N T I A L ASUNCION 000743 SIPDIS SIPDIS WHA/BSC (CCROFT, BFRIEDMAN) E.O. 12958: DECL: 09/06/2027 TAGS: ECON EPET PGOV PREL PA VE SUBJECT: PDVSA EXPANDING INTO PARAGUAY AND ELSEWHERE? Classified By: DCM Michael J. Fitzpatrick; reasons 1.4 (b) and (d). ¶1. (C) Hermes Rafael "Rambo" Saguier, current advisor to pre-presidential candidate Fernando Lugo, provided DCM with a July 13 letter from PDVSA, Venezuela's state owned petroleum company, which sought Saguier's legal services. The letter, written "within the framework of the international policy of energy integration and technological and social cooperation between the Bolivarian Republic of Venezuela and the Republic of Paraguay," contemplated the formation of a corporation under Paraguayan law to be called "PDVSA Paraguay, S.A.", which "would participate in mixed Venezuelan-Paraguayan capital enterprises and the structuring of business with Paraguayan public and private entities." ¶2. (C) The letter solicited resumes of Paraguayan lawyers, and specifically attorneys with Venezuelan experience. It also stated PDVSA would be most interested in retaining an international law firm with offices in other countries that "could be of interest to our company." It said PDVSA would require any legal consultants hired to sign a strict confidentiality agreement and to return to PDVSA or destroy SIPDIS all documents it provides. The author of the letter, Dr. Yolanda Robles Calles, Legal Consultant, requested responses be sent by July 23 to the following address: PDVSA America S.A., Edif. PDVSA La Tahona, Av. Intercomunal Baruta-El Hatillo con calle El Angel de La Tahona, Urb. Las Esmeraldas, Baruta- Edo. Miranda; email roblesy@pdvsa.com; tefefono: (58.212) 906.4345/ fax (58.212) 906.4695. She carbon copied Armando Giraud, legal consultant for PDVSA. ¶3. (C) COMMENT: PDVSA's interest in Paraguay is not surprising, particularly given the April elections. Perhaps more interesting is the letter's one seemingly errant reference to "Chilean" -vice Paraguayan- legal experts, suggesting that PDVSA sent the same form letter to various countries in Latin America in an effort to expand its operations. We are not aware of any other Paraguayan addressees, but Saguier told us he does not plan to respond. (Saguier, a Liberal whose brother is the current president of the Paraguayan Senate, was scandalized by the letter, which he viewed as a Venezuelan effort to curry favor and financial ties with the opposition coalition seeking to overturn Colorado rule). We will continue to be alert to growing Venezuelan activity here as the electoral season progresses. END COMMENT. Please visit us at http://www.state.sgov.gov/p/wha/asuncion CASON