PETROCARIBE #32: CHAVEZ VISIT UNEVENTFUL

C O N F I D E N T I A L BRIDGETOWN 000228

SIPDIS

SIPDIS

DEPT FOR WHA/CAR, WHA/AND, WHA/EPSC, AND EEB/ESC/IEC
CARACAS FOR ANDREW BOWEN
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 02/20/2017
TAGS: PREL ENRG EPET PGOV PINR VE DO ST XL
SUBJECT: PETROCARIBE #32: CHAVEZ VISIT UNEVENTFUL

REF: A. BRIDGETOWN 213

B. BRIDGETOWN 196

C. 06 BRIDGETOWN 1897

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4(b) and (d).


1. (C) Summary: On February 16-17, Venezuelan President Hugo
Chavez visited Dominica and St. Vincent and the Grenadines.
The visit was light on substance and heavy on atmospherics,
as he reiterated past Petrocaribe-related promises and
resorted to his usual vitriolic anti-American talking points.
While Chavez's anti-Americanism gained little traction, his
promises of assistance were warmly welcomed by the two
countries, which are among the poorest in the Eastern
Caribbean. End Summary.

DOMINICA
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2. (C) On February 16, President Hugo Chavez's visit to
Dominica marked only the second time that a non-Caribbean
leader visited the country. Although Chavez was warmly
welcomed by Dominica's PM Roosevelt Skerrit, Dominica's
Minister of Education, Mario Michel, told EmbOffs that
"Chavez announced nothing new or grand and most of the visit
was a reiteration of ongoing projects." Chavez toured a
5,000-barrel fuel storage facility just outside the capital
of Roseau. The storage facility is one of five that the
Venezuelan government pledged to build under the Petrocaribe
program. According to press reports, Chavez addressed a
large crowd at the storage facility, delivering his usual
anti-American fulminations. Ironically, this avowed
anti-imperialist also proclaimed that "An Empire of Latin
America and the Caribbean will be greater than the empire of
Star Wars and cannot be stopped." Dominica's officials
carefully sought to distance themselves from Chavez's
rhetoric. For example, Dominica's Foreign Minister, Charles
Savarin, told the press "we are friends with the United
States" and assured the public that close ties to Caracas
would not adversely affect Dominica's relationship with
Washington.


3. (C) Discussions between Chavez and PM Skerrit also
included a proposed refinery that would process some 10,000
barrels a day. Edison James, leader of the opposition United
Workers Party, told EmbOff that the refinery project would
not necessarily be welcomed by the people of Dominica.
Already, the proposal drew sharp criticism from Atherton
Martin, president of the Barbados-based Caribbean
Conservation Association, who told the press that the
proposed refinery is "incompatible with the image of the
country as a nature island."

ST. VINCENT AND THE GRENADINES
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4. (C) After his visit to Dominica, Hugo Chavez traveled to
St. Vincent and the Grenadines on February 17, where he and
PM Ralph Gonsalves "unveiled" a liquid natural gas facility
constructed under the Petrocaribe program. Chavez also
toured the location where a new fuel storage facility will be
built. Brian Glasgow, a political insider who is now with
KPMG, told EconOff that PM Gonsalves played along with
Chavez's penchant for flashy displays by staging a rally with
more than 2,000 people dressed in red T-shirts. During his
speech, Chavez called on the Caribbean to be a "sea of
resistance" against U.S. imperialism and criticized free
trade agreements with the United States. As was the case in
Dominica, Chavez's anti-American attacks drew no noticeable
support in St. Vincent. Glasgow explained that while PM
Gonsalves is prepared to accept Chavez's antics in exchange
for assistance, pro-American feelings among Vincentians were
quite firm.

COMMENT
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5. (C) Chavez's roadshow was another step in his effort to
forge an ideological and political coalition in the Eastern
Caribbean aimed at undermining the region's historically
strong relations with the United States. The United States
remains the Eastern Caribbean's number one trade partner,
linked by language, historical experience, culture, and
family ties. However, this relationship has been weakened by
what the Eastern Caribbeans perceive as a lack of
attention--and assistance--from the United States.
Dominica's PM Skerrit recently urged more high level visits
by U.S. officials (ref B). St. Vincent's Foreign Minister
Sir Louis Straker was more blatant when he promised
then-Ambassador Kramer his country's loyalty if the United
States would pay for St. Vincent's new airport (ref C).
Venezuela, China, and Cuba have shown themselves ready and
willing to exploit these perceptions of U.S. disengagement
and the genuine economic vulnerabilities in the Eastern
Caribbean. While it would not be useful for the United
States to try to match Venezuela, China, and Cuba's
generosity dollar for dollar, the United States should
continue to make every effort to maintain a visible U.S.
presence in the Eastern Caribbean through U.S. officials'
visits and well targeted assistance to shore up our
partnership with the region.
OURISMAN