CHAVEZ: DEATH TO THE U.S. "EMPIRE"

UNCLAS SECTION 01 OF 02 CARACAS 000336 SIPDIS SENSITIVE SIPDIS TREASURY FOR KLINGENSMITH AND NGRANT COMMERCE FOR 4431/MAC/WH/MCAMERON NSC FOR DTOMLINSON ENERGY FOR CDAY, DPUMPHERY, AND ALOCKWOOD E.O. 12958: N/A TAGS: PGOV ECON ENRG VE SUBJECT: CHAVEZ: DEATH TO THE U.S. "EMPIRE" ¶1. (SBU) Summary: President Chavez lashed out (again) at the United States on February 14 and threatened to nationalize supermarkets not abiding by government price controls. Responding to Under Secretary Burns' comments last week on U.S. foreign oil dependence, Chavez downplayed the importance of the United States as a consumer of Venezuelan oil and said that if the United States did not want to buy his oil, he would sell it elsewhere. He commented that he "missed" Secretary Rice, and that President Bush's upcoming visit to Latin America in March would unleash anti-American protests, proclaiming "death to the empire and death to its leaders!" He also announced proposed legislation that would criminalize hoarding and price speculation. End Summary. -------------- -------------- Chavez: If They Don't Want Oil, We Will Sell it Elsewhere -------------- -------------- ¶2. (SBU) President Chavez used the occasion of a meeting with pensioners at a military base on February 14 to deliver his first nationally televised speech in 10 days. Chavez responded to Under Secretary Burns' reported statements on February 7 during a press conference in Sao Paolo, Brazil, that energy had distorted the power of some states we find to play a negative role in the world -- Venezuela and Iran -- and that the less the United States depends on oil from such states, the better. Chavez lashed out in typical fashion, denying Venezuela's dependence on U.S. oil consumption. "So the United States little by little wants to make itself independent from oil coming from places like Venezuela. That's their problem. If they don't want to buy oil, tell us and we won't sell it to them," said Chavez. He continued that Venezuela had enough other clients to purchase its oil and that Venezuela doesn't depend on the "American empire" for anything. -------------- Chavez Responds to the Secretary -------------- ¶3. (SBU) Chavez responded publicly for the first time to Secretary Rice's comments about Venezuela during her SIPDIS congressional testimony of February 7. Chavez noted with irony that he "missed" the Secretary and that it had been several days since she had paid him any attention. As he occasionally does for dramatic effect, Chavez switched into his heavily-accented English to ask "how are you Condoleezza?" before continuing in Spanish, "Condoleezza said that I was destroying the economy of the country, this indicates that there is an economic plan against Venezuela." He continued that the U.S. "economic plan" against Venezuela did not rule out political, military or paramilitary plans. "The empire never rests, especially a desperate empire such as this," asserted Chavez. -------------- Death to the Empire and its Leaders! -------------- ¶4. (SBU) Chavez qualified President Bush's upcoming visit to Latin America March 8-14 as an "offensive." He opined that the purpose of the President's Latin American trip was to isolate Venezuela. He qualified the visit as a positive development, because "it would give more force to the anti-imperialist battle." Chavez commented that Bush's visit would be greeted with protests and concluded with an emphatic "Death to the Empire! Death to the leaders of the empire!" -------------- Chavez Threatens to Nationalize Supermarkets -------------- ¶5. (SBU) On the domestic front, Chavez threatened to nationalize supermarkets and other food providers that did not abide by government-controlled pricing. Over recent weeks, food shortages have developed and prices for basic foodstuffs have climbed above government-regulated prices. "A store sells meat above regulated prices, so we will intervene and give them to community councils to manage," said Chavez. He dared the private sector to "give me the first excuse to nationalize the first meat store, supermarket, or food distributor." Chavez warned he could sign the nationalizations into decree in a matter of hours. CARACAS 00000336 002 OF 002 He added that he had been patient thus far, and that the message had been delivered to producers, intermediaries and the stores that the BRV would nationalize any company that violated the rights of the people, the Constitution and the law. "So prepare yourselves," concluded Chavez. He also announced that a proposed decree-law against hoarding was published in the Official Gazette on February 14. The decree-law would provide that producers and establishments that speculate or hoard products would face criminal penalties. -------------- Comment -------------- ¶6. (SBU) Chavez' latest tirades in response to comments made by the Secretary and Under Secretary for Political Affairs again show that he is increasingly thin-skinned to any hint of criticism, and underscores his predilection for engaging in personal insults and exchanges. Chavez may also be increasingly insecure and paranoid. Internationally, he is obviously peeved and concerned by the President's upcoming Latin America trip, especially the visits to Brazil and Uruguay, where he believes he has important influence. Domestically, he faces mounting criticism with respect to food shortages and ineffective price controls. Chavez' nationalizations have targeted strategic sectors -- electricity, telecommunications, and oil. A contact who manages a major supermarket chain told EconOff on February 15 that if Chavez feels that food security in Venezuela is threatened, major supermarkets and food distributors may find themselves swept into the nationalization campaign. End Comment. BROWNFIELD