JAGDEO ON HUMAN RIGHTS, DRUGS AND VENEZUELA

C O N F I D E N T I A L SECTION 01 OF 02 GEORGETOWN 000283 SIPDIS SIPDIS E.O. 12958: DECL: 03/15/2017 TAGS: PREL PGOV PHUM ECON PBTS KCRM VE GY SUBJECT: JAGDEO ON HUMAN RIGHTS, DRUGS AND VENEZUELA Classified By: Ambassador David M. Robinson for reasons 1.5(d) ¶1. (C) Summary: The Ambassador met with President Bharrat Jagdeo in his office and at his request on March 15 to discuss the INCSR and Human Rights Report. Jagdeo objected to the methodology and tone of both documents, describing them as on-going irritants, and said he hoped to discuss their objectivity and impact at the June Conference on the Caribbean in Washington. The Ambassador described how the reports were compiled and said they accurately reflected source information. On Venezuela, Jagdeo said he questioned the regime's long-term stability and admitted he was relieved that Hugo Chavez was a no-show and unable to hijack the microphone at the June 3 Rio Group Summit in Georgetown. The President also said he will prod Chavez on the border dispute. That is unlikely. End Summary. ¶2. (C) President Bharrat Jagdeo called the Ambassador and asked for an immediate meeting to talk about the INCSR and Human Rights Report during the early afternoon on March 15. The President already had launched a public tirade at the media saturated opening of the Guyana Defense Forces officers conference about US hypocrisy when the documents were released on March 8. Jagdeo described that earlier outburst as more show than substance but reasserted his conviction that both reports reflect rumor and guesswork more than hard information, particularly regarding money laundering related to drug trafficking. Jagdeo suggested that tax evasion and smuggling accounted for most of the underground economy and undocumented wealth in Guyana, including in the mildly booming construction industry. He also noted that many of the watchdog NGOs and other organizations contributing information to the report consist of one-or-two people with little background, no resources and sometimes questionable motives. ¶3. (C) The Ambassador acknowledged that reliable data was difficult to get in Guyana but noted that most of our information came from the GOG's own ministries, branches of the security services, and widely corroborated media reports. He said the information was as accurate as the sources and suggested that more transparency, especially in financial transactions, might improve quality. He also reminded the President that the challenges cited generally coincided with the GOG's own laundry list of "to do" items. Jagdeo said he would not quibble with reliable facts but still questioned our methodology and would like to discuss report card-type documents in general at the Conference on the Caribbean in June. ¶4. (C) Turning to Venezuela, Jagdeo said he thought Hugo Chavez's focus on the poor was admirable but that his hostile attitude toward private investors was reckless and not sustainable. Jagdeo added that he pared Guyana's PetroCaribe deal to half his cabinet's original proposal because he worried about long-term stability in Venezuela, especially if professional managers and other highly qualified people leave the country in frustration. Contrasting his own attitude as investor friendly, Jagdeo said he is encouraging foreign oil companies to begin exploring along both of Guyana's contested borders -- with Suriname and Venezuela. In response to the Ambassador's remark that this initiative seemed to be a shift in policy, Jagdeo said he would encourage a Bolivarian change of heart in Chavez by reminding him of his own public statement that the border dispute was the result of "imperialism." The President added that he was relieved when Chavez failed to show at the Rio Group Summit, saving the forum from becoming a prolonged harangue. In the same breath, Jagdeo lamented that high-level US officials do not come to Guyana and said he would welcome an Assistant Secretary level visit. The Ambassador agreed that a visit SIPDIS would be useful but likely was not on the immediate horizon. The discussion ended with a broad review of our PEPFAR and investment support programs. ¶5. (C) Comment: Jagdeo has a valid point about the quality of information on drug trafficking and money laundering. Nobody is looking very hard at Guyana and most of the local sources available to us are amateurish, including in the GOG. The President stops short of denying the problems exist, however, and credibly says he would welcome more resources and constructive engagement. It may be useful as a demonstration of good faith and partnership to let Jagdeo make his points at an appropriate level in Washington during the Caribbean Conference, but we should avoid holding out hope of more help. It would be wasted, at least until significant portions of the British-led, multi-million dollar GEORGETOWN 00000283 002 OF 002 security sector reform program are implemented and produce reliable counterparts. At the moment, there are none. ¶6. (C) Comment continued: On Venezuela, it seems unlikely Jagdeo will nudge Chavez about the border dispute and instead wants the oil companies to test Venezuela's sensitivity. While Jagdeo wants investment and sees the Rio Group Summit, the Cricket World Cup and the upcoming Commonwealth Finance Ministers Conference as his showcases, he does not want a confrontation from which he will be forced to back down. Robinson