JAMAICA/VENEZUELA: OPPOSITION LEADER DEEPLY

C O N F I D E N T I A L SECTION 01 OF 03 KINGSTON 000393

SIPDIS

SIPDIS

DEPT FOR WHA/CAR - RANDALL BUDDEN, ROBERT COLLINS

E.O. 12958: DECL: 03/20/2017
TAGS: PREL PGOV ENRG ECON EINV EPET MASS CARICOM JM
XL, XM
SUBJECT: JAMAICA/VENEZUELA: OPPOSITION LEADER DEEPLY
CONCERNED OVER CHAVEZ'S INFLUENCE

REF: A. KINGSTON 89 (NOTAL)

B. KINGSTON 215 (NOTAL)

C. 06 KINGSTON 2021 (NOTAL)

D. KINGSTON 342 (NOTAL)

E. PORT-OF-SPAIN 220 (NOTAL)

Classified By: Ambassador Brenda L. Johnson, reasons 1.4 (b) and (d)

SUMMARY AND RECOMMENDATIONS
--------------

1.(C) In drawing closer to flamboyant Venezuelan President
Hugo Chavez, Jamaica is "getting mixed up with something from
which it will be difficult to extricate ourselves," according
to Leader of the Opposition Jamaica Labour Party (JLP) Bruce
Golding. In a private meeting with Ambassador on the eve of
his March 23 visit to Washington, Golding:

-- reiterated claims that Chavez was providing USD 4-5
million in cash to finance the election campaign of the Prime
Minister (PM) Portia Simpson Miller (PSM)'s ruling People's
National Party (PNP);

-- alleged that Foreign Minister Anthony Hylton and other
senior PNP figures recently had traveled secretly to
Venezuela to receive additional cash, part of which then was
used to repay the Dutch-based oil trading firm Trafigura a
USD 475,0090 "contribution" it previously had given the PNP
in a major campaign finance scandal (Reftel C);

-- claimed that, given Jamaica's indebtedness to Venezuela
under Petrocaribe and the recent signing on of an MOU for
importation of 2.5 million tons of Venezuelan liquefied
natural gas (LNG) annually beginning in 2009, Jamaica risked
being pressured into supporting Chavez's positions in
international fora;

2.(C) (Summary cont.) Golding acknowledged that:

(A) the Jamaican Ministry of Foreign Affairs and Foreign
Trade (MFAFT) adroitly had resisted Chavez's heavy pressure
for an invitation to the massive official opening ceremony of
the Cricket World Cup (CWC) series held March 11 in Trelawny,
deftly offering an alternative stopover meeting with the PM
in Montego Bay ;

(B) the PM had responded smoothly and noncommittally to
Chavez's public suggestion that Jamaica join the "Bolivarian
Alternative for the Americas (ALBA)."

3.(C) Recommendations: Embassy shares the Opposition
Leader's concerns over the influence of Venezuelan money and
energy supplies in Jamaica in the years ahead, and recommends
that USG officials use his March 23 visit to Washington as an
opportunity for serious discussion of these issues. As
demonstrations of continued U.S. interest in Jamaica,
restoration of IMET (recently zeroed out for FY-08 and
beyond) and a visit from a high-level USG official
(Secretarial- or Assistant Secretarial-level) would be most
helpful.
End Summary and Recommendations.

4.(SBU) Opposition Jamaica Labour Party (JLP) Leader Bruce
Golding approached Ambassador during the opening match of the
Cricket World Cup (CWC) series on March 13 to request a
private meeting, which was held the morning of March 16 at
JLP Headquarters. The Ambassador presented the Opposition
Leader a copy of the schedule of appointments arranged by
WHA/CAR for his upcoming visit to Washington; Golding
expressed thanks, and said he looked forward to the visit
(note: post appreciates WHA/CAR's efforts in arranging such
a comprehensive schedule).

Chavez's Growing Influence
--------------

5.(C) Golding then said that JLP concerns over the influence
of Venezuelan President Hugo Chavez in Jamaica (Reftels A,B)
had heightened in recent weeks. Asking that the U.S. hold
the information in strict confidence, he confirmed that a
"senior person in the Government" had been passing him
sensitive inside information, and that "a number of persons
within the Government" were "frightened over the secrecy"
surrounding the Government of Jamaica (GoJ)Q,s recent
dealings with Chavez. He claimed that Foreign Minister
Anthony Hylton, Minister of Industry, Commerce, Science, and
Technology Philip Paulwell, and Senator Colin Campbell
recently had flown to Caracas. Upon arrival at the airport,
they were supposed to have been picked up by helicopter, but
instead were given one or two large packages; immediately
thereafter, they returned to Kingston. The next week, the
Government had announced it had repaid the Dutch-based oil
trading firm Trafigura a USD 475,000 "contribution" made to
the ruling People's National Party (PNP) in a major campaign
finance scandal (Reftel C).

Not Bowled Over
--------------

6.(C) The Opposition Leader then observed that Chavez's
recent brief unannounced visit to Montego Bay "had not been
arranged in the normal way." He understood that the
flamboyant Venezuelan President had wanted to attend the
massive opening ceremony of the Cricket World Cup (CWC)
series held March 11 in Trelawny. The GoJ had had to "use
every diplomatic resource at its disposal to dissuade Chavez"
from attending the high-profile event. The GoJ had taken the
position that CWC was a Caribbean, rather than Jamaican,
event; therefore, his attendance would have required the
approval and coordination of all the participating
countries--Q*and for this, time had been insufficient.
Therefore, as an alternative, the GoJ had suggested a
stopover visit in Montego Bay, and Chavez grudgingly had
accepted. ((Note: Further to Reftel (D),post will provide
additional information on the LNG MOU signed by Chavez and
PSM on March 12 in Montego Bay as it becomes available. End
Note.))

Putting the PM on a Sticky Wicket?
--------------

7.(C) Golding then noted that Chavez's public invitation to
Jamaica to participate in Venezuela's ALBA program, made
during his meeting with Prime Minister Portia Simpson Miller
(PSM),had been "the sort of thing normally worked out in the
corridors, rather than in public." Golding said he did not
know whether Chavez's ALBA invitation had taken PSM by
surprise; if so, by saying only that the GoJ would give his
offer due consideration before taking any decisions, she had
handled the situation well.

8.(C) The Opposition Leader then said he feared the GoJ was
allowing itself to be maneuvered into a position in which "it
would have no capacity to say no to Chavez." He then
reiterated his claim (Reftel A) that Venezuela was providing
USD 5-6 million in cash to finance PSM's election campaign.
He said that, until just before the Trafigura
"contributions," the PNP had had financial problems, even
finding it difficult to maintain its party facilities. But
recently, there had been a dramatic turnaround. The PNP no
longer was aggressively canvassing the private sector,
apparently because their contributions no longer were needed.
Private sector companies which historically had contributed
to both major political parties no longer were being
approached by the PNP. He believed Chavez had taken on the
role of a "godfather with money," and that Jamaica was "being
sucked into an agenda not of our own making. Chavez waves
cash, we're mesmerized, and cave in to anything he wants."
Jamaica needed "guidance as to how to deal with Chavez."

9.(C) Ambassador agreed that Chavez's growing influence was
of serious concern. She suggested that Golding raise these
concerns with USG officials during this upcoming visit to
Washington. She noted that Trinidad and Tobago's recent
decision not to supply LNG to Jamaica on concessionary terms
(Reftels D, E) had not helped matters vis-Q-vis Venezuela.
She also reiterated that, as a means of demonstrating the
USG's continued interest in Jamaica, she had requested that a
high-level U.S. official visit at the earliest opportunity.

10.(C) Golding then said that, given Jamaica's indebtedness
to Venezuela as a result of Petrocaribe, it would be easy to
imagine a scenario in which Chavez offered to write off or
defer a portion of these debts in return for GoJ support of
his positions in international fora. In response to
Golding's question as to whether the U.S. had communicated
its concerns over Venezuela to the GoJ, the Ambassador
recounted the Embassy's recent sustained effort to dissuade
the GoJ from supporting Venezuela for a seat on the UNSC,
noting that the PM at one point had claimed to have left the
decision of Jamaica's position entirely to Foreign Minister
Hylton. She volunteered to share the latest information on
Jamaica's voting record at the U.N.

11.(C) In response to Ambassador's inquiry as to whether he
believed the PNP, as it claimed, actually had returned the
Trafigura "contribution," Golding replied that, while he
still had doubts, his doubts were receding. It seemed
"logical" that part of the cash apparently received by
Hylton, Paulwell, and Campbell while in Venezuela had been
used to pay back Trafigura.

National Elections in June or July?
--------------

12.(C) In response to Ambassador's inquiry as to whether
PSM might call elections in the wake of what was shaping up
as a highly successful Cricket World Cup (CWC) series,
Golding noted that the PNP had been "busy since December
registering voters," and that the lists of these voters would
be published on May 31. Jamaican law prohibited the
publication of voter lists after elections had been called;
therefore, PSM probably would wait until early April, setting
an election date in June or July. The Opposition Leader
concluded by observing that, in drawing closer to Chavez,
Jamaica was "getting mixed up with something from which it
will be difficult to extricate ourselves." He did not rule
out the possibility of the flamboyant Venezuelan President
"arriving here in the middle of the Jamaican election
campaign."

Comment
--------------

13.(C) In contrast to the optimistic impression he had given
in previous meetings, on March 16 Golding appeared decidedly
downbeat. He may sense that the highly successful start to
the Cricket World Cup (CWC) series and attendant publicity,
as well as Chavez's largesse, are working to the advantage of
PM Portia Simpson Miller.
End Comment.
JOHNSON