Identifier
Created
Classification
Origin
07LAPAZ2205
2007-08-10 22:18:00
CONFIDENTIAL
Embassy La Paz
how-toVZCZCXRO7708 PP RUEHLMC DE RUEHLP #2205/01 2222218 ZNY CCCCC ZZH P 102218Z AUG 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 4617 INFO RUEHAC/AMEMBASSY ASUNCION 6993 RUEHBO/AMEMBASSY BOGOTA 4353 RUEHBR/AMEMBASSY BRASILIA 8238 RUEHBU/AMEMBASSY BUENOS AIRES 5480 RUEHCV/AMEMBASSY CARACAS 2705 RUEHPE/AMEMBASSY LIMA 2882 RUEHMD/AMEMBASSY MADRID 3560 RUEHMN/AMEMBASSY MONTEVIDEO 4782 RUEHQT/AMEMBASSY QUITO 5341 RUEHSG/AMEMBASSY SANTIAGO 9948 RUEHUB/USINT HAVANA 0470 RHMFISS/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RUEHLMC/MILLENNIUM CHALLENGE CORP RHEBAAA/DEPT OF ENERGY WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002205
SIPDIS
SIPDIS
E.O. 12958: DECL: 08/10/2017
TAGS: ECON PGOV PREL BL
SUBJECT: CHAVEZ VISITS BOLIVIA
Classified By: Ecopol Chief Mike Hammer for reasons 1.4 (b) and (d).
-------
SUMMARY
-------
C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002205
SIPDIS
SIPDIS
E.O. 12958: DECL: 08/10/2017
TAGS: ECON PGOV PREL BL
SUBJECT: CHAVEZ VISITS BOLIVIA
Classified By: Ecopol Chief Mike Hammer for reasons 1.4 (b) and (d).
--------------
SUMMARY
--------------
1. (C) Venezuelan President Hugo Chavez arrived in Bolivia
August 9 for an official visit. President Morales and Chavez
signed documents creating Petroandina, a joint venture
between the Bolivian state energy company YPFB and Venezuelan
state energy company PDVSA. On August 10, President Morales,
accompanied by Chavez, and Argentine President Kirschner
signed an agreement in Tarija to build a liquid gas
separation facility. Morales and Chavez are due to travel to
Entre Rios in the Chapare area late August 10, where they
will sign an agreement to build a thermo-electric plant.
President Morales has been visibly elated to host Chavez, but
his visit may ultimately provide little more than an
emotional high for Evo. End summary.
--------------
CHAVEZ ARRIVES LATE
--------------
2. (C) Venezuelan President Hugo Chavez arrived at El Alto
military airport at 10:30 p.m. (five hours behind schedule)
on August 9. A signing ceremony with Presidents Morales and
Chavez was held at the Presidential Palace at midnight
creating Petroandina, a joint venture between the Bolivian
state energy company YPFB and Venezuelan state energy company
PDVSA. YPFB will own 60% of the shares and PDVSA the
remaining 40%. Chavez has promised to invest USD600 million
in Petroandina. Chavez, Morales, and Vice President Garcia
Linera all put their right hand over their hearts and held
their left hands up in a closed fisted Marxist style position
while the Bolivian national anthem played (Note: this is
Morales' new style to pay respect to the anthem. End note).
During his speech Chavez urged Bolivians to fight for "the
united motherland" that Simon Bolivar had dreamed of. Chavez
also mentioned that "any conspiracy will be defeated by the
force of the Bolivian people." Morales, for his part, said
that Petroandina, unlike the discredited neoliberal model,
would bring great economic results. He praised the "two
commanders of the liberating forces of America...Fidel, and
the commandant Chavez." (Note: The general manager of the
Radisson La Paz hotel where Chavez was staying told Emboff
the Venezuelan security team were more demanding than usual,
to the point of paranoia, and that they had insisted on
testing the pH balance of the bathroom water where Chavez
would stay. End note.)
--------------
MINI ENERGY SUMMIT
--------------
3. (U) On August 10 Morales and Chavez flew to Tarija
where, together with Argentinean President Kirschner, they
signed an agreement to build a liquid gas separation
facility. President Chavez took the opportunity to again
urge "Venezuela, Bolivia, Ecuador, Peru, and Argentina to
work together to consolidate one nation, one big motherland."
In his speech, President Kirschner said "dear Evo, I will be
waiting for your call if companies like Petrobras and Respsol
and others do not fulfill their investment obligations. Pick
up the phone and the Argentines will come and produce."
President Morales trumpeted the Argentine agreement as paving
the way for Bolivia to "enter the era of hydrocarbons
industrialization."
--------------
BEST YET TO COME?
--------------
4. (U) From Tarija, Morales and Chavez will fly to the
Chimore military base and travel to Entre Rios in the Chapare
area and home to Evo's most ardent supporters. The two
LA PAZ 00002205 002 OF 002
presidents will then sign an agreement to build a
thermo-electric plant. Sometime during his trip, Chavez is
due to donate two more Superpuma helicopters to Bolivia.
--------------
COMMENT
--------------
5. (C) President Morales has been beaming from the moment
Chavez arrived at the Presidential Palace, to the point of
being visibly emotional. It may prove to be a short lived
emotional high as Bolivia is faced with rising inflation and
an ever closer energy crisis (Note: the GOB has asked the
population to start conserving power between 3 and 6 p.m.
End note). There are doubts as to the viability of
Petroandina, as YPFB in reality is nothing more than a shell
company and PDVSA is plagued by corruption. Argentine
Political Counselor Federico Gonzales told Post he doubted
that the liquid gas separation plant would ever actually be
built. Although Morales and Chavez have not directly
attacked the United States so far during the visit, it would
not be surprising to hear such rhetoric in Entre Rios, the
heartland of Evo's political support base. End Comment.
GOLDBERG
SIPDIS
SIPDIS
E.O. 12958: DECL: 08/10/2017
TAGS: ECON PGOV PREL BL
SUBJECT: CHAVEZ VISITS BOLIVIA
Classified By: Ecopol Chief Mike Hammer for reasons 1.4 (b) and (d).
--------------
SUMMARY
--------------
1. (C) Venezuelan President Hugo Chavez arrived in Bolivia
August 9 for an official visit. President Morales and Chavez
signed documents creating Petroandina, a joint venture
between the Bolivian state energy company YPFB and Venezuelan
state energy company PDVSA. On August 10, President Morales,
accompanied by Chavez, and Argentine President Kirschner
signed an agreement in Tarija to build a liquid gas
separation facility. Morales and Chavez are due to travel to
Entre Rios in the Chapare area late August 10, where they
will sign an agreement to build a thermo-electric plant.
President Morales has been visibly elated to host Chavez, but
his visit may ultimately provide little more than an
emotional high for Evo. End summary.
--------------
CHAVEZ ARRIVES LATE
--------------
2. (C) Venezuelan President Hugo Chavez arrived at El Alto
military airport at 10:30 p.m. (five hours behind schedule)
on August 9. A signing ceremony with Presidents Morales and
Chavez was held at the Presidential Palace at midnight
creating Petroandina, a joint venture between the Bolivian
state energy company YPFB and Venezuelan state energy company
PDVSA. YPFB will own 60% of the shares and PDVSA the
remaining 40%. Chavez has promised to invest USD600 million
in Petroandina. Chavez, Morales, and Vice President Garcia
Linera all put their right hand over their hearts and held
their left hands up in a closed fisted Marxist style position
while the Bolivian national anthem played (Note: this is
Morales' new style to pay respect to the anthem. End note).
During his speech Chavez urged Bolivians to fight for "the
united motherland" that Simon Bolivar had dreamed of. Chavez
also mentioned that "any conspiracy will be defeated by the
force of the Bolivian people." Morales, for his part, said
that Petroandina, unlike the discredited neoliberal model,
would bring great economic results. He praised the "two
commanders of the liberating forces of America...Fidel, and
the commandant Chavez." (Note: The general manager of the
Radisson La Paz hotel where Chavez was staying told Emboff
the Venezuelan security team were more demanding than usual,
to the point of paranoia, and that they had insisted on
testing the pH balance of the bathroom water where Chavez
would stay. End note.)
--------------
MINI ENERGY SUMMIT
--------------
3. (U) On August 10 Morales and Chavez flew to Tarija
where, together with Argentinean President Kirschner, they
signed an agreement to build a liquid gas separation
facility. President Chavez took the opportunity to again
urge "Venezuela, Bolivia, Ecuador, Peru, and Argentina to
work together to consolidate one nation, one big motherland."
In his speech, President Kirschner said "dear Evo, I will be
waiting for your call if companies like Petrobras and Respsol
and others do not fulfill their investment obligations. Pick
up the phone and the Argentines will come and produce."
President Morales trumpeted the Argentine agreement as paving
the way for Bolivia to "enter the era of hydrocarbons
industrialization."
--------------
BEST YET TO COME?
--------------
4. (U) From Tarija, Morales and Chavez will fly to the
Chimore military base and travel to Entre Rios in the Chapare
area and home to Evo's most ardent supporters. The two
LA PAZ 00002205 002 OF 002
presidents will then sign an agreement to build a
thermo-electric plant. Sometime during his trip, Chavez is
due to donate two more Superpuma helicopters to Bolivia.
--------------
COMMENT
--------------
5. (C) President Morales has been beaming from the moment
Chavez arrived at the Presidential Palace, to the point of
being visibly emotional. It may prove to be a short lived
emotional high as Bolivia is faced with rising inflation and
an ever closer energy crisis (Note: the GOB has asked the
population to start conserving power between 3 and 6 p.m.
End note). There are doubts as to the viability of
Petroandina, as YPFB in reality is nothing more than a shell
company and PDVSA is plagued by corruption. Argentine
Political Counselor Federico Gonzales told Post he doubted
that the liquid gas separation plant would ever actually be
built. Although Morales and Chavez have not directly
attacked the United States so far during the visit, it would
not be surprising to hear such rhetoric in Entre Rios, the
heartland of Evo's political support base. End Comment.
GOLDBERG