Identifier
Created
Classification
Origin
07LAPAZ410
2007-02-15 11:15:00
UNCLASSIFIED
Embassy La Paz
Cable title:
GLENCORE OPPOSES SMELTER NATIONALIZATION
VZCZCXYZ0000 RR RUEHWEB DE RUEHLP #0410 0461115 ZNR UUUUU ZZH R 151115Z FEB 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 2488 INFO RUEHAC/AMEMBASSY ASUNCION 6541 RUEHSW/AMEMBASSY BERN 0127 RUEHBO/AMEMBASSY BOGOTA 3864 RUEHBR/AMEMBASSY BRASILIA 7749 RUEHBS/AMEMBASSY BRUSSELS 0709 RUEHBU/AMEMBASSY BUENOS AIRES 4994 RUEHCV/AMEMBASSY CARACAS 2233 RUEHPE/AMEMBASSY LIMA 2329 RUEHMD/AMEMBASSY MADRID 3319 RUEHMN/AMEMBASSY MONTEVIDEO 4409 RUEHNE/AMEMBASSY NEW DELHI 0108 RUEHQT/AMEMBASSY QUITO 4876 RUEHSG/AMEMBASSY SANTIAGO 9464 RUEHKO/AMEMBASSY TOKYO 0288 RUEHUB/USINT HAVANA 0149 RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHC/DEPT OF INTERIOR WASHINGTON DC RUEHC/DEPT OF LABOR WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 000410
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL SZ
SUBJECT: GLENCORE OPPOSES SMELTER NATIONALIZATION
REF: LA PAZ 384
UNCLAS LA PAZ 000410
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL SZ
SUBJECT: GLENCORE OPPOSES SMELTER NATIONALIZATION
REF: LA PAZ 384
1. (U) In a February 13 statement issued from its Baar,
Switzerland headquarters, Glencore International said it
"firmly opposed" the GOB's February 9 nationalization of its
Vinto tin smelter (reftel) and "reserved its right...to take
all necessary action to protect its interests in accordance
with Bolivian and international law, including its right to
seek international arbitration" under Switzerland's
Investment Promotion and Protection Treaty with Bolivia,
which prohibits expropriation unless "effective and adequate"
compensation is promptly paid.
2. (SBU) Swiss representative Eros Robiani told Econoff
February 14 that he expected Glencore to try to establish
dialogue with the GOB, probably with assistance from the
Swiss embassy. He noted that if the company ultimately
sought international arbitration, it would "do so not for the
money, but to make a point," as the Vinto smelter represented
only a small portion of the mining giant's global revenues.
Robiani speculated that Glencore's decision to act was more
"a matter of pride" than anything else.
3. (SBU) Comment: Glencore may have a difficult time engaging
the GOB, as officials continue to declare the government's
intent to refuse to provide compensation. Glencore's
statement provoked little official reaction, with Minister of
Mining Jose Dalence saying only that the GOB "had rights as a
state" and would carefully respond to any measure seeking
compensation for the smelter's nationalization. End comment.
GOLDBERG
SIPDIS
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL SZ
SUBJECT: GLENCORE OPPOSES SMELTER NATIONALIZATION
REF: LA PAZ 384
1. (U) In a February 13 statement issued from its Baar,
Switzerland headquarters, Glencore International said it
"firmly opposed" the GOB's February 9 nationalization of its
Vinto tin smelter (reftel) and "reserved its right...to take
all necessary action to protect its interests in accordance
with Bolivian and international law, including its right to
seek international arbitration" under Switzerland's
Investment Promotion and Protection Treaty with Bolivia,
which prohibits expropriation unless "effective and adequate"
compensation is promptly paid.
2. (SBU) Swiss representative Eros Robiani told Econoff
February 14 that he expected Glencore to try to establish
dialogue with the GOB, probably with assistance from the
Swiss embassy. He noted that if the company ultimately
sought international arbitration, it would "do so not for the
money, but to make a point," as the Vinto smelter represented
only a small portion of the mining giant's global revenues.
Robiani speculated that Glencore's decision to act was more
"a matter of pride" than anything else.
3. (SBU) Comment: Glencore may have a difficult time engaging
the GOB, as officials continue to declare the government's
intent to refuse to provide compensation. Glencore's
statement provoked little official reaction, with Minister of
Mining Jose Dalence saying only that the GOB "had rights as a
state" and would carefully respond to any measure seeking
compensation for the smelter's nationalization. End comment.
GOLDBERG