NICARAGUA - VENEZUELA FRAMEWORK AGREEMENT

UNCLAS MANAGUA 000725

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CEN, WHA/EPSC, EEB/TPP, EEB/ESC, OES

E.O. 12958: N/A
TAGS: PREL EAID EAGR ENRG EPET EIND TBIO OSCI ECIN
NU, VE
SUBJECT: NICARAGUA - VENEZUELA FRAMEWORK AGREEMENT

REF: A. MANAGUA 0646

B. MANAGUA 0644

C. MANAGUA 0643

D. MANAGUA 0642

E. MANAGUA 0641

F. MANAGUA 0645

G. MANAGUA 0640

H. MANAGUA 0639

I. MANAGUA 0637

J. MANAGUA 0638


1. (SBU) Summary. As part of a series of Bolivarian
Alternative agreements between Nicaraguan and Venezuela
concluded on January 11, 2007, Nicaraguan and Venezuelan
Ministers of Foreign Relations signed a Framework Agreement,
setting forth general areas for cooperation. The agreement
created a high level joint commission, housed in the foreign
ministries of each country, to coordinate bilateral
cooperation and economic relations. End Summary.


2. (SBU) The Framework Agreement was one of a series of
thirteen commitments with Venezuela negotiated by the Ortega
government before it came to power on January 10, 2007.
Nicaraguan Minister of Foreign Relations Samuel Santos and
Venezuelan Minister of Foreign Relations Nicolas Maduro Moros
signed the agreement on January 11, 2007. The substance of
the agreement, along with the other commitments made that
day, was kept from the public for weeks. This cable reports
on an unsigned copy of the agreement. Refs A-E report on
agricultural agreements and commitments signed on January 11.
Refs F-H report on energy related agreements and commitments
signed on January 11. Ref I reports on the health
cooperation agreement, and Ref J reports on a letter of
intent to establish aluminum products factories, also signed
on January 11.

Preambular Language
--------------


3. (SBU) Preambular language includes reference to Nicaragua
and Venezuela's sustained history of friendship, common
roots, and mutual respect between peoples. In the search for
a fairer and more socially equitable new economic order, both
governments state their desire to create industrial
production schemes and commercial exchange based on the
principles of solidarity, cooperation, complementarity,
reciprocity, and sustainability. Both governments reaffirm
their decision to move forward along the path of integrated
economic development to transform inherited structural
problems, such as poverty, illiteracy, unemployment, and
"social exclusion." They recognize that to achieve
integrated development, it is vital for both countries to
promote the organization and direct participation of their
people, elevating the level of educational and productive
training to progressively achieve sustainable social,
cultural, and economic well-being.

Article 1: Bilateral Cooperation
--------------


4. (SBU) Both governments pledge to promote and intensify
cooperation between the two countries.

Article 2: Areas for Cooperation
--------------


5. (SBU) Cooperation is envisioned in the following
developmental areas:

-- health;
-- education;
-- culture;
-- energy;
-- sovereign food security;
-- industry;
-- commercial exchange;
-- rural development;
-- promotion of public and private investment;
-- agriculture and ranching;
-- infrastructure;
-- petrochemicals;
-- information and communications technology;
-- tourism;
-- science and technology;
-- environment; as well as
-- other areas to which the parties may agree.

Article 3: Activities
--------------


6. (SBU) The parties will stimulate cooperative activities,
some of which may take the following forms:

-- information exchange;
-- visitor exchange;
-- promotion and participation in events,
fairs, conferences, and seminars;
-- promotion, expansion, and diversification
of trade;
-- exchange of information on the protection
and sustainable use of natural resources;
-- creation of partnerships and establishment
of commercial representatives and branches;
-- negotiate agreements for shared production
to maximize production capacity, minimize
costs, and raise the level of international
competitiveness;
-- construction, modernization, rehabilitation,
expansion, and automation of factories and
existing industries;
-- marketing, consulting, and other services;
-- feasibility studies;
-- exchange of information and experience about
professional training; as well as
-- other activities upon which the parties may
mutually agree.

Article 4: Complementary Agreements
--------------


7. (SBU) To achieve cooperation envisioned in this agreement,
the parties may adopt complementary agreements, which should
address the following:

-- objectives to be realized;
-- a work calendar;
-- obligations of each of the parties:
-- financing; and,
-- participating institutions responsible for
implementation.

Article 5: The Fight Against Hunger and Poverty
-------------- --


8. (SBU) Both parties will develop initiatives in the fight
against poverty and hunger through concrete measures, as may
be established in complementary agreements.

Article 6: Financing Mechanisms
--------------


9. (SBU) The parties will define ad hoc mechanisms of finance
to execute activities, programs, and projects along the lines
outlined in this framework of cooperation, taking into
account the following considerations:

-- concessional financing when it may benefit
Nicaragua;
-- creation of special non public funds through
which financing and donor funds may be
channeled under laws pertaining to the
private sector; and,
-- creation of specific mechanisms to verify the
use of funds.

Article 7: High Level Joint Commission
--------------


10. (SBU) To achieve the objectives of this agreement, the
parties agree to create a High Level Joint Commission under
the coordination of the Foreign Ministers, with relevant
officials from both parties meeting annually, alternatively
in Caracas and Managua. Commission tasks will be to:

-- review the development and the state of
bilateral economic relations;
-- consider proposals for future cooperation;
-- elaborate proposals to improve economic
cooperation, trade, environmental,
industrial, and technological between public
and private institutions, present
recommendations; and,
-- present recommendations on the application of
this agreement.

Article 8-11: Implementation, Disputes, Revisions
-------------- --------------


11. (SBU) The parties will provide privileges and facilities
necessary to implement this agreement, in accordance with
internal legislation of each country. Disputes will be
reconciled through diplomatic negotiation between the
parties. Either party may request in writing the revision,
amendment, or modification of the agreement through
diplomatic communication. Any revision shall be in writing
and constitute a part of this agreement. Such changes will
enter into force through means set forth in Article 12. Any
revision will not prejudice rights and obligations based on
this agreement before the date of revision. Upon having
entered into force, this agreement shall not affect the
Friendship and Cooperation Agreement between Nicaragua and
Venezuela signed on June 29, 1990 in Caracas.

Article 12: Entry Into Force, Duration
--------------


12. (SBU) This agreement enters into effect once both parties
notify the other that fulfillment of internal formalities and
legal requirements have been met. The agreement will remain
in force for 5 years and is automatically renewable for 1
year, unless one of the parties notifies the other 6 months
before expiration of its intention not to renew. At any
time, either party may withdraw from the agreement upon
60-day notice. Termination will not affect ongoing programs
and projects initiated under this agreement, unless the
parties so agree.
TRIVELLI