MARCH 6 UPDATE: COLOMBIA DISPUTE WITH ECUADOR AND

UNCLAS SECTION 01 OF 02 BOGOTA 000903 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL PREF PTER MOPS ETRD VZ FR SP SZ EC NU CO SUBJECT: MARCH 6 UPDATE: COLOMBIA DISPUTE WITH ECUADOR AND VENEZUELA REF: BOGOTA 839 AND PREVIOUS SUMMARY -------------- ¶1. (U) Venezuela continued to restrict the import of Colombian goods and people into Venezuela in response to the GOC's March 1 attack against the FARC in Ecuador (reftel). Still, the flow of food and other perishable products continued. Businessmen reported GOV authorities were lifting restrictions in some areas due to shortages. The border with Ecuador remained open. Meanwhile, on March 6, Nicaraguan President Daniel Ortega announced he would break diplomatic relations with Colombia. The GOC said it would expect full and fair payment in the event of Venezuelan nationalization of Colombian firms. The GOC detailed 39 cases of FARC attacks against Colombian forces from Ecuador from 2004-2008, resulting in 20 members of the security forces killed. END SUMMARY. BORDERS: SOME GOV RESTRICTIONS IN PLACE, ECUADOR OPEN -------------- -------------- ¶2. (U) The Colombian border with Venezuela remained only partially open on March 6, with most food, medicine, and other perishables passing into Venezuela. Other goods are restricted, and the entry of people into Venezuela from Cesar and Arauca was delayed by backups for visas/permits. The border with Ecuador remained open. The GOV blocked contraband gasoline shipments into far-northen Guajira Department, causing local protests after the prices rose from approximately $1.60 to $2.40 per gallon. National Industrial Association President Luis Carlos Villegas told us he already sees evidence that Venezuelan consumers are feeling the pinch of limited border closures, forcing local GOV officials to relax some restrictions. Nicaraguan President Daniel Ortega, speaking after a March 6 meeting with President Rafael Correa, announced he would break diplomatic relations with Colombia. GOC REACTS TO CHAVEZ NATIONALIZATION THREAT -------------- ¶3. (U) In response to President Chavez' March 5 threats to nationalize Colombian investments in Venezuela, Colombian Finance Minister Oscar Zuluaga said Colombian business could face a "difficult situation," but would expect full payment from Venezuela for any nationalizations. Colombia's Ambassador to the OAS Camilo Ospina added that Colombia would take any unfair nationalizations to international tribunals or arbitration--citing the Exxon-Mobil case. GOC CONTINUES TO MAKE ITS CASE -------------- ¶4. (U) The GOC continued to make its case for the March 1 attack in Ecuador against FARC secretariat member Raul Reyes, as MFA officials told us President Alvaro Uribe left early for the Rio Group meeting in the Dominican Republic to meet with foreign leaders. Defense Minister Juan Manuel Santos released figures showing 39 documented cases of FARC attacks against Colombia from Ecuadorian territory between 2004-2008, resulting in 20 Colombian soldiers/police killed and 16 wounded. Santos said various GOC entities had communicated on dozens of occasions with the Ecuadorian Government to protest the FARC's presence in Ecuador or to denounce FARC attacks from Ecuadorian territory. The GOC received few responses. Ospina added from Washington that Ecuador and Venezuela could be sanctioned by the OAS for "sponsorship of terrorism" once all evidence against them was reviewed. REACTION TO OAS RESOLUTION -------------- ¶5. (SBU) Local media called the OAS resolution on the Reyes attack "bittersweet," and credited Colombian Ambassador to the OAS Camilo Ospina for negotiating a "benign" result. Commentators also praised the OAS' decision to examine the BOGOTA 00000903 002 OF 002 facts surrounding the case from both sides of the border, including the numerous FARC camps inside Ecuador and evidence seized from Reyes' computers. Former Foreign Minister Augusto Ramirez Ocampo voiced satisfaction with the outcome in the OAS, but said the increasingly close ties between Presidents Correa and Chavez are worrying. Only three weeks ago, GOC policy makers were congratulating themselves on their ability to separate Correa from Chavez. Brownfield