Identifier
Created
Classification
Origin
08CARACAS1661
2008-12-03 20:12:00
CONFIDENTIAL
Embassy Caracas
Cable title:
ALBA SUMMIT: THE USUAL RHETORIC AND A NEW PROPOSAL
how-toVZCZCXYZ0009 PP RUEHWEB DE RUEHCV #1661 3382012 ZNY CCCCC ZZH P 032012Z DEC 08 ZDK FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 2231 INFO RUEHBO/AMEMBASSY BOGOTA 7911 RUEHWN/AMEMBASSY BRIDGETOWN 0853 RUEHLP/AMEMBASSY LA PAZ DEC LIMA 1118 RUEHMU/AMEMBASSY MANAGUA 1477 RUEHQT/AMEMBASSY QUITO 2932 RUEHTG/AMEMBASSY TEGUCIGALPA 0590 RUEHUB/USINT HAVANA 1042 RHEHNSC/NSC WASHDC RUMIAAA/HQ USSOUTHCOM MIAMI FL RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY
C O N F I D E N T I A L CARACAS 001661
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/28/2018
TAGS: ECON PREL VE
SUBJECT: ALBA SUMMIT: THE USUAL RHETORIC AND A NEW PROPOSAL
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
C O N F I D E N T I A L CARACAS 001661
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/28/2018
TAGS: ECON PREL VE
SUBJECT: ALBA SUMMIT: THE USUAL RHETORIC AND A NEW PROPOSAL
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (U) The Bolivarian Republic of Venezuela (BRV) hosted on
November 26 the third extraordinary summit of heads of state
and government of the Bolivarian Alternative for the Peoples
of Our America (ALBA) - trade pact for the peoples. In
attendance were the following representatives of ALBA
countries: President Chavez of Venezuela, President Morales
of Bolivia; President Ortega of Nicaragua, President Zelaya
of Honduras, Prime Minister Kerrit of Dominica; and Vice
President of the Council of Ministers Cabrisas of Cuba.
Ecuadorian President Correa attended as an observer.
2. (SBU) The summit featured criticism of "neoliberal"
economic policies and the lending policies of the Corporacion
Andina de Fomento (CAF) and the Inter-American Development
Bank. President Chavez threatened to shut CAF's headquarters
in Caracas if it refused to give requested loans. The
assembled leaders pronounced their support for President
Correa's decision to review sovereign bond issuances for
"irregularities" and possibly not pay the debt if
irregularities were found. The summit's declaration included
a proposal to develop a monetary zone among the ALBA
countries (with the exception of Dominica and the addition of
Ecuador) through the establishment of a common currency
called the SUCRE (unitary system of regional compensation).
3. (C) Comment: The summit was high on rhetoric and low on
substance. From an economic standpoint, the idea of creating
a common currency shared by ALBA countries is far-fetched, to
say the least, and no local independent observer expects
steps toward implementation in the near future. Perhaps more
telling were remarks made by PDVSA vice president Eulogio del
Pino to the National Assembly's Finance Committee and
reported in national media on November 28. Del Pino noted
that PDVSA was reconsidering some international projects in
light of lower oil prices, "such as the refineries in Ecuador
and Nicaragua, where we are seeking funding and lowering
equity stakes." With Venezuela's ability to bankroll ALBA
projects severely curtailed by current oil prices, we do not
expect the substance to return to ALBA summits any time soon.
End comment.
GENNATIEMPO
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/28/2018
TAGS: ECON PREL VE
SUBJECT: ALBA SUMMIT: THE USUAL RHETORIC AND A NEW PROPOSAL
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (U) The Bolivarian Republic of Venezuela (BRV) hosted on
November 26 the third extraordinary summit of heads of state
and government of the Bolivarian Alternative for the Peoples
of Our America (ALBA) - trade pact for the peoples. In
attendance were the following representatives of ALBA
countries: President Chavez of Venezuela, President Morales
of Bolivia; President Ortega of Nicaragua, President Zelaya
of Honduras, Prime Minister Kerrit of Dominica; and Vice
President of the Council of Ministers Cabrisas of Cuba.
Ecuadorian President Correa attended as an observer.
2. (SBU) The summit featured criticism of "neoliberal"
economic policies and the lending policies of the Corporacion
Andina de Fomento (CAF) and the Inter-American Development
Bank. President Chavez threatened to shut CAF's headquarters
in Caracas if it refused to give requested loans. The
assembled leaders pronounced their support for President
Correa's decision to review sovereign bond issuances for
"irregularities" and possibly not pay the debt if
irregularities were found. The summit's declaration included
a proposal to develop a monetary zone among the ALBA
countries (with the exception of Dominica and the addition of
Ecuador) through the establishment of a common currency
called the SUCRE (unitary system of regional compensation).
3. (C) Comment: The summit was high on rhetoric and low on
substance. From an economic standpoint, the idea of creating
a common currency shared by ALBA countries is far-fetched, to
say the least, and no local independent observer expects
steps toward implementation in the near future. Perhaps more
telling were remarks made by PDVSA vice president Eulogio del
Pino to the National Assembly's Finance Committee and
reported in national media on November 28. Del Pino noted
that PDVSA was reconsidering some international projects in
light of lower oil prices, "such as the refineries in Ecuador
and Nicaragua, where we are seeking funding and lowering
equity stakes." With Venezuela's ability to bankroll ALBA
projects severely curtailed by current oil prices, we do not
expect the substance to return to ALBA summits any time soon.
End comment.
GENNATIEMPO