CHAVEZ REPEATS THREATS TO PRIVATE SECTOR IN EFFORT

UNCLAS CARACAS 000174 SIPDIS SIPDIS DEPARTMENT PASS TO AGRICULTURE ELECTRONICALLY E.O. 12958: N/A TAGS: EAGR ECON PGOV VE SUBJECT: CHAVEZ REPEATS THREATS TO PRIVATE SECTOR IN EFFORT TO END SHORTAGES REF: A. .2007 CARACAS 404 ¶B. CARACAS 86 ¶C. CARACAS 102 ¶D. CARACAS 141 ¶E. CARACAS 152 ¶1. (SBU) Summary: On January 31, the BRV published a decree reforming the "Law Against Speculation and Hoarding," a 2007 decree that criminalized the hoarding and speculation of regulated goods, reduced the legal barriers for expropriations, and established harsh fines and jail time for violators (Reftel A). The reformed "Anti-Speculation and Hoarding Law" closely tracks a previous decree, but increases the penalties for violators, adds undefined first-need goods to those items covered by the law, criminalizes purchasing controlled price goods for lucrative ends, and requires that all producers, distributors, and importers submit any operational information or documentation requested by the BRV. The re-issuance of this decree intensifies pressure on a private sector stifled by price controls, clearly reminding them of the BRV's punitive power. End Summary. -------------- - Chavez Tightens his Grip on the Private Sector -------------- - ¶2. (SBU) As detailed in ref A, Chavez' February 21, 2007 "Law Against Speculation and Hoarding" criminalized the hoarding, speculation, fraudulent altering of prices, boycott, and exporting of controlled products produced for the domestic market. These crimes were punishable by prison terms ranging from 2-6 years and fines from 130-20,000 tax units (approximately USD 2,800 to USD 428,000.) It also defined all stages of the production cycle for regulated foods as within the ambit of "public utility and the social interest," empowEGtiqQ[`