BRV OFFICIALS REACT TO POTUS' MARCH 12 SPEECH AND

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000361 SIPDIS SIPDIS HQSOUTHCOM ALSO FOR POLAD DEPARTMENT PASS TO AID/OTI (RPORTER) E.O. 12958: DECL: 03/13/2028 TAGS: PTER PREL PGOV VE SUBJECT: BRV OFFICIALS REACT TO POTUS' MARCH 12 SPEECH AND POSSIBLE TERRORISM DESIGNATION REF: CARACAS 00342 CARACAS 00000361 001.2 OF 002 Classified By: ACTING POLITICAL COUNSELOR DANIEL LAWTON FOR REASON 1.4 (D) ¶1. (C) Summary. The President's March 12 speech received extensive coverage in the Venezuelan media, further fueling speculation and concern about a possible USG designation of Venezuela as a State Sponsor of Terrorism. Foreign Minister Nicolas Maduro, Minister of Interior and Justice Ramon Rodriguez Chacin, and other BRV officials responded separately to the President's comments, but focused primarily on the possible terrorism designation. These officials portrayed USG actions as attempts to halt President Chavez's "revolutionary" process. The National Assembly's Committee on Communications announced it will investigate media outlets that attempt to present Venezuela as a sponsor of terrorism. In a private meeting with the Ambassador, Venezuelan business leaders expressed concern about the impact such a designation would have on U.S.-Venezuela commercial ties as well as the future of Venezuelan democracy. End Summary. -------------- Media Highlights Speech -------------- ¶2. (U) The President's March 12 speech at the Hispanic Chamber of Commerce received extensive coverage in the local press. Most independent news sources emphasized the President's critical comments on purported Venezuela-FARC connections. National print media sources quoted the President's comments extensively but provided only limited coverage of Bolivarian Republic of Venezuela (BRV) officials' reactions to the speech. On-line independent and government-owned new sources reported receiving hundreds of reader comments and hits following the speech. The pro-government daily "Diaro Vea" did not publish a story on the speech, but ran several articles on the USG's possible designation of Venezuela as a State Sponsor of Terrorism. -------------- Maduro: No One Judges Us -------------- ¶3. (SBU) During a telephone interview March 12 with state-owned television network VTV, Foreign Minister Nicolas Maduro said the President's statements on Venezuela were a response to the events at the Rio Group Summit, which the BRV has attempted to frame as favorable to Venezuela and detrimental to the USG. (Note: Minister of Communications Andres Izarra made similar comments March 10. (Reftel). End Note). Maduro argued that the USG "laments" that Colombia, Ecuador, and Venezuela were able find a peaceful solution to the diplomatic crisis and as a result is seeking other means by which to attack Venezuela. Maduro also said the President's remarks indicate he is "desperate" and "impotent" as his presidential term winds down. Referring to reports about a possible USG designation, Maduro noted "no one judges Venezuela, Venezuela's conduct is transparent." -------------- Possible Designation Ruffles BRV Feathers -------------- ¶4. (U) As a guest on a VTV opinion show, Minister of Interior and Justice Ramon Rodriguez Chacin accused the USG of placing an informal economic blockade on Venezuela. He cited the Department's 2006 ban on arms-related exports and sales and accused the USG of restricting certain food imports. Rodriguez Chacin added that the President's term is ending and that he "does not want to see President Chavez leading Venezuela." ¶5. (U) Other BRV officials responded harshly to reports of a possible designation. First Vice President of the National Assembly Roberto Hernandez told the media that Venezuela "is not a terrorist state nor does it corroborate with terrorists." He added that the United States "wants the world to believe we are (terrorists) to justify its aggressions." Separately, the President of the National Assembly's Committee on Communications Manuel Villalba said the body will investigate television, print, and radio media sources that attempt to portray Venezuela as a "terrorist or narco-state." Villalba specifically mentioned Globovision and accused it of tarnishing the BRV's image locally and abroad. CARACAS 00000361 002.2 OF 002 -------------- Local Business Leaders Express Concern -------------- ¶6. (C) Local press reporting about the possible designation of Venezuela as a State Sponsor of Terrorism is alarming the Venezuelan business community. At a private March 12 dinner, prominent Caracas businessmen Lope Mendoza, Gustavo Marturet, and Silvano Gelleni (protect) told the Ambassador that they feared such a designation would undermine the still strong business ties between the United States and Venezuela. Moreover, they feared that Chavez would exploit the designation to rally his supporters and use it as an excuse to implement additional anti-democratic measures in Venezuela. Marturet urged the USG to find ways to isolate the Venezuelan government without unintentionally punishing the Venezuelan people. ¶7. (C) All three businessmen noted that the BRV is already under considerable domestic pressure to improve the economy. They said senior BRV officials, including the Vice President, recently held constructive meetings with industry representatives to try to resolve accumulating economic problems. They took the BRV,s outreach to be not so much an ideological retreat but rather as an admission of how serious the problems the Venezuelan economy is facing. ¶8. (C) Comment. The President's March 12 speech prompted further anti-USG reactions from BRV officials. Judging from their comments, it appears government officials are reading the President's harsher tone as an indication that the USG is intensifying its efforts to list Venezuela as a State Sponsor of Terrorism. End Comment. DUDDY