PM SOCRATES HEADS TO VENEZUELA: OIL-FOR-FOOD AND

C O N F I D E N T I A L LISBON 001130 SENSITIVE SIPDIS DEPARTMENT FOR WHA/AND E.O. 12958: DECL: 05/09/2018 TAGS: PREL PGOV VE PO SUBJECT: PM SOCRATES HEADS TO VENEZUELA: OIL-FOR-FOOD AND EXPATS TOP THE AGENDA Classified By: Pol/Econ Counselor Matt Harrington for reasons 1.4 (B) a nd (D). ¶1. (C) Prime Minister Socrates has two principal objectives for his visit to Venezuela May 13-15, according to his diplomatic advisor for Latin American issues, Frederico Ludovice. He intends both to strengthen ties to the 500,000-strong community of Portuguese citizens resident in Venezuela, many of them dual nationals who hail originally from the Portuguese archipelago of Madeira, and to boost bilateral commercial relations, including in the energy sector. Portuguese community -------------- ¶2. (U) Socrates intends to send a strong message of support for a community that is among the largest of the Portuguese diaspora and one that has sometimes been the target of harassment by the Chavez government. He is also hoping to reinforce connections with younger dual nationals whose ties to the motherland are more tenuous. Many Portuguese residents are involved in food distribution, including ownership of grocery stores, and Socrates wants to discuss the impact of recent restrictions on food imports. There will be two events with Portuguese citizens in Caracas: a reception and a concert with Portuguese fado singer Mariza. Possible business deals -------------- ¶3. (SBU) Socrates plans to travel with his Ministers of Economy, Foreign Affairs, and Public Works, and with a number of business leaders. The delegation will travel to the the Orinoco Delta to finalize discussions that have been ongoing for some time between PDVSA and Galp, Portugal's largest oil company. Portugal imports all of its oil and natural gas and, as part of its expanding energy diversification efforts, has pushed recently for signature of an "oil for milk" deal with Venezuela involving exchange of Portuguese dairy products for Venezuelan oil. Ludovice added that the delegation would also be looking at opportunities for investment in infrastructure development, but he did not elaborate. Next stop... -------------- ¶4. (U) After Venezuela, Socrates plans to attend the EU-Latin America summit in Lima May 16-17. Comment -------------- ¶5. (C) Although the Prime Minister's office and the MFA are usually reluctant to share details of high-level Portugal-Venezuela visits with us, well aware of U.S. preferences that Lisbon minimize its interactions with the Chavez government, this time they have been forthcoming and even proactive (the PM's diplomatic advisor has kept DCM up to date on the evolution of this trip for over a month.) Our interlocutors regularly underscore to us that concerns about the well-being of Portuguese citizens in Venezuela require engagement with Chavez, and they insist that they deliver tough messages in private. Stephenson