Identifier
Created
Classification
Origin
08PARAMARIBO18
2008-01-16 19:37:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Paramaribo
Cable title:  

PETROCARIBE STILL ALIVE, MIGHT AID FISHERIES

Tags:  BBSR ECON EPET VE NS 
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VZCZCXRO4179
OO RUEHGR
DE RUEHPO #0018 0161937
ZNR UUUUU ZZH
O 161937Z JAN 08
FM AMEMBASSY PARAMARIBO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9911
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHAO/AMCONSUL CURACAO 1220
RUEHCV/AMEMBASSY CARACAS 1646
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS PARAMARIBO 000018 

SIPDIS

SIPDIS
SENSITIVE

STATE FOR WHA/CAR JROSHOLT; WHA/EPSC, EB/ESC/IEC/ENR, INR FOR
BCARHART

E.O. 12958: N/A
TAGS: BBSR ECON EPET VE NS

SUBJECT: PETROCARIBE STILL ALIVE, MIGHT AID FISHERIES

REF: 05 PARAMARIBO 602

UNCLAS PARAMARIBO 000018

SIPDIS

SIPDIS
SENSITIVE

STATE FOR WHA/CAR JROSHOLT; WHA/EPSC, EB/ESC/IEC/ENR, INR FOR
BCARHART

E.O. 12958: N/A
TAGS: BBSR ECON EPET VE NS

SUBJECT: PETROCARIBE STILL ALIVE, MIGHT AID FISHERIES

REF: 05 PARAMARIBO 602


1. (U) SUMMARY: The PetroCaribe deal is still an option for
Suriname, the Minister of Natural Resources told the press on
January 9. The Minister of Agriculture, Animal Husbandry, and
Fisheries told the press on January 10 that the deal would assist
the fisheries sector, which has been severely affected by rising
fuel costs. END SUMMARY


2. (U) Minister of Natural Resources Gregory Rusland told the
press on January 9 that the PetroCaribe deal is still an option for
Suriname. Implementation of the deal had stalled when the
Government, most notably the Ministry of Finance (MOF) and the
Central Bank of Suriname, refused to provide a state guarantee of
payment. Rusland told the press, "I'm about ready to say I'm not
going to talk about the deal anymore until I see a ship off of
Suriname with oil products. But I have to tell you that we're also
making progress on this matter... We're not giving up. And in
fact, if a moment comes in which we say we see no value in the
implementation, then we'd announce that too." When contacted by
Post for confirmation Jainoel Abdul, Permanent Secretary of the
Ministry of Natural Resources, would not comment, saying only the
Minister could confirm his remarks.


3. (U) Meanwhile, Minister of Agriculture, Animal Husbandry, and
Fisheries Kermechend Raghoebarsing told the press on January 10 he
is looking to the PetroCaribe deal as a "solution" to dealing with
costs in the fisheries sector. Fuel prices are the most important
component in the price of fish, and if fishermen have to pay market
prices for fuel, the sector is at risk of dying out, he warned.
Increasing competition from Guyanese and Venezuelan fishermen who
get their fuel in Venezuela at a lower rate and then fish illegally
in Surinamese waters is a danger to Suriname's fisheries sector.
Raghoebarsing identified this as a national security threat that has
contributed to the rise of a black market for fuel at sea as well as
an increase in piracy cases off Suriname's coast. (NOTE: To combat
these problems, Suriname implemented a vessel GPS registry system in
summer 2007 and conducted a maritime operation against pirates in
December 2007. END NOTE) Once Surinamese fishermen can purchase
fuel at the same rates as their Guyanese and Venezuelan
counterparts, the Minister said he expects the damage to the sector
to decrease.


4. (U) COMMENT: The dire warnings from Suriname's Agriculture
Minister track with those Post has heard from industry leaders. At
a luncheon hosted by the Ambassador on January 11 to take advantage
of the visit of the Turtle Excluder Device (TEDs) Inspection Team to
Suriname, the high cost of fuel was rated the top problem
confronting Suriname's fisheries industry today. It also impacts
government of Suriname (GOS) ability to patrol its territory, both
on land and at sea. Given these straightened circumstances,
Rusland's favorable comments with respect to PetroCaribe appear
understandable. Whether PetroCaribe would, in fact, be the panacea
the GOS hopes, remains open to debate. END COMMENT

SCHREIBER HUGHES