Identifier
Created
Classification
Origin
09CARACAS305
2009-03-10 21:05:00
CONFIDENTIAL
Embassy Caracas
Cable title:
VENEZUELA: CARGILL EXPECTS PLANT TO BE NATIONALIZED
how-toVZCZCXRO5688 PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC DE RUEHCV #0305 0692105 ZNY CCCCC ZZH P 102105Z MAR 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 2720 INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS RUEAHLC/DHS WASHDC RULSDMK/DEPT OF TRANSPORTATION RUEABND/DEA HQ WASHINGTON DC RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY RUMIAAA/HQ USSOUTHCOM MIAMI FL
C O N F I D E N T I A L CARACAS 000305
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
COMMERCE FOR 4431/MAC/WH/JLAO
TREASURY FOR RJARPE
NSC FOR JSHRIER
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 03/10/2019
TAGS: ECON PGOV PREL ETRD EINV EAGR VE
SUBJECT: VENEZUELA: CARGILL EXPECTS PLANT TO BE NATIONALIZED
REF: A. 2008 CARACAS 1690
B. 2008 CARACAS 1393
C. CARACAS 280
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 000305
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
COMMERCE FOR 4431/MAC/WH/JLAO
TREASURY FOR RJARPE
NSC FOR JSHRIER
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 03/10/2019
TAGS: ECON PGOV PREL ETRD EINV EAGR VE
SUBJECT: VENEZUELA: CARGILL EXPECTS PLANT TO BE NATIONALIZED
REF: A. 2008 CARACAS 1690
B. 2008 CARACAS 1393
C. CARACAS 280
Classified By: Economic Counselor Darnall Steuart for reasons 1.4
(b) and (d).
1. (C) Cargill Venezuela's Director of International
Relations Ramon Sosa (protect) told the Agriculture Attache
on March 9 that it is only a matter of time before the
Venezuelan government nationalizes Cargill's rice processing
plant. Sosa reported that in a March 8 meeting with Minister
of Agriculture Elias Jaua the discussion centered on the
steps the government will follow to take over plant
operations and the value of the plant.
2. (C) Sosa added that during the meeting Cargill
representatives requested that the government stop making
negative statements about Cargill to the press, as Cargill is
going out of its way to cooperate. Sosa noted that
government officials are currently in the Cargill plant
"literally looking over the shoulders" of plant staff and
making operations difficult. Sosa apologized that he has
been unable to meet with EMBASSY staff and promised a meeting
next week after several of Cargill's US executives arrive in
Venezuela.
--------------
COMMENT
--------------
3. (C) Contrary to Chavez's threats to "expropriate", it
seems the government is at least exploring the value of the
plant with Cargill. Unfortunately, many companies the
Venezuelan government has nationalized still have not
received payment (ref A). Sosa seemed uncomfortable speaking
on the phone, possibly suspecting as executives in other
companies have reported that someone may be listening to his
calls (ref B). He did mention cryptically that "there is
something else we are worried about." We will discuss
Cargill's other concerns when we meet.
4. (C) Given the government's recent movement towards greater
control of the food supply (septel),there is room for
speculation that the government will not stop at the rice
plant, a relatively insignificant portion of Cargill's
Venezuelan holdings (ref C). Cargill has 50 percent of the
Venezuelan market for cooking oil, pasta, and wheat flour.
CAULFIELD
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
COMMERCE FOR 4431/MAC/WH/JLAO
TREASURY FOR RJARPE
NSC FOR JSHRIER
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 03/10/2019
TAGS: ECON PGOV PREL ETRD EINV EAGR VE
SUBJECT: VENEZUELA: CARGILL EXPECTS PLANT TO BE NATIONALIZED
REF: A. 2008 CARACAS 1690
B. 2008 CARACAS 1393
C. CARACAS 280
Classified By: Economic Counselor Darnall Steuart for reasons 1.4
(b) and (d).
1. (C) Cargill Venezuela's Director of International
Relations Ramon Sosa (protect) told the Agriculture Attache
on March 9 that it is only a matter of time before the
Venezuelan government nationalizes Cargill's rice processing
plant. Sosa reported that in a March 8 meeting with Minister
of Agriculture Elias Jaua the discussion centered on the
steps the government will follow to take over plant
operations and the value of the plant.
2. (C) Sosa added that during the meeting Cargill
representatives requested that the government stop making
negative statements about Cargill to the press, as Cargill is
going out of its way to cooperate. Sosa noted that
government officials are currently in the Cargill plant
"literally looking over the shoulders" of plant staff and
making operations difficult. Sosa apologized that he has
been unable to meet with EMBASSY staff and promised a meeting
next week after several of Cargill's US executives arrive in
Venezuela.
--------------
COMMENT
--------------
3. (C) Contrary to Chavez's threats to "expropriate", it
seems the government is at least exploring the value of the
plant with Cargill. Unfortunately, many companies the
Venezuelan government has nationalized still have not
received payment (ref A). Sosa seemed uncomfortable speaking
on the phone, possibly suspecting as executives in other
companies have reported that someone may be listening to his
calls (ref B). He did mention cryptically that "there is
something else we are worried about." We will discuss
Cargill's other concerns when we meet.
4. (C) Given the government's recent movement towards greater
control of the food supply (septel),there is room for
speculation that the government will not stop at the rice
plant, a relatively insignificant portion of Cargill's
Venezuelan holdings (ref C). Cargill has 50 percent of the
Venezuelan market for cooking oil, pasta, and wheat flour.
CAULFIELD