NATIONAL ASSEMBLY POISED TO SILENCE INDEPENDENT

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000471

SIPDIS

HQSOUTHCOM ALSO FOR POLAD
EMBASSY BOGOTA FOR REF CORD (SHIGGINS)
DEPARTMENT PASS TO AID/OTI (RPORTER)
DEPARTMENT PASS TO DRL (SMOODY)

E.O. 12958: DECL: 04/15/2029
TAGS: PGOV PHUM PREL KDEM SNAR PREF VE
SUBJECT: NATIONAL ASSEMBLY POISED TO SILENCE INDEPENDENT
NGOS

REF: 06 CARACAS 01634

CARACAS 00000471 001.2 OF 002


Classified By: POLITICAL COUNSELOR FRANCISCO FERNANDEZ,
REASON 1.4 (D)


1. (C) Summary. The National Assembly is reportedly poised
to pass a revived version of the 2006 Law on International
Cooperation. If promulgated in its current form, the law
would severely limit the ability of foreign donors to support
development, human rights, counternarcotics, and
pro-democracy NGOs in the country. Under the proposed bill,
NGOs would only be allowed to operate with prior approval of
the Government of the Bolivarian Republic of Venezuela
(GBRV),and all international funding would be managed and
distributed directly by the GBRV. All NGO activities,
funding sources, and even internal private records would be
subject to public scrutiny. The GBRV could selectively
enforce such a law to try to shut down USG support for local
NGOs, especially DRL, NAS, USAID, and PAS partners. End
Summary.

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National Assembly Considers NGO Law
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2. (C) Civil society NGOs in Venezuela are raising serious
concerns over the potential passage of a law that would give
the GBRV wide powers to register and regulate NGOs working in
Venezuela. The Law on International Cooperation, originally
proposed over three years ago, was approved once in the
National Assembly on June 13, 2006 (Note: Bills must be
passed twice in the National Assembly before being passed to
the Executive Branch for promulgation. End Note). In
coordination with the USG, EU governments and the Canadian
government expressed concerns about the law, and the National
Assembly mothballed the draft at that time. National
Assembly President Cilia Flores included the International
Cooperation Law among her priorities for the legislature's
2009 session. The yet unpublished final bill is rumored to
be virtually identical to the 2006 version. As such, the
National Assembly could move very quickly to adopt the
measure without requiring any additional public hearings.
NGO leaders fear that this legislation could be passed as
early as the week of April 20.


3. (C) The law, if passed, will broadly and vaguely define
international cooperation and foreign financing, requiring
that any and all donations from abroad be "managed" and
"distributed" directly by the Government of the Bolivarian
Republic of Venezuela (GBRV). The bill would also create a
new government entity to manage any international cooperation
with NGOs. In addition, all foreign groups interested in
supporting Venezuelan NGOs would be required to register with
the body, provide it with any and all information on demand,
and route all funding through that entity (Reftel). Should
the law successfully be passed, only GBRV approved and
"registered" NGOs would be permitted to operate in the
country. Older, more established NGOs expressed concern that
with over 20,000 organizations potentially subject to new
registration requirements, the GBRV could prevent any NGO
critical of the GBRV from reopening.

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Freedom of Association Threatened
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4. (C) Under the proposed law, any foreign groups
interested in supporting Venezuelan civil society would also
be required to register with the Government. NGOs fortunate
enough to receive government registration would immediately
be subject to restrictive regulations obliging them to share
any and all information regarding financing, operations, and
activities with any private citizen who requests access to
internal records. The GBRV could selectively apply the law,
preventing many NGOs with a history of working with the USG
and like-minded nations from being registered. Local NGOs
that partner with USAID, NAS, PAS, and DRL in Venezuela could
be jeopardized.


5. (C) Pro-democracy and human rights NGOs COFAVIC, PROVEA
and Sinergia briefed the diplomatic corps April 14 on the
negative consequences the proposed International Cooperation
law would have on civil society. A UNHCR representative also
expressed concern about the effect this proposed law would

CARACAS 00000471 002.2 OF 002


have on Colombian Refugees living in the border regions of
Venezuela. The representative noted that five UNHCR refugees
had been assassinated and expressed concern that the public
scrutiny provisions of the law would destroy UNHCR's ability
to protect refugees. According to a leading representative
from a well respected human rights NGO, the Government will
be able to pick and choose which NGOs to register, giving
clear preference to pro-government NGOs and silencing
independent organizations. Liliana Ortega from Cofavic
expressed fear that the GBRV may try to apply the law
retroactively, affecting even currently funded programs.

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NGOs Call for International Pressure
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6. (C) With the legislation ready for a second reading and
a final vote at the National Assembly possibly days away,
Venezuelan civil society leaders are seeking an international
campaign to persuade the GBRV not to pass the International
Cooperation law. Pro-democracy and human rights NGOs are
hopeful that both the European Union and Canada can rally
their respective capitals in the next few days to raise the
issue. Human rights activist Liliana Ortega urged the USG to
raise the issue at the upcoming Summit of the Americas.
While Canadian and European diplomats in Caracas have
expressed concern about the proposed law privately to us,
they have not given any indication that their capitals intend
to raise this issue with the GBRV, as they did in 2006.


7. (C) Comment: The International Cooperation law appears
to be part of President Chavez's efforts to further
consolidate control following his February 15 referendum
victory eliminating term limits. Venezuelan human rights and
civil society NGOs are highly dependent on international,
including USG, funding. The proposed law will virtually
eliminate the political autonomy of Venezuelan NGOs. Leading
pro-democracy and human rights NGOs might not receive future
GBRV registration as required under the proposed bill or even
be allowed to continue to operate in the country should the
law be passed. Just as Chavez has chosen to use selective
prosecution of opposition members, he could use the Law on
International Cooperation to shut down any and all NGOs
critical of his government. Moreover, implementing USAID,
DRL, NAS, and PAS programs with local partners will become
even more challenging. End Comment.

CAULFIELD