Identifier
Created
Classification
Origin
09CARACAS616
2009-05-18 18:27:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

VENEZUELA: TITLE III OF THE LIBERTAD ACT

Tags:  ETRD ETTC PREL CU VE 
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DE RUEHCV #0616/01 1381827
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P 181827Z MAY 09
FM AMEMBASSY CARACAS
TO SECSTATE WASHDC PRIORITY 3063
C O N F I D E N T I A L CARACAS 000616 

SIPDIS

PLEASE PASS TO WHA/CCA

E.O. 12958: DECL: 05/18/2019
TAGS: ETRD ETTC PREL CU VE
SUBJECT: VENEZUELA: TITLE III OF THE LIBERTAD ACT

REF: A. STATE 48487

B. 2006 CARACAS 1096

C. 2007 CARACAS 694

D. 2007 CARACAS 597

E. 2007 CARACAS 844

Classified By: Acting Economic Counselor Richard T. Yoneoka for
reasons 1.4 (b) and (d).

C O N F I D E N T I A L CARACAS 000616

SIPDIS

PLEASE PASS TO WHA/CCA

E.O. 12958: DECL: 05/18/2019
TAGS: ETRD ETTC PREL CU VE
SUBJECT: VENEZUELA: TITLE III OF THE LIBERTAD ACT

REF: A. STATE 48487

B. 2006 CARACAS 1096

C. 2007 CARACAS 694

D. 2007 CARACAS 597

E. 2007 CARACAS 844

Classified By: Acting Economic Counselor Richard T. Yoneoka for
reasons 1.4 (b) and (d).


1. (U) Post's response to Reftel A questions follow.


2. (C) Has the host country, in post's opinion, worked to
promote the advancement of democracy and human rights in Cuba?

Post sees no evidence that the Government of the Bolivarian
Republic of Venezuela (GBRV) has undertaken policies or
actions to advance democracy, human rights, or fundamental
freedoms in Cuba over the past year.


2. (C) Has the host country made public statements or
undertaken other governmental actions, such as resolutions in
the national assemblies condemning human rights abuses in
Cuba; or actions in support of civil society in Cuba through
host country's diplomatic missions or other fora?

President Hugo Chavez is Cuba's closest ally, provides
substantial resources to Cuba and has repeatedly and publicly
praised the Cuban government. Chavez openly criticizes
countries, including the United States, for commenting on the
human rights situation in Cuba. At the Summit of Americas,
Chavez called for the end of the US Embargo on Cuba and
refused to sign the final document as it did not address,
among other things, Cuba's exclusion from multilateral
organizations in the Western Hemisphere.

The GBRV makes it a point to vote with Cuba and against the
United States in multilateral fora.

In 2008, the Venezuelan National Assembly passed resolutions
condemning the US embargo on Cuba and calling for the release
of the "Cuban Five", convicted of espionage and jailed in the
United States. Also, the National Assembly inaugurated a
Venezuelan-Cuban friendship group.


3. (C) Have there been any high-level diplomatic visits
between Cuba and the host country in the past six months?

Visits by high-level Venezuelan Officials to Cuba

In May 2009, Minister of Tourism Pedro Morejon attended the
International Tourism Fair (FITCUBA) in Havana. Finance
Minister Ali Rodriguez spoke at the final plenary session of

the ministerial meeting of the Non-Aligned Movement
Coordination Bureau in Havana in April 2009. Also in April
2009, President Chavez, accompanied by Foreign Minister
Nicolas Maduro and Minister of Energy and Petroleum and PDVSA
President Rafael Ramirez, visited Havana to prepare together
with Raul and Fidel Castro for the Bolivarian Alternative for
Latin America and Caribbean Summit. Rodriguez attended an
economic conference in Havana on March 2, 2009. Chavez,
Ramirez, Minister of the Presidency Luis Reyes and Asdrubal
Chavez, Vice President of PDVSA, visited Havana in February
of 2009. Also in February 2009, Rodriquez addressed an
audience in Havana, in commemoration of the 10th anniversary
of the Bolivarian revolution. In December 2008, Maduro
visited Santiago de Cuba to commemorate the 50th anniversary
of the Cuban Revolution.

Visits by Cuban Officials to Venezuela

Cuban President Raul Castro, Vice President Ricardo Cabrisas,
Culture Minister Abel Prieto, Foreign Minister Bruno
Rodriguez, Foreign Trade and Investment Minister Rodrigo
Malmierca and Francisco Soberon, President of the Cuban
Central Bank participated in the seventh summit of ALBA in
Venezuela in April 2009. Cuban First Vice President Jose
Ramon Machado Ventura, Foreign Minister Felipe Perez Roque,
and Soberon visited Venezuela on February 1, 2008 to
participate in an ALBA meeting. Cuban Information Science
and Communications Minister Ramiro Valdez Menendez attended a
January 1, 2009 wreath laying ceremony marking the 50th
anniversary of the Cuban Revolution in Caracas. Raul Castro
began an official visit to Caracas on December 13, 2008.
Cuban Commander of the Revolution Ramiro Valdez Mendez and
Transportation Minister Jorge Luis Sierra attended the
Cuba-Venezuela joint commission meeting in Caracas in
December of 2008.

In addition to the visits set forth above, Post is aware of
Vice Minister level and military officer visits by both
countries to the other.

4. (C) What is the nature of the investments (and names, if
known) that host country businesses have in Cuba?

In April of 2006, PDVSA and Cuban company, Internacional
Maritima S.A. signed an MOU to create a 50-50 owned joint
mixed company, TransALBA to undertake petroleum
transportation. In February 2009, TransALBA acquired
Petition, a 72,700 ton tanker that will transport crude oil
from Puerto La Cruz, Venezuela to the Cienfuegos Refinery in
Cuba. In May, 2009, TransALBA acquired an additional 72,700
ton tanker, the Sandino, destined for the same route as the
Petition. In addition, TransALBA is studying the feasibility
of acquiring a third tanker, one of such specifications that
it could access Central American ports with limited depth.

In January 2009, Venezuela provided 30.4 million USD to fund
the Endogenous Project in Cuba. Among the sub-projects to be
undertaken are the construction of two wards and procurement
of 148 hospital beds for the Obourke Provincial Psychiatric
Hospital, various infrastructure projects related to the
Carolina settlement near the Cienfuegos oil refinery, the
construction of a 19 km long highway to connect with the
Aguada refinery, an increase in the sanitary capacity of the
bay and the extension of the sewage system in the areas of
Las Minas, Obourke and Reina.

As reported in Reftel B, state oil company PDVSA and
state-owned Venezuela Industrial Bank have offices in Havana.
In addition, PDVSA entered into a joint venture with the
Cuban Petroleum Company (CUPET) to operate the Cienfuegos oil
refinery. Chavez inaugurated the refinery in December 2007
and it is expected to produce 65,000 barrels of petroleum
products per day. In July 2008, the BRV promised to build
additional oil refineries in Cuba. In September 2008, the
Cuban government announced plans to restore the oil pipeline
connecting the city of Matanzas with Cienfuegos oil refinery
with the financial support of Venezuela. Specifics on
financing and ownership of the pipeline were not provided.
PDVSA and CUPET have also agreed to conduct joint exploration
studies in the Gulf of Mexico and other areas in Cuban
territory.

In August 2008, the Maracaibo and Caribbean Shipyard
(ASTIMARCA),a Cuban-Venezuelan joint-venture, began
operations. Formed in 2006, ASTIMARCA is owned by the
Venezuelan Ministry of Infrastructure and the Cuban Ministry
of Transportation and will primarily repair PDVSA owned oil
tankers. In July 2008, the BRV announced the formation of
Aceros del ALBA CA, a steel company, with Cuba. A joint
venture, Aceros is to produce 500,000 tons of steel a year
and be located in Monagas state. Ownership was reported to
be 51 percent Venezuelan and 49 percent by Acinox Steel
Industrial Group of Cuba.

In June 2008, the Greater Caribbean Telecommunications
Company, a joint-venture between Cuba's Telecommunications
Signal Transportation Company and Venezuela's Telecom,
outlined progress made on a project to run a fiber optic
cable on the ocean floor to connect Cuba and Venezuela.
Although still in the planning stages, Greater Caribbean
Telecommunications Company aspires to lay the first cable by
the end of 2009.

On January 2007, Cuba and Venezuela entered into a Memorandum
of Understanding (MOU) for the construction of a joint steel
factory, three oil and petroleum distillates storage
facilities, a nickel factory; the incorporation of a mixed
insurance company; and a study to evaluate the opening of a
power station in Cuba. In December 2007, the Venezuelan
social production company Petrocasa built 100 homes for the
elderly and disabled in Cuba. Petrocasa supplied
construction advice and the houses, which were made of PVC.
In July 2008, the BRV promised to build an additional 100
Petrocasas in Cuba.


We understand that the BRV and the Cuban government have
entered into various MOUs to study the feasibility of joint
ventures in several areas, including tourism, music
production, film works and the production and export of rice.
However, we have not been able to confirm establishment of
any of these joint ventures. We also understand that
Venezuelan private sector companies operate in Cuba, but we
do not have a full listing of the companies or details of
their operations. We are unaware of BRV entities or
individuals trafficking in confiscated property in Cuba.


5. (C) Are there any bilateral trade agreements between
host country and Cuba?

On December 14, 2008, Venezuelan President Chavez and Cuban
President Raul Castro signed agreements to create joint oil
and telecommunications ventures. At that time, the countries
signed an MOU that called for the formation of a "joint
venture for the oil and liquefied natural gas refining system
in Cuba." This MOU will expand Cuba's Cienfuegos and
Hermanas Dias refineries. In addition, the countries signed
an agreement for the creation of a joint socialist company,
Guardian del Alba, which would be based in Venezuela and
regulate cooperation in integrated technology solutions.

In July 2008, the annual conference of the Cuba-Venezuela
Solidarity Movement was held in Caracas. During the
conference, participants stressed continued cooperation
between the countries in the areas of sports, agriculture and
education. In January 2008, during the seventh meeting of
the Cuban-Venezuelan Mixed Commission, representatives signed
agreements for 76 projects, primarily in the area of food,
agriculture and agricultural industry. Agreements were also
signed for communications, sports, health, education and
transportation projects, but neither government revealed any
details regarding the projects. According to a PDVSA press
release from January 2008, the 76 projects required an
investment of 1.3 billion USD in 2008. Among the projects
listed were 11 ethanol plants. In addition, one agreement
covered basic engineering studies for an animal feed plant.
Eighteen Venezuelan government ministries and twenty-one
Cuban ministries were tasked with carrying out these projects.

Between January and November 2007, Venezuela and Cuba signed
over 42 bilateral commercial agreements. Post calculates
that these often vague promises of joint cooperation and
projects are valued at an estimated USD 5.72 billion (Reftel
C.) Fourteen of these agreements were signed on October 15,
2007 and included petroleum exploration by PDVSA in Cuban
waters, construction of the fiber optic telecommunications
cable mentioned above, and the construction of a hotel on a
Cuban key. On February 28, 2007, during the seventh meeting
of the Cuba-Venezuela Intergovernmental Commission in Havana,
participants announced the approval of 355 cooperation
projects worth 1.5 billion USD, including an agreement to
build 11 ethanol plants that process sugar cane (Reftel D.)
On April 29, 2007, Venezuela, Bolivia, Cuba and Nicaragua
signed numerous agreements in areas such as oil, education,
health, finance, and culture to advance the Bolivarian
Alternative for the Americas and the People's Commercial
Treaty ALBA-TCP) (Reftel E.)

Cuba and Venezuela signed an additional 14 agreements in
December 2007. Several of the fourteen agreements were in
the field of energy. Two agreements covered studies to
increase the capacity of the Cienfugos refinery from 65,000
barrels per day to 108,000 barrels per day and a study to
increase the capacity of the storage facility at the
Matanazas terminal. In addition, an agreement was signed for
the exploration and development of six hydrocarbon blocks in
the Pinar del Rio province. Another agreement dealt with the
development of chemical and petrochemical plants in the Cuban
provinces of Ciego de Avila, Nuevitas and Sauga la Grande.
It is not clear what the remaining agreements covered.
According to the PDVSA press release announcing the signing
of the agreements, 27 Venezuelan-Cuban joint ventures were
operating in Cuba and the Cuban-Venezuelan Mixed Commission
invested 1.5 billion USD during 2007.

President Chavez and Castro signed the Integrated Cooperation
Agreement (ICA) between Cuba and Venezuela on October 30,

2000. Under the 2004 amended terms of the ICA, Venezuela
supplies 92,000 barrels of crude oil and petroleum products
per day to Cuba in exchange for the following services in
Venezuela: dentistry, optometry, diagnostic centers,
rehabilitation units, medical equipment and medicine. Cuba
also offers services in the following social missions:
Mission Milagro (eye surgery for the poor),Deportes Barrio
Adentro (sports in the Barrio) and Mission Barrio Adentro
(health care for the poor in the Barrio.)

Contacts allege that BRV imports from Cuba sometimes bypass
customs and tax officials and enter Venezuela via military
ports. These items are reportedly not considered in official
trade statistics compiled by the BRV tax authority.


6. (C) Are there any exchange programs between host country
and Cuba, including, but not limited to: scholarships for
host country nationals to study in Cuba; Cuban-paid medical
travel for host country nationals; and Cuban doctors working
in host country?

Venezuela and Cuba have wide-ranging exchange programs in
many fields, including, but not limited to, medical care,
education, sports, and journalism. According to a December
2007 PDVSA press release, 39,000 Cubans were working in
Venezuela with almost 31,000 working in the health sector. A
December 2007 PDVSA press release claimed that one in 53
Venezuelans had received medical treatment under
Cuban-Venezuelan medical programs. According the Cuban
government-controlled on-line newspaper, Granma
International, 2,400 Venezuelan doctors are enrolled in Cuban
education institutions. In January 2007, Chavez also
announced plans to send 100,000 poor Venezuelans on
all-expense paid vacations to Cuba. Venezuelans would travel
on Cuba's state-run airline Cubana de Aviacion. In March
2007, approximately 1,500 Cubans were to visit Venezuela for
tourism.
GENNATIEMPO