FUNES MEETS WITH CHAVEZ, RELATIONSHIP WILL IMPROVE

C O N F I D E N T I A L SAN SALVADOR 000462

SIPDIS

E.O. 12958: DECL: 05/22/2019
TAGS: PGOV PREL ES
SUBJECT: FUNES MEETS WITH CHAVEZ, RELATIONSHIP WILL IMPROVE

Classified By: Charge d'Affaires, for reasons 1.4 (b) and (d)


1. (C) Summary: Salvadoran Foreign Minister-designate Hugo
Martinez told PolCouns May 21 that he and President-elect
Mauricio Funes approached their May 20 meeting with
Venezuelan President Hugo Chavez with trepidation, but Chavez
was welcoming and respectful, and the meeting went smoothly.
Martinez said Chavez repeatedly offered Venezuelan support to
the incoming Funes administration. He said Funes told Chavez
that El Salvador would not participate in the ALBA Petroleos
joint venture between Petroleos de Venezuela (PDVSA) and some
(left-wing) FMLN-controlled municipalities. He did not rule
out Petrocaribe, because it offers more benefits than fuel
imports, but would not commit to anything beyond a study
assessing a potential deal. Martinez also said the new
Central American office of EMBRAPA, the Brazilian
Agricultural Research Corporation, will now be located in El
Salvador, instead of Panama, as had previously been planned.
Funes has yet to determine the full extent of his incoming
administration's relationship with Venezuela, and must
balance the benefits of working with Chavez with the damage
that association could do to his relations with other
countries. End Summary.


2. (SBU) PolCouns met May 21 with Salvadoran Legislative
Assembly Deputy, Funes Transition Team member, and
FM-designate Hugo Martinez. Martinez confirmed that he will
lead the Salvadoran delegation at the OAS General Assembly in
Honduras June 2, and that Salvadoran OAS Ambassador (and
former Foreign Minister) Francisco "Pancho" Lainez would
accompany him. He said the MFA has been informed as well, so
the cat is soon to be out of the bag about his future as
Foreign Minister.


3. (C) Martinez said President-elect Mauricio Funes' meeting
with Venezuelan President Hugo Chavez had gone "well" (it
lasted five hours),noting that both he and Funes were
anxious going into the meeting because of Chavez' reputation
for erratic behavior. Martinez described Chavez as warm and
"respectful," especially when discussing possible Venezuelan
assistance to El Salvador. Martinez said Chavez told Funes
several times that Venezuela was willing to support El
Salvador in various ways "if you want, where you want, how
you want, and at the pace you want." Chavez, he said, was
engaging and had a friendly banter with Funes, Vice
President-elect Sanchez Ceren, and others in the meeting.


4. (C) Martinez said Funes told Chavez the GOES would not
join or participate in the ALBA Petroleos joint venture
between PDVSA and FMLN-controlled municipalities, which
imports fuels on preferential terms. Funes did undertake to
establish a commission to study the possibility of joining
Petrocaribe. Martinez believes joining Petrocaribe is more
likely because it involves not just fuel imports, but also
development assistance and other benefits. However, no
decision has been made, Martinez said. He added that there
was some discussion of possible medical assistance along the
lines of Operacion Milagro, which provides low- or no-cost
eye surgery ) financed by Venezuela and carried out in Cuba.


5. (C) Martinez said a decision was made to redirect the
planned Central American office of EMBRAPA, the Brazilian
Agricultural Research Corporation, from Panama to El
Salvador. Martinez suggested this decision was taken in the
context of a Brazil-Venezuela cooperative development effort.
(Note: The Funes administration will likely have a strong
relationship with Brazil. Funes' wife, Vanda Pignato, is
Brazilian, and is very close to Brazilian President Lula.
End Note.)


6. (C) Martinez said Venezuela and El Salvador would exchange
ambassadors, upgrading relations from the Charge level.


7. (C) Martinez said the delegation had returned late the
previous night, flying commercial via Panama. Martinez said
most if not all the delegation was stuck in economy class )
a change from frequent trips during the campaign ) because
there was no space in business class. Chavez, he said, had
offered his private plane to return Funes et al to San
Salvador, but Martinez said Funes demurred, wanting to
transmit a clear message that while Salvadoran-Venezuelan
relations were one thing, being shuttled around on a GBRV
plane was a step too far.


8. (C) Comment: We understand Funes had planned to cancel his
trip to Venezuela, as he did with the other planned legs to
Colombia and Mexico, but clearly felt some degree of pressure
to visit Caracas from within the FMLN. Ceding the Caracas
trip to the FMLN can be seen as a way to relieve pressure
from the party on cabinet selections.
Funes is still feeling
out how involved he
wants his administration to be with
Venezuela. Despite Martinez' claims that the visit was
amicable, he did mention Funes' anxiety going in, and that
apprehension was evident in media coverage of the events.
Funes recognizes that Venezuela represents a source of cheap
petroleum products, but does not want to alienate other
allies.
BLAU