Identifier
Created
Classification
Origin
10CARACAS151
2010-02-04 21:40:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

Venezuela: Cuban Minister Vald??s' Mission in Caracas

Tags:  EPET EINV ENRG ECON VE 
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RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC
AMEMBASSY BRASILIA PASS TO AMCONSUL RECIFE

E.O. 12958: DECL: 2020/02/04
TAGS: EPET EINV ENRG ECON VE
SUBJECT: Venezuela: Cuban Minister Vald??s' Mission in Caracas
Controversial

REF: 10 CARACAS 139

CARACAS 00000151 001.3 OF 002


CLASSIFIED BY: Darnall Steuart, Economic Counselor, DOS, Econ;
REASON: 1.4(B),(D)

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000151

SIPDIS
ENERGY FOR ALOCKWOOD AND LEINSTEIN, DOE/EIA FOR MCLINE
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MKACZMAREK
COMMERCE FOR 4332/MAC/WH/JLAO
NSC FOR DRESTREPO AND LROSSELLO
OPIC FOR BSIMONEN-MORENO
AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA
AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC
AMEMBASSY BRASILIA PASS TO AMCONSUL RECIFE

E.O. 12958: DECL: 2020/02/04
TAGS: EPET EINV ENRG ECON VE
SUBJECT: Venezuela: Cuban Minister Vald??s' Mission in Caracas
Controversial

REF: 10 CARACAS 139

CARACAS 00000151 001.3 OF 002


CLASSIFIED BY: Darnall Steuart, Economic Counselor, DOS, Econ;
REASON: 1.4(B),(D)


1. (SBU) SUMMARY: Press reports from opposition, independent
Venezuelan media on February 4 react negatively to President
Chavez's announcement that Cuban Minister of Communication and
Computing Ramiro ValdC)s is in Caracas to assist in resolving
Venezuela's electricity crisis [NOTE: President Chavez stated that
ValdC)s is the Cuban Minister of Technology. Press reports on
February 4 reflect the aforementioned title. END NOTE]. Press
articles question ValdC)s' electricity credentials and raise the
possibility that his real mission in Venezuela is to assist the
Bolivarian Republic of Venezuela (GBRV) to censure access to the
Internet, an area in which he is reportedly experienced. Articles
and editorials raise the question of why the Cuban electricity
model, with near permanent rationing and blackouts, is one
Venezuela should emulate. They also claim Venezuela will pay
upwards of $2.4 billion to Cuba for its electricity assistance.
Articles also report some biographical information on ValdC)s,
including his role in the attack on the Monada barracks in 1953.
END SUMMARY.




2. (SBU) The daily "El Nacional" quoted Cuban dissident Carlos
Alberto Montaner from Madrid as saying, "Ramiro ValdC)s does not
have the faintest idea about how to solve the Venezuelan
electricity crisis because if he did, he would have done it in
Cuba. What he does know is repression." ("Ramiro ValdC)s no tiene
la mC!s minima idea de cC3mo solucionar una crisis elC)ctrica en
Venezuela porque si lo hubiera sabido lo hubiera hecho en Cuba. De
lo que sC- sabe mucho es de repression.") President of the Cuban
Historical Memorial Institute in Miami Pedro Corzo is quoted

saying, "As the Minister of Technology, ValdC)s controlled internet
censorship in Cuba." ("Como ministro de TechnolgC-a, ValdC)s
controla la censura en Internet en Cuba.") One article credits
ValdC)s with designing an Internet censorship program modeled on
that of the Chinese, which would help guarantee a
political/ideological filter on the Internet in support of the
governing regime.




3. (U) On February 4, daily "El Universal" ran an "on the fold"
picture of Cuban elementary school students gathered around a
computer that is powered by four car batteries. Its front-page,
"above the fold" headline highlighted the presence in Venezuela of
65,000 Cubans in key areas and highlighted related articles,
including:

B7 Ramiro ValdC)s' expertise as a repressor and censor.

B7 Opposition political parties' rejection of ValdC)s' visit:
Luis Carlos SolC3rzano, Secretary General of COPEI held a press
conference on February 3 claiming President Chavez has not been
truthful about the severity of the electricity crisis. On behalf
of Un Nuevo Tiempo (UNT) Enrique MC!rquez rejected ValdC)s' mission
and characterized Chavez's decision as an insult to Venezuelan
electricity experts. Podemos National Assembly Deputy Juan JosC)
Molina proposed a debate within the Bolivarian legislature
regarding the presence of ValdC)s in Venezuela.

B7 The insufficiency of Cuban electricity plants in
Venezuela: The article claims that Cuba sold Venezuela
technologically obsolete plants it acquired in third markets and
that for the same funds Venezuela could have purchased large
thermal electric plants. It also states that there are some 200
Cuban engineers assisting Venezuela's Corpolec (the umbrella
electricity utility company).

B7 The 6.03% 2009 growth of electricity demand in Venezuela:
According to a report released by the National Electricity

CARACAS 00000151 002.3 OF 002


Management Office (CNG by its Spanish acronym),Cadafe, one of the
largest electricity subsidiaries of Corpolec experienced 14.95%
growth in electricity demand in 2009, while the national average
totaled 6.03%. In contrast, generation capacity increased only
4.45% over the same period.




4. (C) National Assembly Second Vice President Albornoz (PPT)
privately derided the visit by ValdC)s to PolCoun. He scoffed that
the only expertise the Cubans had on electricity issues was in
rationing electricity. He also dismissed the so-called efforts to
clamp down on the internet by stressing the difference between an
island country and a country with land borders, where controls were
easy to circumvent.




5. (SBU) Separate press articles on February 4 claim that the GBRV
will pay Cuba $2.4 billion for the installation of 1,000 MW of
additional electricity capacity for Venezuela's nascent distributed
electricity transmission/distribution system. Apparently, the
agreement was part of a bilateral energy cooperation agreement
signed ten years ago. Former Electricity Director of the then
Ministry of Energy and Mines Victor Poleo told the press that the
bilateral accord includes terms for the GBRV to pay the GOC $1,000
for every kilowatt installed, $1,200 for every kilowatt of
infrastructure installed, and $200 for every operative kilowatt.
Work began in 2008 under this agreement and has resulted in 636 MW
of new electricity capacity to date. Other commentators note,
however, that the electrical capacity installed thanks to the
Cubans has not necessarily been connected to Venezuela's
distribution network.




6. (C) COMMENT: The government continues to claim it still has the
technical capacity and resources to address the current electricity
crisis. President Chavez's invitation to ValdC)s to assist
Venezuela has provoked a strong reaction and has further
politicized the electricity crisis, providing a temporary
distraction from Chavez's government's failure to maintain and
expand the electricity infrastructure. That ValdC)s might actually
be here to help the GBRV begin an Internet censorship program adds
another dimension to the growing concern for freedom of speech in
Venezuela. END COMMENT.
DUDDY