EXPROPRIATE IT! CHAVEZ SEIZES BUILDINGS IN PLAZA BOLIVAR TO

UNCLAS CARACAS 000171 SIPDIS HQ SOUTHCOM ALSO FOR POLAD TREASURY FOR MKACZMAREK NSC FOR DRESTREPO NSC FOR LROSSELLO USDOC FOR 4332 MAC/ITA/WH/JLAO E.O. 12958: N/A TAGS: PGOV ECON VE SUBJECT: EXPROPRIATE IT! CHAVEZ SEIZES BUILDINGS IN PLAZA BOLIVAR TO CREATE A NEW COMMUNE REF: 09 CARACAS 1393; CARACAS 97 ¶1. (SBU) On February 7, President Chavez ordered the expropriation of several buildings in the historical center of Caracas during his "Hello, President" radio and television program. On a televised stroll through Plaza Bolivar with his daughter Maria Gabriela, President Chavez pointed to individual buildings and asked Jorge Rodriguez, Mayor of the Libertador municipality of Caracas, to identify them before ordering their expropriation. "That building there, what is it?" Chavez asked Rodriguez, who responded that it housed private businesses. "Expropriate it Mister Mayor! Expropriate it! We have to convert this into a great historical center," Chavez said. ¶2. (SBU) Although it was not immediately clear which buildings Chavez had identified during the broadcast, Mayor Rodriguez later announced that four buildings in Plaza Bolivar-La Francia, Jose Mendoza, Las Gradillas, and Hotel Catedral-had been declared "public utility" (NOTE: On September 25, 2009, the Institute of Cultural Patrimony declared 1,216 properties of "cultural interest," including La Francia, Jose Mendoza, and Las Gradillas, and placed restrictions on their transfer and modification. See Ref A for further analysis. END NOTE). According to press reports, La Francia (commonly known to Venezuelans as "The Gold Market" for its jewelry stores) is owned by the Oriente University and houses over 90 businesses; the other two buildings contain clothing stores, law firms, and restaurants, as well as the offices of the Foundation for the Protection and Defense of Cultural Patrimony of Caracas (Fundapatrimonio),a government institution created to preserve the cultural heritage of Caracas. On February 8, the independent daily press was filled with stories of the hardships the expropriations imposed on the displaced business owners. The Municipal Council of Libertador approved the expropriations on February 9, and an official announcement was expected to appear in the Official Gazette as early as February 10. ¶3. (SBU) During the February 7 broadcast, Chavez asked National Assembly (AN) deputies Dario Vivas and Ulises Daal, who are both members of Chavez's United Socialist Party of Venezuela (PSUV) and the AN Commission on Citizen Participation, to review the Communal Council Law, the Popular Power Law, and the Social Property Law in order to organize Plaza Bolivar into a commune and strengthen the socialist economic model. Chavez said that the communes should develop a system of socialist trade that would allow areas that did not produce food to exchange products with those that did. Finally, Chavez told Vivas to draft a "communal charter," to be approved by referendum in each commune, that would establish a constitution for the communes, allowing them to draft and approve their own laws. ¶4. (SBU) Government officials have announced a series of expropriations across the country since the beginning of 2010. On January 12, President Chavez ordered the expropriation of the Central Sugar Producer of Tachira (CAZTA) for production irregularities; on January 15, the Mayor of Zulia state's San Francisco municipality authorized the occupation of the Wholesale Market of Maracaibo (MERCAMARA); on January 17, Chavez announced the expropriation of the Exito hypermarket chain and the Sambil Mall in the La Candelaria neighborhood of Caracas (Ref B); and on February 6, the Governor of Falcon state ordered the occupation of the Hotel Medano Club for violating the health code. DUDDY