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Viewing cable 10CARACAS171, EXPROPRIATE IT! CHAVEZ SEIZES BUILDINGS IN PLAZA BOLIVAR TO

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Reference ID Created Released Classification Origin
10CARACAS171 2010-02-11 22:08 2011-08-24 01:00 UNCLASSIFIED Embassy Caracas
VZCZCXRO1765
RR RUEHAO RUEHNG RUEHRS
DE RUEHCV #0171 0422208
ZNR UUUUU ZZH
R 112208Z FEB 10
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 0447
INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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