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Viewing cable 06MANAGUA841, VENEZUELA NOW USING FERTILIZER TO GROW SUPPORT FOR
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VZCZCXYZ0003
RR RUEHWEB
DE RUEHMU #0841/01 1072126
ZNY SSSSS ZZH
R 172126Z APR 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 5984
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0615
S E C R E T MANAGUA 000841
SIPDIS
SIPDIS
DEPT FOR WHA/CEN
E.O. 12958: DECL: 04/12/2016
TAGS: ECON ENRG EFIN PGOV NU PREL SOCI VE CU EPET
EAGR
SUBJECT: VENEZUELA NOW USING FERTILIZER TO GROW SUPPORT FOR
FSLN IN NICARAGUA
REF: A. MANAGUA 2613
¶B. MANAGUA 2599
¶C. MANAGUA 1944
¶D. MANAGUA 1577
¶E. MANAGUA 1333
Classified By: AMBASSADOR PAUL TRIVELLI FOR REASONS 1.4 (a & b)
¶1. (SBU) Summary: In only the latest example of Bolivarian
Republic of Venezuela (BRV) efforts to bolster the Sandinista
Front Party (FSLN) in Nicaragua's 2006 national elections,
11,260 metric tons of urea have been sent for distribution by
a Sandinista Cooperative to the rural poor as part of an
eventual provision of 50,000 tons. Several of the FSLN's
opponents claim that the urea is part of a US $50 million
electoral aid package for the FSLN by the BRV. While post
cannot verify that figure, other BRV assistance includes
still theoretical reduced-price oil, funding of a
Cuban-administered literacy campaign, and free medical care
for poor Nicaraguans. While presented as benign economic and
social aid, these donations are managed by FSLN-run
municipalities and announced with FSLN leader Daniel Ortega
and the Venezuelan ambassador on hand.
¶2. (S) Summary Continued: USG sources also have evidence of
direct campaign assistance from Venezuela, such as the
financing of three helicopters for use by the FSLN and an
underground network of cash payments. Local executives of
ESSO (Exxon Mobile) who run Nicaragua's only oil refinery
also suspect that Venezuela's oil politics are aiming to
drive them out of the country, paving the way for Venezuela
to purchase the refinery at a bargain price. Although
Venezuelan election activities in Nicaragua present a cause
for real concern, the Liberal Constitutionalist Party (PLC)
is attempting to increase USG alarm about improper influence
by the Chavez government to weaken our resolve in calling for
an end to the party's control by convicted ex-president
Arnoldo Aleman. End Summary.
¶3. (U) Over the last week, local press has covered claims by
representatives of various political parties in Nicaragua
that Venezuela plans to spend US $50 million to bolster the
FSLN's chances of winning the November national elections.
The PLC and Sandinista-breakaway party Herty 2006 have been
most vocal. Both the FSLN and Venezuela's ambassador to
Nicaragua deny allegations of direct political interference.
Sandinista Front leader, Daniel Ortega, and the BRV have,
however, proudly trumpeted several "humanitarian" programs
offered by the BRV and administered by FSLN mayors.
¶4. (S) Sandinista Front opponents have not offered concrete
information as to how they arrived at the $50 million figure.
They do argue that the fuel and urea offered by the BRV give
the FSLN the opportunity to both benefit politically from
making these products available below cost and to convert the
profits into cash for electioneering. While post has no
specific information about the $50 million figure, it is
clear that the BRV is providing direct financial assistance
to the Sandinista Front. USG sources have verified that the
Chavez government is paying for three helicopters and fuel
for use by the FSLN in election activities. Also, sources
assert that several FSLN party officials frequently travel to
Venezuela and return with large sums of cash.
¶5. (C) Recent press reports state that the BRV plans to
donate 50,000 tons of urea (a powderized fertilizer/animal
feed obtained by the reaction of liquid ammonia and liquid
carbon dioxide from petroleum processing) for distribution to
the rural poor of Chinandega and Corinto by the Sandinista
Agricultural Services Cooperative (Nicaraocoop). While some
claims of Venezuelan support in the past have proven
nebulous, the urea delivery is proceeding quickly. In an
April 12 telephone conversation, Luvy Perez, Director of
Inspections for the Nicaraguan Customs Agency (DGI) confirmed
that 11,260 metric tons of urea have already arrived from
Venezuela and are ready for distribution to
Sandinista-controlled municipalities. In a press report, the
president of Nicaraocoop said that the urea is being provided
below-cost rather than as a donation, although Sandinista
officials called it a donation when they announced the
program with great fanfare.
¶6. (SBU) Venezuela has also reportedly donated US $10 million
for a new literacy program developed by the Government of
Cuba, to be run by local governments, called "Yo Si Puedo"
("Yes I Can"). While now technically open to any city in
Nicaragua (in order to receive GON permission to operate), it
was originally only offered to FSLN-controlled local
governments and only those governments are now participating.
REFTEL C reported that the GON had planned to deny the
Sandinista-oriented Augusto C. Sandino Foundation (FACS)
permission to import equipment needed for the program.
Recent press reports, however, state that the GON capitulated
and the materials have entered. The equipment consists of
5,000 televisions, 5,000 VCRs and a large amount of training
materials (including 500,000 workbooks). The estimated cost
of the three-year program is US 21.6 million. The Office of
the Mayor of Managua has begun airing television commercials
to hype the program and the Office of the Mayor of Masaya has
posted "Yo Si Puedo" billboards.
¶7. (U) The FSLN and the BRV have received a great deal of
media attention for the announced deal to sell or loan
below-market priced oil to Sandinista Municipalities (REFTELs
B and E). In fact, versions of the deal have been announced
multiple times. Despite the political benefit derived from
the hoopla, technical issues have prevented the deal's
implementation.
¶8. (C) On the other hand, Venezuela's oil politics in
Nicaragua may have an even more nefarious purpose. During
the recent agitation for an extra confiscatory tax on oil
companies to subsidize the transport system, the manager of
the Esso refinery, which operated throughout the years of
Sandinista government without being confiscated, raised the
possibility to the Ambassador that behind-the-scenes forces
might be angling to maneuver his company out of Nicaragua.
If ExxonMobil were to be placed in a position where all of
their Nicaraguan profits were taxed away, he explained, they
might see no alternative to closing down operations here,
leaving Nicaragua's only petroleum refinery available, no
doubt at a sale price, to another entrant - quite possibly a
Venezuelan one.
¶9. (U) The BRV has also announced plans to provide surgical
care in Venezuela for 3,000 people from Nicaragua. This
program would be administered by the FSLN-run Office of the
Mayor of Managua. In addition to the medical care, the BRV
will pay for airfare, room and board. The first 120 patients
are slated to travel to Venezuela this week.
¶10. (C) Novis Rosales, Executive Director of the Liberal
Patriotic Mayors Association (ASALPAT) informed poloff on
April 17 that 25 PLC mayors recently received an offer from
the Venezuelan ambassador to participate in a city exchange
program with mayors in Venezuela. The offer includes an all
expense-paid tour of Venezuela, including a charter flight
from Managua. Rosales stated that he reported the plan to
PLC president Jorge Castillo Quant, who categorically
rejected the offer as a publicity stunt of Venezuelan
president Hugo Chavez. Rosales and Castillo Quant believe
that Chavez would use the event to deflect charges that the
Venezuelan government is unfairly favoring FSLN mayors with
donations during an election year. Castillo Quant instructed
Rosales to make sure that PLC mayors avoid any appearance of
cooperating with the Venezuelan government.
¶11. (SBU) Comment: Venezuela is clearly pulling out all the
stops to assist the FSLN in this critical election year.
Sandinista opponents and much of the media have pointed out
the hypocrisy of those who criticize U.S. "interference" and
yet allow Venezuela play a direct role in assisting a
specific Nicaraguan political party. The PLC, however, has a
special motive to foster USG fears of improper Venezuelan
influence. The PLC likely hopes that alarm over BRV
interference will lead the United States to curb its
criticism of ex-president and PLC leader Arnoldo Aleman, who
was convicted for defrauding the GON of US $100 million and
money laundering. End Comment.
TRIVELLI