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Viewing cable 07BELMOPAN495, CHAVEZ HAS FRIENDS IN BELIZE

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Reference ID Created Released Classification Origin
07BELMOPAN495 2007-08-06 22:17 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Belmopan
VZCZCXRO2818
RR RUEHGR
DE RUEHBE #0495 2182217
ZNR UUUUU ZZH
R 062217Z AUG 07
FM AMEMBASSY BELMOPAN
TO RUEHC/SECSTATE WASHDC 0726
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHZA/WHA CENTRAL AMERICA COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0012
UNCLAS BELMOPAN 000495 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR WHA/CEN (MACK) 
 
E.O. 12958:  N/A 
TAGS: PGOV PREL ECON EFIN EAID BH VE
SUBJECT:  CHAVEZ HAS FRIENDS IN BELIZE 
 
REF:  A) (06) Belmopan 44, B) (06) Belmopan 66 
 
1.  (SBU) Summary.  Since November 2006 Venezuela has given the 
Belizean government a US$5 million grant, US$50 million in loans, 
and US$1.6 million for road construction. Several sources have 
confirmed that recently an additional US$10 million grant has been 
promised.  The government appears to be planning to use the money 
for new, unbudgeted spending initiatives including free school 
textbooks, infrastructure projects, and mortgage subsidies for lower 
income households in an apparent effort to influence voters in the 
run up to parliamentary elections.  End summary. 
 
2.  (U) On August 2, Poloff met with Artemio Osorio, Director of 
Budget and Finance in the Finance Ministry, to discuss foreign 
monetary contributions to Belize.  Of particular interest were 
reports of recent large contributions from Venezuela. Osorio stated 
that Venezuela provided a US$5 million grant in November 2006 that 
the government used for refurbishing schools, purchasing land to 
build a hospital, and for small individual home improvement grants. 
He added that Venezuela also provided US$50 million in loans when 
Belize's debt was restructured earlier this year (refs A and B). 
 
3.  (U) When asked about any other contributions, he added that 
Venezuela had also provided US$800,000 for an asphalt grant.  He 
stated it was too expensive to import the asphalt from Venezuela so 
Belize bought the asphalt locally and Venezuela reimbursed the 
purchase.  Venezuela had also provided another US$800,000 USD grant 
for culverts used for road development. 
 
4.  (U) Mr. Osorio did not mention the latest grant from Venezuela 
until Poloff brought up an article published on August 2, 2007 by 
Godfrey Smith, Minister of Tourism and National Emergency 
Management.  The article entitled "Should Hugo Come?" discusses the 
additional US$10 million grant and the possibility of a Chavez visit 
in the ruling party's newspaper.  The article advocates that "Mr. 
Chavez should be invited to Belize." Osorio then confirmed that the 
money had been requested and was expected but that it had not yet 
been received.  Osorio first stated that the money would be 
allocated for road development.  He noted that the discussions about 
this grant began when a Venezuelan delegation visited Belize in 
early July. 
 
5.  (U) When asked how the GoB planned to pay for the unbudgeted, 
recently announced large expenditure programs which included free 
textbooks costing US$3.25 million and a mortgage subsidy program 
costing US$1 million, Osorio noted that perhaps some other programs 
would need to be cut.  When asked if the Venezuelan grant could be 
used to fund these programs he replied, "Yes", and noted that even 
after these two programs were fully funded there would still be an 
additional $6 million in potential unbudgeted spending. 
 
6.  (SBU) Comment.  There are no campaign finance laws in Belize so 
in reality much of the grant could be put straight into the 
government's reelection campaign. Belize's Minister of Home Affairs 
(and party campaign chairman) Ralph Fonseca is currently in 
Venezuela.  Additionally, local newspapers have speculated that 
Chavez may be helping to bankroll the upcoming general elections for 
the incumbent party.  End comment. 
 
HILL