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Viewing cable 08PARAMARIBO18, PETROCARIBE STILL ALIVE, MIGHT AID FISHERIES

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Reference ID Created Released Classification Origin
08PARAMARIBO18 2008-01-16 19:37 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Paramaribo
VZCZCXRO4179
OO RUEHGR
DE RUEHPO #0018 0161937
ZNR UUUUU ZZH
O 161937Z JAN 08
FM AMEMBASSY PARAMARIBO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9911
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHAO/AMCONSUL CURACAO 1220
RUEHCV/AMEMBASSY CARACAS 1646
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS PARAMARIBO 000018 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR WHA/CAR JROSHOLT; WHA/EPSC, EB/ESC/IEC/ENR, INR FOR 
BCARHART 
 
E.O. 12958: N/A 
TAGS: BBSR ECON EPET VE NS
 
SUBJECT: PETROCARIBE STILL ALIVE, MIGHT AID FISHERIES 
 
REF: 05 PARAMARIBO 602 
 
1.  (U)  SUMMARY:  The PetroCaribe deal is still an option for 
Suriname, the Minister of Natural Resources told the press on 
January 9.  The Minister of Agriculture, Animal Husbandry, and 
Fisheries told the press on January 10 that the deal would assist 
the fisheries sector, which has been severely affected by rising 
fuel costs.  END SUMMARY 
 
2.  (U)  Minister of Natural Resources Gregory Rusland told the 
press on January 9 that the PetroCaribe deal is still an option for 
Suriname.  Implementation of the deal had stalled when the 
Government, most notably the Ministry of Finance (MOF) and the 
Central Bank of Suriname, refused to provide a state guarantee of 
payment.  Rusland told the press, "I'm about ready to say I'm not 
going to talk about the deal anymore until I see a ship off of 
Suriname with oil products.  But I have to tell you that we're also 
making progress on this matter...  We're not giving up.  And in 
fact, if a moment comes in which we say we see no value in the 
implementation, then we'd announce that too."  When contacted by 
Post for confirmation Jainoel Abdul, Permanent Secretary of the 
Ministry of Natural Resources, would not comment, saying only the 
Minister could confirm his remarks. 
 
3.  (U)  Meanwhile, Minister of Agriculture, Animal Husbandry, and 
Fisheries Kermechend Raghoebarsing told the press on January 10 he 
is looking to the PetroCaribe deal as a "solution" to dealing with 
costs in the fisheries sector.  Fuel prices are the most important 
component in the price of fish, and if fishermen have to pay market 
prices for fuel, the sector is at risk of dying out, he warned. 
Increasing competition from Guyanese and Venezuelan fishermen who 
get their fuel in Venezuela at a lower rate and then fish illegally 
in Surinamese waters is a danger to Suriname's fisheries sector. 
Raghoebarsing identified this as a national security threat that has 
contributed to the rise of a black market for fuel at sea as well as 
an increase in piracy cases off Suriname's coast.  (NOTE:  To combat 
these problems, Suriname implemented a vessel GPS registry system in 
summer 2007 and conducted a maritime operation against pirates in 
December 2007.  END NOTE)  Once Surinamese fishermen can purchase 
fuel at the same rates as their Guyanese and Venezuelan 
counterparts, the Minister said he expects the damage to the sector 
to decrease. 
 
4.  (U)  COMMENT:  The dire warnings from Suriname's Agriculture 
Minister track with those Post has heard from industry leaders.  At 
a luncheon hosted by the Ambassador on January 11 to take advantage 
of the visit of the Turtle Excluder Device (TEDs) Inspection Team to 
Suriname, the high cost of fuel was rated the top problem 
confronting Suriname's fisheries industry today.  It also impacts 
government of Suriname (GOS) ability to patrol its territory, both 
on land and at sea.  Given these straightened circumstances, 
Rusland's favorable comments with respect to PetroCaribe appear 
understandable.  Whether PetroCaribe would, in fact, be the panacea 
the GOS hopes, remains open to debate.  END COMMENT 
 
SCHREIBER HUGHES