US embassy cable - 03SANTODOMINGO5157

UNCLAS SECTION 01 OF 02 SANTO DOMINGO 005157 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/CAR 
 
E.O. 12958: N/A 
TAGS: EPET, PREL, DR, VE 
SUBJECT: DOMINICANS PUZZLED BY CHAVEZ'S ACCUSATIONS AND 
"CUTOFF" IN OIL EXPORTS 
 
1. (U) Summary.  Relations between Venezuela and the 
Dominican Republic have been strained since July 27, when 
Venezuelan President Hugo Chavez accused ex-Venezuelan 
President Carlos Andres Perez of conspiring to assassinate 
him and criticized the Dominican government for allowing this 
to take place within its borders.  The relationship hit a new 
low September 19, when Venezuela officially announced that it 
would no longer deliver oil to the island country.  The 
economic impact on the Dominican Republic will be minimal, 
with the country turning to the world market.  End Summary. 
 
2. (U) On July 27, Venezuelan President Hugo Chavez, while 
speaking on his domestic show &Alo, presidente,8 accused 
ex-Venezuelan President Carlos Andres Perez (CAP) of leading 
a conspiracy from the Dominican Republic to assassinate him. 
(Chavez' failed coup in 1992 was directed against Perez.) 
Chavez accused the GODR of tolerating this "centro de 
conspiracion8 to operate and called on Dominican President 
Hipolito Mejia to take drastic action against Perez. 
Although at first the focus of these allegations was on Perez 
himself and not on the GODR, Chavez's assertions of knowledge 
of these activities and accusations of "irresponsibility8 
strained relations between the two countries and the 
presidents.  Mejia responded quickly by classifying Chavez's 
remarks as a &syndrome Chavez has towards Carlos Perez" and 
denying GODR involvement.  Presidential spokesman Luis 
Gonzalez Fabra followed by announcing that Dominican security 
agencies kept close watch over suspicious foreigners living 
legally in the Dominican Republic, including the anti-Chavez 
Venezuelans, and that there was nothing for the GOV to worry 
about. 
 
3. (U) The opposition Dominican Liberation Party (PLD) of 
former president Leonel Fernandez complained to the press 
about the Mejia government's "failure to investigate" the 
case.  Chavez in his remarks asserted that "proof" had been 
given to the GODR but Mejia commented that nothing 
substantial had been provided. 
 
4. (U) Tension between the two countries escalated further 
after Venezuelan Foreign Minister Roy Chaderton remarked at 
the end of an Andean Nation Community/MERCOSUR meeting in 
August that the accusations presented by President Chavez 
(and the Dominican response) had indeed affected relations 
between the two nations.  Following those statements, Chavez 
further alleged that Dominican officials as well as people of 
&great power8 from the Dominican Republic were involved 
with CAP in the plot to assassinate him. 
 
5. (U) Venezuela's Energy & Mines Minister Rafael Ramirez 
supported his president's statements during a press 
conference on Friday, September 19, where he specifically 
accused private traders and companies involved in the 
shipment of oil to the Dominican Republic as being part of 
the conspiracy.  He declined to identify the oil traders by 
name.  During that same press conference Ramirez announced 
the end of Venezuelan oil shipments to the Dominican Republic 
&in defense of our country's democracy and sovereignty.8 
 
6. (SBU) The Dominican Republic was purchasing about 53,000 
barrels of oil per day through the San Jose Pact Energy 
Agreement that allows it and other Central American and 
Caribbean countries to purchase oil from Venezuela and 
Mexico.  The formal end of shipments from Venezuela has 
confirmed that the GODR must purchase on the world market 
(GODR officials told the press that in fact the erratic 
nature of Venezuelan supply has been a reality "for months, 
making us buy elsewhere.")  Under the terms of the San Jose 
pact, Venezuela and Mexico supply oil to 24 beneficiary 
countries and may convert up to 20 percent of the cost into 
long-term development loans at concessionary interest rates. 
(The GODR's former ambassador to Caracas dismisses this as "a 
dead letter," asserting that no country except perhaps Cuba 
secures any benefits through these clauses.) 
 
7. (SBU) Perhaps in an effort to help Mejia and to take the 
pressure off the GODR, ex-President Perez took calls from 
Dominican journalists and confirmed that he had been living 
in his New York apartment for the last three months and said 
that he was not involved in any conspiracy to assassinate 
Chavez or overthrow his government. 
 
8. (U) Last week's news from Caracas was that Chavez did not 
intend to return his Ambassador to Santo Domingo "until a new 
government is in place."  Questioned by the press, GODR Vice 
President Milagros Ortiz Bosch, acting head of government 
while Mejia is on a state visit to Spain, said that 
differences should be handled by diplomatic means.  The GODR 
Foreign Ministry confirmed that the Dominican ambassador will 
remain in Caracas. 
 
9. (SBU) Comment.  Although relations between the Dominican 
Republic and Venezuela may be strained for the moment, they 
provide more fuel for press speculation than cause for 
concern.  The suspension of oil shipments will have little 
effect on the Dominican economy.  The government has assured 
the people that the country has dependable access to oil from 
other sources.  Chavez is chasing demons for domestic 
political advantage; while those demons exist, few them are 
resident in the Dominican Republic.  End Comment. 
HERTELL