US embassy cable - 04CARACAS3369

C O N F I D E N T I A L  CARACAS 003369 
 
SIPDIS 
 
 
NSC FOR CBARTON 
USCINCSO ALSO FOR POLAD 
STATE PASS USAID FOR DCHA/OTI 
 
E.O. 12958: DECL: 09/10/2014 
TAGS: PGOV, PREL, PHUM, KDEM, KJUS, VE 
SUBJECT: SUPREME COURT PRESIDENT URGES WORLD BANK LOANS 
 
 
Classified By: Abelardo A. Arias, Political Counselor, for 
Reason 1.4(d) 
 
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Summary 
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1. (C) Ivan Rincon Urdaneta, President of Venezuela's Supreme 
Court (TSJ), touted past judicial cooperation with the U.S. 
and World Bank in a meeting with the Ambassador October 25. 
Rincon suggested it would be in Venezuelan and U.S. interest 
for the World Bank to approve the $45 million loan for the 
National Modernization Project of the TSJ.  The Ambassador 
reminded Rincon of the consequences of the September 2004 
trafficking in persons (TIP) sanction which required the U.S. 
to vote against loans to Venezuela.  The Ambassador asserted 
that support for the World Bank loan would probably be tied 
to the perception of independence and autonomy the TSJ could 
project through its future decisions. End Summary. 
 
2. (C) The Ambassador met with Ivan Rincon Urdaneta, 
President of Venezuela's Supreme Court (TSJ) and its 
Constitutional Chamber, on October 25 at Rincon's invitation. 
 Rincon reviewed judicial cooperation between the U.S. and 
Venezuela and lauded the training of criminal judges in 
Puerto Rico.  He fondly reminisced about his own 
participation in the International Visitor (IV) program in 
1993.  Regarding Venezuela's work with the World Bank, he 
called it one of the World Bank's most successful projects 
that should serve as a model for other Latin American 
countries.  The project, he said, has helped the Supreme 
Court earn a 59% credibility vote from the people. 
 
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The Pitch 
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3. (C) After touting past success in judicial cooperation, 
Rincon said the National Modernization Project for the TSJ he 
presented to the World Bank in 2003 had received verbal 
approval, but was not signed in May 2004 as planned because 
of the referendum.  Venezuela did not need the $45 million 
dollar World Bank loan, Rincon told the Ambassador, but the 
support of the World Bank name was important and a decision 
was needed.  Rincon dismissed World Bank concerns about 
political risk with the project in Venezuela, citing the 
TSJ's cooperation with the U.S. Federal Courts and the U.S. 
 
SIPDIS 
Embassy as an endorsement.  In regards to trafficking in 
persons (TIP), Rincon asserted that strengthening the TSJ was 
a way of gaining some control over the situation, and one way 
to help could perhaps be to provide training regarding 
prostitution, especially that of minors. 
 
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It's All About Perception 
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4. (C) The Ambassador agreed that cooperation with the TSJ 
has been positive in the past.  Nevertheless, the September 
2004 TIP decision meant that the U.S. would have to vote 
against the loan.  But the level of U.S. objection and future 
support of the World Bank proposal would be tied to how 
independent and impartial the Supreme Court is perceived to 
be.  The Ambassador noted the following examples that worry 
the U.S.: the appointment of twelve new members of the TSJ, 
the proposed media law, the changes to the penal code that 
would make foreign contributions to nongovernmental 
organizations (NGOs) illegal, the Sumate case, unresolved 
allegations of CNE fraud, and increased oil royalties in 
apparent violation of existing contracts.  Did Rincon believe 
that TSJ decisions on these issues would contribute to 
concerns about judicial independence? 
 
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The Defense 
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5. (C) Rincon reacted defensively citing the TSJ's 
independence, autonomy and distance from some of the issues. 
He said he could not prevent the National Assembly from 
contemplating the proposed media law, but if the proposed law 
came before the TSJ and violated the definitions of free 
press defined in the constitution, it would be overturned. 
Rincon warned the Ambassador to be wary of politics and the 
opposition.  He asserted that he had recommended Henrique 
 
Capriles be set free, but the Sumate case was still under 
investigation by the Attorney General and the prosecutor's 
office and had not reached the Court.  Alluding to the 
National Endowment for Democracy, Rincon said it was not the 
fault of the U.S. if a bipartisan group designated money for 
democracy building that was then used for unintended 
purposes. 
 
6. (C) Rincon also said he was disappointed that all the 
judges that had been trained had failed the judicial exam and 
would need to reenter training. He noted the decision to 
dismiss judge Franklin Arrieche from the TSJ was due to 
falsified credentials, and reiterated that the TSJ needed 
credibility.  Rincon reasserted the TSJ's independence 
claiming that 80% of its decisions went against the 
government. However, he said, he could not do something like 
delay the regional elections at the request of some when the 
population was prepared to vote.  Noting that much of the 
Venezuelan judicial system is based on the American system, 
Rincon reiterated the need for U.S.-Venezuelan judicial 
cooperation. 
 
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Comment 
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7. (C) Rincon got the message: If he wants USG support for 
judicial reform projects, the TSJ better not be a Chavez 
rubber stamp.  Rincon reacted defensively but tried to stay 
upbeat by suggesting that issues had already been resolved or 
passing the buck to other institutions.  That said, the 
judicial reform project is worth supporting, if for no other 
reason than giving us continued leverage on TSJ decisions. 
Brownfield 
 
 
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      2004CARACA03369 - CONFIDENTIAL