US embassy cable - 04CARACAS3936

C O N F I D E N T I A L  CARACAS 003936 
 
SIPDIS 
 
 
STATE PASS USAID FOR DCHA/OTI, NSC FOR BARTON, USSOUTHCOM 
FOR POLAD 
 
E.O. 12958: DECL: 12/23/2014 
TAGS: PGOV, PREL, ECON, VE 
SUBJECT: AMBASSADOR VISITS VALENCIA, CAPITAL OF CARABOBO 
STATE 
 
Classified By: WILLIAM R. BROWNFIELD, AMBASSADOR, FOR REASON 1.4 (d). 
 
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Summary 
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1. (C) Ambassador's visit to the central city of Valencia on 
December 9 - 10, 2004 included meetings with the Governor and 
Mayor, although for the third consecutive trip, the military 
declined to meet.  Newspaper coverage was excellent, and 
there was an abundance of media reporters and questions at 
most events.  Press focused on the bilateral relationship and 
reaction to the upcoming Media Content Law.  Valencia is an 
industrial center, attracting Venezuelans from all regions 
for job security, relatively inexpensive housing,and a clean, 
well-run community.  Carabobo state has two airports, and the 
largest port in Venezuela, through which enters approximately 
65% of Venezuela's merchandise.  The port of Puerto Cabello 
was highlighted as a strong point of the region's continued 
economic success.  Among all parties, most especially in the 
political and economic sectors, and in the business 
community, there is a "Wait and See" attitude with the new 
Chavista governor.  End Summary. 
 
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Political Climate 
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2. (C) Governor Luis Felipe Acosta Carles formally received 
the Ambassador in the governor's office.  A former National 
Guard commander of the region, Governor Acosta Carles was 
recently elected governor in October 2004, ending the 12 year 
hold on the governor's seat of the Salas family.  Acosta 
Carles stressed the need to reach out more to the public, and 
to all elected officials in Carabobo state, in an effort to 
bring to a close the political strife and animosity that has 
reigned in Venezuela in recent years.  He expressed a desire 
to increase economic collaboration with the United States, 
especially working with the three major auto industries 
operating in Valencia (GM, Ford, Daimler-Chrysler), and 
working to further develop the two major airports in the 
region, that at Puerto Cabello, and the Valencia 
International Airport.  He was positive on recent dialogue 
with Coca-Cola, whose local plant he had seized as National 
Guard commander during the national strike in 2003. 
 
3. (C) Mayor Francisco Cabrera Santos, a popular figure 
re-elected in October for his third term, is regarded as 
having devoted his time and office to the revitalization of 
Valencia.  He described himself as a political independent, 
believing in social investment in the people of his 
district-- by providing jobs, health programs and training. 
Mayor Cabrera hopes to work with Governor Acosta Carles on 
various projects, specifically a low-cost housing project for 
the poorest citizens, slated to begin construction in January 
2005.  2005 marks the anniversary of Valencia and the mayor 
requested the assistance of the US Embassy in scheduling 
cultural events. 
 
4. (C) An informal meeting with former governor Henrique 
Salas Feo provided an opportunity for the opposition 
perspective.  Salas Feo, defeated in the October 31 elections 
by Acosta Carles, expressed his concern over the election 
procedures and probable fraud, and the difficulty in 
obtaining information or help from the National Electoral 
Council.  As regards the new governor, he expressed a "Wait 
and See" attitude.  Since the election, his Proyecto 
Venezuela party is struggling to maintain momentum and 
support. 
 
5. (C) The Boston Group, comprised of pro-government and 
opposition legislators, has formed a permanent group in 
Valencia as a platform for discussion, conflict resolution 
and building a common agenda.  Twelve members attended a 
meeting with the Ambassador and openly discussed their 
concerns and issues.  Each one expressed satisfaction with 
the group and progress, and viewed it as a very positive 
experience.  They hoped that the Valencia group will be a 
model throughout Venezuela, reducing dissension between 
pro-government and opposition and building a better bilateral 
relationship with the United States. 
 
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Economic Interests 
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6. (U) The Valencia regional chapter of the Venezuelan- 
American Chamber of Commerce hosted a luncheon for the 
Ambassador with approximately 40 participants representing a 
variety of the industries present in the region, including 
the auto industry, banking, agriculture, and construction. 
The Q & A session immediately following the luncheon 
concentrated on economic growth in the region, and how to 
collaborate bi-nationally for the continued economic vitality 
of the region. 
 
7. (C) In a separate meeting, the Venezuelan 
Presidents/General Managers of Ford, Daimler/Chrysler and 
General Motors offered their general impression of the new 
governor and his effect on their industry.  Production is 
expected to rise for all three companies; however GM is 
currently negotiating with its union, and tensions are up. 
Chrysler and Ford also expressed concerns with their unions 
and the relationship with their employee force.  Chrysler 
wants to invest more in local social programs, especially 
environmental education in local area schools. 
 
8. (C) The Ambassador visited Protinal/Proagro, a pioneer in 
the agriculture and aviculture business in Venezuela, 
producing poultry, animal feed and deli products.  The 
company employs 3,000, and is majority owned (51%) by Ag 
Processing Inc. (AGP), the largest farmer-owned cooperative 
and soybean producer in the US.  Protinal distributes its 
animal feed products to the meat producing states to the 
south, and its grain and deli products throughout Venezuela. 
Economically, the company has improved its production, 
growth, and profits in the last six years, and has an 
innovative housing program for its employees, co-sponsored by 
a Venezuelan bank. 
 
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Media/Education 
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9. (U) El Carabobeno newspaper, the leading conservative 
daily paper in the central region of Venezuela, met with the 
Ambassador, conducted an interview, and provided substantial 
coverage in the next day's edition on his visit.  Radio Lago 
conducted an on-air 30 minute interview, filmed by a local TV 
station for future presentation.  Preceeding the interview 
Notitarde, the second largest newspaper in the region, 
attended a breakfast for the Ambassador, which was hosted by 
Radio Lago. 
 
10,(U) The Ambassador met with the Rector of the University 
of Carabobo, a public university located on four campuses 
with a combined student population of over 40,000.  Also in 
attendance were the major deans and a former International 
Visitor Program (PAS) grantee, who expressed in glowing terms 
the impact of her experience in the IV program.  Issues of 
discussion included stronger collaboration between the 
university and the US, expecially in the area of exchange 
programs with American universities, scholarships and 
opportunities for research (to include American Studies), 
visiting scholars, and PAS assistance with cultural and arts 
programs on the campuses. The rector said the American 
private sector represented in Valencia could also be 
instrumental in providing financial suppport in the programs 
and activities of the university. 
 
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Social Support 
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11. (C) The Ambassador also visited a recent recipient of a 
USAID grant, the Organization "Refugios Pana," a small house 
for at risk street children, located in the center of 
Valencia.  Founded in 1998, the building houses street 
children, who live in a family-like setting, attend local 
schools, and learn social skills and receive counseling from 
professional social workers.  A USAID funded industrial 
kitchen, inaugurated with the Ambassador's visit, will 
provide food for the house, and an opportunity for the 
students to manage a restaurant/lunch delivery business. 
 
 
12. (C) Press coverage was excellent, offering the Ambassador 
the opportunity to deliver our message on the importance of 
the bilateral, people-to-people US/Venezuela relationship. 
The visit clearly caught the Chavista governor's attention; 
 
 
he dispatched his wife uninvited to join the event midway 
through the visit. 
 
Brownfield 
 
 
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      2004CARACA03936 - CONFIDENTIAL