US embassy cable - 05MADRID703

C O N F I D E N T I A L MADRID 000703 
 
SIPDIS 
 
FOR EUR/WE 
 
E.O. 12958: DECL: 02/24/2015 
TAGS: PGOV, PREL, MOPS, PTER, SP 
SUBJECT: SPANISH DEFENSE MINISTER TELEPHONES CHARGE ON 
VENEZUELA SALE 
 
 
Classified By: Charge d'Affaires J. Robert Manzanares, 
reasons 1.4(b) and (d). 
 
1.  (C) Minister of Defense Jose Bono telephoned Charge 
February 22 to explain Spain's decision to sell military and 
civilian ships to Venezuela.  Saying he wished to follow up 
with Charge after Bono's appearance before Congress's defense 
commission a day earlier (during which the Defense Minister 
answered questions about the Venezuela sale and Spain's 
Afghanistan deployment), Bono explained that Spain would 
likely sell a petroleum-carrying vessel, a ship that 
transports asphalt and five "patrol boats" to the Chavez 
government.  He emphasized the Spanish government has 
received "assurances" from Caracas that the patrol ships will 
not be used for offensive purposes, but would be used to 
protect Venezuela's maritime borders and Exclusive Economic 
Zone.  (Note: Other sources have told us the ships are 
actually corvettes capable of being armed with naval guns and 
missiles.  A press report   indicated the vessels would be 
similar to Spain's "Descubierta" class corevettes with a 
displacement of 1,500-1,800 tons.  End note.)  The principal 
reason Spain was making the sale to Venezuela -- reportedly 
worth over 600 million euros (USD 780 million) -- was to give 
a shot in the arm to ailing state-owned ship building firm 
Izar.  The sale would be "very significant for Izar," said 
Bono, but would not tip the military balance in the region. 
He also told Charge that the Zapatero government had 
conferred with the Uribe government and the Colombians "did 
not see major problems" with the sale. 
 
2.  (C) Comment:  Bono likewise telephoned Charge from 
Caracas when he made his unannounced "discreet" trip there in 
late January to assure us he was not doing anything untoward. 
 His latest call is another indication that the GOS and Bono 
in particular well understand U.S. concerns about Spain's 
developing relations with the Chavez government.  Despite 
that, Izar's economic woes are front and center, driving 
Spain's intense interest in selling ships to Venezuela.  U.S. 
concerns aside, Spain will likely move forward to take 
advantage of an opportunity to tamp down labor unrest at the 
state-owned company. 
MANZANARES