US embassy cable - 05PANAMA1423

C O N F I D E N T I A L PANAMA 001423 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN, WHA/CAR, AND WHA/AND 
SOUTHCOM ALSO FOR POLAD 
 
E.O. 12958: DECL: 07/05/2015 
TAGS: PREL, PGOV, EPET, PM, POL CHIEF 
SUBJECT: SENIOR PANAMANIAN OFFICIALS TO VISIT CARACAS JULY 
6 SEEKING OIL DEAL 
 
REF: A. CARACAS 2027 
 
     B. PANAMA 0255 
 
Classified By: AMBASSADOR LINDA WATT FOR REASONS 1.4 (B) AND (D). 
 
Three Panamanian Ministers to Visit FM Rodriguez 
--------------------------------------------- ---- 
1.  (C) Vice President/Foreign Minister Samuel Lewis called 
POL Counselor July 5 to let us know that he plans a one-day 
visit to Venezuela tomorrow, July 6, to meet with Venezuelan 
Foreign Minister Ali Rodriguez to "review" the bilateral 
relationship.  Minister of Government and Justice Hector 
Aleman and Minister of Commerce and Industry Alejandro Ferrer 
will accompany Lewis.  The two foreign ministers will issue a 
joint statement after the meeting. 
 
Oil and Security 
---------------- 
2.  (C) Lewis described two reasons for his trip: 
 
- to discuss "oil and gas cooperation.  Essentially, Panama 
wants in on the Petrocaribe deal for cut-rate oil, gasoline, 
transportation, and finance that Venezuela signed with 
Caribbean countries in late June (Reftel A), and 
 
- to open a "channel of communication" on security matters to 
assure Panama that Venezuela will not support the GOP's 
radical opponents. 
 
Venezuela's six-month-old proposal to refurbish a 
U.S.-operated oil pipeline in western Panama to carry 
Venezuelan crude to Puerto Armuelles on the Pacific coast 
(Reftel B) has been on the back burner for months but Lewis 
said he would not be surprised if the Venezuelans raise it. 
 
3.  (C) Lewis acknowledged the possibility that President 
Chavez could visit Panama in conjunction with the July 29, 
2005 Association of Caribbean States summit. 
 
Comment 
------- 
4.  (C) Cash-strapped Panama is no more immune to the allure 
of lower oil and gasoline prices than its Caribbean 
neighbors.  A deal on oil and gasoline will naturally 
increase Venezuela's political and economic leverage, so 
Lewis wants to cement an understanding that Chavez will steer 
clear of Panama's internal politics. 
 
5.  (C) Ambassador Watt will have the opportunity to discuss 
Venezuela matters more fully with President Torrijos and 
Foreign Minister Lewis at a Friday, July 8 farewell dinner 
hosted by the president. 
 
WATT