US embassy cable - 05NASSAU1323

C O N F I D E N T I A L NASSAU 001323 
 
SIPDIS 
 
STATE FOR WHA/CAR WBENT 
 
E.O. 12958: DECL: 07/20/2009 
TAGS: ENRG, PREL, PGOV, BF, Energy and Environment 
SUBJECT: PM CONCERNED ABOUT PETROCARIBE, MOVING ON LNG 
 
 
Classified By: Ambassador John Darrell Rood, Reasons 1.4 b and d 
 
1.  (C) Ambassador met privately with PM Perry Christie on 
July 20.  The PM discussed several energy matters as well as 
his political future. 
 
PetroCaribe: We Have Concerns 
----------------------------- 
 
2.  (C) The PM indicated that he "has concerns" about the 
PetroCaribe agreement signed on behalf of The Bahamas on June 
29 by Trade and Industry Minister Leslie Miller (reftel).  He 
stated that Minister Miller "got way out in front of the 
Cabinet" on the issue and suggested that Cabinet's eventual 
consideration of the PetroCaribe agreement would not be 
favorable.  Some ministers, the PM continued, were brought 
into the Cabinet because of their qualifications; others, 
like Minister Miller, were included in an effort, at times 
unsuccessful, to keep an eye on what they're doing. 
 
3.  (C) The PM recalled that there were no disruptions to 
local fuel supplies during last year's busy hurricane season. 
 He doubted that government, given its poor record running 
hotels, airlines, and utilities, would be able to do as well 
as the international oil companies had done. 
 
4.  (C) The PM confided that the Trinidadian government had 
expressed to him its displeasure that Minister Miller signed 
the PetroCaribe agreement. 
 
LNG: One of My Top Three Issues 
------------------------------- 
 
5.  (C) Moving on to the the liquefied natural gas facility 
proposed for the northern Bahamas, the PM indicated that it 
was one of his top three priorities.  He said he didn't want 
Cabinet to take it up while he was away recovering from a 
mild stroke.  He acknowledged that certain Cabinet members -- 
Foreign Minister Mitchell, Tourism Minister Wilchbombe, and 
Transport Minister Hanna-Martin -- were resolutely against 
LNG, but that many others saw the benefit the project would 
have for The Bahamas.  The PM gave his assurances that LNG 
"would be dealt with." 
 
Political Future Decided by November 
------------------------------------ 
 
6.  (C) The PM reported that he was recovering well from the 
mild stroke he suffered in May.  He is continuing to work 
half-days and has postponed a trip to London he had planned 
for this summer.  After consulting with doctors at Johns 
Hopkins, he also has decided not to have surgery on his knee 
at this time. 
 
7.  (C) The PM stated that he has already begun internal 
discussion on the timing of the next elections, which he must 
call no later than May 2007.  He believed he would know by 
his party's annual convention in November whether or not he 
is strong enough to lead the party into elections for another 
five-year term.  If he is fit enough to run, the PM is 
confident that no one will be able to defeat him. 
 
COMMENT 
------- 
 
8.  (C) Local reaction to PetroCaribe has been skeptical ever 
since its signing.  Minister Miller's actions have been 
criticized in terms of process (not having Cabinet's 
authorization) and on substance (creating another inefficient 
government entity, relying on a single source of supply, and 
endorsing Venezuela's political agenda).  Unnamed government 
sources were quoted in today's newspapers as "having 
concerns" about the agreement, using essentially the same 
language that the PM used.  Minister Miller has stated he 
will have a press conference to push PetroCaribe on Thursday, 
but it seems that the PM intends to walk away from 
PetroCaribe without ever implementing it.  END COMMENT. 
 
ROOD