Cable Viewer

Currently released so far... 6061 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden Editorial United States Latin America Egypt Yemen Jordan

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19

### Browse by creation date

66 72 73 75 79 85 86 88 89 90 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03
1986/05
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
2000/06 2000/09 2000/11
2001/02 2001/03 2001/07 2001/10
2002/02 2002/03 2002/04 2002/07 2002/11 2002/12
2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Amsterdam American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hermosillo Consulate Hamburg
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lagos
Mission USNATO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Montreal Consulate Monterrey Consulate Milan
Embassy New Delhi Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Tijuana
USUN New York USEU Brussels US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Consulate Vladivostok
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AR AJ ASEC AE AEMR AF AMGT APER AG AM AORC AU AS ACOA AX AFIN AL AFFAIRS AA AMED ABLD AROC ATFN ASEAN AFGHANISTAN ADCO AO AFU AER AODE ABUD ATRN APECO ASUP AID AC APCS AGMT ASIG AVERY ASECKFRDCVISKIRFPHUMSMIGEG
BU BM BEXP BR BA BRUSSELS BL BK BO BTIO BH BE BX BIDEN BG BY BF BBSR BC BMGT BB BILAT BTIU
CH CU CJAN CMGT CVIS CO CA CE COUNTER CASC CBW CG CI CS CDG CIA CACM CDB CAN CN CY COE CD CM COUNTRY CLEARANCE CPAS CACS CWC CF CONDOLEEZZA CT CARSON CL CR CIS CLINTON CODEL CTM CB CV COM CKGR CJUS COUNTERTERRORISM
DJ DEAX DA DOE DISENGAGEMENT DEA DK DHS DR DTRA DS DOD
EINV ECON ENRG EPET ETRD EAGR ELAB EUN EFIN EAID EU EIND ETTC ECPS EWWT ES EG EXTERNAL EMIN ECIP EINDETRD EN EAIR EZ EUC EI ELTN EREL ER ECIN ETRDEINVECINPGOVCS EFIS EC ENVR ECA ET ENERG EINT ENGY ETRO ELECTIONS ELN EK EFTA ECONCS EUR ENGR ECONEFIN ENIV EINVETC EINN ESA ETC ETRDEINVTINTCS ESENV ETRDECONWTOCS ENNP ENVI ECUN EINVEFIN
FR FAO FTAA FARC FREEDOM FBI FI FJ FINR FMLN
GM GZ GTMO GOI GG GV GH GA GT GR GE GAZA GCC GY GTIP GANGS
HO HURI HA HU HR HUMAN HILLARY HK HSTC HYMPSK
IR IS IZ IN IT IAEA ID IO IV ICTY IQ ICAO INTERPOL IPR INRB ITPHUM IWC IC IIP ICRC ISRAELI INTELSAT IMO IL IA INR ITALIAN ITALY ITPGOV IZPREL IRAQI ILC IRC INRA INRO IRAJ IEFIN IF IACI ICJ ITRA IBRD IMF
JAMES JA JO JOSEPH JP JOHNNIE JM JUS
KCRM KCOR KDEM KPAO KG KTIP KICC KNNP KV KBCT KPAL KTFN KU KSPR KJUS KHLS KTIA KWBG KMDR KGHG KN KUNR KS KIRF KISL KFRD KIPR KAWC KPWR KCIP KSUM KWAC KMIG KOLY KZ KAWK KSEC KIFR KDRG KDEMAF KFIN KGIC KGCC KPIN KBIO KHIV KSCA KE KPKO KPLS KIRC KRAD KMCA KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KWMN KACT KGIT KPRP KOMC KSTC KFLU KBTR KBTS KPRV KVPR KTDB KERG KWMM KRVC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KSTH KSEP KNSD KFLO KMPI KVIR KNUP KTER KCFE KNEI KDDG KHSA KMRS KHDP KTLA KPAK KNAR KREL KPAI KTEX KNPP KCOM KNNPMNUC KO KPOA KLIG KOCI KRFD KHUM KDEV KNUC KSAF KCFC KWWMN KCRS KTBT KOMS KR
LY LG LE LH LI LO LOG LT LTTE LAB LU
MCAP MO MNUC MARR MPOS MASS MOPS MAR MD MX MZ MEPP MA MR ML MIL MTCRE MOPPS MAPP MU MY MASC MP MT MERCOSUR MK MDC MI MAPS MCC MASSMNUC MQADHAFI MUCN MTCR MG MTRE MRCRE MEPI MC MV
NATO NI NG NO NL NU NIPP NPT NS NSG NA NZ NATIONAL NP NRR NAR NE NASA NK NPG NSF NT NGO
OVIP OTRA OPRC OSCI OTR OREP ODIP OPDC OSAC OAS OEXC OIIP OFDP OSCE OECD OPCW OPIC OIC OVP OFFICIALS OIE
PINR PGOV PBTS PREL PTER PE PO PHUM PROP PBIO PARM PECON PINS PM PK PHSA PREF PL PAK PINT POGOV PINL POL PSOE PKFK PMIL PY PFOR PALESTINIAN PHALANAGE PARTY PRAM PAO PA PMAR PGOVLO POLITICS PUNE PORG PHUMPREL PF POLINT PHUS PGOC PNR PGGV PNAT PGOVE PRGOV PRL PROV PTERE PGOF PHUMBA PARMS PINF PLN PEL POV PG PEPR PSI PU POLITICAL PARTIES
QA
RS RU RO RW RIGHTS RF RICE ROBERT RFE REGION RP
SP SOCI STEINBERG SN SA SY SNAR SMIG SO SENV SCUL SR SF SG SW SU SL SZ SIPRS SH SI SNARCS SOFA SANC SHUM SK ST SC SEVN SYR SAN
TI TX TU TW TC TERRORISM TPHY TRGY TS TIP TBIO TSPA TH TO TZ TK TSPL TNGD TINT TRSY TR TFIN TD TURKEY TP TT
UK UZ UNMIK UN US UG UNSC UP USEU UY UNGA UNO UV USUN UNESCO UNEP UNDP UNCHS UNHRC UNAUS USTR UNVIE UNCHC UE UNDESCO UNHCR USAID UAE UNDC
VE VZ VT VTPREL VN VM
WI WTRO WTO WTRQ WWARD WB WHA WZ WBG WA WHO WMO WEU
XF XA XG XT XM XR XS XL XH XZ XW XY XE XK XD XC
YI YM YE YMCS
ZP ZR ZI ZU ZB ZF ZO ZANU ZA ZOELLICK ZK ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 07SANTIAGO983, A SOUTHERN CONE PERSPECTIVE ON COUNTERING CHAVEZ AND REASSERTING U.S. LEADERSHIP

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07SANTIAGO983.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07SANTIAGO983 | 2007-06-18 14:02 | 2011-03-18 14:02 | SECRET | Embassy Santiago

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHSG #0983/01 1691445
    ZNY SSSSS ZZH
    P 181445Z JUN 07
    FM AMEMBASSY SANTIAGO
    TO RUEHC/SECSTATE WASHDC PRIORITY 1664
    INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 2994
    RUEHBR/AMEMBASSY BRASILIA PRIORITY 3691
    RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 0361
    RUEHCV/AMEMBASSY CARACAS PRIORITY 1429
    RUEHLP/AMEMBASSY LA PAZ JUN 5253
    RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 3682
    RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY
    RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY

` `

    S E C R E T SANTIAGO 000983

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 06/15/2017
    TAGS: PGOV PREL KDEM KCRM AR BO BR PARM UY VE CI
    SUBJECT: A SOUTHERN CONE PERSPECTIVE ON COUNTERING CHAVEZ AND REASSERTING U.S. LEADERSHIP

    REF: ASUNCION 396 Classified By: AMBASSADOR CRAIG KELLY; Reasons 1.4(b), (d)

    ------- Summary -------

    ¶1. (C) Hugo Chavez,s effort to expand his influence into the Southern Cone was the subject of ref A. This, part two in a series of joint cables from Southern Cone embassies, looks at ways the U.S. can counter Chavez and reassert U.S. leadership in the region. From posts' perspectives, there are six main areas of action for the USG as it seeks to limit Chavez's influence: --Know the enemy: We have to better understand how Chavez thinks and what he intends; --Directly engage: We must reassert our presence in the region, and engage broadly, especially with the "non-elites"; --Change the political landscape: We should offer a vision of hope and back it up with adequately-funded programs; --Enhance military relationships: We should continue to strengthen ties to those military leaders in the region who share our concern over Chavez;

    --Play to our strength: We must emphasize that democracy, and a free trade approach that includes corporate social responsibility, provides lasting solutions; --Get the message out: Public diplomacy is key; this is a battle of ideas and visions. Septel provides detailed suggestions. 2. (C) We should neither underestimate Chavez nor lose sight of his vulnerabilities. Many of the region's leaders and opnion makers appreciate the importance of relations with the U.S. and generally want to see us more deeply engaged. They reject the notion that Chavez best represents the region's interests.

    We must convince not only government leaders but civil society - the person on the street - that we are committed to a progressive and democractic vision for the Americas and to helping our neighbors meet their challenges. If we can, we will make quick inroads into marginalizing Chavez' influence, bolster democracy and reassert our own leadership in the region. End Summary.

    -------------- Know Thy Enemy --------------

    ¶3. (S/NF) Notwithstanding his tirades and antics, it would be a mistake to dismiss Hugo Chavez as just a clown or old school caudillo. He has a vision, however distorted, and he is taking calculated measures to advance it. To effectively counter the threat he represents, we need to know better his objectives and how he intends to pursue them. This requires better intelligence in all of our countries. Embassy Asuncion,s getting hold of Chavez's MSP equivalent, for example, and then sharing it with policy makers and implementers in Washington and the region helps inform and coordinate our response. 4. (S/NF) When we have concrete intelligence on an issue about which our friends in the region share our concern -- e.g., Venezuela's relationship with Iran -- we should share it to the extent we can. And when Chavez's programs feed local elite appetites for corruption or otherwise fail to deliver on their promises, we need to make it known.

    --------------- Directly Engage ---------------

    ¶5. (SBU) We must challenge the mistaken notion that the U.S. is absent and aloof from the region. President Bush's visit to five countries in the region in March, and his follow-on meeting with President Lula at Camp David, made a hugely positive impression. A/S Shannon's April visit to Chile and Paraguay was similarly applauded by local leaders and the press. We need to build on this good will with a regular stream of senior-level visits, including by Cabinet members, speaking to our positive agenda for the region and producing concrete programs and agreements that respond to its problems. 6. (SBU) To obtain the greatest return on these visits, we encourage Washington to explore multiple-country itineraries. When we make these visits, it is important we be seen not just with government officials and elites, but also with those who have been marginalized or are on the fringes of society. We need visits not only to those countries where leaders praise us, but even more importantly where governments have distanced themselves from us. In these places, showing the flag and explaining directly to populations our view of democracy and progress can change views about the U.S. that may have become distorted or out of date.

    ------------------------------ Change the Political Landscape ------------------------------

    ¶7. (C) Chavez' agenda is about expanding his influence and power, using the "Bolivarian Revolution" as his vehicle. This rubs a lot of the region's governmental and non-governmental leaders and opinion makers the wrong way -- particularly those who don't want to be associated with his methods or regard Chavez as a growing threat to their own leadership. We have to play to that resentment by strengthening our ties with these leaders, praising their governance, and fostering broad public respect for the progressive models they are seeking to build within their societies. Fortunately, local "case studies" of countries that are leftist-led but are democratic and fiscally responsible offer glistening counterpoints to Chavez's retrograde project. -- Because of its sheer size and economic weight, Brazil has outsized influence over the rest of the continent. In this regard, it can be a powerful counterpoint to Chavez's project. We should help present Brazil's course -- i.e., pursuit of fiscal responsibility and strong democratic institutions, openness to the global the community, and mature engagement with both its neighbors and the U.S. -- as a progressive and hopeful model for the region. -- Chile offers another excellent alternative to Chavez. FM Foxley seeks to integrate Chile more fully into the global economy. Chile has not only stated but demonstrated -- e.g. Bachelet's letter to House leader Nancy Pelosi expressing Chilean support for congressional ratification of FTAs with Peru, Colombia, and Panama -- its willingness to help bring along other Latin American countries into the global economy. We should look to find other ways to give Chile the lead on important initiatives, but without making them look like they are our puppets or surrogates. -- Argentina is more complex, but still presents distinct characteristics that should inform our approach to countering Chavez's influence there. Argentina has a large middle class and a vibrant civil society open to our ideas and vision of a market-based democracy and wary of Chavez's "revolutions." Venezuela does not appear to have provided Argentina any significant subsidies or outright grants, but Chavez has been able to exploit Buenos Aires, lack of access to investment capital and international financing. Domestic and foreign investors are not providing adequate long-term investment capital to quickly develop needed infrastructure. And still unresolved post-crisis defaults on official Paris Club and private bondholder debt are restricting Argentina's access to the volume of new sovereign credits in global capital markets it would need to fund infrastructure development on its own. The obvious counter to the influence that Chavez' financial support has bought him in Argentina is to help the GoA regain direct access to international financial markets and to work with the GoA to develop the kind of investment climate that will attract the volume of domestic and foreign investment needed to build new foundational infrastructure at competitive costs. This needs to be complemented by engaging actively with civil society and key non-economic actors in the government on areas of shared concern (anti-crime, anti-terror, peacekeeping, etc.). -- Our growing economic relationship with the pragmatic leftist government in Uruguay puts the lie to the claim that greater trade and investment with the U.S. is tantamount to betrayal of local populations. This is critical because poor countries, like Uruguay, are vulnerable not so much to Chavez,s ideology but to his petrobolivars. We need to draw attention to and build on these success stories borne out of engagement with the U.S., as alternatives to Chavez' vision of a region cut off from the U.S. Even Paraguay's leftist priest-turned presidential candidate Fernando Lugo has stated he is closer to Bachelet or Lula than to Chavez.

    ¶8. (C) Of course, we also need to make sure that the truth about Chavez -- his hollow vision, his empty promises, his dangerous international relationships starting with Iran) -- gets out, always exercising careful judgment about where and how we take on Chavez directly/publicly. While it remains preferable that we take the high road focusing attention on our "vision of hope of hope and prosperity for the region," there will continue to be times we need to speak out on the concerns his authoritarian bent raises. However, we shouldn't be alone nor necessarily always in the lead. Rather the NGO community and local civil society groups, the region's leaders and international organizations, the UN and OAS in particular, must assume a greater role in addressing this problem and put Chavez on the defensive -- not by exaggerating the threat but speaking to the facts. The recent closing of RCTV is one such area where international organizations and local media and civil rights groups could have been more vocal. 9. ( C) With regard to Mercosur, we should not be timid in stating that Venezuela's membership will torpedo U.S. interest in even considering direct negotiations with the trading bloc, and in questioning when and how Mercosur plans to apply its democracy clause strictures to Chavez's regime. Without voicing hostility to Mercosur per se, we can continue to pursue FTA's with interested countries, and encourage alterative arrangements, such as Chile,s "Arco del Pacifico" initiative.

    ----------------------------- Play to our Mil-Mil Advantage -----------------------------

    ¶10. (C) Southern Cone militaries remain key institutions in their respective countries and important allies for the U.S. These militaries are generally organized and technically competent. Their desire to maintain interoperability, access to U.S. technology and training are something we can turn to our advantage. As they seek to modernize, professionalize, and transform, they seek closer relations with the US to assist in those processes. Over the past several years we have seen a steady decrease in funds for critical programs such as International Military Education and Training (IMET) and traditional Commander Activities (TCA) and the elimination of other important programs such as Foreign Military Financing (FMF) and Excess Defense Articles (EDA) due to sanctions under ASPA. To effectively maintain our mil-to-mil relations and guide pol-mil events in the region in support of our interests, we must reverse the slide. Now is precisely the time we need to be increasing our pol-mil engagement and programs vice decreasing and limiting them. We also need to revisit some long-held and frankly rigid positions on SOFA agreements and insistence on certain privileges and immunities with a view to gaining flexibility to negotiate new defense cooperation agreements with regional militaries.

    ¶11. (C) An increasingly unifying theme that completely excludes Chavez, and isolates Venezuela among the militaries and security forces of the region, is participation in international and regional peacekeeping operations. The Southern Cone is doing very well in this area, with all countries active contributors to PKO missions worldwide. Argentina and Chile have even formed a combined peacekeeping brigade, which is expected to be available for deployment sometime in 2008. Uruguay is the highest per-capita contributor of PKO troops. We should make more GPOI funds available to Southern Cone countries to increase and strengthen their peacekeeping capabilities and cooperation. Additionally, we should explore using the mechanism that the region's contributors to MINUSTAH (Haiti) have established to discuss ways of increasing peacekeeping cooperation on a broader scale.

    -------------------------- Stress Our Winning Formula --------------------------

    ¶12. (C) Chavez has made significant inroads, particularly with local populations, by providing programs for the underprivileged and by casting the U.S. as elitist and only interested in promoting free trade to the benefit of big business. The slogans are facile: Neoliberalism makes the rich richer and the poor poorer; the Bolivarian Revolution guarantees our region's sovereignty and dignity. But they ring true with some local populations and make others feel better about their own lack of progress.

    ¶13. (C) Transforming our image does not mean we walk away from our commitment to free trade and the promise it delivers to impoverished populations. However, it does mean we should do a better job of promoting free trade by pointing to local and global success stories, making it easier to forge FTAs, and by expanding access to U.S. markets, and by promoting investment. Concluding the Doha Round is critical to revitalizing more local trade negotiations and bolstering our own credibility. In the meantime, we should support programs that promote regional exports, particularly favoring small and medium-size enterprises, and emphasize good corporate citizenship.

    ¶14. (C) We must also emphasize social responsibility among corporations and investors, and as a USG priority. President Bush's March 5 speech about social justice struck a chord throughout the region. We should be seen standing with local populations, delivering programs that speak directly to their economic and social needs, particularly in the areas of health and education. This is vital not only in the poorer countries, but equally in places like Chile and Argentina, where our very small community and youth action programs are welcomed and receive excellent media attention.

    ¶15. (C) Projects which foster greater transparency and democracy are important; they empower local citizens, strengthen democratic institutions, and contribute to a foundation for growth. When it comes to programs, there is no getting around the fact that we must back up policies with more resources to counteract Chavez,s easy walking around money, which is making a huge impact in countries like Uruguay. Chavez isn't waging his campaign simply on rhetoric. He is investing millions in his campaign for the hearts and minds. We can use greater discretion and use our funds in a more strategic, targeted manner, but we aren't going to transform the perception that we are not committed seriously to this region by waging our own campaign on the cheap.

    ----------------------- Getting the Message Out -----------------------

    ¶16. (U) Public diplomacy will be absolutely vital to our success. We cannot win in the marketplace of ideas unless we have active and effective outreach, especially to the young and those active in addressing social ills and education needs. Embassy Santiago septel addresses many PD areas in which we could be more active. People-to-people contact at the grassroots level with local leaders, NGOs, youth groups, community activists, and cooperatives is key.

    ------- COMMENT -------

    ¶17. (C) As Chavez seeks to take on the mantle of this generation,s Castro, he starts with built-in advantages, not the least of which is a whole lot of money. Add to that the bluster of his anti-imperial, anti-U.S. rhetoric, and a certain squirrelly charisma, both of which continue to find a sympathetic audience in much of Latin America, and he presents a formidable foe. But he certainly can be taken. Washington policy-makers have already hit on one sure-fire tactic: Don,t fire back at every provocation, especially when it,s clear that Chavez,s mouth has opened before his brain has engaged. His recent dust-ups with both the Brazilian and Chilean senates over the RCTV closure are examples where Chavez,s ranting lost him points with ostensible friends without our having to lift a finger.

    ¶18. (C) But we cannot hope for Chavez,s blunders alone to derail him in the Southern Cone. Hence the package of measures we propose: A more muscular USG presence in the region that builds on high-level visits, underscores the strengths of viable, successful alternatives (i.e., Brazil and Chile) to Chavez,s brand of socialism, targets enhanced resources to regions and populations beyond the elites, and which uses public diplomacy to make our message loud and clear - democracy, freer trade and investment, work and that along with that come active and effective programs to address social ills and the needs of the region's youthful population. Enough said. End comment. KELLY

`