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### Viewing cable 06MANAGUA841, VENEZUELA NOW USING FERTILIZER TO GROW SUPPORT FOR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06MANAGUA841 | 2006-04-17 21:26 | 2011-06-01 08:00 | SECRET | Embassy Managua

Appears in these articles:
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758456.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758467.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758468.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758464.aspx
http://www.confidencial.com.ni/articulo/4103/la-embusa-y-el-gabinete-de-ortega
http://www.confidencial.com.ni/articulo/4104/d-rsquo-escoto-en-onu-ldquo-un-desafio-de-ortega-a-ee-uu-rdquo
http://www.confidencial.com.ni/articulo/4102/estrada-y-la-ldquo-doble-cara-rdquo-ante-ee-uu
http://www.confidencial.com.ni/articulo/3966/la-ldquo-injerencia-rdquo-de-ee-uu-en-el-2006
http://www.nacion.com/2011-05-23/Mundo/Relacionados/Mundo2758764.aspx
http://www.nacion.com/2011-05-23/Mundo/NotaPrincipal/Mundo2758753.aspx
http://www.confidencial.com.ni/articulo/4041/millones-de-dolares-sin-control-y-a-discrecion
http://www.confidencial.com.ni/articulo/4040/la-ldquo-injerencia-rdquo-de-venezuela-en-2006
http://www.confidencial.com.ni/articulo/4047/rodrigo-barreto-enviado-de-ldquo-vacaciones-rdquo
http://www.nacion.com/2011-05-16/Mundo/NotasSecundarias/Mundo2757239.aspx
http://www.nacion.com/2011-05-16/Mundo/NotaPrincipal/Mundo2746658.aspx
http://www.nacion.com/2011-05-16/Mundo/Relacionados/Mundo2757244.aspx
http://www.nacion.com/2011-05-16/Mundo/Relacionados/Mundo2746673.aspx
http://www.confidencial.com.ni/articulo/3991/dra-yadira-centeno-desmiente-cable-diplomatico-eeuu
http://www.confidencial.com.ni/articulo/3968/pellas-pronostico-a-eeuu-victoria-de-ortega-en-2006
http://www.confidencial.com.ni/articulo/3967/barreto-era-ldquo-fuente-confiable-rdquo-para-eeuu

`

    VZCZCXYZ0003
    RR RUEHWEB

    DE RUEHMU #0841/01 1072126
    ZNY SSSSS ZZH
    R 172126Z APR 06
    FM AMEMBASSY MANAGUA
    TO RUEHC/SECSTATE WASHDC 5984
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHCV/AMEMBASSY CARACAS 0615

` `

    S E C R E T MANAGUA 000841

    SIPDIS

    SIPDIS

    DEPT FOR WHA/CEN

    E.O. 12958: DECL: 04/12/2016
    TAGS: ECON ENRG EFIN PGOV NU PREL SOCI VE CU EPET
    EAGR
    SUBJECT: VENEZUELA NOW USING FERTILIZER TO GROW SUPPORT FOR
    FSLN IN NICARAGUA

    REF: A. MANAGUA 2613

         ¶B. MANAGUA 2599
         ¶C. MANAGUA 1944
         ¶D. MANAGUA 1577
         ¶E. MANAGUA 1333

    Classified By: AMBASSADOR PAUL TRIVELLI FOR REASONS 1.4 (a & b)

    ¶1. (SBU) Summary: In only the latest example of Bolivarian
    Republic of Venezuela (BRV) efforts to bolster the Sandinista
    Front Party (FSLN) in Nicaragua's 2006 national elections,
    11,260 metric tons of urea have been sent for distribution by
    a Sandinista Cooperative to the rural poor as part of an
    eventual provision of 50,000 tons.  Several of the FSLN's
    opponents claim that the urea is part of a US $50 million
    electoral aid package for the FSLN by the BRV.  While post
    cannot verify that figure, other BRV assistance includes
    still theoretical reduced-price oil, funding of a
    Cuban-administered literacy campaign, and free medical care
    for poor Nicaraguans.  While presented as benign economic and
    social aid, these donations are managed by FSLN-run
    municipalities and announced with FSLN leader Daniel Ortega
    and the Venezuelan ambassador on hand.

    ¶2. (S) Summary Continued: USG sources also have evidence of
    direct campaign assistance from Venezuela, such as the
    financing of three helicopters for use by the FSLN and an
    underground network of cash payments.  Local executives of
    ESSO (Exxon Mobile) who run Nicaragua's only oil refinery
    also suspect that Venezuela's oil politics are aiming to
    drive them out of the country, paving the way for Venezuela
    to purchase the refinery at a bargain price.  Although
    Venezuelan election activities in Nicaragua present a cause
    for real concern, the Liberal Constitutionalist Party (PLC)
    is attempting to increase USG alarm about improper influence
    by the Chavez government to weaken our resolve in calling for
    an end to the party's control by convicted ex-president
    Arnoldo Aleman.  End Summary.

    ¶3. (U) Over the last week, local press has covered claims by
    representatives of various political parties in Nicaragua
    that Venezuela plans to spend US $50 million to bolster the
    FSLN's chances of winning the November national elections.
    The PLC and Sandinista-breakaway party Herty 2006 have been
    most vocal.  Both the FSLN and Venezuela's ambassador to
    Nicaragua deny allegations of direct political interference.
    Sandinista Front leader, Daniel Ortega, and the BRV have,
    however, proudly trumpeted several "humanitarian" programs
    offered by the BRV and administered by FSLN mayors.

    ¶4. (S) Sandinista Front opponents have not offered concrete
    information as to how they arrived at the $50 million figure.
     They do argue that the fuel and urea offered by the BRV give
    the FSLN the opportunity to both benefit politically from
    making these products available below cost and to convert the
    profits into cash for electioneering.  While post has no
    specific information about the $50 million figure, it is
    clear that the BRV is providing direct financial assistance
    to the Sandinista Front.  USG sources have verified that the
    Chavez government is paying for three helicopters and fuel
    for use by the FSLN in election activities.   Also, sources
    assert that several FSLN party officials frequently travel to
    Venezuela and return with large sums of cash.

    ¶5. (C) Recent press reports state that the BRV plans to
    donate 50,000 tons of urea (a powderized fertilizer/animal
    feed obtained by the reaction of liquid ammonia and liquid
    carbon dioxide from petroleum processing) for distribution to
    the rural poor of Chinandega and Corinto by the Sandinista
    Agricultural Services Cooperative (Nicaraocoop).  While some
    claims of Venezuelan support in the past have proven
    nebulous, the urea delivery is proceeding quickly.  In an
    April 12 telephone conversation, Luvy Perez, Director of
    Inspections for the Nicaraguan Customs Agency (DGI) confirmed
    that 11,260 metric tons of urea have already arrived from
    Venezuela and are ready for distribution to
    Sandinista-controlled municipalities.  In a press report, the
    president of Nicaraocoop said that the urea is being provided
    below-cost rather than as a donation, although Sandinista
    officials called it a donation when they announced the
    program with great fanfare.

    ¶6. (SBU) Venezuela has also reportedly donated US $10 million
    for a new literacy program developed by the Government of
    Cuba, to be run by local governments, called "Yo Si Puedo"
    ("Yes I Can").  While now technically open to any city in
    Nicaragua (in order to receive GON permission to operate), it
    was originally only offered to FSLN-controlled local

    governments and only those governments are now participating.
     REFTEL C reported that the GON had planned to deny the
    Sandinista-oriented Augusto C. Sandino Foundation (FACS)
    permission to import equipment needed for the program.
    Recent press reports, however, state that the GON capitulated
    and the materials have entered.  The equipment consists of
    5,000 televisions, 5,000 VCRs and a large amount of training
    materials (including 500,000 workbooks).  The estimated cost
    of the three-year program is US 21.6 million.  The Office of
    the Mayor of Managua has begun airing television commercials
    to hype the program and the Office of the Mayor of Masaya has
    posted "Yo Si Puedo" billboards.

    ¶7. (U) The FSLN and the BRV have received a great deal of
    media attention for the announced deal to sell or loan
    below-market priced oil to Sandinista Municipalities (REFTELs
    B and E).  In fact, versions of the deal have been announced
    multiple times.  Despite the political benefit derived from
    the hoopla, technical issues have prevented the deal's
    implementation.

    ¶8. (C) On the other hand, Venezuela's oil politics in
    Nicaragua may have an even more nefarious purpose.  During
    the recent agitation for an extra confiscatory tax on oil
    companies to subsidize the transport system, the manager of
    the Esso refinery, which operated throughout the years of
    Sandinista government without being confiscated, raised the
    possibility to the Ambassador that behind-the-scenes forces
    might be angling to maneuver his company out of Nicaragua.
    If ExxonMobil were to be placed in a position where all of
    their Nicaraguan profits were taxed away, he explained, they
    might see no alternative to closing down operations here,
    leaving Nicaragua's only petroleum refinery available, no
    doubt at a sale price, to another entrant - quite possibly a
    Venezuelan one.

    ¶9. (U) The BRV has also announced plans to provide surgical
    care in Venezuela for 3,000 people from Nicaragua.  This
    program would be administered by the FSLN-run Office of the
    Mayor of Managua.  In addition to the medical care, the BRV
    will pay for airfare, room and board.  The first 120 patients
    are slated to travel to Venezuela this week.

    ¶10. (C) Novis Rosales, Executive Director of the Liberal
    Patriotic Mayors Association (ASALPAT) informed poloff on
    April 17 that 25 PLC mayors recently received an offer from
    the Venezuelan ambassador to participate in a city exchange
    program with mayors in Venezuela.  The offer includes an all
    expense-paid tour of Venezuela, including a charter flight
    from Managua.  Rosales stated that he reported the plan to
    PLC president Jorge Castillo Quant, who categorically
    rejected the offer as a publicity stunt of Venezuelan
    president Hugo Chavez.  Rosales and Castillo Quant believe
    that Chavez would use the event to deflect charges that the
    Venezuelan government is unfairly favoring FSLN mayors with
    donations during an election year.  Castillo Quant instructed
    Rosales to make sure that PLC mayors avoid any appearance of
    cooperating with the Venezuelan government.

    ¶11. (SBU) Comment: Venezuela is clearly pulling out all the
    stops to assist the FSLN in this critical election year.
    Sandinista opponents and much of the media have pointed out
    the hypocrisy of those who criticize U.S. "interference" and
    yet allow Venezuela play a direct role in assisting a
    specific Nicaraguan political party.  The PLC, however, has a
    special motive to foster USG fears of improper Venezuelan
    influence.  The PLC likely hopes that alarm over BRV
    interference will lead the United States to curb its
    criticism of ex-president and PLC leader Arnoldo Aleman, who
    was convicted for defrauding the GON of US $100 million and
    money laundering.  End Comment.
    TRIVELLI

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