Miami Herald
July 19, 2008
CARACAS
-- Venezuelan government investigators searched the office of
Econoinvest Casa de Bolsa as part of a probe of alleged irregularities
in the brokerage's purchase of government bonds.
Prosecutors
say they're investigating complaints about purchases of $7.5 billion in
bonds sold by state oil company Petroleos de Venezuela and three other
government bond sales.
The attorney general's office said it's also investigating the use of pre-paid credit cards in the banking system.
U.S. official: Cautious hope for improved relations with Venezuela
The
following is the text of Assistant Secretary for Western Hemisphere
Affairs Thomas A. Shannon's July 17 testimony on Venezuela before the
Western Hemisphere subcommittee of the House Foreign Affairs Committee:
Mr.
Chairman, thank you for the opportunity to appear before this Committee
today to address the theme: “Venezuela: Looking Ahead.” My remarks will
look at this theme from three vantage points. First, the historic
context of our relationship with Venezuela. Second, the current state
of our relationship and the challenges it faces. And finally, what we
can look forward to in the remaining months of this Administration.
Our
relationship with Venezuela is longstanding, broad, and deep,
encompassing everything from commerce and culture to education and
sports. Our histories have been intertwined since our wars of
independence. Francisco Miranda, one of Venezuela’s founding fathers,
fought in the Continental Army during our revolution and was a
colleague and friend of George Washington and Thomas Jefferson. In
their turn, Americans fought alongside Miranda and Simon Bolivar during
Venezuela’s struggle for independence. The names of some of these
“American heroes” of Venezuelan independence are inscribed at the “Los
Próceres” monument in Caracas.
Our
economies have also been closely linked. American mining engineers
played an important role in the discovery and development of
Venezuela’s petroleum wealth. American corporations and investors
helped develop Venezuela’s automobile, banking, manufacturing, and
agricultural sectors. Venezuela, for its part, has been one of the
largest Latin American investors in the United States. Venezuela,
through PDVSA and CITGO, owns refineries, asphalt, and petrochemical
plants, and one of the largest gasoline distribution networks in our
country.
Today,
our two countries enjoy a growing economic and commercial relationship.
Bilateral trade between the United States and Venezuela exceeded $50
billion in 2007. The United States exported $10 billion worth of goods
to Venezuela last year, an increase of over 13% from 2006. Venezuela’s
exports to the United States of $40 billion — 95 percent of which is
oil — represent a 7% increase over the previous year. We are
Venezuela’s largest trading partner by a factor of two. Venezuela is
our second largest Latin American trading partner, exceeded only by
Mexico. Venezuela is among our top five foreign oil suppliers, and we
remain Venezuela’s principal customer and energy partner.
We
also enjoy extensive cultural and people-to-people ties with Venezuela.
The youngest director ever to lead the Los Angeles Philharmonic — the
27-year-old Gustavo Dudamel, who assumes the role next year — is
Venezuelan. There are 50 Venezuelans playing on major league baseball
teams, nearly 800 in the minor leagues, and distinguished Venezuelans
in academia, foreign policy circles, and the media. And Americans have
played an important role in helping to build Venezuelan universities,
political consultancies, and polling institutions.
Such
a rich tapestry of human connection would seem to indicate a positive
and friendly bilateral relationship. While this was the case for many
years, it is regrettably no longer true. Our bilateral relationship
today is troubled, characterized by resentment, suspicion, and
misunderstanding.
For
its part, the Government of Venezuela claims we have practiced
interventionism in its political and economic life. It regularly refers
to us as an “Empire,” opposes our initiatives in the Americas, and
seeks out our adversaries as friends and allies. It has broken off
cooperation with us on counter-drug and counter-terrorism activity,
ended long-standing intelligence liaison relationships, shut down
military cooperation and security assistance programs, and nationalized
the holdings of some American corporations.
From
our point of view, the Venezuela Government has added a needless and
complicating ideological overlay to a relationship that was
characterized historically by fluid and productive dialogue. This has
made it difficult to address bilaterally our concerns about the
Government of Venezuela’s behavior. These concerns are well known, and
relate to authoritarian tendencies and human rights violations
domestically; and, internationally, meddling in the affairs of its
neighbors and promoting a diplomacy designed to undermine our
interests. As a result and over time, we have taken specific actions to
make clear our concerns and limit our engagement with Venezuela. These
steps are substantive, and not rhetorical. Specifically, we have: declared
Venezuela to be “not fully cooperating” in the fight against terrorism;
determined that the Government of Venezuela has “failed demonstrably”
in meeting its obligations under international counternarcotics
agreements and U.S. domestic counternarcotics requirements. rescinded
Venezuela’s eligibility to purchase most kinds of U.S. weapons and
weapons systems; closed Venezuela’s Military Acquisition Office in
Florida; arrested unauthorized Venezuelan agents; denied Venezuela
access to Export-Import Bank financing and Overseas Private Investment
Corporation coverage; designated several Venezuelan nationals under
Executive Order 13224 and the Narcotics Kingpin Act for support
provided to Hizballah and for trafficking illicit drugs.
Venezuela’s
response to our actions has been to retreat into a distant, sullen
relationship. Our occasional efforts to explore the possibility of
improved relations focused on areas of clear mutual benefit – such as
energy, commercial, and counter-drug cooperation – were rebuffed. The
Government of Venezuela’s unrelenting anti-American rhetoric and the
absolute control exercised by President Chávez over all aspects of our
relationship have prevented, until recently, even the most tentative
exploration of dialogue.
The
resulting stand-off has caused great discomfort within the region.
Countries with close historic ties to Venezuela and the United States
have had to learn how to navigate around our relationship. Most have
resisted Venezuela’s efforts to enlist them in a larger crusade against
us. With only a few exceptions, the Government of Venezuela’s
anti-American rhetoric has not resonated well. Over time, it has become
tired and ritualistic.
This
does not mean that Venezuela’s aggressive and erratic behavior has not
been a cause of concern in the Hemisphere. However, countries around
the region have seen the political space open to Venezuela shrinking.
There are several reasons for this. To begin with, the re-emergence of
countries that have traditionally been regional leaders has constricted
Venezuela’s diplomatic movements. Second, Venezuelan setbacks in key
international arenas – such as losing its bid for a seat on the United
Nations Security Council – were seen as clear evidence of overreach.
Third, some of Venezuela’s closer allies have found themselves bogged
down in their own internal difficulties and unable to help. Fourth, the
emerging story of Venezuela’s illicit relationship with the FARC and
Colombia’s recent successes has undermined Venezuela’s credibility.
These factors have contributed to a growing international perception
that Venezuela has hit the limits of its international influence.
Venezuela’s
neighbors have watched with interest the obvious political challenges
that President Chávez faces at home today. These include the failure of
the December 2007 constitutional referendum, current difficulties in
consolidating his single political party, and the upcoming November
2008 gubernatorial and mayoral elections. Also, they have noticed the
emergence and initial consolidation of an effective civil society. The
student movement has become an important counterpoint to the government
on the issue of civil and political rights. Parents have twice defeated
government efforts to impose changes in educational curricula. Popular
rejection of a harsh Cuba-style intelligence law forced President
Chavez to send the law back to the National Assembly for
reconsideration. While President Chávez continues to enjoy strong
support among important political constituencies, he faces a more
complicated internal scenario and must contemplate the possibility of
an election in 2012 in which he cannot be a candidate.
In
this environment, Venezuela has, for the first time in many years,
expressed a willingness to explore improved relations with the United
States. President Chávez recently told our Ambassador that he wanted to
improve our counter-drug cooperation, and remembered with fondness when
he could meet with the U.S. Ambassador to discuss bilateral issues.
This comment was repeated through Venezuela’s official news agency.
We
have told Venezuela that we would like to explore this diplomatic
opening. Cooperation in the counter-drug fight would be familiar ground
for both governments, and would be well received in the region. It
would resonate especially well in Hispaniola. The Dominican Republic
and Haiti have been the recipients of most of the clandestine aircraft
departing Venezuela with cocaine headed for the United States and
Europe, and especially West Africa where the drug trade is exploding
and causing instability to the region.. Ambassador Duddy recently sent
Foreign Minister Maduro a letter reiterating our desire to work
together to confront this challenge.
Mr.
Chairman, as we look forward we operate under no illusions. The
rhetoric and reflexive anti-Americanism of the Venezuelan government
has damaged the ability of Venezuela to communicate effectively with us
and many of its neighbors. However, we remain committed to a positive
relationship with the people of Venezuela and have the patience and the
persistence necessary to manage our challenging relationship. In so
doing, we will remain focused on our larger, positive hemispheric
agenda to consolidate democratic institutions and ensure that the
benefits of democracy and open markets reach all citizens.
