This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 000472 
 
SIPDIS 
 
E.O. 12958: DECL: 02/10/2016 
TAGS: PREL ECON ETRD EAID VE BL CU POGV EUN USEU BRUSSELS
SUBJECT: MESSAGE ON LATIN AMERICA RESONATES WITH EU 
 
REF: A. A) USEU TODAY 02/02/06 
 
     ¶B. B) BRUSSELS 208 
     ¶C. C) 05 BRUSSELS 4172 
     ¶D. D) 05 BRUSSELS 4149 
     ¶E. E) 05 BRUSSELS 3886 
 
Classified By: USEU POLOFF TODD HUIZINGA, FOR REASONS 1.4 (B) AND (D) 
 
 ¶1. (C) SUMMARY: During his recent visit to Brussels, WHA A/S 
Shannon's message that the U.S. was seeking partners in 
promoting the Summit of the Americas agenda for the 
hemisphere resonated strongly with EU officials, including EU 
HighRep Javier Solana.  On Venezuela, the EU said it would 
continue to use its dwindling channels of communication to 
try to moderate Chavez.  On Bolivia, the EU agreed that the 
EC-funded study on legal uses of coca leaf might establish a 
ceiling for legal production over which Morales might be 
persuaded to commit to support eradication and interdiction. 
Solana said he expected the EU-Latin America summit in Vienna 
in May to be inconclusive, but stressed the importance of 
tackling the problems of the region strategically, and 
indicated interest in discussing Latin America when he next 
comes to Washington.  Shannon also received a private 
briefing on an emerging draft EU policy paper on Cuba 
transition that mirrors our approach in significant ways. 
Our stepped-up engagement with the EU on Latin America is 
bearing fruit, and we should continue to consult closely with 
the EU on promoting democracy and development in the region. 
END SUMMARY. 
 
--------------------------------------------- - 
THE MESSAGE: LINKING DEMOCRACY AND DEVELOPMENT 
--------------------------------------------- - 
 
¶2. (SBU) WHA Assistant Secretary Tom Shannon found 
significant common ground with the EU on Latin America in 
discussions with the Council Secretariat (EU HighRep Solana, 
Policy Unit Head Helga Schmid, Director for Transatlantic 
Relations Jim Cloos, and Latin America Policy Adviser Nicolas 
Pascual de la Parte), European Commission (Latin American 
Affairs Director Tomas Dupla del Moral, Deputy 
Director-General for Trade Karl Falkenberg and Development 
Director for the Caribbean Sipke Brouwer), European 
Parliament (Jose Ignacio Salafranca, center-right Foreign 
Affairs Coordinator, Arunas Degutis, Head of the EP ad-hoc 
Election Observation Mission to Venezuela, and others), and 
Political and Security Committee Ambassadors.  Shannon 
highlighted the importance of the Summit of the Americas 
agenda for the hemisphere, with its stress on strengthening 
democratic institutions, promoting economic development and 
fighting poverty and drugs.  It is up to the countries 
themselves to deliver on these goals, but many countries in 
the hemisphere, especially in the Andean region, need help in 
building democratic institutions and strengthening civil 
society while overcoming the political, economic and social 
exclusion of large segments of their populations.  In order 
to move forward, the hemisphere must also overcome its 
parochialism, and consciously take part in a competitive 
global environment.  While populism is not necessarily 
unhealthy, its resurgence in the hemisphere is a sign that 
democracy must be linked with development.  The U.S. alone 
cannot provide the help these societies need to face these 
challenges -- so we are seeking partners, both in and outside 
of the region. 
 
--------------------------------- 
EU RESPONSE: OUR AGENDAS COINCIDE 
--------------------------------- 
 
¶3. (C) Javier Solana, EU High Representative for Common 
Foreign and Security Policy, responded to Shannon's message 
with ideas that were echoed by Shannon's other interlocutors. 
 Solana said EU interests and objectives in the hemisphere 
coincided with those of the U.S., and, although Latin America 
and the Caribbean were not as high on the EU agenda as the 
Middle East and Eastern Europe, Solana would be interested in 
discussing the region the next time he is in Washington.  He 
strongly agreed with the approach of tackling the problems of 
the region strategically, saying that is what he hoped the EU 
would begin to do more effectively in its regular EU-Latin 
America summits (while adding that he expected the May summit 
in Vienna to be inconclusive).  Key to a more effective 
approach would be more consultations with the U.S.  Other 
interlocutors, while agreeing with Solana, stressed also that 
the EU's influence in the region was strengthened in 
proportion to its perceived autonomy from the U.S. -- thus, 
the U.S. and EU should consult in order to make their 
policies more complementary and effective, but at the same 
time move forward as separate actors in the region. 
 
----------------------------------------- 
SHARED CONCERNS ON DEMOCRACY IN VENEZUELA 
----------------------------------------- 
 
¶4. (C) On Venezuela, Shannon said the phenomenon of Hugo 
Chavez represents an attempt to promote an alternative agenda 
for Latin America, based on strong-man authoritarianism, a 
nationalistic economic model and anti-Americanism, that will 
prove destructive to the region.  Chavez has made a strategic 
decision to make anti-Americanism his core message.  He is 
systematically cutting ties to the U.S. and trying to provoke 
a fight that the U.S. intends to avoid.  In this context, 
Venezuela is using its arms acquisitions to fuel the 
political confrontation with the U.S., and it is a seriously 
wrong signal for other countries to sell sophisticated 
weaponry to the GOV. Ultimately, the core U.S. concern about 
Venezuela is the deterioration of democratic institutions and 
of the ability of Venezuelans to exercise their democratic 
rights. 
 
¶5. (C) EU interlocutors said the EU was concerned also by the 
degradation of democracy in Venezuela, Chavez's anti-American 
rhetoric and the polarization in Venezuelan society.  The 
EU's leverage is limited, but it can play a role.  Chavez is 
still talking to the EU and does not want the EU to turn 
publicly against the GOV -- the EU will keep its channels of 
communication open to push against the weakening of 
democratic institutions and support civil society.  Despite 
Chavez's very aggressive reaction to the criticisms in the 
preliminary report of the EU Election Observation Mission of 
December, the EU will stick to its guns and issue a tough 
final report in February.  It will also try to convince the 
GOV to make the changes needed in order to hold legitimate 
presidential elections this December. 
 
------------------------------ 
BOLIVIA: KEEPING THE DOOR OPEN 
------------------------------ 
 
¶6. (C) Shannon noted that, during his meeting with Bolivian 
President Evo Morales at his January inauguration, Morales 
stressed the necessity of relations with the U.S. and wanted 
to keep the door open.  At the same time, Morales will have 
to deal with a very demanding constituency that includes 
radical elements.  It is important that Morales hear other 
voices, and the European message to him during his trip to 
the continent in January, on democracy, relations with the 
U.S., protecting foreign investment and fighting drugs, was 
encouraging.  On counternarcotics efforts in Boliva, the U.S. 
will do what it can, but others, such as the OAS and Brazil, 
will have to step up to fill the gaps.  The drug issue is the 
main factor that makes dealing with Morales complicated.  It 
would be very helpful if the EC-funded study on legal uses of 
coca leaf established a ceiling for legal production over 
which Morales might be persuaded to commit to support 
eradication and interdiction. 
 
¶7. (C) The EU said it remains in wait-and-see mode on 
Morales.  The hope is that he will make the transformation 
from head of a political and social movement to head of a 
government.  Morales has a gift for telling people what they 
want to hear, and some of those he has appointed to key posts 
are cause for worry despite some of Morales' recent 
conciliatory rhetoric.  The EU agreed that the coca leaf 
study could be key to finding a modus vivendi between Bolivia 
and the international community on drug policy.  European 
Commission officials plan to visit Bolivia in February to 
check on progress of the study, which the EC expects will be 
completed by October.  The study might be enlarged to examine 
the question of industrial uses of coca leaf.  The EC is 
concerned that the GOB might want to remove coca leaf from UN 
Schedule No. 1, which the EU would not accept. 
 
-------------------------------- 
NEW, PRO-TRANSITION CUBA POLICY? 
-------------------------------- 
 
¶8. (C/NOFORN) Stressing the extreme sensitivity of the issue, 
and of talking about it with the U.S., a Council official 
(STRICTLY PROTECT AND NOFORN) met separately with Shannon to 
discuss an EU policy paper he is drafting confidentially on 
the "EU Medium-Term Strategy Towards Democracy in Cuba."  The 
paper, which Pascual predicted would be approved by June with 
no more than minor changes (he has already consulted with key 
member states such as Spain and Poland, although not yet with 
the Czechs), advocates significant changes in EU Cuba policy, 
and much closer consultation with the U.S. 
 
¶9. (C/NOFORN) Key assertions and proposals in the paper are: 
 
-- the EU policy of constructive engagement has failed 
because it is based on wishful thinking (a transition from 
within the Castro regime), and does not envisage a 
post-Castro scenario. 
 
-- The EU must define an operational medium-term policy 
encouraging a transition to pluralist democracy post-Castro, 
taking into account all plausible post-Castro scenarios, but 
elaborating a strategy especially to promote a gradual and 
peaceful transition. 
 
-- U.S.-EU divisions over Cuba have served the interests of 
the Cuban regime; therefore the U.S. and EU should enhance 
their dialogue on Cuba and seek synergies on demanding 
release of political prisoners, supporting and financing 
civil society, monitoring and denouncing human rights 
violations, and so on.  (NOTE: Many of the concrete EU 
measures proposed in the paper are exactly those the U.S. has 
been urging the EU to take: providing the opposition access 
to information, publications, internet facilities; meeting 
with civil society throughout the island in their homes, and 
endorsing and financing independent cultural initiatives such 
as independent libraries. END NOTE.) 
 
-- The EU approach should aim to reinforce the impact of 
complementary U.S. and EU efforts; the EU policy should be 
outwardly autonomous from that of the U.S., in order to 
increase the effectiveness of both approaches. 
 
-------------------------------------- 
EU FRUSTRATIONS ON ECONOMICS AND TRADE 
-------------------------------------- 
 
¶10. (C) Shannon stressed the key role that FTAs and economic 
integration efforts in the hemisphere play in improving 
economic competitiveness, spurring economic growth and 
reducing poverty.  He said the efforts of other trading 
partners were important in overcoming the hemisphere's 
parochialism and encouraging Latin America to see itself as a 
player in a competitive global environment.  EU 
interlocutors' assessment of the progress of the EU's trade 
and economic agenda with Latin America was subdued.  With 
Mercosur and the Andean Community making insufficient 
progress on regional economic integration, forward movement 
on long-planned but long-stalled Association Agreements and 
FTAs with these blocs would likely not take place in the 
foreseeable future.  This is especially so with the 
uncertainty created by Venezuela's stated intention to join 
Mercosur.  The EU, which provided 442 million euros in 
development assistance to Latin America in 2005, sees 
regional integration as key to Latin America's economic and 
political development, and is disturbed both by lack of real 
progress on that front and Chavez's efforts to redirect 
regional integration to advance his vision for the 
hemisphere. 
 
---------------------------------- 
COMMENT: MESSAGE RESONATES WITH EU 
---------------------------------- 
 
¶11. (C) The message of strengthening democratic institutions, 
and of the necessity of linking that with development and 
poverty reduction, resonated strongly with the EU.  This 
visit, following on the heels of several other WHA visits in 
recent months (reftels), has helped clarify our interests and 
objectives in the hemisphere and spurred the EU to explore 
how better to complement our efforts there.  This includes 
not only the broad objectives of democracy promotion and 
economic development, but also the questions of how to deal 
with resurgent populism, the new Bolivian government, and the 
Chavez phenomenon in Venezuela.  On all of these issues, the 
EU is listening receptively, while carefully maintaining its 
independence from the U.S. in the region.  We believe the 
draft paper on Cuba will have a tougher time getting final 
approval than its author predicts (see paras 8-9). 
Nevertheless, the paper shows that even on that issue, 
considerable progress has been made in increasing 
understanding for the U.S. approach.  END COMMENT. 
 
¶12. (U) This message was not cleared by WHA A/S Shannon 
before his departure. 
 
MCKINLEY 
.