VZCZCXRO9409
RR RUEHAG RUEHCD RUEHDF RUEHGD RUEHHO RUEHIK RUEHLZ RUEHMC RUEHNG
RUEHROV RUEHTM
DE RUEHCV #0336/01 0462203
ZNR UUUUU ZZH
R 152203Z FEB 07
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 7852
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHZI/WHA IM POSTS COLLECTIVE
RHEBAAA/DEPT OF ENERGY
RUCPDOC/DEPT OF COMMERCE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 CARACAS 000336 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR KLINGENSMITH AND NGRANT 
COMMERCE FOR 4431/MAC/WH/MCAMERON 
NSC FOR DTOMLINSON 
ENERGY FOR CDAY, DPUMPHERY, AND ALOCKWOOD 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ENRG VE
SUBJECT: CHAVEZ: DEATH TO THE U.S. "EMPIRE" 
 
¶1.  (SBU) Summary:  President Chavez lashed out (again) at 
the United States on February 14 and threatened to 
nationalize supermarkets not abiding by government price 
controls.  Responding to Under Secretary Burns' comments last 
week on U.S. foreign oil dependence, Chavez downplayed the 
importance of the United States as a consumer of Venezuelan 
oil and said that if the United States did not want to buy 
his oil, he would sell it elsewhere.  He commented that he 
"missed" Secretary Rice, and that President Bush's upcoming 
visit to Latin America in March would unleash anti-American 
protests, proclaiming "death to the empire and death to its 
leaders!"  He also announced proposed legislation that would 
criminalize hoarding and price speculation.  End Summary. 
 
--------------------------------------------- ------------ 
Chavez: If They Don't Want Oil, We Will Sell it Elsewhere 
--------------------------------------------- ------------ 
 
¶2.  (SBU) President Chavez used the occasion of a meeting 
with pensioners at a military base on February 14 to deliver 
his first nationally televised speech in 10 days.  Chavez 
responded to Under Secretary Burns' reported statements on 
February 7 during a press conference in Sao Paolo, Brazil, 
that energy had distorted the power of some states we find to 
play a negative role in the world -- Venezuela and Iran -- 
and that the less the United States depends on oil from such 
states, the better.  Chavez lashed out in typical fashion, 
denying Venezuela's dependence on U.S. oil consumption.  "So 
the United States little by little wants to make itself 
independent from oil coming from places like Venezuela. 
That's their problem.  If they don't want to buy oil, tell us 
and we won't sell it to them," said Chavez.  He continued 
that Venezuela had enough other clients to purchase its oil 
and that Venezuela doesn't depend on the "American empire" 
for anything. 
 
--------------------------------- 
Chavez Responds to the Secretary 
--------------------------------- 
 
¶3.  (SBU) Chavez responded publicly for the first time to 
Secretary Rice's comments about Venezuela during her 
 
SIPDIS 
congressional testimony of February 7.  Chavez noted with 
irony that he "missed" the Secretary and that it had been 
several days since she had paid him any attention.  As he 
occasionally does for dramatic effect, Chavez switched into 
his heavily-accented English to ask "how are you 
Condoleezza?" before continuing in Spanish, "Condoleezza said 
that I was destroying the economy of the country, this 
indicates that there is an economic plan against Venezuela." 
He continued that the U.S. "economic plan" against Venezuela 
did not rule out political, military or paramilitary plans. 
"The empire never rests, especially a desperate empire such 
as this," asserted Chavez. 
 
------------------------------------- 
 Death to the Empire and its Leaders! 
------------------------------------- 
 
¶4.  (SBU) Chavez qualified President Bush's upcoming visit to 
Latin America March 8-14 as an "offensive."  He opined that 
the purpose of the President's Latin American trip was to 
isolate Venezuela.  He qualified the visit as a positive 
development, because "it would give more force to the 
anti-imperialist battle."  Chavez commented that Bush's visit 
would be greeted with protests and concluded with an emphatic 
"Death to the Empire!  Death to the leaders of the empire!" 
 
-------------------------------------------- 
Chavez Threatens to Nationalize Supermarkets 
-------------------------------------------- 
 
¶5.  (SBU) On the domestic front, Chavez threatened to 
nationalize supermarkets and other food providers that did 
not abide by government-controlled pricing.  Over recent 
weeks, food shortages have developed and prices for basic 
foodstuffs have climbed above government-regulated prices. 
"A store sells meat above regulated prices, so we will 
intervene and give them to community councils to manage," 
said Chavez.  He dared the private sector to "give me the 
first excuse to nationalize the first meat store, 
supermarket, or food distributor."  Chavez warned he could 
sign the nationalizations into decree in a matter of hours. 
 
CARACAS 00000336  002 OF 002 
 
 
He added that he had been patient thus far, and that the 
message had been delivered to producers, intermediaries and 
the stores that the BRV would nationalize any company that 
violated the rights of the people, the Constitution and the 
law.  "So prepare yourselves," concluded Chavez.  He also 
announced that a proposed decree-law against hoarding was 
published in the Official Gazette on February 14.  The 
decree-law would provide that producers and establishments 
that speculate or hoard products would face criminal 
penalties. 
 
------- 
Comment 
------- 
 
¶6.  (SBU) Chavez' latest tirades in response to comments made 
by the Secretary and Under Secretary for Political Affairs 
again show that he is increasingly thin-skinned to any hint 
of criticism, and underscores his predilection for engaging 
in personal insults and exchanges.  Chavez may also be 
increasingly insecure and paranoid.  Internationally, he is 
obviously peeved and concerned by the President's upcoming 
Latin America trip, especially the visits to Brazil and 
Uruguay, where he believes he has important influence. 
Domestically, he faces mounting criticism with respect to 
food shortages and ineffective price controls.  Chavez' 
nationalizations have targeted strategic sectors -- 
electricity, telecommunications, and oil.  A contact who 
manages a major supermarket chain told EconOff on February 15 
that if Chavez feels that food security in Venezuela is 
threatened, major supermarkets and food distributors may find 
themselves swept into the nationalization campaign.  End 
Comment. 
 
 
BROWNFIELD