VZCZCXYZ0013
RR RUEHWEB

DE RUEHMU #0638/01 0682303
ZNR UUUUU ZZH
R 092303Z MAR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9407
INFO RUEHCV/AMEMBASSY CARACAS 0998
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 000638 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC 
 
E.O. 12958: N/A 
TAGS: EIND ENRG EAID NU VE
SUBJECT: NICARAGUA - VENEZUELA LETTER OF INTENT ON THE 
ESTABLISHMENT OF ALUMINUM PRODUCTS FACTORIES IN NICARAGUA 
 
¶1. (SBU) Summary.  As part of a series of Bolivarian 
Alternative agreements signed on January 11, 2007, the 
Nicaraguan Minister of Foreign Relations Samuel Santos and 
Venezuelan Minister of Foreign Relations Nicolas Maduro Moros 
signed a Letter of Intent to commission a feasibility study 
on placing two aluminum transformation factories in 
Nicaragua.  One factory would manufacture semi-rigid 
containers and trays and the other would manufacture kitchen 
utensils and kettles.  End Summary. 
 
¶2. (SBU) This Letter of Intent between the Government of 
Nicaragua and the Government of Venezuela was one of a series 
of thirteen commitments with Venezuela negotiated by the 
Ortega government before it came to power on January 10, 
¶2007.  The Nicaraguan Minister of Foreign Relations Samuel 
Santos and Venezuelan Minister of Foreign Relations Nicolas 
Maduro Moros signed the letter on January 11, 2007.  The 
substance of this letter along with the other commitments was 
kept from the public for weeks, although the Embassy managed 
to obtain an unsigned copy.  This cable reports on the 
substance of this particular Letter of Intent. 
 
Preambular Language 
------------------- 
¶3. (SBU) Preambular language takes into account the 
friendship and understanding between the two governments, and 
the promises and challenges in strengthening social and 
economic integration.  Also mentioned is the desire of both 
governments to promote and provide stimulus for public and 
private foreign investment, with the object of forming 
strategic alliances or associations on projects of common 
interest -- as long as technology transfer, education of 
personnel, technical assistance, and maximum domestic content 
is guaranteed. 
 
¶4. (SBU) The letter also recognizes and defines a number of 
principles that guide the two governments, including: 
 
-- solidarity, understood as commitment to mutually support 
and unite forces to achieve sustainable development and 
attend to emerging needs, possibilities, and agreed shared 
responsibilities; 
 
-- cooperation, seen as the will of the parties to advance 
relations within the development of joint projects and 
strategic alliances of mutual benefit; 
 
-- complementarity, understood as the promise to identify and 
develop common projects that allow for integration and/or 
synergies according to the abilities and interests of the 
parties; 
 
-- reciprocity, viewed as the obligation to establish 
relations based on fair exchange and sharing, taking into 
account differences between parties and principles of equity 
and good faith. 
 
-- sustainability, understood as the promise to identify and 
develop projects and programs of cooperation, oriented toward 
achieving sustainable development, from the economic, social, 
and environmental points view. 
 
Objective 
--------- 
¶5. (SBU) The objective of this Letter of Intent is the 
realization of a technical, economic, and financial study to 
determine the feasibility of installing two aluminum 
transformation factories in Nicaragua.  One factory would 
manufacture semi-rigid containers and trays and the other 
would manufacture kitchen utensils and kettles. 
 
Implementation 
-------------- 
¶6. (SBU) The Governments of Nicaragua and Venezuela will 
jointly form a Technical Commission within 30 days of the 
signing of this Letter of Intent.  The Commission will begin 
work immediately on an action plan by first creating a work 
plan.  The parties agree that all costs generated by the 
execution of this Letter of Intent will be assumed by 
Government of Venezuela.  This letter does not obligate the 
parties to any more than what is strictly stated.  That is, 
the Letter of Intent does not generate preferential rights, 
exclusive or excluding, nor does it promise the execution of 
joint projects, nor the constitution of alliances with other 
countries or enterprises.  As a consequence, the Letter of 
Intent will not affect prior commitments by the parties, in 
agreements with third parties. 
 
Responsible Authorities 
----------------------- 
¶7. (SBU) The Government Nicaragua designates the National 
Corporation for the Public Sector (CORNAP) and the Government 
of Venezuela designates the Ministry of Basic Industry and 
Mines and its associated enterprise, CVG ALUNASA, located in 
Costa Rica, as the executing authorities for this Letter of 
Intent. 
 
Duration, Disputes, Modifications 
--------------------------------- 
¶8. (SBU) This Letter of Intent will be in effect for 90 days 
from the date of signature, and may be extended by mutual 
agreement.  Either party may terminate this letter by written 
diplomatic note thirty days before the expiry of the letter. 
Disputes about the interpretation or implementation of this 
letter will be resolved through the amicable and direct 
consultations between the parties.  This letter may be 
modified through common agreement by the parties. 
TRIVELLI