VZCZCXYZ0007
RR RUEHWEB

DE RUEHMU #0644 0682325
ZNR UUUUU ZZH
R 092325Z MAR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9417
INFO RUEHCV/AMEMBASSY CARACAS 1008
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS MANAGUA 000644 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, EEB/TPP/ABT 
 
E.O. 12958: N/A 
TAGS: EAGR EAID NU VE
SUBJECT: NICARGUA - VENEZUELA CONTRACT FOR THE SALE OF RED 
BEANS 
 
¶1. (SBU) Summary.  As part of a series of Bolivarian 
Alternative agreements between Nicaraguan and Venezuela 
signed on January 11, 2007, the Presidents of Cooperative 
Enterprise for Agricultural Services (NICARAOCOOP) and the 
President of the Venezuelan Corporation for Agricultural 
Services and Supply (LA CASA) signed a contract for the sale 
of 1.250 MT of red beans.  This cable reports on the 
substance of this contract.  End Summary. 
 
¶2. (SBU) The sales contract between La Empresa Cooperativa de 
Servicios Agropecuarios NICARAO, R.L.,(NICARAOCOOP) and the 
Corporacion de Abastecimiento y Servicios Agricolas, SA (LA 
CASA) for the sale of 1.250 MT of red beans to Venezuela was 
one of a series of commitments negotiated by the Ortega 
government before it came to power on January 10, 2007. 
NICARAOCOOPPresident Moises Lopez and LA CASA President Erika 
Del Valle Farias Pena signed the contract on January 11, 
¶2007.  The substance of this contract and other ALBA 
agreements was kept from the public for weeks, although the 
Embassy managed to obtain an unsigned draft.  This cable 
reports on the substance of this draft contract. 
 
The Draft Contract 
------------------ 
¶3. (SBU) The contract consists of thirty-three clauses 
addressing Nicaraocoop's sale of 1.250 MT of red beans to La 
CASA at agreed upon terms, including price, quality, 
inspection requirements, delivery, freight charges, and other 
contract clauses.  The stated price in the draft contract is 
$760 per metric ton, but this conflicts with the price placed 
in parenthesis, i.e., $1081 per metric ton.  The latter 
almost corresponds to the total amount written into the draft 
contract, i.e., $1,350,375, which the draft contract states 
is equivalent to BS2,903,306,250 (Note: this figure conflicts 
with the figure placed in parentheses (BS 2,786,400,000)). 
No annexes mentioned in the draft contract were attached. 
The contract expires 6 months from the date of signature. 
TRIVELLI