VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0725/01 0790044
ZNR UUUUU ZZH
R 200044Z MAR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9521
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS MANAGUA 000725 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, EEB/TPP, EEB/ESC, OES 
 
E.O. 12958: N/A 
TAGS: PREL EAID EAGR ENRG EPET EIND TBIO OSCI ECIN
NU, VE 
SUBJECT: NICARAGUA - VENEZUELA FRAMEWORK AGREEMENT 
 
REF: A. MANAGUA 0646 
     ¶B. MANAGUA 0644 
     ¶C. MANAGUA 0643 
     ¶D. MANAGUA 0642 
     ¶E. MANAGUA 0641 
     ¶F. MANAGUA 0645 
     ¶G. MANAGUA 0640 
     ¶H. MANAGUA 0639 
     ¶I. MANAGUA 0637 
     ¶J. MANAGUA 0638 
 
¶1. (SBU) Summary.  As part of a series of Bolivarian 
Alternative agreements between Nicaraguan and Venezuela 
concluded on January 11, 2007, Nicaraguan and Venezuelan 
Ministers of Foreign Relations signed a Framework Agreement, 
setting forth general areas for cooperation.  The agreement 
created a high level joint commission, housed in the foreign 
ministries of each country, to coordinate bilateral 
cooperation and economic relations.  End Summary. 
 
¶2. (SBU) The Framework Agreement was one of a series of 
thirteen commitments with Venezuela negotiated by the Ortega 
government before it came to power on January 10, 2007. 
Nicaraguan Minister of Foreign Relations Samuel Santos and 
Venezuelan Minister of Foreign Relations Nicolas Maduro Moros 
signed the agreement on January 11, 2007.  The substance of 
the agreement, along with the other commitments made that 
day, was kept from the public for weeks.  This cable reports 
on an unsigned copy of the agreement.  Refs A-E report on 
agricultural agreements and commitments signed on January 11. 
 Refs F-H report on energy related agreements and commitments 
signed on January 11.  Ref I reports on the health 
cooperation agreement, and Ref J reports on a letter of 
intent to establish aluminum products factories, also signed 
on January 11. 
 
Preambular Language 
------------------- 

¶3. (SBU) Preambular language includes reference to Nicaragua 
and Venezuela's sustained history of friendship, common 
roots, and mutual respect between peoples.  In the search for 
a fairer and more socially equitable new economic order, both 
governments state their desire to create industrial 
production schemes and commercial exchange based on the 
principles of solidarity, cooperation, complementarity, 
reciprocity, and sustainability.  Both governments reaffirm 
their decision to move forward along the path of integrated 
economic development to transform inherited structural 
problems, such as poverty, illiteracy, unemployment, and 
"social exclusion."  They recognize that to achieve 
integrated development, it is vital for both countries to 
promote the organization and direct participation of their 
people, elevating the level of educational and productive 
training to progressively achieve sustainable social, 
cultural, and economic well-being. 
 
Article 1: Bilateral Cooperation 
-------------------------------- 

¶4. (SBU) Both governments pledge to promote and intensify 
cooperation between the two countries. 
 
Article 2: Areas for Cooperation 
-------------------------------- 

¶5. (SBU) Cooperation is envisioned in the following 
developmental areas: 
 
  -- health; 
  -- education; 
  -- culture; 
  -- energy; 
  -- sovereign food security; 
  -- industry; 
  -- commercial exchange; 
  -- rural development; 
  -- promotion of public and private investment; 
  -- agriculture and ranching; 
  -- infrastructure; 
  -- petrochemicals; 
  -- information and communications technology; 
  -- tourism; 
  -- science and technology; 
  -- environment; as well as 
  -- other areas to which the parties may agree. 
 
Article 3: Activities 
--------------------- 

¶6. (SBU) The parties will stimulate cooperative activities, 
some of which may take the following forms: 
 
  -- information exchange; 
  -- visitor exchange; 
  -- promotion and participation in events, 
     fairs, conferences, and seminars; 
  -- promotion, expansion, and diversification 
     of trade; 
  -- exchange of information on the protection 
     and sustainable use of natural resources; 
  -- creation of partnerships and establishment 
     of commercial representatives and branches; 
  -- negotiate agreements for shared production 
     to maximize production capacity, minimize 
     costs, and raise the level of international 
     competitiveness; 
  -- construction, modernization, rehabilitation, 
     expansion, and automation of factories and 
     existing industries; 
  -- marketing, consulting, and other services; 
  -- feasibility studies; 
  -- exchange of information and experience about 
     professional training; as well as 
  -- other activities upon which the parties may 
     mutually agree. 
 
Article 4: Complementary Agreements 
----------------------------------- 

¶7. (SBU) To achieve cooperation envisioned in this agreement, 
the parties may adopt complementary agreements, which should 
address the following: 
 
  -- objectives to be realized; 
  -- a work calendar; 
  -- obligations of each of the parties: 
  -- financing; and, 
  -- participating institutions responsible for 
     implementation. 
 
Article 5: The Fight Against Hunger and Poverty 
--------------------------------------------- -- 

¶8. (SBU) Both parties will develop initiatives in the fight 
against poverty and hunger through concrete measures, as may 
be established in complementary agreements. 
 
Article 6: Financing Mechanisms 
------------------------------- 

¶9. (SBU) The parties will define ad hoc mechanisms of finance 
to execute activities, programs, and projects along the lines 
outlined in this framework of cooperation, taking into 
account the following considerations: 
 
-- concessional financing when it may benefit 
   Nicaragua; 
-- creation of special non public funds through 
   which financing and donor funds may be 
   channeled under laws pertaining to the 
   private sector; and, 
-- creation of specific mechanisms to verify the 
   use of funds. 
 
Article 7: High Level Joint Commission 
-------------------------------------- 

¶10. (SBU) To achieve the objectives of this agreement, the 
parties agree to create a High Level Joint Commission under 
the coordination of the Foreign Ministers, with relevant 
officials from both parties meeting annually, alternatively 
in Caracas and Managua.  Commission tasks will be to: 
 
--  review the development and the state of 
    bilateral economic relations; 
--  consider proposals for future cooperation; 
--  elaborate proposals to improve economic 
    cooperation, trade, environmental, 
    industrial, and technological between public 
    and private institutions, present 
    recommendations; and, 
--  present recommendations on the application of 
    this agreement. 
 
Article 8-11: Implementation, Disputes, Revisions 
--------------------------------------------- ---- 

¶11. (SBU) The parties will provide privileges and facilities 
necessary to implement this agreement, in accordance with 
internal legislation of each country.  Disputes will be 
reconciled through diplomatic negotiation between the 
parties.  Either party may request in writing the revision, 
amendment, or modification of the agreement through 
diplomatic communication.  Any revision shall be in writing 
and constitute a part of this agreement.  Such changes will 
enter into force through means set forth in Article 12.  Any 
revision will not prejudice rights and obligations based on 
this agreement before the date of revision.  Upon having 
entered into force, this agreement shall not affect the 
Friendship and Cooperation Agreement between Nicaragua and 
Venezuela signed on June 29, 1990 in Caracas. 
 
Article 12: Entry Into Force, Duration 
-------------------------------------- 

¶12. (SBU) This agreement enters into effect once both parties 
notify the other that fulfillment of internal formalities and 
legal requirements have been met.  The agreement will remain 
in force for 5 years and is automatically renewable for 1 
year, unless one of the parties notifies the other 6 months 
before expiration of its intention not to renew.  At any 
time, either party may withdraw from the agreement upon 
60-day notice.  Termination will not affect ongoing programs 
and projects initiated under this agreement, unless the 
parties so agree. 
TRIVELLI