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Viewing cable 08CARACAS174, CHAVEZ REPEATS THREATS TO PRIVATE SECTOR IN EFFORT

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Reference ID Created Released Classification Origin
08CARACAS174 2008-02-13 16:39 2011-08-24 01:00 UNCLASSIFIED Embassy Caracas 
VZCZCXYZ0000
RR RUEHWEB

DE RUEHCV #0174 0441639
ZNR UUUUU ZZH
R 131639Z FEB 08
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 0587
INFO RUEHBO/AMEMBASSY BOGOTA 7680
RUEHLP/AMEMBASSY LA PAZ FEB LIMA 0951
RUEHQT/AMEMBASSY QUITO 2765
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY
RUMIAAA/HQ USSOUTHCOM MIAMI FL
 
UNCLAS CARACAS 000174 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PASS TO AGRICULTURE ELECTRONICALLY 
 
E.O. 12958: N/A 
TAGS: EAGR ECON PGOV VE
SUBJECT: CHAVEZ REPEATS THREATS TO PRIVATE SECTOR IN EFFORT 
TO END SHORTAGES 
 
REF: A. .2007 CARACAS 404 
 
     B. CARACAS 86 
     C. CARACAS 102 
     D. CARACAS 141 
     E. CARACAS 152 
 
1. (SBU) Summary: On January 31, the BRV published a decree 
reforming the "Law Against Speculation and Hoarding," a 2007 
decree that criminalized the hoarding and speculation of 
regulated goods, reduced the legal barriers for 
expropriations, and established harsh fines and jail time for 
violators (Reftel A).  The reformed "Anti-Speculation and 
Hoarding Law" closely tracks a previous decree, but increases 
the penalties for violators, adds undefined first-need goods 
to those items covered by the law, criminalizes purchasing 
controlled price goods for lucrative ends, and requires that 
all producers, distributors, and importers submit any 
operational information or documentation requested by the 
BRV.  The re-issuance of this decree intensifies pressure on 
a private sector stifled by price controls, clearly reminding 
them of the BRV's punitive power.  End Summary. 
 
--------------------------------------------- - 
Chavez Tightens his Grip on the Private Sector 
--------------------------------------------- - 
 
2. (SBU) As detailed in ref A, Chavez' February 21, 2007 "Law 
Against Speculation and Hoarding" criminalized the hoarding, 
speculation, fraudulent altering of prices, boycott, and 
exporting of controlled products produced for the domestic 
market.  These crimes were punishable by prison terms ranging 
from 2-6 years and fines from 130-20,000 tax units 
(approximately USD 2,800 to USD 428,000.)  It also defined 
all stages of the production cycle for regulated foods as 
within the ambit of "public utility and the social interest," 
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