ID:250307
Date:2010-02-23 18:15:00
Origin:10CARACAS219

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OO RUEHAG RUEHAO RUEHROV RUEHRS RUEHSL
DE RUEHCV #0219/01 0541816
ZNY SSSSS ZZH
O 231815Z FEB 10
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0504
INFO EU MEMBER STATES COLLECTIVE IMMEDIATE
WESTERN HEMISPHERIC AFFAIRS DIPL POSTS IMMEDIATE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC IMMEDIATE
RHMFISS/HQ USSOUTHCOM MIAMI FL IMMEDIATE
S E C R E T SECTION 01 OF 03 CARACAS 000219 
 
SENSITIVE 
SIPDIS 
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI 
AMEMBASSY BERLIN PASS TO AMCONSUL DUSSELDORF 
AMEMBASSY BERLIN PASS TO AMCONSUL LEIPZIG 
AMEMBASSY BRASILIA PASS TO AMCONSUL RECIFE 
AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC 
AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA 
 
E.O. 12958: DECL: 2035/02/23 
TAGS: PGOV, PREL, VE, PHUM, KDEM 
SUBJECT: Globovision Owners Acknowledge Defeat; El Nacional On the 
Ropes? 
 
REF: 10 CARACAS 181; 09 CARACAS 663 
 
CLASSIFIED BY: DUDDY, AMBASSADOR, DOS, AMB; REASON: 1.4(B), (D) 
 
1. (S) Summary: In separate meetings with the Ambassador
between February 17-19, several of Venezuela's major private
media XXXXX acknowledged that relentless Venezuelan Government
(GBRV) pressure against their television and print outlets has
threatened to put them out of business. XXXXX, confirmed the
allegations of Globovision's outgoing director, XXXXX, that
threats from senior GBRV officials had forced them to fire
XXXXX and to tone down Globovision's strongly anti-Chavez
orientation. In a separate conversation, XXXXX asserted that
due to the paper's substantial loss of advertising revenue
from companies that had either been nationalized or been
threatened by the GBRV, the paper would go out of business by
April without substantial financial assistance. XXXXX asked
the Ambassador whether the U.S. could provide such assistance.
End Summary.
 
---------------------------------------------------------------------------
XXXXX Resigns; Alleges GBRV Pressure on Globovision Owners
---------------------------------------------------------------------------

2. (SBU) Following more than a week of widespread speculation
regarding the potential sale of opposition-oriented television
network Globovision (Ref A), station director Alberto XXXXX
announced his resignation during a February 18 press
conference. XXXXX, who is also a minor shareholder in the
station, alleged to reporters that Energy Minister Ali
Rodriguez and Venezuela's Central Bank President Nelson
Merentes had pressured the station's principal shareholders,
Globovision President XXXXX and Banco Federal President Nelson
XXXXX, to sack XXXXX, to get rid of controversial anti-Chavez
talk show host Leopoldo Castillo, and to soften the station's
strongly anti-Chavez orientation. In resigning, XXXXX
affirmed: "For now my objectives have been met. The channel
has not been sold, Leopoldo Castillo is still on the air, and
Globovision will not change its editorial line." He added, "I
have absolute faith in Globovision and XXXXX that they will
not modify their editorial stance."
 
3. (C) In a private meeting on February 17, XXXXX told the
Ambassador that GBRV pressure on XXXXX involved trumped up
legal charges stemming from a May 21, 2009, raid on XXXXX's
Caracas residence. The raid had resulted in the confiscation
of 24 new vehicles and hunting trophies (Ref B), criminal
charges against XXXXX and his son, and an order preventing
XXXXX's departure from the country. (Note: XXXXX has
consistently claimed the automobiles belonged to his car
dealership and were at his home for security reasons, and that
the hunting trophies had been legally acquired abroad. End
Note.) According to XXXXX, the February 12 lifting of XXXXX's
overseas travel ban by the GBRV was a bargaining chip used
against XXXXX to force his acquiescence. XXXXX opined that the
pressure point applied by the government against XXXXX was
ultimately his son: "XXXXX would do anything to keep him
safe."
 
4. (C) XXXXX affirmed to the Ambassador that Nelson XXXXX had
been under similarly intense GBRV pressure to engineer a
change in Globovision's management and editorial line. XXXXX
claimed that XXXXX had been threatened by Energy Minister (and
previously Finance Minister) Rodriguez that if XXXXX did not
comply with GBRV demands, "we will go after your bank."
 
CARACAS 00000219 002 OF 003
 
--------------------------------------------- ---------- 
XXXXX Confirm Capitulation
--------------------------------------------- ----------
 
5. (S) In a February 18 meeting with the Ambassador, XXXXX
largely confirmed XXXXX's account. Following various GBRV
threats, some even from Chavez himself in the past, XXXXX
claimed that Minister Rodriguez had attempted to pressure
XXXXX into buying out Globovision shareholders XXXXX and
XXXXX, firing XXXXX, and getting rid of Leopoldo Castillo, to
forestall the GBRV withdrawing millions of dollars in deposits
from Banco Federal; XXXXX added that he "had practically been
forced to sell the bank." XXXXXtold the Ambassador the GBRV
strategy was for XXXXX to buy Globovision for nearly 32
million dollars and for XXXXX to "leave quietly... to work on
expanding Globovision from abroad." XXXXX further agreed to
"Send Leopoldo Castillo away for a while... first class
tickets for two weeks in Australia."
 
6. (S) Despite XXXXX's pronouncements at his press conference
that Globovision would not self-censor despite the GBRV
pressure, XXXXXadmitted they were being forced to soften the
station's future editorial line. XXXXXobserved that "this
arrangement has bought us some time. Globo will continue on,
however we will not use the screen to scare people. We will
report on the problems in an objective, independent manner...
we will, however, most likely refrain from naming names." When
asked why the Government had allowed the station to operate
for so long, XXXXX replied, "The Government needs to leave a
small window open to pretend there is freedom of expression
here. " XXXXX added, "Globovision is Chavez's 'Carta de
Libertdad de Expression' ("free speech credential")... he can
say, 'look here is Globovision, see, we are a democracy'.''
 
7. (S) XXXXX told the Ambassador that the station is
financially independent and healthy despite the GBRV's recent
attacks, increased lawyer's fees, and continual legal
harassment. (Note: Globovision currently confronts civil and
criminal charges stemming from six separate GBRV
investigations. End Note.) In reflecting on his decision to
bend to the GBRV's will, XXXXX noted "I have over 13,000
employees, plus the bank, to care for." Looking towards the
September National Assembly elections, XXXXX predicted: "If
Chavez wins, we are all gone. Our next meeting will have to be
in Boca Raton... Buying time before the election is the name
of the game. XXXXX
 
------------------------------------------------- 
Major Newspaper Taking Its Last Gasps?
-------------------------------------------------
 
8. (S) In a separate February 19 meeting, Ambassador Duddy met
with XXXXX. Lamenting the GBRV's "economic asphyxiation" of El
Nacional and the independent media generally, XXXXX told the
Ambassador that El Nacional was reaching the end of its
financial rope. Due to plummeting advertising revenue that
stemmed from the loss of advertising partners that had either
been nationalized or been otherwise intimidated by the GBRV to
cease such advertising, XXXXX predicted that El Nacional could
 
CARACAS 00000219 003 OF 003
 
be out of money and thus business by April. XXXXX affirmed
that fellow independent daily El Universal was also having
severe financial difficulties, and for similar reasons. (Note:
In his February 18 meeting with the Ambassador, XXXXX had
highlighted that El Universal had lost over 14% of its
advertising revenues just with the recent nationalization of
supermarket chain Exito. End Note.) XXXXX commented,
"Globovision has now been lost. We will be the next to go."
 
9. (S) XXXXX noted that increased GBRV nationalizations would
further reduce already limited commercial space/advertising
revenue, and limit the independent media's space to maneuver
in the months ahead. To keep El Nacional alive, XXXXX asked
the Ambassador whether the Embassy knew of services of private
financing they could approach outside the country, or failing
that, if the USG could be persuaded to help. (Note: The
Ambassador noted that investors and financial institutions in
the U.S. were increasingly anxious about expansion in
Venezuela. He also noted that he had never heard of the USG
underwriting a newspaper even, for instance, during the
difficult period in the early 80's in Pinochet's Chile. End
Note.)
 
10. (C) Comment: Chavez continues to reduce the private
media's ability to serve as a countervailing democratic force.
With Globovision executives softening their tone, counting
their remaining days, and major print media in apparently dire
financial conditions, Chavez is close to his goal of
"domesticating" or eliminating the remaining free and
independent media in Venezuela. End Comment.

DUDDY