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On Wed, Jun 1, 2011 at 11:01 AM, Cort Greene <[email protected]> wrote:



>
> http://www.haiti-liberte.com/archives/volume4-46/How%20Washington%20and%20Big%20Oil%20Fought%20PetroCaribe%20in%20Haiti.asp
>
>   *New WikiLeaked Cables Reveal:
> How Washington and Big Oil Fought PetroCaribe in Haiti*
>


>
>
> [image: ...]René Préval, who passed Haiti’s presidential sash to Joseph
> Michel Martelly on May 14, was described by U.S. Ambassador to Haiti Janet
> Sanderson as “Haiti’s indispensable man” in a Jun. 1, 2009 Embassy cable
> released by WikiLeaks last December.
>
> Sanderson judged him “still moderately popular, and likely the only
> politician capable of imposing his will on Haiti - if so inclined.*” At
> the same time, “dealing with Préval is a challenge, occasionally frustrating
> and sometimes rewarding,”* she continued. *“He is wary of change and
> suspicious of outsiders, even those who seek his success.”*
>
> Préval’s suspicions about “outsiders” seeking his “success” turned out to
> be justified. In two rounds of presidential and legislative elections held
> in November and March, Washington aggressively intervened, pushing out of
> the presidential run-off Jude Célestin, the candidate of Préval’s party
> Inite (Unity), to replace him with Martelly, a neo-Duvalierist konpa singer
> who vocally supported the 1991 and 2004 coups d’état against former
> president Jean-Bertrand Aristide.
>
> Now the U.S. has even challenged the legislative races which would have
> given Inite virtual control of the Parliament, and hence approval of the
> President-designated Prime Minister, Haiti’s most powerful executive post.
> With U.S. support, challenges were brought against Inite victories in 17
> Deputy and two Senate races. The Provisional Electoral Council (CEP) ruled
> in favor of only 15 challenges, leaving four seats with the original Inite
> winners. The U.S. is not even letting this mild, partial impertinence go,
> yanking the U.S. travel visas of six of the CEP’s eight members.
>
> How did Haiti’s “indispensable man” become so dispensable? Why has
> Washington so brazenly intervened in Haiti’s elections to limit the power of
> Préval’s party and oust Inite’s presidential candidate from the run-off?
>
> Clues to the answer lie in secret U.S. Embassy cables which the
> transparency- advocacy group WikiLeaks has provided to Haïti Liberté. The
> cables reveal that the U.S. was primarily irked by Préval’s dealings with
> Cuba and Venezuela, where the former Haitian president was unable “to resist
> displaying some show of independence or contrariness in dealing with
> [Venezuelan president Hugo] Chavez,” as Sanderson griped in a 2007 cable.
>
> U.S. dismay began when Préval signed – the very day of his inauguration – a
> deal to join Venezuela’s PetroCaribe alliance, under which Haiti would buy
> oil paying only 60% to Venezuela up front with the remainder payable over 25
> years at 1% interest. The leaked U.S. Embassy cables provide a fascinating
> look at how Washington sought to discourage, scuttle and sabotage the
> PetroCaribe deal despite its unquestionable benefits, under which the
> Haitian government “ would save USD 100 million per year from the delayed
> payments,” as the Embassy itself recognized in a 2006 cable.
>
> A review of PetroCaribe’s genesis and the Embassy’s response to it provides
> a window into understanding why the U.S. has been so forceful in backing the
> U.S.-centric Martelly team over Préval’s two-timing sector.
>
> [image: ...]*Venezuelan Trial Balloon Shot Down*
>
> Venezuela first offered a Petro- Caribe deal to Haiti under the de facto
> government of Prime Minister Gérard Latortue, whom Washington installed in
> March 2004 after the Feb. 29 coup against Aristide. *“The government of
> Venezuela planned to send a negotiating team to Haiti (exact time
> undetermined) to negotiate a deal to sell oil at a preferential rate via
> PetroCaribe,” Embassy Chargé d’affaires Timothy Carney (the Charge) reported
> in an Oct. 19, 2005 cable. “Upon returning from a recent trip to Venezuela,
> Minister of Culture and Communication, Magali Comeau Denis told the Charge
> she was bringing Venezuelan oil back to Haiti with her.”*
>
> Prior to that trip, Carney “and Econ Counselor [his economic counselor] had
> spoken to acting Prime Minister Henri Bazin who said that the Interim
> Government of Haiti [IGOH] was looking for concessional terms for oil
> purchases from Mexico and Nigeria --but not Venezuela, he was quick to
> emphasize,” Carney continued. “In a follow-up conversation, Charge
> reiterated the negatives of such a deal with Venezuela. Bazin listened and
> understood the message,” that Washington would be unhappy about any oil deal
> with Venezuela.
>
> To drive the point home, “Econ Counselor met with a contact at the Finance
> Ministry October 13 who confirmed that the IGOH has no plans to participate
> in any PetroCaribe deal,” Carney explained. “He added that our message to
> Bazin had an impact: Bazin had seen a draft of comments to be made by
> Haiti’s representative to the IMF [International Monetary Fund] that
> included a vague reference to someday purchasing oil at concessional prices
> from Venezuela, and Bazin had the sentence deleted, the only change he made
> on the text.” This was the kind of ultra-servile response Washington
> expected from a puppet regime in Haiti.
>
> *But Carney understood that Venezuela had not really expected to strike a
> deal with Latortue’s de facto government. “We suspect that the recent
> efforts by Venezuela here are designed more to get the issue on the agenda,
> and that Chavez’s strongest efforts will come after the elections, when a
> new Haitian government is inaugurated in February 2006,” Carney concluded.
> *
>
> In a Nov. 7, 2005 cable, Carney noted that “the pressure is still on the
> IGOH to strike a deal with Venezuela” as “organizations that have organized
> demonstrations in the past against high prices in Haiti have publicly called
> on the IGOH to accept Venezuela’s offer to negotiate on a concessional
> deal.” However Bazin reassured the Embassy that “Haiti was far from any
> agreement with Venezuela” and “instead discussions were ongoing with the
> Government of Mexico to obtain a special deal from them on petroleum
> imports.” (Dominican Foreign Minister Morales Troncoso told the DR’s U.S.
> Ambassador and visiting Western Hemisphere Affairs Deputy Assistant
> Secretary Patrick Duddy that “President Fox of Mexico was proposing a ‘Plan
> Puebla Panama’ to counter Chavez’s ‘Petrocaribe’,” reported a Jan. 23, 2006
> cable from the Santo Domingo Embassy.)
>
> *As Préval Comes In, Troubles Emerge*
>
> Haiti’s presidential election did not take place until Feb. 7, 2006, and it
> was won by René Préval. Even before his May 14, 2006 inauguration, Préval
> clearly was anxious to allay Washington’s worries that he might lean towards
> its South American challengers. *“He wants to bury once and for all the
> suspicion in Haiti that the United States is wary of him,” Ambassador
> Sanderson, then newly appointed, reported in a Mar. 26, 2006 cable. “He is
> seeking to enhance his status domestically and internationally with a
> successful visit to the United States.” This was so important that “Préval
> has declined invitations to visit France, Cuba, and Venezuela in order to
> visit Washington first,” Sanderson approvingly noted.*
>
> The new Haitian president went to great lengths to dispel the notion that
> he had any political sympathies for Latin America’s socialist regimes. 
> *“Préval
> has close personal ties to Cuba, having received prostate cancer treatment
> there, but has stressed to the Embassy that he will manage relations with
> Cuba and Venezuela solely for the benefit of the Haitian people, and not
> based on any ideological affinity toward those governments.”*
>
> But in April, shortly after his Washington visit, Préval traveled to
> Havana; the result confirmed Washington’s fears. *“President-elect Préval
> announced to the press April 18 that Haiti will soon join Venezuelan
> President Hugo Chavez’s energy initiative, PetroCaribe,” Sanderson reported
> in an April 19, 2006 cable. “Préval made the announcement after returning
> from a five-day trip to Cuba, where he discussed the subject of Petrocaribe
> with the Venezuelan Ambassador to Cuba.” But Sanderson made clear that the
> Embassy – her “Post” – would not give up without a fight.*
>
> *“Post will continue to pressure Préval against joining PetroCaribe,” she
> wrote. “Ambassador will see Préval’s senior advisor Bob Manuel today. In
> previous meetings, he has acknowledged our concerns and is aware that a deal
> with Chavez would cause problems with us.”*
>
> In a cable nine days later, Sanderson recognized that Préval was under 
> *“increasing
> pressure to produce immediate and tangible changes in Haiti’s desperate
> situation.” She also noted that “Préval has privately expressed some disdain
> toward Chavez with Emboffs [Embassy officials], and delayed accepting
> Chavez’ offer to visit Venezuela until after he had visited Washington and
> several other key Haitian partners. Nevertheless, the chance to score
> political points [with the Haitian people] and generate revenue he can
> control himself proved too good an opportunity to miss.”*
>
> Embassy cables always flag “independence” as this one decried Préval’s
> being able to “generate revenue he can control himself .” Sanderson went on
> to warn that Préval could “redirect the 40% that would have been spent on
> fuel to ‘special presidential’ development projects” and “we are wary of the
> creation of a special presidential fund.... We will encourage Préval to
> channel the money through existing programs,” meaning those which the State
> Department’s U.S. Agency for International Development (USAID) had funded
> and therefore controlled.
>
> In April 2006 cable, we see Sanderson hint at an observation that she would
> make almost a year later, that *“Préval and company may be overselling
> their irritation toward Chavez for our benefit, but Préval has consistently
> voiced wariness of Chavez in conversations with Emboffs going back to the
> early stages of the presidential campaign in 2005.”*
>
> On the surface, Préval feigned ignorance of the hemispheric conflict
> between the U.S. and Venezuela. “One journalist asked Préval when he
> returned from Caracas if there would be ‘*consequences’ for Haiti building
> links with Venezuela, which Washington increasingly sees as a regional
> threat,” wrote the weekly Haïti Progrés in May 2006. “‘The problems between
> the United States and Venezuela are problems that those two countries have
> to resolve themselves,’ Préval responded. ‘It does not affect Haiti in any
> way.’”*
>
> This was patently untrue. In a May 15, 2006 cable reviewing the
> nowinaugurated president, Sanderson noted that “despite U.S. discomfort with
> his links to Cuba and Venezuela, Préval seems determined to mine those
> relationships for what he can obtain.” This “pragmatism” would become the
> essence of U.S. dissatisfaction with Préval.
>
> *Big Oil Fights PetroCaribe in Haiti*
>
> On May 14, 2006, immediately after his inauguration, Préval summoned the
> press to a room in the Palace where he ostensibly signed the Petro- Caribe
> agreement with Venezuelan Vice President Jose Vincente Rangel *(“Apparently,
> the signing... at the inauguration on May 14 was ceremonial... and the first
> shipment was a grant, not a part of the loan agreement,*” Sanderson wrote
> later in an August cable.)
>
> But it would be almost two years before PetroCaribe oil would begin flowing
> into Haiti, due to a myriad of political and logistical obstacles. The first
> hurdle was that Venezuela needed to give the petroleum to a state-owned oil
> company, which Haiti doesn’t have. So it was proposed that the oil be given
> to Electricité d’Haïti (EDH), the state-owned power company.
>
> Michel Guerrier, the director of Haiti’s only domestic oil distribution
> company, Dinasa or National (which is owned by Haiti’s richest man, Gilbert
> Bigio), told the Embassy’s Economic Officer *“one possibility is that
> PetroCaribe will sell the oil to Haiti’s National Electricity Company ...
> which will then sell to the four oil companies operating in Haiti: Texaco,
> Esso (a.k.a. Exxon), National (formally Shell), and [French-owned] Total,”
> explains a May 12, 2006 cable. Guerrier also said that PetroCaribe “is a
> great deal for the Haitian government” and “speculated that the government,
> in order to retain total control over the supply of the oil market (they
> already control the price), may put an end to the non- PetroCaribe
> oil-bearing ship which arrives every three weeks.”*
>
> Sanderson predictably opposed to the idea, calling EDH *“an inefficient
> and corrupt public entity” while recognizing that “filtering oil through EDH
> could ensure enough fuel to power the electricity plants, without relying on
> the oil companies as a costly back-up plan.” Not surprisingly, all three
> foreign oil companies also opposed the Haitian government’s plan. Sanderson
> reported in a May 17, 2006 cable that “Dinasa, which supplies to Haiti’s
> domestic oil company, National, is the only voice in the oil business to
> endorse Préval’s proposal to have EDH control the oil supply. The other
> international oil companies are increasingly concerned -- both Texaco and
> Esso will meet with the Ambassador in the near future -- that they will have
> to buy their oil from the GOH [Government of Haiti].” On behalf of the oil
> companies and against the obvious benefits for Haiti, Sanderson said “we
> will continue to raise our concerns about the Petro- Caribe deal with the
> highest levels of government...”*
>
> In a June 1 cable, Sanderson reported that “Haitians have noted... that
> electricity in Port-au-Prince has improved since Préval’s inauguration with
> 6 to 8 hours a day, usually late at night until morning in residential
> areas,” but the Embassy continued to oppose the Venezuelan oil delivery.
>
> In a July 7 cable, she said that Dinasa President Edouard Baussan told her
> that “the three international oil companies in Haiti feel uninformed about
> Haiti’s PetroCaribe plan and are wary of how PetroCaribe will affect their
> operations.” Baussan did not know that “separately, the Ambassador met with
> representatives of ExxonMobil and Texaco [owned by Chevron],” as Sanderson
> explained to Washington. *“Both companies were concerned and curious about
> how Préval planned to implement Petro- Caribe.” Sanderson finished with some
> wishful thinking: “PetroCaribe seems stalled indefinitely, and it is
> possible that Haiti will not move forward with the agreement. The first and
> so far only ship, which was a minor victory for Venezuela’s Caribbean
> campaign and a tangible sign from Préval to his constituents that he will
> bring change, may mark both the beginning and the end of PetroCaribe in
> Haiti.”*
>
> *Venezuelan Oil Starts to Flow*
>
> However, it was not to be the end, as the Embassy was to quickly learn.
> Three weeks later, on July 28, Sanderson had to write that “the Petro-
> Caribe petroleum ... has finally hit the local market. The Haitian
> Government (GOH) is selling the entire shipment, including the diesel
> (initially intended
>
> *Continue in page(12)  (please go to our electronic edition and navigate
> to page 12)*
>


[Non-text portions of this message have been removed]



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