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  • March 2008
  • STUC MEET WITH THE VENEZUELAN AMBASSADOR

Phil McGarry welcomed Dr Samuel Moncada to the STUC, and thanked participants for attending this meeting. Phil made opening remarks noting the visit last year to Congress of Jacobo Torres of the Venezuelan Bolivarian Workers' Force, expressing concern at the negative media spin on Venezuela and a need to address this propaganda.

Dr Samuel Moncada thanked Phil for his welcome, and thanked the STUC for the solidarity shown with Venezuela. The Ambassador indicated that he was to meet with the Minister for Europe and External Affairs, Linda Fabiani MSP, and that he had a sense that Scottish society is more in favour of Venezuela than elsewhere.

He spoke at length on the role of propaganda against Venezuela. He felt this was taking place because Venezuela now presents a different perspective to one that the US has been imposing upon Latin America for decades. Venezuela is independent, and wants the international respect it deserves to run its country itself. He underlined that this was the first time Venezuelans have the opportunity to do something themselves.

Dr Moncada emphasised how important trade union solidarity is, and he suggested this could be strengthened by hearing Venezuelan speakers, and by sending Scottish people to Venezuela.

Dr Moncada was asked if the UK Government had expressed a view on the English Court decision on Exxon. He indicated that the UK Government line was that British courts are independent, and that there was a sense the UK viewed Venezuela as a security threat.

When questioned on the state of the economy Dr Moncada explained that Venezuela’s is an oil economy, oil contributes to 50% of the GDP, and 80% of foreign currency. The economy suffers from oil shocks and booms, like that experienced now. In the past the elite that controlled the state benefited from the wealth of oil, but now Chavez is trying to redistribute this wealth to all, through state programmes, on education, health and community involvement. Venezuela is an unequal society, with some very rich and some very poor, but the spending on health and education will make a difference. They have some problems in that it is cheaper to import food than produce it.

It was noted that the Youth Committee is keen to build links with young people in Venezuela and with those Venezuelans studying in Scotland (mainly in Aberdeen). The Ambassador agreed to assist with this.

The Ambassador was asked how Scotland could learn from Venezuela’s attempts to use oil to address issues of poverty. The Ambassador explained how the Venezuelan state oil company has given beneficial oil rates to 120 indigenous people living on the US border with Canada, and cheaper rates to a number of countries in the Caribbean to prevent blackouts. However, these actions were greeted with accusations of “imperialist attempts of Venezuela to control the Caribbean”.

On higher education the Ambassador indicated a desire to develop links in Scotland. He noted an agreement between Venezuela and France for a reduced fee for Venezuelan students. He emphasised that Venezuela needs more English teachers.

Gordon Hutchison indicated that the Venezuelan Information Centre intends on participating in the Latin America Seminar planned for 4 April 2008. VIC is keen to develop more links in Scotland, and with the Scottish media to challenge some of the propaganda being spun.

Phil McGarry concluded the meeting indicating:

• STUC will produce a report of the meeting for circulation to the General Council and affiliates.

• STUC will write to the UK Government querying the English Court’s jurisdiction to rule on Venezuelan oil

• STUC is involved in the 4 April 2008 seminar and looked forward to taking issues forward there.

The Ambassador was given a small gift of thanks from the STUC, and in return gave participants Venezuelan pin badges.

STATEMENT RE EXONNMOBIL AND PDVSA

We note with deep concern that on 7 February an English court granted an injunction to US multinational oil company ExxonMobil freezing the assets of the Venezuelan oil company PDVSA in England and Wales. The order covered assets to the value of US$12 billion.

The Venezuelan Government was given no notice of the case and was not afforded any opportunity to be represented at the hearing.

This week PDVSA will appeal the decision in the High Court and seek to revoke the injunction.

The action by ExxonMobil was in response to the policy of the Venezuelan government to take back majority control of their own oil resources. Unlike other international oil companies, where some 30 out of 32 contracts have been successfully renegotiated, and amicable agreements and compensation terms reached with the Venezuelan government, ExxonMobil refused the terms offered.

We believe that the action by ExxonMobil, and the ruling by the court, contravenes the right of the democratically elected government of Venezuela to exercise sovereignty over its natural resources. The nationalisation of Venezuela's state oil company, holder of some of the world's largest oil reserves, under the government of President Hugo Chavez has allowed Venezuela to tackle a range of social inequalities, by taking back the oil wealth and redistributing it to benefit the Venezuelan people.

We urge the amicable settlement of this dispute through arbitration under the auspices of the International Centre for the Settlement of International Disputes, a body of the World Bank, as sought by the Venezuelan government in compliance with the terms of the contract signed between PDVSA and ExxonMobil in 1995.

We further restate our support for Venezuela's national sovereignty, including the right to determine its own policy in relation to its oil and natural resources in favour of the people of that country, rather than in the interests of multinational companies.

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