54. Telegram 3549 From the Embassy in Argentina to the Department of State and the Embassy in Venezuela1 2
Conto 57
Treasury for Mr. Dixon
WHite House for Mrs. Davis
State for S/SP A/OPR, and ARA
Subj:
- Secretary Connally Travel: Memcon Between Secretary Connally and President Caldera on Points Relating Only to US-Venezuelan Relations, June 6, 1972
Ref:
- Caracas 4513
1. Following is revision of reftel which related Ambassador McClintock’s report on Secretary Connally’s meeting with President Caldera. Reftel should be cancelled.
2. Secretary Connally, in providing me highlights of a 45-minute private conversation with President Caldera reported that Caldera still cherishes a feeling of disappointment from his 1970 official visit to Washington. In one word, he thinks that he was not given “enough” as a result of his conversations with President Nixon.
3. Caldera apparently felt that US should have given Venezuela preferential treatment in petroleum immediately following his visit. Secretary Connally pointed out that the whole framework of US relationships in oil is an immensely intricate thing. Could [Page 2] not President caldera imagine that if US at once gave a special position of preferential treatment to Venezuela, this would not arouse resentment among other oil producing nations?
4. Caldera then said that he did not understand why USG was so preoccupied with defending American oil companies in Venezuela. He cited specific example of our concern when his Minister of Education some months ago was reported as stating that the oil companies were fomenting student disturbances. Why should USG get excited about that?
5. Secretary Connally told Caldera the United States was not like Venezuela. Oil was developed on private account and did not belong to the government. However, it was clear that there was a wide area of mutual interests where both USG, GOV, and American oil companies could work together.
6. Caldera complained that although he had heard many kind words about development of CODESUR, there seemed to be no tangible evidence of US support. Here clearly the President was in error and he had obviously not been briefed by his subordinates on recent and dramatic proof of US assistance tn the CODESUR project such as the offer of three helicopters and an otter aircraft plus, as recently as yesterday, assurances that US would stand the bill for $300,000 worth of spare parts. This is one additional illustration of how at times President Caldera is badly briefed by his subordinates. Department will recall that some months ago President had a similar mistaken notion about supposed lack of US assistance for the Venezuelan Navy. As in that case, we shall take steps to set the record straight.
7. Caldera raised question of upgrading military equipment, expressing some dissatisfaction. Secretary said that to his knowledge only exception to our positive responses had been F–4s. Secretary said there was congressional problem with respect sale such sophisticated aircraft to Latin America. Also we felt that this type of airplane was one requiring very superior technological maintenance and backup. Secretary expressed personal opinion that level of sophistication and cost of maintenance were Venezuela’s business and that purchase of Mirages had meant that our position had saved GOV nothing.
[Page 3]8. Our fundamental question of petroleum relationships, Secretary Connally told President that in his judgment there was ample basis on both sides for a successful negotiation. However, as he had told the President’s Ministers that afternoon, there should be give and take. If we gave Venezuela some sort of hemispheric preference, what would Venezuela give the United States in return? Caldera did not reply.
9. Atmosphere of conversation was friendly and calm and, as I told Secretary Connally, I think his presentation to Caldera will have done much to dispel misconceptions and further the way to negotiations on an interim agreement, once Washington approves. Clearly from the point of view of Embassy Caracas the Connally visit was not only an intrinsic success but a very great benefit to the Embassy in its onward conversations with the Venezuelan authorities.
- Source: National Archives, RG 59, Central Files 1970–73, POL 7 US /Connally. Secret; Exdis. It was repeated to Bogotá. Connally visited Venezuela, Colombia, Brazil, Argentina, and Peru on his Latin American trip, and made similar representations. Documentation on his trip can be found ibid.↩
- President Caldera and Secretary Connally discussed oil, U.S. support for Codesur, and upgrading military equipment. The Ambassador concluded that Connally’s conversation aided the Embassy in its dealings with Venezuela.↩