U.S. Companies Behind Anti-Reform Propaganda in Venezuela

 "I
 voted for Chavez for President, but not now. 
 Because they told me that if the reform passes, they're going to take my
 son, because he will belong to the state," said Gladys Castro last week, a
 Colombian immigrant who has lived in Venezuela for 16 years, and cleans
 houses for a living. 
 Gladys
 is not the only one to believe the false rumors she's heard.  Thousands of Venezuelans, many of them Chavez
 supporters, have bought the exaggerations and lies about Venezuela's
 Constitutional Reform that have been circulating across the country for
 months.  Just a few weeks ago, however,
 the disinformation campaign ratcheted up various notches as opposition groups
 and anti-reform coalitions placed large ads in major Venezuelan papers. 
 The
 most scandalous was an anonymous two-page spread in the country's largest
 circulation newspaper, Últimas Noticias,
 which claimed about the Constitutional Reform:
 "If you
 are a Mother, YOU LOSE! Because you will lose your house, your family and your
 children (children will belong to the state)." 
 The
 illegal ad, which was caught and suspended by the Venezuelan National Electoral
 Council (CNE) after a few days in the press, has received relatively
 high-profile attention in the Venezuelan press, and even Chavez joked about it
 last Friday on the nightly pro-Chavez talk show, La Hojilla.  What appears to
 have gone completely ignored, however, is the fact that the ad itself was
 placed by an organization which has at its core, dozens of subsidiaries of the
 largest US corporations working in Venezuela.    
Disinformation & Propaganda
 The
 scare tactic against Venezuelan mothers isn't the only piece of misinformation
 in the anonymous advertisement.  Under
 the title, "Who wins and who loses," it goes on to tell readers that under the
 new reform, they will lose their right to religion; that 9.5 million people
 will lose their job; that small, large or cooperative businesspeople will lose
 their "store, home, business, taxi or cooperative"; that urban, rural and
 mountain militias are going to replace the National Armed Forces; that students
 will lose their right to decide what they want to study; that campesinos are going to lose out because
 they won't be owners of their own land; and that the value of the Venezuelan
 currency, the Bolivar, is going to drop along with the value of Venezuelan
 homes, cars, farm lands (finca), and educational studies. 
 Comments
 in the ad refer to specific reformed articles in the Constitution, as if
 providing a reference for readers to verify the claim.  Of course, briefly examining the article in
 reference verifies that each claim is either completely false, or a ridiculous
 exaggeration and manipulation of the reform. 
 Article 112, for instance, which the advertisement says will take
 Venezuelan children from their families, in actuality discusses economic
 development and production.
 Last
 week, after a barrage of illegal propaganda on the part of both the pro and
 anti reform camps, Venezuela's
 National Electoral Council (CNE) began to crack down, following through with
 their promise to regulate the propaganda. 
 In an announcement last week, Tibisay Lucena, President of the CNE made
 specific reference to the "Who wins and who loses" piece, pointing out its
 illegality because of the falsities and its anonymity.  Although published as an anonymous article,
 Lucena announced that according to the official tax number (RIF) published with
 the article, the advertisement was actually placed by the Cámara de Industriales del
 estado Carabobo (The Carabobo State Chamber of Industry). 
 The Carabobo State
 Chamber of Industry (CIEC)
 The
 CIEC is a 71 year-old organization, headquartered in the Carabobo state capital
 of Valencia, which groups together more than 250 businesses in the region.  Among those are dozens of subsidiaries which
 compose literally a who's who list of some of the largest and most powerful US
 corporations, including (among others): 
 Ford, General Motors, DaimlerChrysler, Bridgestone Firestone, Goodyear,
 Alcoa, Shell, Pfizer, Dupont, Cargill, Coca-Cola, Kraft, Novartis, Unilever,
 Heinz, Johnson & Johnson, Citibank, Colgate Palmolive, DHL and Owens
 Illinois.
 Without
 a doubt, the region carries important weight with heavy US interests.  The new US
 Ambassador to Venezuela,
 Patrick Duddy, even said so when he visited Carabobo a few weeks ago on his
 first official trip within Venezuela. 
 "Valencia
 is a very important industrial center with a presence of American companies
 that create thousands of jobs and that also run social programs that benefit
 both their surrounding communities and their employees," said Ambassador Duddy.
 According
 to an article on the US
 embassy website, during his stay in Valencia, Duddy met the board of
 the Venezuelan-American Chamber of Commerce and Industry, the board of
 Fedecámaras in Carabobo, and with a number of the above mentioned subsidiaries,
 including GM, Chrysler, and Ford.  He
 also spent time with the CIEC board, and in particular, then CIEC President
 Ernesto Vogeler, who also happens to be Chief Executive Officer for Protinal/Proagro,
 a subsidiary for the Ag Processing, Inc. (AGP), an Omaha-based AG coop.
 In a
 normal state of affairs, this would all seem completely normal: The foreign
 ambassador meeting with his country's major subsidiaries, and the president of
 the chamber of industry to which they belong. 
 However, we should briefly remember the role that US businesses have
 played across Latin America, whether we are talking about the United Fruit
 Company's destabilization attacks against Guatemala's
 democratically-elected President Jacobo Arbenz Guzmán in the 1950s, or Anaconda
 Copper's support of the overthrow of Chile's Salvador Allende in the
 1970s.  Alcoa, GM, Citibank and most of
 the above-mentioned companies know how to throw their weight around, be it by
 technically legal, or more subversive means.    
Reforms
 Of
 course, it makes sense why US
 corporations based in Venezuela
 would be against the reform.  Various
 articles, if applied, could potentially cut in on potential profits, such as
 the reform of article 301.  Under the
 1999 Constitution this article stated:
 "Foreign
 people, businesses, and organisms can not be given more beneficial concessions
 than those established for national entities." 
 However,
 under the reform, the last sentence was cut:
 "Foreign
 investment is subject to the same conditions as national investment."
 One can
 thus infer that national investment may be given more favorable conditions than
 foreign investment.
 Article
 115 protects new forms of social and collective property, which anti-reform
 proponents fear may be used to expropriate private property.
 On top
 of this, the Venezuelan government recently passed new rules on the growing
 automobile industry in Venezuela, which may have US automobile giants, GM,
 Chrysler, and Ford nervous about their the foreseeable future in
 Venezuela.  Although car sales in Venezuela have
 jumped by nearly 300% over the last three years, in an attempt to push for more
 domestic production, the Venezuelan government has passed new laws regulating
 the automobile industry, according to an early November article in the
 Venezuelan daily El Nacional.  Among them, the requirement of an "import
 license" in order to sell foreign cars, the mandate to install natural gas
 inputs in all vehicles produced after 2007, and the importation of only
 unassembled motors after 2010, in order to use to use nationally produced motor
 parts.
Protests in Valencia
 According
 to reports, in Valencia
 last week, full color CIEC fliers against the reform were passed out during
 opposition student marches.  According to
 today's major papers, violent protests in Valencia yesterday left one dead,
 various wounded, and at least 15 detained.
 It
 would be irresponsible to make accusations without evidence, but it is
 important to be conscious of where our information is coming from, if it is
 verifiable, and who are the interests involved. 
 This is the case now, only a few days before Venezuela's Constitutional Reform
 Referendum.  Hopefully the Venezuelan
 people will be able to decipher fact from fiction and make their own educated
 decision whether to vote "sí" or "no" next Sunday.
 Like
 Gladys Castro, who has reconsidered her staunch position against the
 reform.  As she said last week, when she
 realized that the rumors she has been hearing are false, "Well, I'm going to
 read [the reform], think some more, and maybe I will vote for it after
 all."  She's probably not the only one.
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