Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08MEXICO1019, MEXICAN RESPONSE - BRV CEMENT NATIONALIZATION

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08MEXICO1019.
Reference ID Created Released Classification Origin
08MEXICO1019 2008-04-07 23:34 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Mexico
VZCZCXRO5711
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #1019/01 0982334
ZNR UUUUU ZZH
P 072334Z APR 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 1277
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 1391
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
UNCLAS SECTION 01 OF 02 MEXICO 001019 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/MEX, WHA/AND AND EB/OMA/IFD 
STATE PLEASE PASS TO USTR (EINSSENSTATE/MELLE) 
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/GERI WORD 
TREASURY FOR IA (ALICE FAIBISHENKO, ANNA JEWEL) 
 
E.O. 12958: N/A 
TAGS: ECON EIND ETRD MX VE
SUBJECT: MEXICAN RESPONSE - BRV CEMENT NATIONALIZATION 
 
 1. (SBU) Summary. President Hugo Chavez announced April 3 
that the BRV would nationalize the cement industry.  On April 
7, Venezuelan Oil Minister Rafael Ramirez announced that 
foreign companies will be allowed to maintain a minority 
stake.  Mexican company Cementos Mexicanos (Cemex) is the 
largest foreign cement company in Venezuela with 52% market 
share and over 550 million USD in revenue. Cemex and Mexican 
government officials have approached the BRV for additional 
details, though Cemex executives report they will consider 
the decision final.  Cemex stock fell in New York and Mexico 
City on the initial announcement but had rebounded by market 
close on the April 7.  Nationalization of even part of Cemex 
set off fears of nationalization for other Mexican companies 
operating in Venezuela. End Summary. 
 
2. (U) On April 7, BRV Oil Minister Rafael Ramirez announced 
that foreign companies would be allowed to maintain a 
minority stake in the cement industry, effectively 
backpedaling from Venezuelan president Hugo Chavez's April 3 
announcement that the Venezulean cement industry would be 
completely nationalized.  While Chavez, in his unanticipated 
evening address, said that his government can not permit 
businessmen to export raw materials needed to stop 
Venezuela's current housing shortage, Ramirez said that 
ongoing talks with the affected companies will open the way 
toward a final takeover agreement.  The new announcement 
suggests nationalization of the cement industry would be 
similar to nationalization of oil operations in the Orinoco 
basin. 
 
3. (U) This nationalization has been at least a year in the 
making as Chavez had announced in April 2007 that he was 
ordering tax authorities and the National Guard to inspect 
the companies to uncover where they were sending product.  At 
that time he threatened expropriation and said that he would 
not tolerate the companies selling products abroad at 
international prices instead of selling locally where there 
was a need (and presumably lower sales gains). 
 
4. (U) Cemex is the largest cement company in Venezuela and 
controls 52% of the country's cement production.  Venezuelan 
production accounts for 3% of total revenue for Cemex.  The 
company owns 3 plants in Venezuela employing more than 3,000 
with a yearly production capacity of 4.6 million metric tons. 
Cemex's revenues in Venezuela for 2007 were more than 550 
million USD and assets were near 1 billion USD. 
 
5. (U) In a release by the Secretariat of Foreign Relations, 
the GOM announced they will "do everything in their power to 
protect the legitimate interests of Mexican businesses 
abroad."  Undersecretary for Latin America and the Carribean, 
Geronimo Gutierrez called in Venezuelan Ambassador Roy 
Chaderton to discuss the situation. Mexican Ambassador to 
Venezuela Mario Chacon also met with Venezuelan officials for 
clarification. 
 
6. (SBU) On April 7, before the announcement by Ramirez, 
ConGen Monterrey spoke with Javier Trevino, Cemex's Senior 
Vice President for Communications.  Trevino said that Cemex 
did not yet know any of the details regarding the 
nationalization.  Cemex's Venezuelan country manager had a 
meeting scheduled with the Venezuelan Vice President to gain 
more information.  Trevino said that Cemex, however, viewed 
Venezuela's decision as final and a likely prelude to further 
nationalizations in the steel and food sectors. 
 
7. (U) Chavez's April 3 announcement sent Cemex ADRs down 
4.2% (1.16) to 26.32 on Friday in composite trading at the 
New York Stock Exchange.  Cemex's stock price on the Mexican 
stock market fell 3.87% to 27.83 while the Mexican Stock 
Exchange's IPC index, heavily dependent on Cemex, fell 0.46%. 
  Standard & Poor's announced on April 3rd that the move did 
not affect their rating of Cemex.  As of 4:30 pm on April 7, 
Cemex stock had almost recovered its losses with a 3.95% gain 
(1.04) to 27.36.  On the Mexican stock market, the gain was 
3.6% to 28.82. 
 
8. (U) Cemex was founded in 1906 in Monterrey and currently 
has operations in more than 50 countries.  In 2007, sales 
reached 21.7 billion USD.  Cemex has been publicly traded 
since 1976, though President Lorenzo Zambrano (grandson of 
Cemex's founder) and family rank 785 on Forbes' list of 
billionaires with a net worth of 1.5 billion. The Zambranos 
are among the 10 wealthiest families in Mexico. 
 
MEXICO 00001019  002 OF 002 
 
 
 
Comment 
------- 
 
9. (SBU) Ramirez's updated announcement helped alleviate some 
of the worst fears of Cemex and other Mexican investors in 
Venezuela; however, the poorly worded initial nationalization 
announcement caused additional damage to Venezuela's 
reputation among Mexican investors and the GOM.  Venezuela's 
compensation to Mexican shareholders will determine the 
precise degree of damage. 
 
10. (SBU) No matter how agreeable the terms of the takeover, 
the announcement set off fears among other Mexican companies 
operating in Venezuela, including Gruma (Grupo Maseca - 
flour, corn and tortilla companies) and Femsa (Coca-Cola 
brand bottling company), both of which operate in 
Chavez-targeted industries. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
GARZA