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THE ADAPTABLE

U.S. INTERVENTION
MACHINE IN
VENEZUELA

EVA GOLINGER
PUBLICATION OF THE COMMUNICATION AND INFORMATION MINISTRY

CREDITS

Andrés Izarra
Minister of Communication and Information

Yuri Pimentel
Vice-minister of Communication Strategies

William Castillo
Vice-minister of Communication Administration

General Coordination
Senira Salazar

Art Direction
José Luis Díaz Jiménez

Text
Eva Golinger

e-mail: publicidad@mci.gov.ve
November 2004

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THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

THE BACKGROUND claimed President Chávez had resigned from


There was a bloody coup d’etat on April his elected office.(2) Behind the scenes, high
11, 2002 in Venezuela. Similar to the over- level U.S. State Department officials in
throw of the Allende government in Chile Caracas, such as Otto Reich, Elliot Abrams
nearly thirty years prior, an unlikely bond and Ambassador Charles Shapiro met several
between labor unions, business associations times with Pedro Carmona and other coup
and the elite military command had been leaders, before, during and after the events of
formed with a common goal: to remove April 11th.(3) The U.S. stood practically
President Hugo Chávez Frías from his elected alone in its recognition of Carmona as a legit-
office. In a stark contrast to Chilean history, imate head of state. The Organization of
the coup in Venezuela failed and two days American States, CARICOM and nations of
later, President Chávez was reinstated. Yet the the European Union, with the exception of
details surrounding the events of those brief Spain, all issued statements or comments con-
moments remained murky and confusing and demning the coup and refusing to acknowl-
tall tales of human rights abuses, authoritari- edge Carmona as President of Venezuela.
an-type actions and peaceful protests by a fal- On April 13, 2002, when President Chávez
sified majority overshadowed the true facts. was returned to power by popular uprising
What really happened during those three and support from within the military barracks,
days that changed Venezuelan history forev- the U.S. was forced to publicly retract the
er? A coup d’etat led by a joint force of cor- unconditional support it had given to the coup
rupt labor leaders, corporate interests, media leaders. Yet the headstrong Bush
moguls and high military command really did Administration continued to blame Chávez
try to overthrow President Chávez. The pri- for the preceding events and merely claimed
vate media in Venezuela, which is owned by a that his return as President was a “second
corporate elite, played a key role in manipu- opportunity” to try and correct his policies
lating information and news about the devel- and make good with the U.S., i.e. succumb to
oping events, misleading Venezuelans and U.S. power.(4)
international followers into believing that the President Hugo Chávez was elected by
Chávez government had open fired on opposi- approximately 60% of the vote in 1998,
tion demonstrators, therefore justifying the defeating Venezuela’s traditional two parties,
coup. Pedro Carmona, then president of Acción Democrática (AD) and COPEI, by a
Fedecámaras, Venezuela’s chamber of com- landslide. He appealed to a cross section of
merce, assumed the position of “interim pres- Venezuelan society in that first election, pri-
ident” of the nation and quickly dissolved all marily because he offered an alternative to the
of Venezuela’s core democratic institutions. A corrupt AD and COPEI parties that had ruled
select crowed of 395 representatives from the the nation for 40 years and had run the econo-
Venezuelan elite stood by at the Presidential my into the ground by the late 1990s. But
Palace and endorsed Carmona’s decree, legit- Chávez’s immediate implementation of his
imizing his “dictatorship” on April 12, campaign promises, including a restructuring
2002.(1) of the State-owned oil company PDVSA, and
In the United States, the Bush a redrafting of Venezuela’s young
Administration expressed its support for the Constitution, proved too radical and abrupt
Carmona government and refused to recog- for many Venezuelans accustomed to life
nize a military-corporate coup had occurred. under AD and COPEI, where promises were
Instead, the U.S. blamed the violence and abandoned and structural change was spoken
instability on the Chávez government and of but never implemented.

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Eva Golinger

Despite shock from some sectors at the ernment was clinched.


swiftness of the Chávez Administration’s The overt statements and declarations
actions, more than 70% of the electorate par- made by U.S. Government officials indicating
ticipated in drafting and ratifying a new a tendency to break relations with the Chávez
Constitution in 1999 that would authorize Administration began in early 2001. After
sweeping changes in Venezuelan society. As President Chávez expressed his disagreement
a result of new Constitutional terms, presiden- and outrage to the bombings in Afghanistan
tial elections were held again in 1999 and post-9/11, relations between the Bush and
Chávez won with a similar 60% margin. With Chavez Administrations quickly deteriorated.
the authority of the 1999 Constitution behind Chávez was not playing by the “you are either
him, Chávez was able to initiate a series of with us or against us” rules and his country
structural changes within PDVSA that would was too important to leave in the hands of
enable a more equal distribution of the com- such a disobedient actor.
pany’s profits, and in turn, provide income for
social programs intended to decrease poverty THE INVESTIGATION:
and ensure social services for Venezuela’s
vast low and no income population. A FACT-FINDING MISSION
During the period of 1998-2000, Chávez IN THE US ARCHIVES
encountered an indifferent U.S. policy Utilizing the Freedom of Information Act
towards Venezuela. It wasn’t until George W. in the U.S., my colleague Jeremy Bigwood
Bush arrived at the White House in 2000 that and I submitted numerous requests to various
relations between Venezuela and the U.S. took agencies and entities in the U.S. Government
a turn for the worse. The Chávez regarding different issues pertaining to
Administration policies did not sit well with Venezuela. The Freedom of Information Act
the Bush Administration. The idea of a gov- (FOIA) is a body of U.S. law passed after the
ernment in charge of one of the most impor- end of the Nixon administration that enables
tant oil industries in the world that liaised journalists and others to access and declassi-
closely and openly with Fidel Castro was a fy secret U.S. government documents.
difficult pill to swallow for a Republican Information requested through the FOIA is
Administration that had again tightened the first analyzed by the government agency pos-
noose around the Cuban economy with the sessing the relevant documentation, which
40-year old goal of ousting Castro. may release or withhold it in entirety, or a
Furthermore, Chávez’s revitalization of the combination thereof.
Organization of Petroleum Exporting There are many different entities within the
Countries (“OPEC”), an entity the U.S. would U.S. government and in order to find out how
have preferred muted, and his visits to fellow deeply involved the U.S. has been in
oil producing countries, such as Libya and Venezuela, it was necessary to file hundreds
Iraq, rubbed the Bush Administration the of requests with agencies ranging from the
wrong way. Not to mention the Venezuelan Department of State, to the Department of
government’s focus on policies to reduce Defense, Department of the Army, U.S.
poverty and promote a participatory democra- SOUTHCOM, Department of Agriculture,
cy, ideas repulsed by diehard market econo- National Endowment for Democracy, US
mists. Add in a very disgruntled and wealthy Agency for International Development and
Venezuelan business elite with friends in high others.
places in the U.S. government and corporate The investigation, which was initiated in
world, and a clear dislike for the Chávez gov- 2003, continues to the present time and most

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THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

likely will extend for decades to come. THE INTERVENTION


Generally, the U.S. Government takes a long Present U.S. intervention in Venezuela has
time to respond to FOIA requests and typical- been implemented in three stages, each adapt-
ly engages in delay tactics and censoring ing to the circumstances presented by the fail-
intended to prevent information from reaching ure of the previous attempt to garner any suc-
the public at large. Often, documents or infor- cess. The U.S. strategy in Venezuela has fol-
mation withheld or unlawfully delayed can be lowed a textbook outline of intervention in
appealed, but the appeals process can contin- Latin America. The tactics used in Venezuela
ue for an indeterminable period, therefore appear to be a metamorphosed version of
hampering critical information from reaching those previously applied in Chile (1970s),
public scrutiny. Nicaragua (1980s) and Haiti (1990s), which
FOIA investigations generally occur years all resulted in the ouster of democratically
or decades after the U.S. intervention has elected presidents, either through coup d’etats
occurred, such as the case of Chile, often (Chile and Haiti) or heavily influenced elec-
when it is too late to act in a preventative or toral processes (Nicaragua).
precautionary manner. This investigation,
however, is occurring in “real time” and there- A BRIEF NOTE ON THE CHILE PARALLEL
fore has the privileged opportunity of effectu- The past few years have shared common
ating change in U.S. policy on Venezuela. To histories with Chile during the late 1960s and
date, the results of the investigation have early 1970s. Distant cousins of the coup and
already impacted U.S.-Venezuela relations strikes that plagued Chile have also belea-
and have also open the eyes of millions of guered Venezuela, yet the latter was able to
Venezuelans that were unaware of the extent resist and overcome the attempts of the right-
of U.S. meddling in their nation. The details wing opposition movement financed and
of what the investigation has uncovered up to politically backed by the U.S. government.
the present moment follow. The former, unfortunately, was forced to suc-
I must issue a disclaimer, however, because cumb to a violent takeover that resulted in the
the investigation is not yet near completion. assassination of a democratically elected and
Due to the timeliness and importance of the popularly support president, Salvador Allende
information, I believe it is critical to conduct and instituted one of the most brutal dictator-
immediate analyses and make the documents ships in Latin American history. The bloodied
available to the public domain as obtained. hands of the U.S. government were stamped
But it must be clear, that as more documents all over the 1973 coup d’etat in Chile, and
are acquired, more facts about the U.S. role in later, declassified documents attained by the
the events of the past few years in Venezuela National Security Archives revealed the intri-
are revealed and could alter the present under- cate plots Henry Kissinger and his cohorts had
standing of this investigation. Also, many of enacted to crush the growth of socialism in the
the documents have been heavily censored region.
and appeals have been submitted when appro- In Chile, the U.S. employed tactics that
priate. The appeals process will delay the have subsequently proven successful time and
release of information for a longer, unpre- time again. Before the coup, the U.S. had suc-
dictable period. Therefore, I withhold from ceeded in funneling hundreds of thousands of
drawing any conclusions at this point regard- dollars to labor unions, business associations
ing the extent of U.S. intervention in and social organizations willing to band
Venezuela. together to oppose Allende. The U.S. attempt-
ed to prevent Allende’s election in 1970 by

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Eva Golinger

strengthening and supporting opposition par- instigating a coup d’etat to remove a demo-
ties and candidates, but the overwhelming cratically elected leader. Yet a quick glance at
popularity of the socialist leader left the U.S. the U.S. administration at the time of the coup
government with little choice but to go the in Venezuela and particularly those oversee-
violent route. Still, after Allende’s election, ing Latin American policy provides a plausi-
the U.S. instigated acts of economic sabotage ble answer. Many of the same figures present
through massive strikes led by its financed during the coup in Chile or later during the
counterparts and it attempted to isolate the armed conflict and intervention in Nicaragua
Allende government from the international and other Central American and Caribbean
community. The U.S. also applied a strategy, nations are today those setting policy in the
later known as “Chileanization”, which Bush administration. Individuals such as Otto
involved organizing internal right wing forces Reich, Roger Noriega, Charles Shapiro,
to destabilize the elected government. This William Brownfield, Luigi Enaudi, John
concept ensured that as opposition forces Negroponte, Elliot Abrams, and others, all
incited violent confrontations with the gov- made their bones on Latin America in the
ernment, international scandals and reactions 1970s and 1980s. Clearly, there are no les-
would form over “Allende Crackdowns”, the sons learned for these fellows. Even after the
nation would spiral into civil disorder and failed coup in Venezuela in 2002, the U.S.
instability and the government would be government instigated the overthrow of Jean
labeled a “human rights violator” or interna- Betrand Aristide, the elected president of
tional pariah. It wasn’t until all these efforts Haiti, in early 2004, this time successfully.
had failed three years later that the coup plan U.S. intervention strategy in Venezuela has
proceeded forward. adapted to its circumstances. Quickly picking
The tactics used in Chile were preserved itself up after the failure of the Chilean inter-
for future use by the U.S. government. The vention model in Venezuela, the U.S. moved
embarrassment of some members of Congress on to more modern tactics.
over the U.S. role in the overthrow of a dem-
ocratically elected president and its uncondi- THE NICARAGUA MODEL
tional support for a brutal dictator who went During the 1980s, the U.S. government
on to commit human rights atrocities for more was heavily involved in Nicaragua. More than
than a decade merely affected the tone of $1 billion(5) was invested into removing the
future interventions, but not the substance. In Sandinistas from power, first through armed
Venezuela, the U.S. applied many of the same struggle and later through electoral interven-
tactics it had used in Chile – the formation of tion. The National Endowment for
a movement bringing together labor unions, Democracy, the U.S. Agency for International
business associations, political parties and Development and the Central Intelligence
social organizations, the economic sabotage Agency shared terrain in that small Central
and the strikes. And of course, the bloody American nation and these entities applied a
coup. But the failure of this strategy to take series of methodologies that had been suc-
root in Venezuela led the U.S. government to cessful in prior interventions in Chile, the
alter its tactics, to merge together strategies it Philippines and Panama, to name a few.
had successfully applied in other Latin The U.S. started a dirty war in the late
American nations and to modernize its 1970s in Nicaragua against the Sandinistas
methodology. government and decided to make that tiny
It seems almost surprising that in the year nation the “test case” of its new strategic oper-
2002, the U.S. government would conceive of ations. Ronald Reagan’s administration creat-

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THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

ed the “contras”, a fifteen thousand-strong Studies and the American Enterprise Institute
armed counterrevolutionary force that brutal- together with representatives from the
ized and terrorized Nicaraguan citizens at the National Security Council (NSC) and the
behest of the U.S. government. Alleging fears USIA, the propaganda office of the U.S.
that “communism” would “spread throughout Government, proposed the creation of an
the region”, the Reagan administration justi- institution funded by Congress to provide
fied the widespread human rights abuses and financial and political support to groups and
atrocities committed at the hands of its CIA- organizations working in U.S. interests
trained counterrevolutionaries. However, after abroad. The institution would focus on “pro-
several years of armed combat that resulted in moting democracy” abroad through financial
strengthening, rather than weakening, the support intended to foster the “infrastructure
Sandinista government, the U.S. Government of democracy” that would enable a free press,
had become so desperate that it had to sell unions, political parties, universities and
arms to Iran illegally in order to support its social organizations to function in the inter-
billion-dollar conflict in Nicaragua. Seeing its ests of U.S. foreign policy.
own failure in Nicaragua, officials in the In 1983, resulting from APF recommenda-
Reagan Administration proposed a change in tions, the National Endowment for
U.S. policy – a move towards a “democratic” Democracy (“NED”) was established by
solution rather than an armed conflict. Congressional legislation, the “National
Coming out of the 1970s, the U.S. Endowment for Democracy Act” (P.L. 98-
Congress was hesitant to finance covert oper- 164), and Congressional funding was author-
ations in Latin America after the harsh revela- ized to ensure its success. At the time of the
tions of the U.S. role in the overthrow of NED’s creation, the APF had also recom-
Allende in Chile were made public through mended the formation of “core grantees” to
Congressional investigation.(6) The Congress act as funnels for Congressional funds to
had imposed substantial restrictions on CIA reach political parties and partisan groups in
funding and support of private groups and other nations. The core grantees, which
organizations in other nations, therefore ham- included the Center for International Private
pering the capacity of the U.S. government to Enterprise (CIPE), the National Democratic
covertly build networks that supported U.S. Institute (NDI), the International Republican
interests abroad. The Iran-Contra scandal Institute (IRI) and the Free Trade Union
made financing of such groups even more dif- Institute, connected to the AFL-CIO and later
ficult and it became obvious that a new denominated the American Center for
approach was necessary. International Labor Solidarity (ACILS), were
all connected through an interlocking board of
THE NATIONAL ENDOWMENT directors that even shared influences within
FOR DEMOCRACY the NED and the US Congress.(7)
In the late 1970s, the American Political The NED was created to serve as the per-
Foundation (APF), a coalition of labor, busi- fect conduit for U.S. government funds to pro-
ness, political and academic leaders, formed vide international political aid that would sup-
with the objective of seeking new methods of port its interests abroad and influence foreign
achieving U.S. foreign policy goals abroad and domestic policy in nations of strategic
despite the Congressional restrictions in importance. Established during the Cold War,
place. The APF, funded by Congress and com- the NED’s objectives reflected a neoconserv-
posed of ultra-conservative think tanks such ative agenda that prioritized its global struggle
as the Center for Strategic and International against communism over democratic notions

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Eva Golinger

of sovereignty and self-determination. Hence, Nicaragua against the Sandinistas and this
the NED’s premiere in Nicaragua provided a time around, the effort was a “no holds
major dose of U.S. intervention on a political barred” full-fledged electoral intervention to
and electoral level and its technique was per- ensure the U.S.-selected candidate would
fected over the course of nearly a decade. assume the presidency. The CIA had been
In Nicaragua, the CIA had originally been financing Nicaragua’s main newspaper, La
the principal conduit for financing the anti- Prensa, during the Sandinista-contra war, and
Sandinista movement (the Contras), but after passed on the baton in large part to the NED
their failure to unseat the Sandinistas during and its international affiliates during the late
the 1984 elections, the NED was employed to 1980s. Control of media was a major tool in
ensure success in the 1989-90 ballot. In fact, the propaganda war intended to not only win
during the 1984 elections, the U.S. was so over supporters internally in Nicaragua, but
sure of their defeat that they advocated for also to filter news and information to the
widespread voter abstention on the opposition international press with a guaranteed anti-
side in order to discredit the elections, which, Sandinista and pro-U.S. spin. The Venezuelan
despite U.S. power and influence, still failed. government, then headed by Carlos Andrés
Therefore, the second time around the U.S. Pérez (in his second term), played a major
decided to take a thoroughly proactive role in role in the funneling of funds and support
the electoral process. Through the formation from the U.S. government to the CDN, UNO
and crafting of an opposition movement com- and La Prensa.
prised of social organizations, political parties Carlos Andrés Pérez (“CAP”) had devel-
and NED affiliates, the U.S. government was oped close ties to the Chamorro family while
able to foment and control the outcome of the in exile in Costa Rica during the Pérez
Nicaraguan elections. The U.S. pushed for the Jiménez dictatorship in Venezuela. He addi-
unification of the various political parties and tionally had ties to other influential
social organizations that opposed the Nicaraguans that he had developed during his
Sandinistas, many of which were far right and first presidential term from 1976 to 1980.
shared conservative agendas with the Reagan- CAP was eager to offer Venezuela’s support
Bush administration. In fact, the U.S. made for the U.S. efforts to oust the Sandinista gov-
financing through the NED to these organiza- ernment through the strengthening of an anti-
tions contingent upon their formation of a uni- Sandinista civil opposition. Beginning in
fied group, the Coordinadora Democrática 1989, the CIA rerouted a minimum of
Nicaragüense (“CDN”), capable of winning $200,000 monthly through Venezuelan pri-
the 1989-90 elections. The CDN was com- vate foundations destined to fund La Prensa
prised of four conservative political parties, and campaign materials for the UNO. CAP
two trade union groupings affiliated with the maintained close contact with President Bush
AFL-CIO, and a private business organiza- during the electoral process in Nicaragua and
tion, COSEP, that had close links to influential even appointed his Secretary of the
U.S. corporations and figures in the business Presidency, Beatríz Rángel, as his personal
community. Closer towards the elections, the representative in his contacts with Bush.
NED blackmailed the fourteen opposition par- According to one source, Rángel was
ties in Nicaragua into forming one party, observed carrying a suitcase “stuffed with
UNO, that would endorse the U.S.-chosen secret funds from Washington and Miami to
candidate, Violeta Chamorro, for the presi- Caracas” destined for the Nicaraguan opposi-
dency. tion’s campaign.(8)
The U.S. could not afford another loss in Venezuela’s largest union, the

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THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

Confederación de Trabajadores Venezolanos Sandinistas from power. First armed conflict


(“CTV”) worked in connection with the NED was exploited, then a skillfully crafted elec-
and the AFL-CIO to establish ties with work- toral intervention plan that involved the for-
ers and unions in Nicaragua, with the goal of mation of a capable opposition movement, the
incorporating them into the opposition move- selection and molding of an opposition candi-
ment.(9) CAP also recommended the use of date, the unification of diverse opposition par-
the U.S. polling firm, Penn and Schoen ties, the buying of media to win the propagan-
Associates, to conduct a polling program in da war(10), the financing of the opposition’s
Nicaragua as part of the electoral intervention electoral campaign and the use of internation-
agenda. Penn and Schoen had done polling for al networks to covertly funnel additional
CAP’s presidential campaign together with funds to the opposition and media in
the Venezuelan firm DOXA and had also been Nicaragua and ensure regional support for the
used successfully as part of U.S. electoral U.S. selected candidate. The U.S. interven-
intervention in Panamá. Penn and Schoen tion scheme also involved the use of U.S.
later became the polling firm of choice for selected polling firms to influence opinions on
these types of interventions and have subse- the electoral process and the creation of a
quently been used in the former Yugoslavia “neutral” Nicaraguan non-profit entity dedi-
during the elections that ousted Milosovic cated to “electoral education” during the
from power and most recently, in Venezuela, campaign.
during the recall referendum against President Vía Cívica, as it was denominated, was
Chávez on August 15, 2004. In fact, in created at the behest of the NED to function as
Venezuela, Penn and Schoen came under a conduit for funds to finance the electoral
international scrutiny for allegedly producing process directly. Since Nicaraguan law pro-
fraudulent exit poll results conducted with hibited the direct financing of political parties
Venezuelan NED-grantee, Súmate, that were and campaigns, as does U.S. law, the NED
intended to discredit the official results of the had to seek alternative routes to channel its
referendum. funds. NED’s “core grantees” were used to
The Venezuela connection with the NED finance the opposition parties, as were the
and CIA intervention in Nicaragua in the late pathways provided by the CAP administration
80s evidences the strong bond that was in Venezuela, but the creation of Vía Cívica
formed between those entities and politicians offered an overt and direct channel. As the
involved in the actions of that period. Such elections neared in late 1989, the U.S.
relationships have clearly been integral in the Government actually trapped the Nicaraguan
recent interventions the U.S. government has government into permitting the financing of
pursued in Venezuela during the Chávez era. the opposition’s campaign to the tune of $9
CAP particularly has played an interesting million, despite the prohibitions in place by
role in the three different interventions the law.(11) Vía Cívica, an alleged “non-partisan
U.S. has engaged in ultimately in Venezuela civil society” organization, was additionally
and has served as a liaison between old-school utilized to influence the electoral process in
officials and other influential individuals in favor of the opposition by preparing and dis-
the U.S., as well as a facilitator of funds to tributing electoral material and conducting
those who led the coup against Chávez and as “electoral education” workshops and confer-
an international propagandist spreading harsh ences that clearly showed bias towards the
critiques of the Chávez administration. opposition.
In Nicaragua, the U.S. utilized a variety of The major U.S. investment and interven-
tools and methodologies to remove the tion in Nicaragua was successful. In 1990,

9
Eva Golinger

Violeta Chamorro was declared the winner of million to support hundreds of anti-Goulart
the elections and the Sandinistas were offi- candidates for gubernatorial elections in 1962.
cially removed from power. As a result of the USAID was also used to invest heavily in the
layers and networks the U.S. had built to Brazilian labor movement. The funds were fil-
cover its influential role in the electoral tered through the international branch of the
process, the elections were widely viewed as AFL-CIO, the then American Institute for
“transparent and democratic” and were Free Labor Development (AIFLD), now
accepted internationally. The U.S., satisfied known as the American Center for
with the outcome of its efforts, proceeded to International Labor Solidarity (ACILS), and
expand and implement its new “democratic were controlled on the ground by the CIA. In
intervention” model in other nations. 1964, President Goulart was overthrown by a
CIA-backed coup that resulted in a brutal US-
U.S. AGENCY FOR INTERNATIONAL sponsored dictatorship extending approxi-
DEVELOPMENT mately 20 years.(12)
One of the other entities that existed prior In the 1980s, as part of the move towards
to the Nicaragua intervention and that was “democratic intervention” models, the
also utilized to enable financing of U.S. inter- Department of State established the USAID
ests abroad is the United States Agency for Office of Democratic Initiatives, with the goal
International Development (USAID), an of supporting and “strengthening democratic
international funding entity established by the institutions.” From 1984 to 1987, USAID uti-
U.S. Congress in 1961. USAID was original- lized the Office to filter more than $25 million
ly intended to aid humanitarian development into electoral processes in Latin America.
around the world but also, similar to the NED, Although the NED later assumed similar
had large portions of its funds diverted to sup- operations, USAID has continued to use the
port foreign political movements aligned with Office, now known as the Office of Transition
U.S. interests. Though USAID was created to Initiatives (“OTI”), to intervene in nations
separate military aid from humanitarian and involved in crises that “threaten democracy”.
development aid, it merely became an addi- At the same time, USAID and the NED over-
tional fund for the CIA to dip into for covert lap in funding initiatives for the International
interventions. USAID’s annual budget is Republican Institute and the National
much larger than the NED’s, but the funds still Democratic Institute, both core NED grantees.
originate from the U.S. Congress. USAID is In most instances, the USAID and the NED
also overseen and directed by the Department funds provide financial assistance for elec-
of State, which exercises “make or break” toral processes.
authority over its actions.
VENEZUELA
A NOTE ON USAID In the case of Venezuela, both the NED and
One of the first misuses of USAID funds USAID have played a major role in the ongo-
was during the early 1960s in Brazil. The ing political crisis. In fact, Venezuela’s tur-
CIA was heavily involved in attempts to swart moil has been created in large part by the
João Goulart from succeeding in the Brazilian work of these entities and their overseers.
presidency because he was viewed as “leftist- Similar to its role in Chile, Nicaragua, Haiti,
leaning” and supported “social and economic Panamá and the Philippines, amongst other
reforms” that in the eyes of the CIA had nations, the U.S. has taken it upon itself to
“communism” written all over them. The influence the future of Venezuelan politics
CIA and USAID spent approximately $20 and society. In Venezuela, the U.S. has

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THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

applied its successful model of “democratic dence to support claims(15)


intervention”, which has involved the filtering • Attempting to associate the Chávez gov-
of funds into opposition groups and political ernment with supporting terrorist
parties and the essential political training that groups and networks(16)
enables its counterparts to successfully obtain • Discrediting and destroying the image of
their objective. However, despite adapting to President Chávez
new realities in Venezuela and an unexpected- • Threatening the Chávez Administration
ly strong populace that supports its govern- with potential “hostile” treatment from
ment, the U.S. line of attack has been staved the U.S. Government.
off each time it has been launched. Thus far, All of the above tactics have been used by
the three stages of intervention: the Coup, the the U.S. government in prior interventions in
Strike and the Referendum, have been unsuc- Latin America and worldwide. In Chile, as
cessful, but the tactical and methodological explained previously, an opposition move-
undermining of the Chávez Administration ment that brought together unlikely allies
has evolved and adapted each time to its new amongst labor and business and military was
setting. It is without doubt that a fourth inter- nurtured and financed for years before
vention will occur before President Chávez Allende’s overthrow. Nicaragua saw a decade
completes his term in 2006. long U.S. imposed conflict that attempted to
Within each separate stage, a similar create a “pariah” image of the Sandinistas,
methodology has been utilized that involves financed a war to induce their removal from
several time tested key strategies intended to power and built a unified opposition move-
justify the final result; removing Chávez from ment that, with hundreds of millions of dollars
power. These tactics, which have been utilized from the U.S. government and limitless polit-
previously in Chile and Nicaragua, for exam- ical support, was able to achieve its goal via
ple, include: elections.
• Isolating Chávez from the International
Community THREE STAGES OF INTERVENTION
• Exploiting the tensions between govern-
ment, political parties and civil society I. THE COUP
• Exploiting the problems faced by the Months before the April 11, 2002 coup, the
nation to place blame on the Chávez U.S. government had put into action a skillful-
government ly devised plan to aid the anti-Chávez move-
• Nurturing the opposition to Chávez to ment in its objectives. An opposition to
build a solid anti-Chávez movement Chávez had been loosely formed between
• Financing and politically encouraging unlikely allies that included Venezuela’s
and enabling the opposition to Chávez largest labor union, the Confederación de
• Conducting a media campaign to dis- Trabajadores Venezolanos (CTV), the cham-
credit Chávez’s image and empower the ber of commerce FEDECAMARAS and lead-
opposition(13) ers from the traditional political parties,
• Imposing a war psychosis on the greater Acción Democrática, COPEI, Movimiento al
population through mass media over- Socialismo and others. Despite their differ-
playing conflict scenarios(14) ences, these entities shared a common dis-
• Charging the Chávez government with agreement with the Chávez administration’s
human rights abuses and denouncing policies based on their own loss of political
such alleged abuses in the international and economic power that had resulted from
community without providing real evi- the change of government. This opposition,

11
Eva Golinger

including the CTV, was primarily comprised Consortium). During that same period, the
of individuals and organizations stemming International Republican Institute received
from Venezuela’s elite, or as commonly $339,998 for its work with political parties
referred to in Venezuela, the “oligarchy”. such as Primero Justicia, AD, COPEI and
Although tension and animosity was stir- Proyecto Venezuela, all opposition parties, as
ring amongst Venezuelan elites soon after did the National Democratic Institute, which
President Chávez won his second term under received a total of $250,500 for its work with
the newly ratified Constitution in 1999, it the same political parties as the IRI in addition
wasn’t until 2001 that the opposition coalition to its collaborations with the Fundación
began forming and making its voice heard. Momento de la Gente. The ACILS was award-
History shows that this wasn’t the first time ed more than $150,000 for its work with the
this alliance between the CTV, Fedecámaras CTV in the months before the coup.
and the traditional political parties had been In the years 2000, 1999 and prior, the pri-
formed. In the late 1980s, during Carlos mary recipients of NED funds in Venezuela
Andrés Pérez’s generous collaboration with were the ACILS for its work with the CTV,
the U.S. government, these same entities CIPE for its work with counterpart Centro de
came together to form the National Divulgación del Conocimiento Económico
Democratic Foundation, which was used to (“CEDICE” Center for the Dissemination of
funnel NED monies from the U.S. to Economic Information) and the IRI for its
Nicaragua. So once again, labor, business and ongoing training and shaping of political par-
political parties were unified to promote U.S. ties in the nation. Direct NED grantees in
interests in Latin America. Venezuela during those years included groups
The NED had been present in Venezuela, such as Centro al Servicio de la Acción
though minimally, since the late 1980s when Popular (“CESAP” Center for the Service of
they began financing the CTV. But from 2000 Public Action), Programa para el Desarrollo
to 2001, the NED’s budget in Venezuela Legislativo (“PRODEL” Program for
quadrupled and funding began flowing in to Legislative Development), Fundación
large and small organizations that all shared Momento de la Gente and Sinergia, an organ-
one common characteristic: a public aversion ization dedicated to strengthening other social
to President Chávez. In 2001-2002, the NED organizations aligned with the opposition. All
gave out approximately $850,000 to “promote of these entities have leanings towards the
democracy” in Venezuela. Recipients of the opposition, some more than others. Even so,
money included several Venezuelan organiza- the NED role in Venezuela was relatively
tions that were awarded direct grants from the minor prior to 2001, when the Bush adminis-
NED with no intermediaries and numerous tration increased spending on organizations
other organizations that were given funding capable of forming a solid opposition move-
through the four NED core grantees, IRI, ment to Chávez.
NDI, CIPE and ACILS. Some of the entities On December 10, 2001, the first “general
directly funded by NED in 2001-2002 includ- strike” was called by the loose coalition of the
ed the Asamblea de Educación (Education CTV, Fedecámaras, private media, NED-
Assembly), Fundación Momento de la Gente funded social organizations and opposition
(People’s Moment Foundation), which political parties with the objective of opposing
received a whopping $250,500, Asociación the Chávez government’s proposal of a set of
Civil Comprensión de Venezuela (Venezuelan 49 laws that would implement many of the
Civil Association for Understanding) and the new rights represented in the 1999
Asociación Civil Consorcio Justicia (Justice Constitution. Prior to the strike, high-level

12
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

officials of the U.S. government, including in Venezuela. Taking advantage of the lack of
Colin Powell, George Tenet and Roger leadership and popularity of the traditional
Noriega, had made statements indicating a parties in Venezuela, Primero Justicia had suc-
possible break in relations with the Chávez cessfully landed itself key political positions,
administration, basing such attitudes on including National Assembly seats and sever-
Chávez’s overt opposition to the bombing of al municipal mayor offices in the wealthier
Afghanistan in October 2001. In November sectors of Caracas.
2001, the U.S. government called its ambassa- At the same time as the NED was pumping
dor to Venezuela, Donna Hrinak to consulta- up its funds to key members of the opposition
tion in Washington, generally an indicator of a coalition, the U.S. Embassy in Caracas was
change in relations. In December 2001, sending signs up to Washington that a change
Charles Shapiro was sent to Caracas as the in government was soon likely and the man to
new U.S. Ambassador to Venezuela. fill the president’s shoes was Pedro Carmona,
Shapiro’s history with the State Department president of Fedecámaras, Venezuela’s cham-
clearly provided evidence as to the tone the ber of commerce. In a December 2001 cable
U.S. government now chose to set with from the Embassy in Caracas to the CIA,
Venezuela. Shapiro had worked in the U.S. DIA, National Security Council, and other
Embassy in Chile during the coup against U.S. Embassies in Bogota, Quito, La Paz,
Allende, had later served as Ambassador to El Lima, Mexico, Buenos Aires, Brasilia and the
Salvador during the tumultuous 80s and from U.S. Interests Section in Cuba, Ambassador
1999 to 2001 held the capacity of Director of Shapiro referred to Pedro Carmona as “states-
the Bureau of Cuban Affairs office. man-like” and “the right man for the right
The December 10th opposition-led strike time in Venezuela.”(17) In the months that
paralyzed the nation for one day and set the followed, Carmona and fellow CTV leader
stage for the months to come. The opposition Carlos Ortega took several trips to
organized multiple protests and acts of civil Washington accompanied by other prominent
disobedience and a faction of senior military opposition leaders and NED grantees.(18) By
officers began to “defect” and publicly the end of February 2002, Fedecámaras and
declare a state of rebellion. The private media the CTV, along with opposition-aligned polit-
upped its tone of aggression towards the gov- ical parties and social organizations, were
ernment and overtly gave 100% coverage to calling for massive marches in the streets of
the opposition, rarely presenting balanced Caracas.
news accounts. In March 2002, the On April 10, 2002, a NED sponsored con-
International Republic Institute was given a ference to “promote democracy” in Venezuela
$300,000 grant from the NED to “strengthen had been planned by grantee Consorcio
political parties” in Venezuela. IRI had hand Justicia. One of the headline speakers pro-
selected Primero Justicia as its prime counter- grammed for the conference was Pedro
part in Venezuela and since 1999 had been Carmona, president of Fedecámaras, and can-
crafting and forming this young political party didate select of the U.S. government. But the
into becoming one of the most vocally conference, which was financed by Consorcio
opposed to the Chávez government. In fact, Justicia’s $84,000 NED grant, never took
Primero Justicia had originally formed as a place due to the strikes and protests occurring
non-profit social organization and was con- throughout Caracas that day.(19) Evidencing
verted into a right-wing political party about an increasingly tense situation, the private
the same time that IRI began receiving big media channels aired a high-level General,
NED grants to engage in party strengthening Nestor Gonzalez Gonzalez, declaring rebel-

13
Eva Golinger

lion and publicly calling for President Chávez after, Pedro Carmona, the Fedecámaras chief,
to “step down”. Later, it was revealed that was sworn in as “interim president” and in a
General Gonzalez Gonzalez had pre-fabricat- sweeping first act, he issued a decree dissolv-
ed that media moment in order to prevent ing all of Venezuela’s democratic institutions.
Chávez from attending an Organization of The reading of the “Carmona Decree”, as it
American States (“OAS”) Assembly Meeting was later referred to, was broadcast by the pri-
in Costa Rica, so that the President would vate media and endorsed by more than 395
remain in the country and the coup plan could Venezuelans present in the palace. In the
be activated. General Gonzalez Gonzalez suc- meantime, pro-Chávez legislators, such as
ceeded in his efforts and on April 11, 2002, Tarek William Saab, and other supporters,
CTV, Fedecámaras and the NED-supported were brutally attacked and detained by the
opposition parties held one of the largest ral- Caracas police force, under the control of
lies and marches Venezuela had ever seen. opposition leader and mayor Alfredo Peña.
About midday on April 11, the opposition The IRI had worked closely with Peña during
march unlawfully altered its authorized route 2001 to “shape his image” and the NED-fund-
and millions began storming towards the pres- ed Liderazgo y Visión organization had
idential palace, Miraflores. A pro-Chávez received a $42,207 grant to work with the
rally occurring in front of Miraflores became Caracas police force, several members of
alerted to the opposition’s movements and the which were later charged with the homicides
Presidential Guard was called out to ensure of pro-Chávez supporters killed during the
the two sides, now riled up, would not clash. events of April 11, 2002.(20)
Before the opposition marchers even reached Several accounts indicated that in the
the side of Miraflores where the pro-Chávez course of events on April 11th, multinational
supporters were gathered, shots began ringing media mogul and close Bush family friend
out from atop buildings surrounding the Gustavo Cisneros hosted Carmona, CTV head
palace and the first to fall were in the pro- Carlos Ortega and other opposition leaders
Chávez crowd. Soon, innocent victims from and media owners at his Venevisión television
both concentrations were hit and before it was headquarters for briefings and meetings
clear as to what was happening on the ground, throughout the day. Also, several phone calls
images were broadcast on the private televi- and visits were made between Otto Reich,
sion channels with a voiceover blaming the Elliot Abrams, Ambassador Shapiro and
Chávez supporters for the violence and Pedro Carmona, et al, throughout the day. All
declaring the resulting deaths and injuries the of these contacts were verified later, but
fault of President Chávez. Utilizing the excused as merely “normal communications”
manipulated images as justification, the mili- during a time of heightened risk.
tary officers who had already declared rebel- One of Ambassador Shapiro’s first cables
lion, together with opposition leaders, up to Washington after the intense events of
stormed Miraflores and attempted to force the day began, “Televised scenes of joy have
President Chávez’s resignation. marked the return of Petroleos de Venezuela
As a result of President Chávez’s defiance, (PDVSA) employees to their La Campiña
he was kidnapped and imprisoned in a nearby headquarters building…PDVSA executives
military base. The palace was taken over by underline that the company should return to
opposition leaders and the state-owned televi- normal operations by early next week.
sion channel, which had broadcast a substan- Shipments are expected to resume today.
tially different account of events than the pri- PDVSA spokesperson stated publicly that no
vate media, was shut down by force. Soon oil will be sent to Cuba…”(21) Evidently, the

14
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

least of the U.S. government’s concerns was stop the headlines and editorials in the New
the harsh disruption of constitutional order York Times, Chicago Tribune and other inter-
instigated by a coup d’etat led by its benefac- national press which all praised the
tors. The primary preoccupation of the U.S. Venezuelan president’s undemocratic ouster
government appeared to be its guaranteed oil in the same tone as the Bush Administration.
flow. Venezuela is the fourth largest exporter The Venezuelan papers though, had become
of oil in the world and the closest major oil remarkably silent. After multiple outbursts of
supplier to the United States. Venezuela also joy and elation for Carmona’s takeover and
owns eight oil refineries in the U.S. and the Chávez’s forceful removal, the media was
Citgo gas chain. Based on Ambassador silent on April 13th and 14th, imposing a
Shapiro’s reports of jubilance in the streets of blackout on information and news about
Caracas and the “statesman-like” Carmona developing events. Ambassador Shapiro’s
now in control of this strategically important next cable up to Washington carried the title,
country, President Bush’s spokesman Ari “Triumphant Return of Chávez” and referred
Fleisher publicly announced the U.S. govern- to the Carmona decree as an “ill-fated decla-
ment’s support for the “Carmona ration.”
Administration” and its condemnation of “Ex- As calm and normalcy were established in
President” Chávez for inciting the violence Venezuela in the following days, the U.S.
that forced him to “resign.” The U.S. was one government was forced to issue a statement
of the only countries in the world to rush to recognizing the legitimacy of the Chávez gov-
judgment on the muddled events of April 11th ernment. But that did not stop the continued
and to openly laud and recognize Pedro efforts to oust Chávez through other means. In
Carmona as a legitimate president. April 2002, shortly after the failed coup, the
Considering that officials of the U.S. U.S. Department of State issued a grant of $1
Government had been prepping Mr. Carmona million in “special Venezuela funds” to the
for this moment for months explained the NED. The NED proceeded to distribute these
immediate level of confidence they had in extra funds to the very same groups that had
him. just played key roles in the coup against
The events of the following 48-hours dras- President Chávez. Asamblea de Educación,
tically altered the old-school coup plan that whose president Leonardo Carvajal had been
had at first appeared successful. Millions of named Education Minister by Carmona, was
Chávez supporters filled the streets on April given a new grant of $57,000. Fundación
13th demanding his return to office. At the Momento de la Gente, whose director
same time, President Chávez was being held Mercedes de Freitas has tried her best to
captive in another military base close to explain to the NED that a coup never took
Maracay, Turiamo, where allegedly a plane place, was awarded $64,000. Asociación
was set to take him outside of the nation. The Civil Liderazgo y Visión, at the time directed
President Guard, along with other factions of by Oscar Garcia Mendoza, who not only pub-
the military that had remained loyal to lished two congratulatory declarations to the
Chávez, swiftly forced Carmona and his advi- Carmona government in the national newspa-
sors into detention and returned the palace pers on April 12th, but also signed a civil soci-
grounds to the Chávez cabinet members, who ety decree recognizing the legitimacy of
then initiated the rescue of the constitutional Carmona as president, received $42,207.
president, Hugo Chávez. CEDICE, through NED core grantee CIPE,
Chavez’s return to power in the early was awarded $116,525, despite the fact that its
morning hours of April 14th came too late to Director, Rocio Guijarro, was one of the first

15
Eva Golinger

signers and endorsers of the “ill-fated” to the success of OTI programs because they
Carmona Decree. And the International are expected to overcome the significant chal-
Republican Institute, which had issued a lenges posed by “war torn” or otherwise
laudatory statement in favor of the coup and unstable countries in which OTI oper-
Carmona’s takeover on April 12, was given ates.”(23)
$116,000 to continue its work with Primero In Venezuela, the OTI set up shop in the
Justicia, despite the fact that several of the U.S. Embassy in Caracas in June 2002. From
parties’ leaders had signed the Carmona the beginning, the OTI program has been
Decree and one had even been named closely coordinated with the U.S. Embassy
Minister of Finances under Carmona. The and in fact, the OTI program director reports
ACILS was given an additional $116,525 to directly to the U.S. Ambassador. The OTI’s
finance the CTV, despite the union’s visible initial budget in 2002 was $2,197,066 - more
participation in the coup. than double that of the NED’s for just half a
The failure of the coup resonated uncom- year. Soon after its founding in Venezuela, the
fortably with the U.S. government. The $1 OTI awarded Development Alternatives, Inc.,
million special grant from the State a private U.S. consulting company, with a
Department for NED projects in Venezuela $10,061,062 contract to establish and monitor
clearly was not going to cover future efforts at a grant fund and program in “direct response
regime change in Venezuela. Therefore, just a to increasing political polarization in
few months after the coup, the State Venezuela.”
Department ordered the placement of a
USAID Office of Transition Initiatives THE STRIKE
(“OTI”) in Venezuela. Development Alternatives, Inc. (“DAI”)
The concept of the OTI was established by quickly moved to establish its office in the
USAID in 1994 “to respond to countries expe- swanky El Rosal sector of Caracas, right
riencing a significant and sometimes rapid down the road from the International
political transition, which may or may not be Republican Institute’s Venezuela headquar-
accompanied by a social and/or economic cri- ters. DAI also promptly complied with its
sis.” The OTI “assesses, designs and imple- contractual obligations and announced the
ments programs that have characteristics of creation of the Venezuela Construction of
being fast, flexible, innovative, tangible, tar- Confidence Initiative or Venezuela: Iniciativa
geted, catalytic and overtly political, focusing para la Construcción de Confianza (“VICC”).
on the root causes of the crisis.”(22) OTIs DAI claimed its purpose, along with the OTI,
have been used previously in Kosovo, Haiti, was to step in “to assist Venezuelans in foster-
Indonesia, Peru, Guatemala, the Philippines ing political conditions that would preclude
and Colombia, amongst other nations. USAID violent conflict and systemic breakdown.”
generally engages its OTI to establish on the (24)
ground relationships with political organiza- Yet both DAI along with the NED chose to
tions, media and NGOs and to provide neces- fund many of those very same groups that had
sary funding and training to obtain desired openly participated in and even led the coup
results. OTIs often use contractors to provide against President Chávez just a few months
additional support and administration of prior. One of the first few grants DAI distrib-
funds. The contractor sets up a parallel office, uted in Venezuela, under its VICC program,
hires staff, establishes communications sys- was for the purpose of “Promoting social dia-
tems and selects and monitors grantees. logue and citizen formation” using mass
According to USAID, contractors are “critical media. The project involved the creation of

16
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

television and radio commercials to promote aganda war had begun.


“democratic and modern values, rupturing After the failure of the coup in April and
with the patterns of paternalism and pop- the installation of the OTI in June and later the
ulism.” (25) The project also assured the col- initiation of the DAI Venezuela initiative in
laboration of Fedecámaras President Carlos August, the Coordindora Democrática (“CD”)
Fernandez. After the failed April coup, emerged. Strange timing, familiar name. Born
Carmona had escaped from his home arrest in the likes of the Coordinadora Democrática
and fled the country, seeking and obtaining Nicaragüense, the Venezuelan CD was com-
political asylum in neighboring Colombia. posed of Fedecámaras, the CTV, numerous
Fernandez was left holding the reigns of the civil society organizations and about ten dif-
nation’s most powerful business association, ferent political parties, many of which were
and he continued Carmona’s efforts to seek ongoing NED recipients. Instead of reflecting
premature removal of President Chávez from on the incidents of April 11-14 that had para-
office. lyzed the nation and altered Venezuela’s
The particular timing of this DAI project future, the CD immediately began working on
focused on radio and television commercials the next phase. Although the Organization of
was key. On December 2, 2002, Fedecámaras, America States had sent a delegation to help
the CTV and the opposition parties, now “negotiate” a solution, led by Secretary
known as the Coordinadora Democrática General Cesar Gaviria, the opposition was set
(Democratic Coordinator), launched a nation- on just one way out of the crisis: Chávez’s
al “general strike” intended to destabilize removal from the Presidency.
Venezuela’s economy and force President In October 2002, dissident military offi-
Chávez to resign. In support of the opposi- cers, many of whom had played key roles in
tion’s objectives, the private media symboli- the coup, declared a state of rebellion and
cally joined the strike by suspending all regu- claimed a plaza in the wealthy eastern section
lar programming and commercials and donat- of Caracas, declaring it a “liberated zone.”
ing one hundred percent of air space to the The CD and the private media, which publicly
opposition. The Coordinadora Democrática, supported the military rebellion, utilized the
with the help of Venezuela’s top public rela- growing chaos as a platform to call for a
tions firms, produced some of the most highly “national strike” in early December. On the
crafted anti-Chávez commercials Venezuelans second day of the strike, Secretary of State
had ever seen. These commercials, broadcast Colin Powell met with interim coup president
often ten at a time in between coverage of Pedro Carmona in Bogotá, Colombia, who
opposition marches, speeches and interviews, according to Colombian papers, had met fre-
contained varying messages on Chávez’s fail- quently with the U.S. Ambassador in that
ures, alleged human rights abuses and on the nation, Ann Patterson.(26) Considering that
overall political crisis and poor state of the Carmona was still in contact with his
nation. Some of the commercials exploited Fedecámaras counterpart and that the business
images of children singing and stamping red association was the principal instigator and
colored handprints, symbolizing blood, on promoter of the strike, the meeting between
walls, with messages about the “future of the the U.S. Foreign Minister and an exiled coup
nation”, the “safety of children” and the “need leader playing an ongoing role in destabilizing
for a new Venezuela”. The DAI radio and tel- a democratic nation seemed out of place. But,
evision commercial project in collaboration apparently, such behavior was the norm for
with Carlos Fernandez began on December 9, the U.S. government. In fact, Pedro Carmona
2002, just 7 days after the strike and the prop- had made frequent, uninhibited trips to the

17
Eva Golinger

United States right after the coup in April and imally cover its contractual obligations. Lines
it wasn’t until international pressure augment- for gasoline in some parts of Venezuela were
ed that the State Department revoked his more than five miles long. As the strike con-
tourist visa.(27) tinued through the end of December, many
The CD-led strike lasted 64 days, into taxi drivers and car owners spent Christmas
February 2003. The economic damage Eve staked out in their cars on line, waiting
exceeded billions of dollars. The strike, which for a ration of gasoline. Millions of citizens
in many areas was more of a lockout, since with no electric appliances were forced to
business owners shut down companies there- cook with wood fires, even in the middle of
fore forcing employees to not work, had Caracas, throughout the 64-day strike.
focused on the oil industry, Venezuela’s life- INTESA’s majority shareholder, SAIC,
line and principal source of income. A faction which owned 60% of the company to
of workers in PDVSA, primarily high man- PDVSA’s 40%, is a major contractor for the
agement employees led by Juan Fernandez, U.S. government. With former chiefs of staff,
formed an entity denominated “Gente de ex-CIA agents, and high-level government
Petroleo” that became a part of the CD. The employees comprising its Board of Directors,
high level managers and other workers in SAIC is closely linked to the U.S. govern-
PDVSA who joined the strike, not only violat- ment, and not just through contracts.
ed their own contracts, but also made it Furthermore, cables sent from the US
impossible for supplemental workers to Embassy during the negotiations between
access codes and authorized areas in order to PDVSA and SAIC regarding the formation of
run the refineries and other industry opera- INTESA stated that the joint venture was of
tions. A little known but strategically impor- “critical importance” to the United States.
tant venture between a U.S. company with PDVSA’s President, Ali Rodriguez, tried to
CIA ties, Science Applications International amicably resolve the situation with INTESA
Corporation (“SAIC”), and PDVSA, called during the strike by informing the company of
INTESA, played a key role in crippling its contractual obligations requiring it to con-
Venezuela’s oil industry. tinue its provision of services, despite exterior
INTESA, the Information and Technology occurrences. Once INTESA’s management
enterprise that was formed to run all electron- refused to comply with PDVSA, Rodriguez
ic operations at PDVSA and to update many requested they turn over access codes to
of the older, analog systems to high tech, not equipment so that PDVSA employees could
only promptly joined the strike, but also inten- operate the machinery and get the industry off
tionally sabotaged essential equipment and the ground. This exchange went on for sever-
networks necessary to run the industry. From al weeks. INTESA continued to refuse coop-
remote locations, INTESA employees altered eration with PDVSA and eventually, PDVSA
access codes and programming, making it employees had to enter INTESA headquarters
impossible for remaining PDVSA workers to and seize operating equipment in order to
run computers, machines and refinery equip- return Venezuela’s oil industry to a functional
ment. As a result, Venezuela’s oil production state.
was brought to a halt, and the losses were dev- At the same time, the White House had
astating. Not only were common Venezuelans called for “early elections” in Venezuela in
denied gas and oil, but also Venezuela’s con- order to end the political crisis. The U.S. gov-
tracts with international partners were severe- ernment, which had tacitly supported the coup
ly threatened. Venezuela had to purchase just nine months prior, now again supported
petroleum from other nations in order to min- an unconstitutional solution in Venezuela. The

18
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

Venezuelan Constitution has no provision for international intervention.(30)


calling “early elections” when political crises In a strange coincidence of time, place and
arise. Nevertheless, on December 13, 2002, facts, a new entity was born in Venezuela. As
the White House issued a statement declaring, SAIC was pushed out of PDVSA, losing its
“The United States is convinced that the only grip on the most important oil industry in the
peaceful and politically viable path to moving Western hemisphere, Súmate, a technological-
out of the crisis is through the holding of early ly advanced, elections-focused non-profit run
elections.”(28) On that same day, Richard by opposition-aligned wealthy Venezuelans
Boucher, spokesperson for the State was established.(31) Súmate’s premiere came
Department made a revealing comment in a at the tail end of the strike, which had failed in
daily press briefing, stating, “…an early elec- its objective of ousting Chávez, but had suc-
tion, we think, is the kind of solution that’s ceeded in making Venezuelans’ lives miser-
needed. And I guess you could say that’s our able through economic devastation. The
objective…”(29) Clearly, the U.S. had an opposition was heeding the “early elections”
objective in mind: undermine the Venezuelan calls of the U.S., but the government rightful-
Constitution by calling for unconstitutional ly refused to permit such an unconstitutional
elections in order to push Chávez out of office gesture. Súmate offered an alternative to a
under the guise of a democratic electoral desperate opposition movement and an eager
process. After all, who could deny that elec- U.S. government: a referendum.
tions are democratic. Venezuela’s 1999 Constitution includes a
During that same period, the Department provision in Article 72 to solicit a recall refer-
of Defense was sending bogus intelligence endum on any public official’s mandate after
reports to Washington in an attempt to paint a the halfway point of the term has been met.
pariah image of President Chávez, therefore The referendum must be solicited by 20% of
justifying any actions taken against him. One the electorate and then a greater number of
December 2002 cable falsely claimed that voters that elected the official must vote to
Chávez had “ordered the destruction of televi- recall, and those recall votes must have a
sion stations Globovisión, Televen, Canal Dos majority over those voting to keep the official
and possibly other media outlets. These in office. It is a complex process.
attacks are scheduled to take place on the Unfortunately, Súmate, riding the high of its
evening of 12 December.” Such allegations clever proposal, forgot to read the content of
were entirely false. President Chávez had Article 72 and in early February 2003, began
never ordered such attacks, nor were these sta- a signature drive to petition for a referendum.
tions ever destroyed. In fact, those very same Claiming they had collected millions of
television outlets were broadcasting 24-hour a signatures in support of a recall referendum
day, uncensored anti-Chávez messages that in on President Chávez’s mandate, Súmate
many cases were violent and aggressive and demanded the government immediately con-
the State had taken no action to inhibit free- vene an election. Súmate’s demands fell short
dom of expression. But those receiving the on the ears of the Venezuelan government,
information up in Washington did not know since the halfway point of President Chávez’s
that the report was false. The same report dis- term had not yet been met, but another gov-
cussed “Cuban troops and Revolutionary ernment heard them loud and clear. The U.S.
Armed Forces of Colombia guerrillas in government awarded Súmate for their brave
Venezuela to support Chávez”, clearly intend- and bold actions handsomely. Both the NED
ing to link the Venezuelan leader to and USAID granted Súmate funds to continue
Colombian terrorists, opening the door to their fight for the referendum.(32) Súmate, in

19
Eva Golinger

the likes of Vía Cívica in Nicaragua, was held that it would not accept signatures gathered in
out to be a neutral entity devoted to electoral clear violation of referendum requirements.
education, but Súmate’s own website clearly The CNE then released a clear set of rules and
stated the organization’s objective was to guidelines that would regulate the referendum
“promote a recall referendum against process. A date was set in late November for a
President Chávez.”(33) Furthermore, petition drive to be held in support of a recall
Súmate’s Vice-President and Treasurer, Maria referendum. If the required 20% of voters’
Corina Machado, had signed the infamous signatures, approximately 2.4 million, were
“Carmona Decree” during the coup, evidenc- obtained, then a recall referendum on
ing a clear anti-Chávez bias and undemocrat- President Chávez’s mandate would be held.
ic tendencies. And Súmate’s President, Súmate promptly launched a massive
Alejandro Plaz, was the Director of the media and propaganda campaign in support of
Andean Office of McKinsey & Company, a the petition drive, referred to as the
consulting firm notoriously linked to the CIA. “Reafirmazo”. Utilizing NED and USAID
funding, Súmate mass-produced anti-Chávez
THE REFERENDUM and pro-referendum materials which were dis-
For fiscal year 2003, USAID’s OTI tributed nationwide. The organization also
requested $5,074,000 for its Venezuela opera- produced little blue cards that affirmed a voter
tions. NED gave out more than $1 million to had signed the petition for a recall referen-
its Venezuela grantees and counterparts, many dum. The cards were distributed at petition
of which were the very same organizations drive tables and voters were told to turn them
that had just spearhead the illegal 64-day in to employers, or else face termination. In
strike that devastated Venezuela’s economy. fall 2003, the OTI requested an additional
DAI also continued to dish out grants to proj- $6,345,000 for use in Venezuela during 2004.
ects falling within its VICC program. After USAID also gave the International
the failure of the strike, it became clear that Republican Institute and the National
the opposition needed to consolidate and Democratic Institute more than $2 million for
focus on a “real” solution, an electoral solu- “strengthening political parties” and “promot-
tion that would appear legitimate in the eyes ing electoral processes” in Venezuela during
of the world. The Constitution opened the 2003-4. NDI’s grant specifically mentioned
doors to the possibility of the recall referen- collaborations with Súmate.
dum and in May 2003, after more than nine Right around the time of the “Reafirmazo”,
months of brokering by the OAS, the opposi- the U.S. launched another attack against the
tion agreed to seek a “peaceful and constitu- Chávez government, this time claiming
tional” solution to the crisis. Since early elec- Venezuela was harboring terrorist training
tions were unconstitutional, the referendum camps and was collaborating with the
would be the only possible way of premature- Colombian FARC and ELN, both groups on
ly removing President Chávez from office. the U.S. list of international terrorist organiza-
Súmate immediately spearheaded a cam- tions. An October article in U.S. News and
paign to force the government to accept the World Reports by Linda Robinson, entitled
signatures it had gathered back in February “Terror Close to Home”, claimed that Al
2003. The private media and international Qaeda, FARC and ELN terrorists had training
press, encouraged by the U.S. government, camps scattered throughout Venezuela. These
supported this demand. Yet Venezuela’s allegations were based on comments by an
National Electoral Council (CNE), an “anonymous U.S. official” and were never
autonomous governmental body, pronounced substantiated. Around the same time, the

20
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

Department of Defense circulated an opposition was provided with a second oppor-


“Intelligence Assessment” alleging Chávez tunity to legitimately obtain the necessary 2.4
had supplied $1 million to the FARC and ELN million signatures needed to hold the recall
in Colombia and was building armed guerrilla referendum. The signature repair period,
groups to defend his “revolution”. The report “reparo”, as it was known, was held at the end
cited as its intelligence sources, El Universal, of May 2004. The Carter Center and the OAS
El Nacional and Globovisión television sta- provided international observation.
tion in Venezuela, all staunchly anti-Chávez By about 100,000 signatures, the opposi-
media. No other sources were provided in the tion obtained the necessary 2.4 million and
report to substantiate the claim.(34) the referendum date was set for August 15,
Despite these international pressures, the 2004. About five days after the announcement
signature collection period went smoothly, but confirming the referendum, the opposition
the CNE later determined only 1.9 million released an alternative plan for a transitional
signatures valid, while another nearly 1 mil- post-Chávez government. Entitled “Plan
lion were set aside and questioned for fraud. Consensus”, the project appeared as the first
The opposition reacted to the news with vio- attempt by the opposition to offer
lence. In February 2004, newly formed Venezuelans anything beyond a strict “get
extremist factions in the Coordinadora Chávez out of office” position. The opposition
Democrática launched the “Guarimba”, a plan had been highly criticized internationally for
allegedly formed by Cuban-Venezuelan having no concrete plans, no viable candi-
Robert Alonso. The “Guarimba” called for dates to oppose Chávez and no platform on
right-wing forces to engage in widespread which to campaign. The “Plan Consensus”
civil disobedience and violence in the streets appeared as the magic solution. But Plan
of Caracas and other metropolitan areas, pro- Consensus’ polished offerings were not born
voking repressive reactions from State forces independently from the opposition. They were
that would then justify cries of human rights in fact the result of a NED grant to CIPE-
violations and lack of constitutional order. CEDICE in 2003, combined with USAID
The “Guarimba” lasted from February 27 to funding that had gone through DAI to several
March 1, 2004, and during that period, numer- opposition groups, including Liderazgo y
ous Venezuelan citizens were injured and Visión and Queremos Eligir.
arrested for violations of law. The opposition- Additionally both IRI and NDI had played
controlled media in Venezuela quickly broad- roles and had financed the crafting of this
cast to the world a prepared version of events “alternative agenda”. It was the goal of the
that cited the government as the “repressor” U.S. to win the referendum and install a tran-
and portrayed claims of those arrested during sitional government that would work best in
that period for breaking the law as “victims of its interests. As such, the referendum cam-
torture and unlawful arrest.” The “Guarimba” paign, via Súmate and the CD, and the alter-
starkly resembled the “Chileanization” strate- native agenda, via NED and USAID grantees,
gy applied in Chile and Nicaragua, using sim- were financed and overseen by U.S. govern-
ilar tactics and provoking identical results. ment agents.(35) The NED chose CEDICE as
As a result of the violence and instability the principal drafter of an agenda for a “tran-
again caused by the opposition, the sitional government” despite the fact that
Venezuelan government, agreed to allow CEDICE’s president, Rocio Guijarro, was one
those signatures that had appeared fraudulent of the initial signors of the Carmona Decree
to be “reaffirmed” by the signors over a four- and was chosen by Carmona to represent
day period regulated by the CNE. As such, the NGOs at his “swearing in ceremony.”

21
Eva Golinger

CEDICE also happened to be one of the most Miami in July 2004, CAP declared to El
fervently outspoken anti-Chávez groups in Nacional newspaper that Chávez deserved to
Venezuela, whose leaders attempted several “die like a dog” and that “violence is the only
times to convince NED program director way to remove him.” (39)
Christopher Sabatini that a coup d’etat did not Several other ex-military officers known to
take place on April 11, 2002, but rather it was have participated in the coup have appeared in
a popular uprising against a “dictator”.(36) Miami, alongside Carlos Fernandez, the for-
Despite the millions of dollars invested in mer Fedecámaras president and Carlos
the opposition to Chávez(37), on August 15, Ortega, former CTV president, who had
2004, more than 59% of Venezuelans voted to obtained political asylum in Costa Rica, but
ratify his mandate and keep him in office. later lost it once he clandestinely returned to
Even though both the Carter Center and the Venezuela and appeared on television in a pre-
OAS certified the official CNE referendum referendum rally. The Venezuelan government
results, the opposition, led by Súmate, cried issued arrest warrants for both Fernandez and
fraud. Súmate claimed it had conducted an Ortega in 2003 for their leadership of the ille-
exit poll, together with the U.S. polling firm gal 64-day strike that caused billions of dol-
Penn, Schoen & Berland, previously used in lars in losses to Venezuela’s economy. The
electoral interventions in Nicaragua, Panamá Venezuelan government also has pending
and Yugoslavia, which showed the exact extradition requests with the U.S. government
opposite results indicating that the vote to for two military officers, German Rodolfo
recall Chávez had exceed 59%.(38) An exit Varela and Jose Antonio Colina, alleged to be
poll by the extreme right-wing anti-Chávez the masterminds behind the bombings of the
party and IRI counterpart, Primero Justicia, Colombian and Spanish Embassies in Caracas
also showed the same result. All other exit in fall 2003. The officers have requested polit-
polls conducted by international firms and ical asylum and have pending cases before
independent observers were in line with the immigration judges in Miami.
official CNE results. However, Súmate and There have also been reports of anti-
the CD claimed the vote had been fraudulent- Chávez terrorist training camps in Miami, run
ly calculated and they refused to recognize the by self-exiled Venezuelan extremists and for-
results. mer military officers, who have joined forces
with Miami’s notorious anti-Castro communi-
THE FUTURE ty. Despite requests from the Venezuelan gov-
Recently, Miami has become a haven for ernment for the U.S. government to investi-
self-exiled Venezuelans seeking new ways of gate these camps, no action has been taken.
ousting President Chávez from his democrati- The Office of Transition Initiatives in
cally elected office. In early October 2004, Venezuela, initially a two-year project accord-
“Guarimba” author Robert Alonso surfaced in ing to USAID, has decided to remain in
Miami, after a warrant had been issued for his Venezuela and has requested an additional $5
arrest in Venezuela in connection with the million for 2005. The NED continues to fund
approximately 80 Colombian paramilitaries opposition groups in Venezuela to the tune of
found on his farm outside of Caracas in May $1 million annually. The next presidential
2004. Also, former Venezuelan president elections are set for 2006 and as such, it looks
Carlos Andrés Pérez has taken root in Miami like that $6 million will be put to use quickly.
and has played a key role in the coup, strike
and destabilization efforts intending to
remove Chávez from office. From his home in

22
THE ADAPTABLE U.S. INTERVENTION MACHINE IN VENEZUELA

(1) The Carmona “swearing in” ceremony was broadcast live on all pri- 163-172.
vate television channels in Venezuela. The document signed by those (13) See Eva Golinger, “Media War Against the People” www.venezue-
present was later left behind in the Presidential Palace after the coup- lanaysis.com.
sters were forced out. On September 19, 2004, government prosecutor (14) Ibid, above.
Danilo Anderson announced he would begin to issue subpoenas to all (15) There are hundreds of complaints filed with the Inter-American
395 signers of the document. Commission on Human Rights that in large part appear to be without
(2) On the morning of April 12, 2002, White House spokesperson Ari merit. There have also been complaints filed against the Chávez gov-
Fleischer stated, “We know that the action encouraged by the Chavez ernment in the International Criminal Court in The Hague and in the
government provoked this crisis. According to the best information Southern District Court in Miami, USA, alleging human rights abuses.
available, the Chavez government suppressed peaceful demonstrations. There has been no decision made in either of these courts on whether or
Government supporters, on orders from the Chavez government, fired not the cases should be allowed to proceed. The charges all appear to be
on unarmed, peaceful protestors, resulting in 10 killed and 100 wound- without merit.
ed. The Venezuelan military and the police refused to fire on the peace- (16) See Linda Robinson’s article in U.S. News and World Report,
ful demonstrators and refused to support the government’s role in such “Terror Close To Home”, October 2003. Robinson attempts to link Al
human rights violations. The government also tried to prevent inde- Qaeda, FARC and ELN terrorists to the Chávez government.
pendent news media from reporting on these events. The results of these (17) Cable declassified by our FOIA requests. Available on
events are now that President Chavez has resigned the presidency. www.venezuelafoia.info.
Before resigning, he dismissed the vice president and the cabinet, and a (18) On February 13, 2002, Carlos Ortega met with Otto Reich in
transitional civilian government has been installed.” http://www.white- Washington, D.C. See
house.gov/news/releases/2002/04/20020412-1.html http://www.state.gov/r/pa/prs/dpb/2002/8034.htm.
(3) Cable sent from the U.S. Embassy in Caracas by Ambassador (19) See David Corn, “Our Gang in Venezuela?”, The Nation, August
Charles Shapiro, obtained under the Freedom of Information Act by 5, 2002.
Eva Golinger and Jeremy Bigwood. Available on (20) See http://www.venezuelafoia.info/NED/IRI/2001-047QR-Oct-
www.venezuelafoia.info. Dec/pages/2001-047QR-Oct-Dec-04.htm and http://www.venezue-
(4) On Sunday, April 14, 2004, on NBC News’ “Meet the Press”, lafoia.info/NED/ACLV/2003-545/pages/ACLV-metroRepre-01.htm.
Condoleeza Rice stated, “Well, I hope that Hugo Chavez takes the mes- (21) Cable from the US Embassy to Washington, April 11-12, 2002.
sage that his people sent him that his own policies are not working for Available on www.venezuelafoia.info.
the Venezuelan people, that he’s dealt with them in a high-handed fash- (22) Taken from USAID’s own background description of its OTI in a
ion. And I hope what he said in his speech this morning, that he under- contract between USAID and Development Alternatives Inc for $10
stands that this is a time for national reflection, that he recognizes it’s million for projects in Venezuela during August 2002-August 2004.
time for him to reflect on how Venezuela got to where it is. He needs to (23) Ibid.
respect constitutional processes. This is no time for a witch-hunt. This (24) See “Building Confidence out of Discord in Venezuela” By Joel
is time for national reconciliation in Venezuela. And we are working M. Jutkowitz, DAI News, www.dai.com/dai_news/text_only/fall_con-
with our partners in the OAS and in the region to try and help Venezuela fidence_in_venezuela_text_only.htm
through this very difficult time. But we do hope that Chavez recognizes (25) DAI grant, G-3822-101-008, available on
that the whole world is watching, and that he takes advantage of this www.venezuelafoia.info. Please note that USAID and DAI deleted the
opportunity to right his own ship, which has been moving frankly in the names of all recipients of the Venezuela project funds. Their stated rea-
wrong direction for quite a long time.” son was “fear of persecution” from the Venezuelan government of the
(5) George Miller, (D- CA), stated that figure was $1billion: “We are groups they were financing.
going into this election process [spending] $1 billion dollars. We fund- (26) See http://colombia.indymedia.org/news/2004/05/12839.php
ed the Contras, we have destroyed [Nicaragua’s] economy, we have (27) Cable from the US Embassy in Caracas, August 14, 2002.
taken Mrs. Chamorro and we pay for her newspaper to run, we funded Available on www.venezuelafoia.info.
her entire operation, and now we are going to provide her the very best (28) http://www.whitehouse.gov/news/releases/2002/12/20021213.html
election that America can buy.” Congressional Record (House), (29) http://www.state.gov/r/pa/prs/dpb/2002/15976.htm
October 4, 1989, p. H6642. (30) Department of Defense cable available on www.venezuelafoia.info
(6) See The Church Report, US Congress (31) On an interesting note, SAIC had recently taken over the develop-
(7) See “National Endowment for Democracy: A Foreign Policy Branch ment of security systems and databases for electronic voting machines
Gone Awry”, A Policy Report by the Council on Hemispheric Affairs in the US market.
and the Inter-Hemispheric Education Resource Center, 1990. Today, (32) See http://www.venezuelafoia.info/USAID/USAID-index.htm and
Republican Senator John McCain and Democrat Madeline Albright http://www.venezuelafoia.info/NED/SUMATE/SUMATE%20
oversee the International Republican Institute and National Democratic index.htm.
Institute, respectively. (33) www.sumate.org
(8) See William Robinson, “A Faustian Bargain: U.S. Intervention in (34) Department of Defense report available on www.venezuela
the Nicaraguan Elections and American Foreign Policy in the Post-Cold foia.info.
War Era”, pp.93. On a side note, Beatríz Rángel currently works with (35) See http://www.venezuelafoia.info/NED/CIPE-CEDICE/CEDI
the Cisneros Group of Companies in New York and Miami, which is CE-index.htm
the multinational corporation owned by media mogul Gustavo (36) See http://www.venezuelafoia.info/NED/Memorandum/pages/
Cisneros, a Cuban-Venezuelan slated to have been involved in the April Memorandum-D40.htm
2002 coup attempt against President Chávez. Up until mid-2004, (37) On Friday, August 20, 2004, Roger Noriega, Assistant Secretary
Rángel was also a Board Member of the Inter-American Dialogue, a for Western Hemisphere Affairs of the State Department, stated, “We
Washington, DC think-tank that has been highly critical of the Chávez have invested a lot of money in the democratic process because we have
administration. faith in civil society, which is a pillar of representative democracy. We
(9) The CTV continues to be one of the NED’s major recipients in have given money to similar types of NGOs in Venezuela by means of
Venezuela, as well as a clear instrument of U.S. policy, evident through the State Department and USAID. Civic groups with the mission to
the union’s key role in the 2002 coup d’etat against President Chávez defend their democratic institutions and demand basic rights for
and the subsequent illegal oil industry strike in winter 2002-3. Venezuelans also represent a good investment.”
(10) The US Government did not just use La Prensa as its only conduit (38) See http://www.sfgate.com/cgi-bin/article.cgi?file=/news/
of information. It also provided funding through the NED, USAID and archive/2004/08/19/international2018EDT0734.DTL&type=printable,
the USIA, the U.S. Information Agency, to finance radio stations and “U.S. firm embroiled in Venezuela referendum controversy defends its
local television outlets in Nicaragua. exit poll”, Associated Press, August 19, 2004.
(11) The US Government accomplished this by promising not to covert- (39) “Violence will allow us to remove him. That’s the only way we
ly finance the opposition through the CIA. However, this promise was have... [Chavez] must die like a dog, because he deserves it
promptly broken.
(12) See William Blum, “Killing Hope: U.S. Military and C.I.A.
Interventions Since World War II”, Common Courage Press, 2004, pp.

23
Bolivarian
Government

Communication
and Information
Ministry

MCI

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