Subject: Discussion with Rep.Ballinger's staffer re meeting with Pres. Chavez
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Date: Wed, 19 Sep 2001 07:46:52 -0700 (PDT)

Gents
	I spoke to Ted Brennan, staffer for Cong. Ballenger, about the meeting the Congressman had with Pres Chavez.  Brennan stated that Ballenger raised a number of requests from his constituents over the course of the meeting which Chavez either acknowledged without really responding or said he would look into.  The Jose project I understand was not raised directly with the President though it was raised with the AmCham and other parties in the government that the Congressman spoke to.
	Brennan commented that the President was preoccupied with the petroleum sector and views oil production as the key to helping the poor.  The President was not inclined, apparently, in this meeting,  to discuss diversification in investment so it was hard for the Congressman to engage him in a discussion about projects outside of the oil sector.  A refinery project was discussed as well as several other oil related projects.  But Brennan's view is that the President does not see as much value in investment outside of the petroleum sector as he does in additional investment in the sector.  Brennan also commented that there is real concern about possible nationalisation of projects in the oil sector.
	
	On a related track, I understand that the Administration's energy bilateral with Venezuela has been pushed back from the 20th into October.  DOE has indicated they have a number of concerns to raise with Chavez about the direction of their energy program, including the government's lack of action on Jose.  So we are clearly on the agenda, and I think probably the number one issue on the gas side.
	I strongly recommend we contact the U.S. Ambassador and work with her to speak to the President about Jose.  I do not believe the intervention of private parties will get the project closed, but rather only the weight of the USG will be able to do it at this point.  thanks John