US ECONOMICS

VENEZUELA / CUBA

U.S. Department of State. April 12, 2019. The United States Takes Action To End Cuba's Malign Influence on Venezuela

Washington, DC - Today, the United States sanctioned four companies for operating in the oil sector of the Venezuelan economy and identified nine vessels as blocked property, pursuant to Executive Order 13850. These actions are a follow-on to the designations announced on April 5, which targeted entities and vessels known to be involved in the transportation of crude oil from Venezuela to Cuba.

Venezuela’s ongoing democratic transition is being impeded by malign actors that continue to prop up the former Maduro regime. Venezuelans lack access to basic necessities, such as water, electricity and adequate health care, while Maduro and his cronies continue to enrich themselves and strip Venezuela of its natural assets.

These actions seek to hinder the regime’s further theft and the predatory influence of Cuba, which takes Venezuela’s oil and pays the regime with security and intelligence forces to keep Nicolas Maduro in power.

The United States will continue to do all we can to stand up against Cuba’s support for the former Maduro regime and its hostility to the Venezuelan people’s aspiration to a peaceful, prosperous, democratic future. Cuba’s intervention only seeks to delay the inevitable—the peaceful transition back to freedom and democracy that is underway in Venezuela, led by the Venezuelan people, Interim President Juan Guaido, and the National Assembly.

LATIN AMERICA

U.S. Department of State. April 12, 2019. Secretary of State Michael R. Pompeo and Chilean Foreign Minister Roberto Ampuero at a Press Availability. Press Availability. Michael R. Pompeo, Secretary of State. Ministry of Foreign Affairs. Santiago, Chile

FOREIGN MINISTER AMPUERO: (Via interpreter) Good afternoon, everyone. This morning, Secretary of State Mr. Michael Pompeo was received by President of the Republic Mr. Sebastian Pinera. After that, we had very fruitful working sessions in the foreign ministry. We’ve gone over through different topics including bilateral, regional, and global topics. Firstly, I would like to say that our bilateral relationship is going through one of its greatest moments. It is reaffirmed by the visit of Secretary of State and the very ample agenda we have based on a shared view of prosperity, growth, and development in subjects of the future and present.

For Chile, the relationship with the U.S. is a priority. We are strategic partners, longstanding strategic partners. Our friendship is based on shared values, principles like democracy, rule of law, respect for human rights, and the value of freedom. These are values that Chile enforces domestically, and we are interested in that they be regionally and universally valid.

With the idea of going deep into high-level meetings, President Pinera has extended a cordial invitation to President Donald Trump for an official visit within the framework of the summit of APEC. Today, President Pinera has reiterated that invitation so as to give a step forward consolidating our bilateral relation.

Mr. Secretary of State, for Chile it’s very important that a strategic partner be with us at the summit to help us promote the APEC agenda. Chile’s promoting subjects like -- future subjects like services and digital economy, connectivity, women, economic growth, all of those subjects. I know Chile and the United States share a common perspective and view. Along those lines, Chile has its robust commitment with free, fair, and inclusive trade as pillars for growth and development of our countries.

And I reiterate the need of having clear rules internationally in this matter. In the bilateral sphere, the United States is a key partner for Chile in different subjects. We are interested in promoting cooperation in emerging issues in areas of cyber security, climate change, the economic empowerment of women, digital revolution, technological cooperation, innovation, and entrepreneurship, among many, many topics that are part of a positive agenda with lots of potential to continue going deep in the relationship of both countries with our perspective to the future.

The United States continues to be the main investor in Chile and scientific and technological partner. It is a very important relationship we want to strengthen because it is mutually beneficial. Relations are important to produce wealth, employment, and Chile has become an interesting hub in the region through clear, stable, and non-discriminatory rules. Regionally, Chile has been recognized for developing an active role in the defense of democracy and human rights. In this area, an inevitable topic is the very deep political and humanitarian crisis of Venezuela. Here, Chile has a clear position: We condemn dictatorship, and we promote democracy according to standards of foreign policy. Chile actively seeks a peaceful way out of the crisis and the return to democracy in Venezuela through free, transparent elections, and according to international standards.

Next Monday, we will host the second ministerial meeting of the Lima Group, as we have done since its inception. We are working together with the member countries for a clear, robust statement in favor of two key elements – return to democracy in Venezuela through a peaceful outlet by Venezuelans themselves, and the attention to this humanitarian crisis suffered by that country. The United States has been a key player to reinforce diplomatic pressure. We have common views for the Venezuelans to express their true democratic will, and for that we will continue to work with the Government of the United States as well as with other friends, countries of America, and Europe so that international community may have a common approach on this.

Finally, we have informed the Secretary of State Mr. Michael Pompeo about the recent creation of forum for South American integration, Prosur, and how Chile, under the leadership of President Sebastian Pinera, has sought to contribute to put an end to an absence of dialogue to – of five years to a light and strong at the same time, mechanism to promote integration in matters like infrastructure, health, or prevention of natural disasters. Thank you very much.

SECRETARY POMPEO: Buenas tardes. Good afternoon. Thank you to President Pinera and to Foreign Minister Ampuero, my friend, for hosting me, and to the people of Chile for being such gracious hosts as well. It’s the first time that I’ve been here to Chile as the Secretary of State. I’m only sorry that I can’t spend more time enjoying your beautiful country.

I want to begin this afternoon by thanking Chile for being a true leader for the Venezuelan people. The United States is grateful for you to hosting – for your hosting of close to 290,000 Venezuelans, many of whom arrived here as refugees from Nicolas Maduro’s socialist regime. Chile’s efforts with the Lima Group, which you just discussed, are especially vital.

I want also to applaud President Pinera for helping isolate Maduro and for showing compassion towards innocent people fleeing the economic and humanitarian crisis in their home country.

In February, Chile contributed significant supplies to Juan Guaido’s humanitarian aid coordinator and demanded that Maduro allow that aid to enter Venezuela. I’m going to meet with Venezuela’s refugees and see the distribution on Sunday in Cucuta, Colombia. You all have been great, important partners, and your people have been most generous.

The United States and its allies will not quit this fight. Chile, the United States, and our 52 partners will continue to support ordinary Venezuelan people who are courageously standing up for democracy in their home country.

I also want to say a few words about Nicaragua. The United States will continue to work with likeminded partners, with countries like Chile to condemn the violence and repression perpetrated by Ortega and his regime. I want to thank Chile for its leadership role in the OAS working group as well. It’s monitoring the situation in Nicaragua and is promoting a more fully-fledged democracy in that country.

Look, as for the United States and Chile and our relations, our economic ties are incredibly robust and growing. We share $27 billion trade relationship. In January we celebrated the 15th anniversary of the United States-Chile Free Trade Agreement. The agreement’s nearly quadrupled our bilateral trade since its inception. That’s truly amazing.

Beyond trade, we’re proud to work with Chile on helping small business owners create jobs in their local communities. Through the Small Business Network of Americas we’ve seen dozens of countries in the region create business incubators. Chile now has more than 50 of them. And we look forward to working with Chile to lower barriers to trade and investment in the APEC region as well. You noted that while Chile has host of the APEC Forum, we know that it will be a tremendous success in November of this year.

And I want to take a moment too to thank President Pinera for the work that he did with leading the creation of Prosur and get it off the ground. It’s terrific to see our partners cooperating on infrastructure, development, health, energy, combating transnational crime, and managing natural disasters. We’re here to help if you need us. I know you’re well along your way. We should all keep in mind that this is historic, it is important, it has not always been this way, and this will benefit the lives of each of the citizens of each of those countries.

Our bilateral relationship too on military issues is very strong. Chile is an important security partner for the United States of America. That’s demonstrated by our military exchanges, by joint exercises, by law enforcement cooperation, and State Department partnership programs as well. And we’ve recently launched the U.S.-Chile Council on Science, Technology, and Innovation, a truly unique public-private enterprise that will propel economic growth in each of our two countries.

Under the America Crece Initiative, Chile and the United States have agreed to work together also to create greater energy security for each of our people.

And finally, there’s the U.S. Visa Waiver Program. Chile is the only country in Latin America participating in that program, and the number of Chileans traveling to the United States legally has more than doubled. I was reminded about the number of Americans traveling to Chile as well. We’re proud of that too.

We should be proud of each of these developments between our two countries. They are tangible signs of nations that have a close relationship and how that relationship is bearing fruit to make lives for each of the citizens of our two countries better. Gracias.

MODERATOR: (Via interpreter) We now move on to questions. John Hudson, Washington Post.

QUESTION: Thank you very much. A question for both gentlemen.

For Foreign Minister Ampuero, as the stalemate over the fate of Maduro continues, the humanitarian situation worsens, and it threatens to prompt an even graver refugee crisis. If this continues to worsen, will you consider working with the Mexicans, Europeans, and others on potentially opening a diplomatic track with Maduro?

And Secretary Pompeo, did you discuss your concerns about China’s influence in Chile? China does twice the business of U.S. companies here, purchases vast amounts of exports, and has contracts with Huawei. How do you view this threat?

And just lastly, The Guardian reported today that you have been urging Saudi Crown Prince MBS to cut ties with Saud al-Qahtani for his alleged role in the murder of Jamal Khashoggi, yet Qahtani is still actively advising MBS. Are you satisfied with the status quo? Thanks very much.

FOREIGN MINISTER AMPUERO: (Via interpreter) Chile is – belongs to the Lima Group, has worked inside and in full agreement with all the members of the Lima Group. This group was created in order to seek a solution to the profound crisis that Venezuela is going through. The efforts of Chile are within the Lima Group.

At the same time, we – as a country we believe that we need to play a role of diplomatic bridge and thus explore all the spaces for convergence existing with other players of international politics. The important thing is that we share the central view. The objective is restoring democracy in Venezuela as soon as possible, at the shortest period possible, and that none of the actions be used by dictator Maduro to prolong his stay in power. So Chile is understood as a country that really seeks dialogue, seeks alternatives where it can have dialogue with other international politics, but always within the Lima Group.

SECRETARY POMPEO: Thank you. With respect to China, the topic was discussed, but I didn’t have to bring it up. The president brought it up and the foreign minister has raised it as well. I think the Chilean Government and the United States Government both share the same concerns. They are a major trading partner for Chile; China is a major trading partner for the United States of America. We welcome that continued trade. When it’s conducted on a fair, free, open, and transparent basis for the benefit of commercial enterprises, the benefit of the Chilean people or the American people, we encourage that trade.

But make no mistake about it: China’s trade activities often are deeply connected to their national security mission, their technological goals, their desire to steal intellectual property, to have forced technology transfer, to engage in activity that is not economic. And one of the things we talked about is how we could share information together so that we would know which was which, so that each country could protect its own citizens, so that each country could stay away from occasions where China was acting in malign or nefarious ways while still understanding that trade between our countries is important. It certainly benefits each of our countries. We want the Chinese people to have better lives too. Fair, free open trade is fine. It is not okay to engage in predatory lending practices. It is not okay to engage in transactions which are corrupt. It is not okay to put technology systems in with latent capability to take information from citizens of Chile or any other country and transfer it back to President Xi’s government. Those are the conversations that we had today, and I am confident we have a full understanding of both the risks and the opportunities associated with China.

Your last question was about Saud al-Qahtani. We – yesterday or this week earlier we put sanctions on Saud al-Qahtani. That’s all I’ll say.

MODERATOR: (In Spanish.)

QUESTION: (Via interpreter) Tomas Celedon. Hello, minister. We are Radio Bio Bio. I wanted to ask you about the trip of President Pinera to the China. For example, is there a possible visit to the Huawei company? Is the president, President Pinera, going to visit that company?

And what is Chile’s position about a peaceful way out to the Venezuelan situation?

FOREIGN MINISTER AMPUERO: As you know, Chile’s position vis-a-vis the profound crisis and tragedy of Venezuela is that the solution is to be a political solution, a constitutional solution, and a peaceful one. That is Chile’s position. We have raised it, reiterated, and also it is – we have stated this within the Lima Group. It is a principle and – shared by all the members of the Lima Group.

As to the visit of President Pinera to China, I must say that China is our main trade partner. It is – insofar as investments, it’s only 0.26 percent of foreign investments in Chile. It’s marginal. And the United States is our main investor. We have a strategic relationship with the United States. We have a longstanding friendship with the United States. And what’s important and I must highlight is that Chile, with a pragmatic policy insofar as foreign trade and seeks new markets, new free trade agreements, yes, but at the same time we clearly know that we belong to a community that shares values, values of democracy promotion and defense; advocacy of democracy, of human rights, individual freedoms, and free trade.

MODERATOR: Thank you very much for your attendance.

U.S. Department of State. April 12, 2019. Remarks on U.S. Latin American Policy. Michael R. Pompeo, Secretary of State. Casa Piedra. Vitacura, Chile

MS GUAZZOTTI: Good afternoon. On behalf of the Chilean North American Chamber of Commerce, AmCham Chile, I would like to welcome you all to this important event in honor of the visit of the Secretary of State of the United States, Mr. Michael Pompeo.

A hundred years ago, a group of visionary entrepreneurs created AmCham Chile with the purpose of strengthening bilateral commercial ties, encouraging investments, free trade, and the full integration between both countries. These goals were not only valuable to the members of the chamber, but also to Chile.

The founding entrepreneurs of AmCham Chile would be proud of the results we have achieved. We are commemorating the 15th anniversary of the signing of the U.S.-Chile Free Trade Agreement, one of the most successful trade agreements for both countries. The U.S. has made over $30 billion U.S. of investment in Chile, and the U.S. also offers ever-increasing investment opportunities for Chilean outward investment. More importantly, the presence of American companies has brought forth less visible yet impactful consequences. Significant investments in human capital, technological developments designed to enhance the quality of our daily lives, incorporation of best practices, investments in research and development, and the introduction of policies to promote diversity and inclusion have been hallmarks of American participation in the Chilean economy.

The legacy left by the partnership for development between Chile and the United States is undoubtedly a source of pride for both countries, and provides us with an immense challenge: that of having to define the next 100 years of bilateral relations. We’re confident that Chile will continue to be competitive as a country and maintain key conditions that attract foreign investment – the rule of law, strong institutions, democracy, and a commitment to human rights as well as nondiscriminatory treatment of foreign investors.

Secretary of State Pompeo’s visit today reflects the longstanding, broad-based ties that bind Chile and the United States. He was sworn in as the 70th secretary of state one year ago, but this is only the latest in a long line of extraordinary accomplishments. Secretary Pompeo previously served as director of the Central Intelligence Agency and as a member of the U.S. House of Representatives. In the private sector, he founded Thayer Aerospace, where he served as CEO, and he was president of Sentry International. Secretary Pompeo is a graduate of the United States Military Academy and of Harvard Law School. It is my honor to welcome to the podium the Secretary of State of the United States Mr. Michael Pompeo. (Applause.)

SECRETARY POMPEO: Thank you. Thank you, Sandra, for that kind introduction. Buenas tardes. And it’s a wonderful, warm welcome that I have received here in Chile. It’s truly been overwhelming. I don’t find that every place I go, so thank you.

President Pinera and Foreign Minister Ampuero, you have demonstrated again this morning that the U.S.-Chilean relationship is strong and getting even stronger today.

Today we had the opportunity to build on the meeting that President Trump had with President Pinera in the White House in this past September. And I was with President Trump right before I got on the plane to come here, and he sends his warm regards to President Pinera and all of you here in Chile.

I also want to acknowledge my counterpart foreign minister. We have become good friends. The Chilean members of congress are here; thank you. The diplomatic corps that has joined us, distinguished guest, thank you all for being here today. I want to make sure that the message that I share with you today is taken just the right way, and your presence gives me the opportunity to do that.

You all know the beauty of this place, this landscape. It is really awe-inspiring, from the Andes, the beautiful lands up north, to Easter Island, to Patagonia, and all of the wonderful, gorgeous, special places in between.

Just like the American West, it’s rugged. It’s clear too that Chileans are people of extraordinary talent, of extraordinary vigor and bravery, not only because they settled such terrain but because they built a true republic on that terrain.

One of the first leaders of the Chilean nation was Andres Bello, who reminds me a bit of a Chilean Thomas Jefferson. For one thing, he’s on your currency, and that’s for a good reason.

He was a diplomat, a statesman, a founder of the University of Chile, and the principle author of the Chilean civil code. Today our embassy in Santiago proudly sits on Avenida Andres Bello, and that should tell us something. We’re now at a moment in history where the proximity, the proximity, that connection – that connection, it resonates more than ever before and actually has boundless potential to continue to increase.

That’s the subject of my remarks today.

The Trump administration believes that our two nations and the rest of the Americas have an incredible opportunity, the chance truly to cement a future of democracy, prosperity for all of the people of all of this hemisphere. It’s not an impossible dream, although a few years ago we might not have believed it. Today we all can. Nor is it a forgone conclusion that it will take place. We’ll have work to do. But the chance is ours collectively to seize or to squander.

Over 100 years ago, former Secretary of State Elihu Root paid a visit to Chile. At that time he saw the remarkable economic changes that were taking place in the region and he said that, “There is seen in South America the dawn of a new life which moves its people as they have never been moved before.” He called it a “great awakening.”

Today I am convinced there is another great awakening. It’s happening right here in South America, and it’s not just an economic one, although that’s an important element of it.

Just look, just look at the once unthinkable changes that have taken place in Chile and other countries. Chile made the transition peacefully to a democratic nation and embraced competition, free markets, and capitalism. Chile champions transparency. Chile is a leader in the role – Chileans did all of that.

And look how it’s borne fruit for your country. You’ve reduced poverty more than any other Latin American nation, from 36 percent in the year 2000 to less than 9 percent today.

You’ve diversified your economy, and the United States is grateful to have benefited from that economy diversity. Since we signed a trade agreement back in 2004, trade between our countries has nearly quadrupled.

You’ve done all of this under different political parties of different stripes. Our nations’ respective political cycles may not always align perfectly, but the underlying relationship is rock-solid, based on a foundation much deeper than politics.

Many countries, many countries on this continent, are following Chile’s example. A generation ago, many South American countries were military dictatorships.

And even after those regimes ended, many of the continent’s democracies were saddled with corrupt leadership.

Well, that’s no longer the case.

A wave of democratization is sweeping the continent, and it’s coupled with anti-corruption movements and a healthy dose of something no nation can live without: common sense.

Brazil’s citizens said enough is enough to the corrupt ruling class. They’d seen the scandal, they’d seen how rotten their government had become, how big business colluded with politicians to the detriment of the poor and of the middle classes.

And voters in Brazil said no more. They opted, rather, for law and order and ditched the status quo in favor of action.

Peru has been fighting public corruption as one of its top priorities, too. We saw this effort come to fruition last year during the Summit of the Americas and the signing of the Lima Commitment.

Meanwhile, the Colombian miracle greatly strengthened institutions in that country. Colombians now benefit from a more independent judiciary. They’ve seen expansion of modernized, world-class businesses.

And next door in Ecuador, President Moreno has removed restrictions on freedom of the press and welcomed a new national dialogue.

And finally, in Argentina, Argentina has decided that old models aren’t delivering. Those solutions no longer work. It’s not what they’re looking for.

There’s a saying in English, and probably in Spanish too – I’ll do it in English today – that what is popular isn’t always right, but what is right isn’t always popular.

President Macri is doing the hard work of trying to reform his economy.

We thank him for that. His people will be better off for it. The government there is taking difficult but important steps to build sustainable growth. It’s a tough road to walk, and it’s not without peril. It’s also not without results. Argentina has returned to global credit markets recently for the first time in 15 years.

This is how prosperity is built; it’s how democracies are strengthened – voters opting for bolder visions, countries fighting their own internal challenges, building on strong external relationships. We cannot miss how important this momentous time is.

You should know that the Trump administration is not just talking, we’re acting in support of this, because this is all encouraging progress and democratic nations around the world rightfully deserve our support.

The question is how. Some leaders even as recently as a few years ago have come here and declared their intentions.

But they were all talk and no action. We’ll never do that. The Trump administration will not make that same mistake.

You can already see through the concrete steps we’ve taken.

President Trump, Vice President Pence, and I have all crisscrossed the region and we’ll be back more.

My first step this year – first trip this year, rather, was to President Bolsonaro’s inauguration in Brazil. After leaving Chile today, I’ll be heading to Paraguay, the first time a secretary of state has visited Paraguay since 1965. Can any of you recall who was secretary of state then? That tells you it’s been too long. And then I’ll head on to Peru and to Colombia.

Less than a month ago, President Bolsonaro visited the White House. He didn’t come there for just the photo op.

We signed a major technology safeguards agreement that will allow us to launch satellites from Alcantara. It was 19 years in the making. Another agreement will allow market access to American farmers in Brazil. And a third will pave the way for Brazil to become a major non-NATO ally. These are enormous steps of partnership.

Elsewhere, President Trump has praised what he called a “new day” in Latin America, and he has shown that he means it by leading the way on trade for all of us.

United States-Mexico-Canada Agreement was signed in Buenos Aires, a major signal to the region that’s home to 12 of the 20 countries which the U.S. enjoys free trade agreements.

Meanwhile, the administration’s America Crece program, launched in 2018, will increase trade and investment in energy and infrastructure. It’s removing legal barriers and all the barriers to greater investment between our two countries.

And then there’s the Caribbean. Deputy Secretary Sullivan, my deputy, is sitting today even as we speak in the Caribbean working with leaders in that part of this region.

When President Trump met with many from the same group recently, one of them remarked that it was the first time in decades, the first time in decades they’d seen a U.S. administration so engaged in the Western Hemisphere. He described the meeting as one of a much broader piece of an American initiative.

We think he had that right.

You should know that we have an important task, each of us, to cement these hemispheric ties and support good trends, because when we don’t, there’s always the risk that some other nation, some other purported friend will attempt to fill the vacuum, to the fill the void.

If you’ve been listening recently, you have watched the Trump administration speak quite a bit about the risks that China presents.

Make no mistake, China is an important trade partner for Chile, for the United States as well. President Trump’s been working hard to make sure our trade with China is fair and reciprocal. But you should know there is a problem.

The problem, though, is when China does business in places like Latin America, it often injects corrosive capital into the economic bloodstream, giving life to corruption and eroding good governance.

You saw this quite clearly here in the region at the Coca Codo Sinclair dam in the jungles of Ecuador. (Inaudible) and built by – excuse me – built by China under a previous administration, the dam was supposed to solve Ecuador’s energy needs and help save the country and keep them out of poverty.

But of course we know how this story ends. The dam now runs to half capacity. The steel used to make it is full of cracks and there are accidents. Nearly every top official that was involved in the dam’s construction is either imprisoned or sentenced on bribery charges.

The project included over $19 billion in Chinese loans as collateral. China, in exchange, received 80 percent of Ecuador’s oil at a discount and then resold that oil to make a profit. This does not seem like a reliable partner to me. I am confident that it does not seem like a reliable partner to you either.

It was the Ecuadorian energy minister who put it quite bluntly. He said, quote, “The strategy of China is clear. They take economic control of countries.” We’re glad, indeed we’re thrilled, that President Moreno’s administration has taken swift action to convict those responsible for doing so much harm to their own people.

The United States will always encourage Latin American partners to avoid these debt deal traps.

Also consider Venezuela. I spoke with President Pinera at length about this today. China’s bankrolling of the Maduro regime helped precipitate and prolong the crisis in that country. China invested over $60 billion – $60 billion – with no strings attached. Well, it’s no surprise that Maduro used the money to use for tasks like paying off cronies, crushing pro-democracy activists, and funding ineffective social programs. And you all know, better than anyone in America could know, the crushing, devastating results of that.

I think there’s a lesson, a lesson to be learned for all of us: China and others are being hypocritical calling for non-intervention in Venezuela’s affairs. Their own financial interventions have helped destroy that country.

And speaking of hypocritical advocates for non-intervention in Latin America, you need to worry about the Russians, too. Venezuela, Latin Americans should be worried. Flying in troops and opening a training center in Venezuela are obvious provocations.

We shouldn’t stand for Russia escalating an already very precarious situation in that country.

Russia, as everyone in this room knows, has longstanding ties to authoritarian leaders in Cuba and in Nicaragua. It sells arms, it propagates lies, it disseminates all types of propaganda in those countries.

In Nicaragua, Russia has opened a police training center and a satellite compound near the capital. Like China in Venezuela, the results of Russia’s involvement in Nicaragua, to put it mildly, aren’t good.

The citizens of Nicaragua, they’re suffering. They’re suffering at the hands of leadership that engages in blatant human rights abuses, stifles free speech, and refuses to admit its own extraordinary incompetence.

But the good news is, the good news for all of us, is that South American countries are pushing back against this external meddling. The Inter-American Development Bank, celebrating its 60th anniversary, canceled its meeting in Chengdu. It did this – it did this for the basic reason that China had refused to grant a visa to Venezuelan Juan Guido’s official representative.

Countries like Paraguay – countries like Paraguay, meanwhile, are staffing[1] up for their own interests and beliefs by supporting a democratic Taiwan.

And the Lima Group countries – I cannot say enough about how they have stood up. They’re seeing Russia and Cuba for what they truly are. They were opposed to China’s efforts at the United Nations to protect Maduro in Venezuela.

Perhaps the best news is that all of these bold steps represent a fundamental shift – a fundamental shift in regional leadership. It’s part of a trend in countries that have voluntarily stepped up to support peace, to support prosperity and freedom throughout this hemisphere.

Another great example in Chile, along with Colombia: Each of you helped launch a new regional integration forum called Prosur.

Free of both bureaucracy and inflexible ideology, it will facilitate cooperation in areas of infrastructure and healthcare and management of natural disasters. This is an important step for this region.

Last month, President Pinera hosted the first gathering of South American heads of state in five years. The United States commends him for taking this incredibly important step.

The United States wants to partner. It wants to partner as this region takes every major step, especially those that are particularly difficult. Together, that’s what we’re doing in Venezuela. A coalition, a broad coalition of now 54 nations, supports the peaceful, constitutional transition of power inside of that country.

In the days ahead, the United States and all of its Latin American partners will continue to work together to coordinate humanitarian help in places like Cucuta, Colombia, where I’ll be heading in just a couple of days. You should know too that the island of Curacao has stepped up, permitted us to provide humanitarian assistance from that location as well.

And we’ll convene a ministerial in Peru focused on the healthcare needs of those who have been displaced from Venezuela.

And make no mistake about it: The United States and all of these coalition partners will continue to isolate Maduro.

So far, the United States has revoked the visas of 718 of Maduro’s henchmen and has issued sanctions on over 150 individuals and entities. In fact, just this morning, just today, the Treasury Department designated four additional companies along with nine more ships that operate in the Venezuelan oil sector, including some that transport oil to Cuba. And this week the Organization of American States voted to give Juan Guaido’s ambassador a seat at the table. This is unheard of and this is good news.

The United States and each of its partners asked to do its part, and you should know we will continue to do our part.

To close, I want to reiterate my central message from this afternoon: On this continent, the United States is showing up as never before – reminding our friends of how much we have in common, of how much our interests align, and how much we love you.

We have entered a new era, as governments across the region are shrugging off failed socialist models, plucking out the thorns of corruption, and creating dynamic economic systems with real and true reforms that will be lasting, that will benefit your children and your grandchildren. With this new strength and with this new vigor comes robust regional leadership.

South America has truly become more clear-eyed and more wary of its pretended friends. China, Russia – they’re showing up at the doorstep, but once they enter the house, we know the debt traps. They will use debt traps, they will disregard rules, and they will spread disorder in your home. Thankfully, you all, South America, is not buying it. You should know that the United States will stand behind you.

I’ll bring you all back now for just a moment to what happened in this country nine years ago: The world’s attention was fixed on the San Jose mining accident. All of us remember. I mentioned it to my son last night. He remembers it well. Despite being 700 meters below the Earth, the famous treinta-y-tres created their own miniature democracy.

It was the shift manager, the last man pulled out of the mine, who the other miners credited with help keeping order so that they could all survive. The world was amazed. The world wondered how they had all prevailed.

Luis – Luis said simply, “You just have to speak the truth and believe in democracy.”

Like his countryman Andres Bello, he is a Chilean statesman of our time.

The United States looks to these examples and wants our countries’ ties to continue to grow deeper. We now know it can happen and how it can happen.

Please, now is not the time to lean back into the past, but rather avoid strongmen saviors and socialist models.

No, now is the time to come together, like the miners did in San Jose.

Now is the time to move forward together for the good of us all. Thank you and may God bless you. (Applause.)

Note:

[1] standing up

U.S. Department of State. April 12, 2019. Interview With Matilde Burgos of CNN Chile. Michael R. Pompeo, Secretary of State. Santiago, Chile

QUESTION:  Mr. Secretary, thank you for your time with CNN Chile.

SECRETARY POMPEO:  It’s wonderful to be with you.

QUESTION:  Regarding to Venezuela, it has been three months since Juan Guaido is president in charge.  We are in another stage.  Why are you coming here now in South America 72 hours before the meeting of Grupo de Lima?

SECRETARY POMPEO:  So I came to Chile for a number of reasons, one of which was to talk about the challenge in Venezuela, how it is that together Chile, Brazil, Peru, the OAS, the Lima Group, all of us working together can get what the Venezuelan people so richly deserve: their democracy and off of the place they are today, under the thumb of the Cubans and the Russians and the Maduro regime.

I came also to talk about the important partnership between our two countries, the economic activity, the security activity that the United States and Chile conduct together.  It was wonderful to be with President Pinera and my foreign minister counterpart as well.

QUESTION:  And what did you come to ask for Chile specifically in relation with Venezuela?

SECRETARY POMPEO:  So with respect to Venezuela, it was a thank you as much as anything else, but also we wanted to look each other in the eye and verify we’re going to stay the course.  This is an important mission that matters to the region, it matters to the United States, but most importantly, it matters to the Venezuelan people.  And so we wanted to have a conversation about what are the things we could do, how can we continue to grow this coalition.  Over 50 countries today have said that, no, Maduro, you’re not the leader; Juan Guaido is the duly elected leader.  We’ll build out that coalition and we’ll continue to isolate Maduro until such time as the Venezuelan people get what they deserve.

QUESTION:  But there are 195 countries.

SECRETARY POMPEO:  Yep.

QUESTION:  Only 54 support your plan?

SECRETARY POMPEO:  So far only 54 have come across the line and gotten it right and spoken the truth about what Venezuela so richly deserves.  But you should know that those months ago that you describe, there were none.  This is an amazing coalition that’s been put together.  I wish that the Russians and the Chinese would stop interfering.  It’s kind of funny.  They accuse the Americans and the Chileans of intervening when, in fact, they have soldiers on the ground; when in fact, the Cubans are running the security state apparatus inside of Venezuela.  I think the Venezuelan people know that’s wrong.  I think the people of the world know that that’s a tragedy.  The Cubans need to go home.

QUESTION:  Concerning Chile’s President Pinera, such a good political partner of the U.S., as President Bolsonaro is?

SECRETARY POMPEO:  They’re both great friends of the United States.  They are both leading democratic institutions, trying to do all they can to serve their people, to grow their own markets, their own economy, to provide security for their own people.  They’re both fantastic partners.

QUESTION:  You have said recently it seems that the support of Russia, China, Cuba, Iran has been strong enough to support Maduro.  Is the U.S. plan not working?

SECRETARY POMPEO:  We’re being incredibly successful.  Take a look at the nations that you just identified.  Look who those are.  Look at the democratic values that are on the other side of that, right?  Russia, no democratic values; China; Iran, killing hundreds of Americans and conducting terror campaigns all around the world, right?  Hizballah here in South America fomenting terror.  I am convinced that the people of South America understand who shares their values, who their friends are.  And that – that value set, that common understanding about the right way to move forward – will lead us to the outcome that the Venezuelan people deserve.  I am very convinced of that.

QUESTION:  A few days ago you said Maduro is a threat for the U.S., and some time ago President Trump has said that all options are on the table.  Are you asking for support in a potential military intervention in Venezuela?

SECRETARY POMPEO:  Both of those statements are true.  Maduro is definitely a threat to the United States of America.  I went through the list of ways, I think, when I gave that answer.  I won’t go through them now.  But the list is long about how it affects American lives, and the President has been unambiguous.  We’re going to use every tool in the American toolkit.  I’m here; I’m America’s most senior diplomat.  I’m here today to figure out how we can get a political resolution that is the right outcome.  But make no mistake about it:  The United States refuses[1] to take any tool within our capacity to deliver democracy for the Venezuelan people.

QUESTION:  Militarism?

SECRETARY POMPEO:  Every option.

QUESTION:  It wasn’t the first time for the U.S. to be involved in removing a leader in this region, but this time the region seems to be with the U.S.

SECRETARY POMPEO:  In some ways the region is out in front of us.  It’s remarkable to watch countries from Peru, Ecuador, Brazil, Argentina – it’s remarkable to see the nations of the region group together yesterday – Jamaica voted with us at the OAS to recognize Juan Guaido’s designee as the proper representative inside of the OAS.

Yeah, this is a global coalition designed – not designed to overthrow Maduro.  That’s the outcome.  What it’s designed to do is restore the democracy that the Venezuelan people are demanding.  Maduro has to go.  It is not possible.  He has destroyed this country for years and years and years.  He has caused more hunger, more starvation, more deprivation in that country than any previous leader in Venezuela, so he’ll have to leave.  But our goal is more than that.  Our goal is to make sure that democracy is restored to that great nation.

QUESTION:  Chile will host the climate change conference in December.  Does the U.S. Government still have doubts about the climate change?

SECRETARY POMPEO:  The United States believes that the best solution to keeping every human being healthy are free markets, transparent rule of law, and economic success.  The nations that are the safest, that have the cleanest air and the safest drinking water, are those that have the rule of law and democracy.

We’ve watched what’s happened.  We’ve watched nations that are part of the Paris agreement continue to spew carbon – indeed, more carbon than they were before.  We live in the real world in the United States.  President Trump is a realist.  It’s one thing to sign a piece of paper to make a commitment to reduce CO2.  It’s another thing to actually do it.  We are convinced the United States will lead.  Our innovation, our technology, is unequaled.  And we’re convinced that when we do that and do it well, that we’ll still have clean air and safe drinking water for generations to come.

QUESTION:  Chile is interested in enacting the 5G in Chile.  President Pinera goes to China in a few days.  Would the U.S. be concerned if Pinera accepted invitation to visit the Huawei plant in China?

SECRETARY POMPEO:  He is the president of a sovereign nation.  He gets to make decisions about who he sees or where he travels.  What we talked about today and what we’ve said publicly is that Huawei is controlled by the Government of China.  It is deeply connected.  And so putting one’s citizens’ information on that kind of technology, on that Chinese infrastructure, presents real risk to the citizens of your country.  And so we have urged nations to check it out, to see if we’re right – we know that we are – and then make good decisions for themselves.

And we have secondarily told them that, boy, if we’re going to share information with you, Americans’ information, or if we’re going to work on security projects with you, we don’t have confidence in those systems; and so if you put those systems, if you put systems that aren’t trusted, untrusted systems inside your network, it will force the United States to make decisions about where we put our information as well.

QUESTION:  Thank you, Mr. Pompeo --

SECRETARY POMPEO:  Thank you.

QUESTION:  -- for this time with CNN Chile.

SECRETARY POMPEO:  Thank you, ma’am.

Note:

[1] The United states is not refusing to take any tool within our capacity…

U.S. Department of State. April 12, 2019. Interview With Andrea Aristegui of Mega TV. Michael R. Pompeo, Secretary of State. Santiago, Chile

QUESTION: Mr. Pompeo, thank you for your time. You’re visiting Chile, Paraguay, Peru, and Colombia to reinforce commitment to democracy and human rights in Venezuela, and you have said that every option is on the table. Military intervention – is it still an option?

SECRETARY POMPEO: President Trump’s been unambiguous. The United States stands squarely behind the Venezuelan people. We will restore democracy. We will protect the human rights. We’ve done so with political tools, our diplomatic tools; we’ve provided hundreds of metric tons of food that, sadly, we’ve not been able to get in. And every single tool, every single option remains on the table.

QUESTION: So the answer is yes?

SECRETARY POMPEO: The answer is yes.

QUESTION: And this is a option even when the Lima Group, including Chile, reject the military option? Are you able to hold that military option even if you don’t have the support from other countries of the region?

SECRETARY POMPEO: Look, I’m here today to talk about how it is we’re going to achieve a diplomatic solution here, how we’re going to support the OAS, the Lima Group countries like Brazil, Peru, here in Chile to support our collective efforts to ensure that Nicolas Maduro cannot continue to kill and starve his people. That’s our mission set. We’ve made no bones about our commitment. We’re going to be here until this work is done and our efforts – our efforts to build out what is now a 54-nation coalition that understands Juan Guaido is the proper leader of his country. And we’ll be with him today, we’ll be with him the day that Maduro leaves, and we’ll be with him in the days thereafter to begin to rebuild Venezuela.

QUESTION: Venezuela is backed by China and Russia. Do you think that the support of China and Russia to Venezuela makes Maduro’s exit more complex or even an impossible task?

SECRETARY POMPEO: Not impossible, but it makes it more difficult, there’s no doubt. I think the Russian interference – you were talking a minute ago about America intervening. Well, Russia intervened. Russia intervened. They went against the leadership of the country of Venezuela. They intervened without authority. They don’t have the consent of the Venezuelan people to be there. They’re there as a hostile power. Juan Guaido is the duly elected leader. They came in to support Nicolas Maduro, who today is the former leader of Venezuela. So it’s quite hypocrisy when nations like those in the OAS and Lima Group get accused of intervening in Venezuela when the Russians have troops on the ground, and more importantly, when you really have a state that was turned over as a security matter to the Cubans long ago.

QUESTION: Admiral Craig Faller, who leads the U.S. Southern Command, said the military is awaiting instructions from the Trump administration on military intervention in Venezuela. He said, “The crisis in Venezuela could approach that degree by the end of this year if Maduro still remains in power.” It is true? Is this year, the end of this year the deadline for Maduro for you?

SECRETARY POMPEO: I hope it’s much sooner than that. I hope that Maduro while we’re sitting here has made the decision to do the right thing for the Venezuelan people. It’s unlikely. He’s never done that before, but my hope is that the – all the array of opposition to Maduro, all those leaders who were talking to the United States of America looking for a plane ticket and a passport someplace out – I hope that those leaders will all take us up on those offers. They will leave, and they will allow the Venezuelans to vote for their next leader, to have a democracy, and then get the economic support they need to rebuild what Maduro has destroyed over the past years.

QUESTION: Mr. Pompeo, you’re willing hold that military option even who you don’t have the support of the United Nations Security Council?

SECRETARY POMPEO: We – I don’t know how many times I can answer this question. We’ve made clear our goal is to convince Maduro it is time to leave. We’re going to leave every option on the table to use to achieve that objective.

QUESTION: Even if you don’t have the support of the UN --

SECRETARY POMPEO: I’ve answered --

QUESTION: -- and the Security Council?

SECRETARY POMPEO: Ma’am, I’ve answered your question.

QUESTION: Like Iraq?

SECRETARY POMPEO: Ma’am, I don’t understand your question. Like Iraq what?

QUESTION: If you don’t have the support of Security Council. That’s the question.

SECRETARY POMPEO: I don’t understand your question. We – our commitment is very, very clear.

QUESTION: You can hold the military option even if you don’t have the support --

SECRETARY POMPEO: Ma’am, our position is very clear. I’ve answered it now four times for you, and I appreciate that you’ve asked it seven times. Answered this question four times for you. Our work is diligent to find a diplomatic, political resolution to save the people from Venezuela from the Cubans, the Russians, and this tyrant Nicolas Maduro, period, full stop.

QUESTION: I want to ask you about what do you think about Julian Assange prison detention in London? What’s the position of the United States about that?

SECRETARY POMPEO: So there’s an active case in litigation. I don’t have anything in particular that I can add about that. Suffice it to say America is always happy, as I think the people of Chile are happy, when those who have stolen information and put the lives of soldiers, sailors, airmen, and Marines at risk are being brought to justice. We had Americans serving abroad whose information was stolen and then put into the public. That puts our people at risk. That’s not right. That’s not journalism. And I hope that anyone who engages in activity is held accountable.

QUESTION: I ask you because three years ago the President Trump said that he loved WikiLeaks.

SECRETARY POMPEO: I think we all understand this stolen information put Americans at risk. I’m confident the President of the United States, who has done more to keep America secure than any president in years, understands that too.

QUESTION: So do you think Assange’s arrest a threat to the free press like some people say?

SECRETARY POMPEO: I don’t have anything to comment about that case in particular. There’s active litigation taking place there, so unfortunately, I’m not able to comment on that.

QUESTION: Okay. Thank you very much, Mr. Pompeo.

SECRETARY POMPEO: Thank you.

QUESTION: Thank you for the interview.

SECRETARY POMPEO: Thank you.

FINANCIAL SYSTEM

U.S. Department of the Treasury. 04/12/2019. Financial Action Task Force (FATF) Ministers Take Steps to Protect the Global Financial System

Washington – Today, U.S. Department of the Treasury Secretary, Steven T. Mnuchin, chaired a meeting of Ministers and other senior officials, representing the membership of the Financial Action Task Force (FATF). 

“Since its inception thirty years ago, the FATF has been at the forefront of efforts to combat money laundering.  This Minister-level meeting reaffirmed our collective commitment to protect the integrity of the international financial system,” said Secretary Mnuchin.  “FATF is a dynamic, agile, and enduring body that continues to take concrete steps to harden the international financial system, as criminals, terrorists, and rogue nations actively attempt to exploit any weak links.  I am pleased that we decided today on a permanent mandate for the FATF, and that we gave further focus on its work against terrorist and proliferation finance.  Because of the importance Ministers ascribe to the FATF, we also agreed upon Minister-level meetings every two years moving forward. ”

In a meeting coinciding with the 2019 Spring Meetings of the World Bank Group and the International Monetary Fund, FATF Ministers reaffirmed the central role of the FATF as the global international standard setter to take decisive, coordinated, and effective action against money laundering, terrorist financing, and proliferation financing related to weapons of mass destruction (WMD).  Ministers endorsed a new open-ended mandate for the FATF and committed to providing the necessary resources to support the vital work of the FATF to address new and evolving threats.  The Ministers also agreed to meet every two years to ensure their governments’ commitment to implementing the FATF’s mandate.

Now in its 30th year, the FATF, under its U.S. Presidency, is taking concrete steps to address the illicit financing risks associated with virtual assets; strengthening efforts to combat terrorist financing through greater risk understanding and operational coordination; and, enhancing its efforts to counter the financing of the proliferation of WMD.

FATF's Mandate: http://www.fatf-gafi.org/media/fatf/content/images/FATF-Ministerial-Declaration-Mandate.pdf

DEVELOPMENT

U.S. Department of the Treasury. 04/13/2019. Statement of Treasury Secretary Mnuchin For the Development Committee

Washington – U.S. Treasury Secretary Steven T. Mnuchin issued the following statement at the Spring Meetings of the Development Committee of the World Bank and International Monetary Fund:

We welcome the delegates of the Spring Meetings of the World Bank Group and International Monetary Fund to Washington, D.C.  We hope that all of the participants have successful and productive meetings as we seek to address many of the consequential issues facing our world today.

Ensuring Strong Leadership of the World Bank Group

The United States congratulates David Malpass on his selection to serve as the next president of the World Bank Group.  During his time at the U.S. Treasury Department, Mr. Malpass worked to achieve strong economic growth at home and make necessary reforms to refocus the international system on promoting broad-based growth and shared prosperity.  We expect Mr. Malpass to bring the same enthusiasm to his new role.

At the same time, we thank former president Dr. Jim Yong Kim for his service to the World Bank Group.  Dr. Kim’s focus and leadership on eliminating extreme poverty, boosting shared prosperity, and better tapping into the World Bank’s deep knowledge to help countries achieve improved development outcomes have benefited the Bank and shareholders.  Importantly, he brought his expertise in the health sector to prioritize human development as a core part of the institution’s efforts to reduce poverty and increase growth.

Interim President Kristalina Georgieva has served admirably and proven her commitment to the World Bank’s mission.  We appreciate Dr. Georgieva’s strong leadership and look forward to working with her as CEO of the World Bank.

Determined Action Can Reignite Strong Global Growth

Strong underlying fundamentals and pro-growth policies powered the U.S. economy to its best growth performance in over a decade in 2018.  Nonetheless, the global outlook has weakened since we last met, and determined action is needed to return the global economy to strong, broad-based expansion.  Countries with muted growth or macroeconomic imbalances need to proactively address economic and financial vulnerabilities and strengthen domestic policy frameworks.

Debt Transparency and Sustainability in Emerging & Low-Income Countries

Emerging and low-income countries need to be vigilant about the risks to growth and financial stability from elevated debt levels, particularly when that debt is denominated in foreign currency.  Governments should foster strong economic fundamentals that will support robust growth and reduce the real burden of debt, while also carefully considering the purpose and financial structure of future borrowing.  Additionally, the international community needs to strengthen standards around reporting and transparency of debt obligations.

The World Bank and IMF continue to play key roles in helping countries to strengthen institutional capacity for assessing and managing their own debt-related risks.  The United States strongly supports the ongoing IMF/World Bank multi-pronged agenda for addressing emerging debt vulnerabilities.  We will work with other member governments to track progress to help ensure that the multi-pronged agenda is effective at bolstering debt transparency and sustainability.  As a complement to these efforts, during negotiations for the 19th replenishment of the International Development Association (IDA), IDA Deputies should also consider reforming the financial incentives within IDA to encourage governments to make fiscal and borrowing decisions that are more growth-enhancing, prudent, and transparent.

Structural Reforms Needed to Support Global Growth and Poverty Reduction

We urge countries to pursue productivity-enhancing structural reforms to durably raise medium-term growth prospects.  Improving the business sector climate through simplification of regulations and strengthening bankruptcy protections will support entrepreneurship and job creation.  Stronger anti-corruption efforts and better enforcement of the rule of law will encourage private investment.  Investments in infrastructure and energy generation and transmission are necessary to address poor regional connectivity and energy poverty respectively, which constrain development in many countries.

Critically, governments and the private sector must remove the impediments for full participation of women and young adults in the labor force, which will increase productivity and long-term growth.  We commend the Governing Committee of the Women Entrepreneurs Finance Initiative (We-Fi) for completing its second round of funding decisions.  We-Fi’s founding intention to break down systemic barriers for women-owned small and medium enterprises shows commitment globally to these kinds of structural reforms.

Continued Reform of the World Bank Group

The reforms included in the capital package for the International Bank for Reconstruction and Development (IBRD) and International Finance Corporation (IFC) closely align with U.S. national security, foreign policy, and economic priorities by placing the World Bank Group in a stronger position to support growth and poverty reduction.  We are encouraged by the introduction of differentiated loan pricing, with wealthier borrowers now contributing more progressively to IBRD’s capital resources.  We continue to expect that Country Partnership Frameworks for countries above the graduation income threshold will clearly identify the gaps to graduation and primarily target the development constraints that hinder the country’s graduation.  We expect the Board of Executive Directors to approve a financial sustainability framework and crisis buffer that is robust and in line with the IBRD’s exceptional responses in past crises.  In particular, we aim to ensure the World Bank Group can remain financially sound over the long-term and is appropriately equipped to provide support to countries during regional or systemic shocks.  Continued restraint over the growth of the administrative budget, including compensation, reflects our priority that development resources must be managed efficiently and effectively.  We expect to see additional progress in shifting a greater share of IBRD lending to countries below the graduation threshold.  Finally, we are encouraged by the IFC’s efforts to increase its investments within IDA-eligible countries and those affected by fragility, conflict, and violence, but IFC must ensure that its engagement truly catalyzes private investments that are growth enhancing and poverty reducing.

IDA’s Focus on the Poorest

Recognizing the critical role IDA plays in helping the poorest countries, and the depth of reforms and investment needed within the poorest countries, IDA Deputies must develop an ambitious set of policy priorities for the IDA-19 replenishment.  In addition to encouraging strengthened incentives around debt management and transparency, we will continue to press for IDA’s strong engagement in countries experiencing fragility, conflict, and violence, and we look forward to reviewing the progress made in these priority areas under IDA-18.  IDA Deputies should also consider refinements to the Refugee Sub-Window, Crisis Response Window, and Private Sector Window, and build on progress from IDA’s work on governance, gender and development, and jobs and economic transformation.

Enhancing the Accountability of World Bank Group

The U.S. has been a strong advocate of independent accountability mechanisms since the early 1990s, when the World Bank first established the Inspection Panel.  The Inspection Panel and the IFC Compliance Advisor Ombudsman (CAO) help ensure accountability of the World Bank Group’s projects, improve development effectiveness, and provide a voice for those who may be harmed.  Nevertheless, the accountability processes are ripe for modernization.  The Inspection Panel needs a more complete set of tools, including monitoring and dispute resolution, so that it can offer solutions to problems caused by Bank investments.  The IFC’s accountability system also faces important challenges and we look forward to an external review to aid us in strengthening the IFC’s accountability system as a whole.  The CAO and the Inspection Panel should be should be adequately resourced proportionate to the risks and to the demands they face.

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LGCJ.: