568. Telegram From the Ambassador in Venezuela (Warren) to the Department of State1

165. When I saw President Perez yesterday re my Washington visit I brought up several matters.

A.
I expressed the concern in Washington lest Perez Government be headed for nationalization of industries. Citing steel mill, petrochemical project and Guarico Dam as special undertakings which Venezuela is attempting endeavor broaden industrial base and protect overall national interest, he assured me he, his government have given no thought such thing nationalization industries and asked me to transmit his reassurance to Department. (Comment: I felt he was sincere in his assurance but am glad matter was raised with him. FW).
B.
I mentioned uneasiness USA possibility Venezuela might embark on series tariff increases American products. He stated emphatically understanding his government’s mutuality USA Venezuela trade. He said we realize that if USA does not place restrictions our petroleum we should not raise tariff USA goods. Furthermore, he [Page 1127] added, we have a trade agreement with you and we always keep that in mind.2 He left no doubt with me re his position. (Comment: This Embassy is not sure President’s views are shared by all his Cabinet. FW).
C.
Pointed out Embassy aware we no longer have contractual basis for operation USA Army mission here. President reassured me categorically. Said new agreement being prepared to contain certain changes. Venezuela must have and wants USA military missions. It intends ask for additional military specialists. Said signing new agreement solely matter time.3
D.
Told President I had been asked Washington re oil concessions. He spoke positively their being granted. Declared whole picture under scrutiny. Said when matter made known Venezuelan public it must be crystal clear (Spanish: diafano). He did not so say but I thought his remarks indicated action soon.
Warren
  1. Source: Department of State, Central Files, 831.19/11–2555. Confidential.
  2. Reference is to the Supplementary Trade Agreement, signed at Caracas August 28, 1952, and entered into force October 11, 1952. For text, see 3 UST (pt. 3) 4195.
  3. An agreement extending the Army Mission agreement of August 10, 1951, was effected by an exchange of notes at Washington February 11 and 15, 1957, and entered into force on the latter date. For text of the 1957 agreement, see 8 UST 211.