TO: FROM: DATE: February 16, 2011 RE: House Hearing on U.S.

Policy toward Latin America

Rep. Connie Mack (R-FL), Chairman of the Subcommittee on the Western Hemisphere of the House Committee on Foreign Affairs, held a hearing titled Does the U.S. have a Policy toward Latin America? Assessing the Impact to U.S. Interests and Allies on February 16, 2011. The hearing focused on issues at the forefront of U.S.-Latin America relations and the Obama Administrations handling of U.S. interests in the region, particularly in Colombia, Cuba, Honduras, and Venezuela. Members Present y y y y y y y Connie Mack (R-FL), Chairman Eliot Engel (D-NY), Ranking Member Albio Sires (D-NJ) David Rivera (R-FL) Donald Payne (D-NJ) Eni Faleomavaega (D-American Samoa) Jean Schmidt (R-OH)

Witness List y Arturo A. Valenzuela Assistant Secretary of State Bureau of Western Hemisphere Affairs (WHA) Department of State

Highlights While the hearings focus was not on U.S.-Venezuela relations, Assistant Secretary Valenzuela and Representatives Mack, Engel, Schmidt, Rivera and Sires expressed in several occasions serious concerns about the political situation in Venezuela and the countrys alleged ties to Iran. Subcommittee members voiced very strong views about Venezuela and President Chavez, but these were tempered by Valenzuelas insistence that the Administration is still investigating all claims. Among the major concerns expressed by the legislators were allegations that IranianHezbollah agents travel freely through Venezuela, the governments alleged support to

FARC members (though Valenzuela noted progress in this area since Santos took over as President of neighboring Colombia), and the countrys alleged commercial engagement with the regimes of Iran, Syria and Libya. Valenzuela also asserted that the State Department has been monitoring the situation in Venezuela very closely, and pointed out the Administrations concerns over freedom of assembly and freedom of speech in Venezuela, the outgoing National Assemblys decision to expand the executive authority of President Chavez, and the alleged manipulation of legislative and judicial institutions for political purposes. Citing recent reports, Chairman Mack asked Assistant Secretary Valenzuela whether Venezuela is violating international sanctions against Iran by allegedly exporting gasoline to that country. Valenzuela gave no concrete answer but asserted that this issue has been raised with PDVSA as well as with the Venezuelan government directly while the State Department tries to determine whether there is in fact a violation. Mack also asked Valenzuela whether the subcommittee should anticipate an advisory opinion from the State Department on Venezuelas potential violations of international treaties in pursuance of the Iran Sanctions Act of 1996. Valenzuela noted once again that the State Department is still looking into these allegations. Chairman Mack suggested the Keystone XL (Keystone Expansion) pipeline as a first step toward cutting U.S. reliance on Venezuelan oil, thereby undermining President Chavezs influence. He called on the State Department to approve the Presidential Permit for the pipeline as soon as possible. During his closing statements, Mack declared that he will continue to advocate for the inclusion of Venezuela in the State Departments list of State Sponsors of Terrorism, and also announced that he will introduce legislation to withhold funds from the Organization of American States for considering Venezuela a member in good standing. Despite Macks heated allegations against Venezuela, it is unlikely he would have the political capital to move forward any sanctions. Venezuela remains one of the top sources of U.S. crude oil imports at 884 thousand barrels per day, only behind Canada, Mexico and Saudi Arabia. In addition, the Keystone XL pipeline project remains highly unpopular in policy, economic and environmental circles, and is far from becoming a feasible threat to Venezuelas oil exports to the United States. Venezuela has been designated as not cooperating fully with U.S. antiterrorism efforts, and it is unlikely this status would be discarded to include Venezuela in the list of State Sponsors of Terrorism given the enormous disruption this policy would cause in the energy supply of the United States.