VENEZUELA'S EVALUATION--EFFECT ON THE ECONOMY OF COLOMBIA'S FRONTIER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000700030091-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: September 25, 2012
• Sequence Number: 91
• Publication Date: March 20, 1983
• Content Type: CABLE

Declassified in Part - Sanitized Copy Approved for Release 2012/12/07 CIA-RDP08C01297R000700030091-4 0
MSGNC 343 (S7XX) S4A *20/0.3/83* *00:49*
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FM AMCONSUL BARRANQUILLI(?
TO RLEHC/SECSTA1r QAStHOC 3651
INFO ZENIAMEMBASSY BOEOT A 4665
RU HCV/:AMFMBASSY CARAC1S 03418
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LTMI, EO OFFICIAL USE 8ARRANGUXLLA 0097
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E.Q. 12356: N/A
T,ACS: ECON? EeRO, EFTA, CO, VF
SUEJF CT : `VENEZUELA ?S E*'VALU4T1ON- EFFECT GN "TFF'
ECONDMY OF COLOMBIA'S FRONTIER
1. ZLMM4 FY: Tt E flr'VALUAT ION OF 7-HE BOLIVAR By
VEFIF2UfLAHAS SOWN CO'AFUSIFIN IN COMMERCIAL J:fi-O
BAtt!{I.dRG CIRCLES IN THE ZONE ALONG COL MBIA?S
80RDER WITH VENEZUELA. 600.000 COLOMBIA
,GUEST 4ORKERS IN VEINF' 2UE LA HAVE UNDE F-GONE A
RUCE LOSS OF EARNING FOWER AND S1^,ME AIRr LEAVING
8EFOFE ANYTHING WORST EAPPENS. ; HE FI A?'CIAt
S CTCF, FCRM4L AND INFORMAL, AWAITS THE COLCMEI ?
CEATFAL BAN'S R1`OPF:NI S TRADING IN SOLI VARFIS*
ON THE TRADE FRONT. MHILF SOME C;.;ojvCIF. Rf9 r IST'S
AMON( BARRA14GUI LLA F,")(FORTERS* tH! MAJOR IMPACT
HAS SEEN REGISTERED It CUCUTA. A L!,"RGE FRONTIER
CITY WHICH HAS DRAWN MAJOR SUSTEMANCF' FROM I"!S
S*L'ES TO VISITING VENEZUELAN SHOPPERS. HE
CLUTF=IIE A J40 FOOD SECTORS ARE BADLY HiT, WITH
SALEv AT A FRACTION OF FORMER Lr VELS,. A N AD F?CC
I COR!M;ISSIO OF G(3C VICE, 1.INISTrRS HAS VISITED THE
j CITY TO FRAMF VARIOUS f'l''RGEf4CY MEASURES. S'HE'
Q \LONGER TERM OUTLOOK, H!0WCVE:R. IS FAVORABLE Tt
COLOMEIA''S FRONTIER MERCHANTS' AS VENEZUELANS.
DIGEST THE,: IMPLICATIONS OF HIGH 1A1'RTRAVEL
COSTS TO MIAMI AND 04.CID1' THAT CtOLOMR1",''S
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Declassified in Part - Sanitized Copy Approved for Release 2012/12/07: CIA-RDP08C01297R000700030091-4 __
 (Declassified in Part - Sanitized Copy Approved for Release 2012/12/07: CIA-RDP08CO1297R000700030091-4 Q
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CATCHF COLD"? WITH THE Ee.STE-Rf P `1GH8oR !,CCOUN7ING
FOR 43 PCT OF COLOMBT IS XPORTS (USD 320 MTLLIrNF
IN 15E2, 3 TIMES THE EXPORTS TO THE. S 'CON0
? PLACE USAP.) THERE IS L 3'LL VCNOC:R THAT THE tCVIS
FREUIN+ OF FRCa;; C f` V RTABILI' Y CAF THE* F V A 41 , H THE DOLLAR 614 FE E. 19 AND SLlB' E'tii F!.T t} :
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DISCLSSIO WITH RANKERS, COMMERICAL ASSOCIATIViS
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TH RATIONAL CURRENCY, ALTHOUGH VENEZU L4 ?S
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EXTINGUISH SHORT-TERM COMMERCIAL Mr-OT OUTSTANDING
14T THE TIME OF THE DEVALUATION,,, M NY BORD 9P
TRAD AS A 1 ICIP T #*-
FO 1TTH fi "A$ m,
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, COLLECTING AT 4*3 O C ,B? CCNT'R ,C",r'O ON
C'LNTFABAND GOODS IS LOS a CAUSE* THE. MAJOR
FINANCIAL IMPACT OF H" SUDD YCr FZU L NfSU
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IN TF FRONTIER REGI CI H01VER, -r S Vr 7H
DEVALUATION ITSF,LF, RU THE ENDING OF FRET
CONVLRTABIL.ITY OF THE BOLIVAR AND THE: COLOMBIAN';
CENTRAL BANK'S NATION "L FIRST REACTION OF CEASING
TO BLY OR S LL THE CUFRENNCY, BORDER 1RA DER ' IN
CUCUTA HAD R.'?:N USED T NO-RUN'N 7n m THr3IF out
COU="NTRY'_S CURRENCY CONTROLS BY TAKING THEIR
EARNED SO LI V RE S TO VENT; ZUELA'S N I GHBCR If G
SAN ANTONIO CE TACHIRto TURNING THE TN FOR CCLL .R"
ADD CEPOSITING THESE INTO MIAMI OR SWISS ACCr'UA"TS,
NOT Ut T "LILY
BLCK MA 3K T TNi COLLSRS I
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a DE V`ELOPI G, AS P,LL-ANC.SUWORY FLw r NOT ONLY FR
OM
THE EOLTVAR BUT ALSO (T0 A FR LESSER DEGREE)
FROM THE P SQ-'F1hND HECGE AGAINST SUDDEN OR
Q AT LAST ACCELERATED COLDMBI to D
VA L UATION
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4. 3MPLOYME LI EFFECTS-MOST CLL.:: $ RLY =.FFECT O BY
THE FROBpALY 88 PC? DROP I Na THE w Al VALUE LCF T'
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GUEST WORKERS AND THEIR FA;.MILI ,.rv DT SPROP? LdTT N
LIMITED OFFICIAL USE SECTION 02 4F 03 B RRANCUILL 0091
PORTION OF WHOM COME FR TH FRCNTIr'R. REGION,
C O N F 1 O F 14 T I L
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w,., Declassified in Part - Sanitized Copy Approved for Release 2012/12/07: CIA-RDP08CO1297R000700030091-4 ?_11~_
 Declassified in Part - Sanitized Copy Approved for Release 201.2/12/07: CIA-RDP08C01297R000700030091-4
FSW1 0 343 (STXX) S4 : *20103/83t, *00:49*
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THEIR RELATIVES 84CK T HOME TS s 1?ALL FLOW* SlYS
THE FGION.4%L MANAGER CF THE
FN :D co F3J'4TEQuE NOf MA HOS B; RF QLFILLA BPS C F
USED TO CLEAR 15 OF T F .St DRAFTS F DAY* THE S L 1)
DAYS FOR THESE EXP OR1 T WORKERS-TWO CHAR17rt'R
J rT-LOADS F H
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