US expects Venezuela to compensate expropriated firm

[Zorro]

Hugo steals another company without any due process.

<snip>

The United States said Tuesday it would expect Venezuela to properly compensate the local affiliate of the US-based glass maker Owens-Illinois after Caracas said it will expropriate the firm.

"Statements are one thing. We'll see what actual actions take place," State Department spokesman Philip Crowley told journalists in response to the announcement from Caracas.

"But we would expect Venezuela to provide prompt, adequate and effective compensation for any expropriation of the investments of Owens-Illinois in accordance with international law or any other private business ... present in Venezuela," he added.

Venezuelan President Hugo Chavez late Monday announced the expropriation of the local affiliate of the US-based firm, accusing it of causing environmental damage and exploiting its workers.

<snip>

More at:http://news.yahoo.com/s/afp/20101026/pl_afp/venezuelauspoliticsbusinessdiplomacy_20101026183730

[RollWithIt]

1. I'm sure the foreign investors will be lining up around the block... nt

[social_critic]

2. There is only one investor, the US COmpany Owens

There have been many nationalizations and confiscations in recent years. According to some reports, the Venezuelan government may owe as much as 20 billion us dollars to the owners. I am not sure about the amount, i think a lot of this is in arbitration and in the courts. Many of the nationalized businesses perform worse. In some cases the land taken over for agricultural business is no longer farmed. And in cases like the Sambill Shopping Center, the property was closed before it opened, and it is now a decaying structure.

I do believe some of these nationalizations could make sense, but they are not well planned, and they are not compensated properly. It gives Venezuela a bad reputation, and investors are not investing in the country anymore.