*** World War II -- Venezuela








World War II Country Trends: Venezuela

Venezuela World War II
Figure 1.-- We note some some Austrian/German orphans being adopted after the War. We do not know how many. Nor do we know whowas doing the adopting. Venezuela has small German minority. The press capiton here read, "Going to a New Home in a New Land: Bertran Grissmer, three-year old Austrian war orphan, hugs his toy panda as he stops briefly in New York during a long flight from Europe to Caracas, Venezuela where he will be adopted. TWA hostesses acted as 'baby sitters' for the little lone traveler." The photograph was dated Sptember 1, 1948.

Juan Vicente Gómez used the Army to seuize control of Venezuela (1907). Venezuelan was a largely poor, agrarian country until the discovery of important oil resources in thw west of the country around Lake Maracaibo during World War I. President Gomez es rumored to be pro-German, but the country wasstrictly neutral throughout the War. After the War, developmnt of the oil resource brought great wealth to the country for the first time and began to transform the economy, financing an economic boom. Venezuela's per capita income became the highest in South America. Gomez benefited hugely from the oil income which he controlled and siphoned finds to his personal accounts. As a result of rampant corruption, the Venezuelan people as a whole saw relatively little benefit from the oil money. Gomez used the oil money to both centralize the Venezuelan Government and to increase his authority through well paid security forces. The Germans attracted by the country's oil resources attempted build their influence during the 1930s. Gomez died occasioning street celebrations (1935). The Gomecista dictatorship survived his death and the presidency passed first to to Eleazar López Contreras. Under Isaías Medina Angarita, dictatorial rule was relaxed somewhat and a range of reforms were initiated . These included increasing the country's share of the oil compony's profits and legalizing political party activity (1941). Isaías Medina Angarita was legally elected president (1941). He symphathized with the Allies. The Government after the Japanese attack on Pearl Harbor broke diplomatic relations with Axis powers (Germany, Italy, and Japan). As a result of the stunning German victories in Europe, there were wild rumors that Germany might invade and seize the counytry's oil wells. The United States helped the counbtry improve the defenses of the oil wells and poroivided a range of assistance to the Venezuelan military region. The Caribbean with its clear, rather shallow waters was not suitable for U-boat opetations, although there were sinkings after Germany declared war on America. As the Allies improved their ASW capbility, German U-boats wiuthdrew from the Caribbean. Venezuela's primry role in the War was supplying oil to the Allied war effort. While Venezuela severed diplomartic relarions with the Axis powers and largely symphitized with the Allies, the country did not take an active role in the War. It took a range of steps like seizing Axis babk accounts and expelling the Italian military mission. In the final year of the War the Governmrnt declared war on the Axis countries. A civilian-military coup overthrew Medina Angarita and ushered in a 3-year period of democratic rule. It would take some time for democracy to take hold, but it was a beginning. We note some some Austrian/German orphans being adopted after the War. We do not know how many.

Gomez Dictatorship (1907)

Juan Vicente Gómez used the Army to seuize control of Venezuela (1907). Venezuelan was a largely poor, agrarian country. The country was poor, but self sufficint in food production. The hunger Venezuela experienced duder Hugo Chavez's replacement, Nicolqs Madyei, vidly ddemistrates how fundamentally socialism can damafe an economy. Gomez was one more in aong list of Latin American caudills (strong men) constructing long lasting dictatorships.

World War I (1914-18)

Venezuela at the time of World War I was a poor South American.Caribbean country that unlike most of the region had been at the center of some serious international disputes. This jncluded one which had the potential to escalate into a serious confrontation between America and Britain. While Vezuela had serious issues with Britain, there were largely positive trading relations wih Germany. Like most South American countries, Venezuela during the late-19th century experienced political turmoil and dictatorial rule by a series of cauldillos (military strongmen). This continued into the early-20th century. These caudillos dominated the country and trampeled on individual rights. Their autocratic policies led to serious interntional incidents. Venezuela was strictly neutral throughout the War. President Juan Vicente Gomez is widely reported to have been pro-German. There was no way, however, he could join the Central Powers because of British comtrol of the seas. Strict neutrality was in a way helpful to the Germans. Some sources say that this was rumors spread by his political enemies. Strict Venezuelan neutrality irritated the Allies because the Government so rigidly insisted on its neutrality. The Government was determined to maintain relations with all belligerent countries. The government even allowed the Germans to use their radios at Maracaibo without any restriction. This was helpful because Germany without access to British controlled cabels and with losing its colonial outposts gradually lost communication with its oversseas posts and ships operationg around the world. The United States entered the War (1917). America's major concern in the Caribbean was the security of the Panama Canal. We note U.S. Navy ships to Venezuela at this time, perhaps as a show of naval power and with the French to search isolated locations to make sure German U-boats were not using them to resupply. We note naval calls to various ports throughout the Caribbean, both neutrl and Allied countries. The discovery of massive oil deposits in western Venezuela (Lake Maracaibo) during World War I would prove central to the country's future. It began the transformation of the economy, from a heavy dependence on agricultural exports to a reliance on petroleum--a single commodity, but a very important one. And as a result, the country would play an important role in World War II, supplying petroleum to the Allied war effort.

Discovery of Oil

Venezuelan was a largely poor, agrarian country until the discovery of important oil resources in thw west of the country around Lake Maracaibo during World War I. Venezuela was known to have an oil resource. Native Anericans collected it on the surface Americans used it for medicina purposes, lightig, and cauking their canones. The Spamish used in the same way as ell as to maintain metal weapond. It was not until the late-19t century that oil began to have commercial value. Tthe first oil wells of an importance were drilled (early-1910s) President Gomez granted concessions to explore, produce, and refine oil. Most of these concessions were granted to his closes associates. The made dels with foreign oil companies that could actually do the drilling. Rafael Max Valladares contracted with the Caribbean Petroleum Company (acquired by Royal Dutch Shell) to carry out oil exploration project. Zumaque-I ( MG-I) wasthe first oil well, the first important Venezuelan oilfield (194). Mene Grande was discovered by Caribbean Petroleum in the Maracaibo Basin. This major led to a massive wave of foreign oil companies lunching drilling projects. President Gomez was rumored to be pro-German, but the country was strictly neutral throughout World War Ithe War. After the War, developmnt of the oil resource brought great wealth to the country for the first time and began to transform the economy, financing an economic boom. Venezuela's per capita income became the highest in South America. Gomez benefited hugely from the oil income which he controlled and siphoned finds to his personal accounts. As a result of rampant corruption, the Venezuelan people as a whole saw relatively little benefit from the oil money. Gomez used the oil money to both centralize the Venezuelan Government and to increase his authority through well paid security forces. The Germans attracted by the country's oil resources attempted build their influence during the 1930s. Gomez died occasioning street celebrations (1935). The Gomecista dictatorship survived his death and the presidency passed first to to Eleazar López Contreras. Under Isaías Medina Angarita, dictatorial rule was relaxed somewhat and a range of reforms were initiated . These included increasing the country's share of the oil compony's profits and legalizing political party activity (1941). Isaías Medina Angarita was legally elected president (1941).

War Policies

President Eleazar after Hitler and Stalinlaunched the War in Europe, Presidddent López Contreras declared neutrality. Some observers believe that Venezuelan was 'bitterly anti-German'. We are not sure about this, but it may have been a continuation of World ar I attitudes when Germany was unpoular because of the U-boat sinkings. President Angarita symphathized with the Allies, but was officially neutral for most of the War. The Government after the Japanese attack on Pearl Harbor broke diplomatic relations with Axis powers (Germany, Italy, and Japan), but did not declare war (December 31, 1941). While Venezuela severed diplomartic relarions with the Axis powers and largely symphitized with the Allies, the country did not take an active role in the War. It took a range of steps like seizing Axis bank accounts and expelling the Italian military mission.

American Support

As a result of the stunning German victories in Europe, there were wild rumors that Germany might invade and seize the counytry's oil wells. The was a coordinated U-boat attack on Aruba (Fbruary 16, 1942). The United States helped the counntry improve the defenses of the oil wells and poroivided a range of assistance to the Venezuelan military region. The Caribbean with its clear, rather shallow waters was not suitable for U-boat opetations, although there were sinkings after Germany declared war on America. As the Allies improved their ASW capbility, German U-boats wiuthdrew from the Caribbean.

Importance

Venezuela's primry role in the War was supplying oil to the Allied war effort. Latin America was an important spplier of raw materials to Allies, especially Britain during World War II. The single most important country was Venezuel because it was such an important producer of oil. Oil was iportant in World War I, it was vital in World War II and Venezuela was a major producer, exporting most of what it produced. As a result, both the Axis nd the Allies focusd on Venezuela before and durung the War. One Historian maintains that the Allies floated to victory om a sea of oil and Venezuela was an important part of that flow of oil. In contrast a major problem for the Axis powers was lack of access to oil.

Axis Influences

The primary influencs in Venezuela were American and British. Veneziuela did not have the technical capability to develop its immense oil resource. For this it needed foreign oil companies. And America and British companies provided it. Hitler upon seizing power in Germany began preparing for war, alrgough he at first projected a moderate foreign policy. Germany had many weaknesses, including a lack of raw materials, especially oil. Thus attemtion was given to how to obtain raw materials. The focus here was on Europe that were within the NAZI grasp in the coming war. But there was inerested in Latin America becaise of the reguon's raw materials and German minorities there. Venezuela had only a small German minority, some 4,000 people. It was the country's oil that attracted NAZI interest. Arnold Margerie formed the Grupo Regional de Venezuela del Partido Nazi (Venezuelan Regional Group of the Nazi Party) (1933). The military played an important role thoughout the region beyond defense matters. And many military leaders were impressed wih the NAZIs nd Fascism. Germany had military missions in the region even before Hiler seized power and this included Venezuela. The idea was to court influential figures. There were also cultural efforts. General Wilhelm von Faupel, head of the Ibero-American Institute, dispatched his wife, Edith, to Venezuela to "extol the virtues of fascism." Germany in an effot to balance countering American economic influence, by expanding its holdings in mining, agriculture, and railroading. The Germans, however, could not begin to match American involvement. The Venezuelan Navy purchased two Azio-class minesweepers from Fascist Italy (1938). Venezuelan trade with Imperial Japan reached a record high (1939). Japan was dependant on the United States for its oil and wanted to diversify source. Here Venezul did not really help as shipmnts had to pass through he merican-controlled Panama Canal. After Venezuela declared neutrality, Venezuela continued to trade with Japan and Italy. Trade with Germany ceased, but only because of the Royal Navy blockade.

American Concerns

America had concerns about Axis penetration of Venezuela. One of the greatest concerns was the German minoities, a potential 'fih column'. This meant potential saboteurs of the country's vital oil-related infrastructure. Thy also could transmit infomation on vessel traffic ou use to Grman U-boats. This occurred during Wirld War I. As the NAZI conquest of Europe began, there were concerns with the nearby British, Dutch, and French which potential security threats if they fell under Axis control. The Dutchisland had refieries for procssing Venezuelan oil. And they could support German U-boats attacking the tankers and commando attacks on ol infrastructure.

Venezuelan Goal

There never was any serious doubt about Venenezuela's orienttion after war broke out in Europe. Venezuela declared its neureality, but its oil only went to the Allies. Allied control of the sea meant if Venezuela wanted to sell its oil, it had to sell to the Allies. And the Allies made it worth the while. Venezuela's primcipal concern during the War was to protect its oil from being seized by a belligerent nation. Watching what was transpiring in Europe and Asia, it was not beyond the possibility that a country with a weak military might be seized, espcially a country of vital strategic importance. Allied nval power meant that the Axis did not hve the capacity to seize the oil fields, although they did affect tankers carrying Venezukan oil abd the vital refineries in Aruba and Curaço of the coast of Venezuela, the Allies were less likely to intervene, but it was impossible. The Allies had shown themselves willing to intervene when vital strategic inteests were involved (Iceland and Iran). Other intrventions occurred with the acquience of the goverments in exile (Netherlands Antilles and Greenland). And the Ynited States had a history of itervening in Cntral Anerica and the Caibbean, something Vebezuelan officials had to consider. In the end this nevr occured becuse h country overwealming concern was the need to maintain markers nd sell iys oil. Venezuela had developed a major oil industry in the inter-War era and oil had come to dominate the country's economy. h ideal situation would hve been to sell to bth sides nd benefit from a bissing war. Nither side would have tolerated it and Alied navalmpowr meant that the country had only one option, selling to the Allies. Had Britain not withstod the NAZI Blitz in 1940, the situatinwould have been different. But the Royal Navy backed by the U.S. Navy meant sals to Germnt were never an option. Venezuela had no choice if not to side with the Allis to cooprte with them. [Leonard and Bratzel]

Diplomacy

The primaryfocus Venezuelan diplomacy during the War was to levrage the crisis to increase oil earnings. Protected by the Allies from any danger of Axis invasion, the Venezulans pursued largly commercial interests. The country's oil industry was dominated by the American oil companies ht had devloped it. One option was to taken the Mexican approxh and nationalize the industry. Venezulan officials decided against it, fearing that in the war emergncy that this could result in American inervention, Ths was a real possibility given the importance of the Venezueln fields and the fact that mostly American companies were involved. Thus the Vnezuelans decided t incstead push for a greater share of the profits and they proved spctacularly successful. The United States to guarantee ininterupted supply agreed to increase oil revenues to Venezuela. The deal agreed to was to split profits equally between the Venezuelan government and the oil companies. The two most important were Americn Standard Oil and British Shell Oil. he result as that by 1944 Venezuela's oil income was 66 prcent higher than it was in 1941 before America entered the War. And this continued after the War. By 1947 total income had increased 358 percent. [Leonard and Bratzel] This made Venezuela the welthiest country in Latin Americain percpita terms, although it was not wiely shared. Criticics claim that Government coruption was rampant. There is some truth to this, but it is also true tht the oil money was not as badly manged as it was during the Chavez-Maduro era (2000s-2010s).

Venezuelan Military

Despite the income from the oil industry, Venezuelamade no substantial effort to modrnize its military. The United States was willing to assist to help improve the security situation for the vital oil industry. The United States signed a Lend Lease with Venezuela (March 1942). Total assistance totled only $4.5 million. Lend Lease assistance was generally limited to Latin American countries. U.S. officials were concerned about a possible Axis attack on Venezuela to disrupt oil production. Officls thought that if Venezuela openly joined the Allies that they would invite attack. Thus Venezuela only broke relations (December 1941), but did not dclare War until the last months of the War (February 1945), a which time Germny no longer had the capacity to attack Venezuela. During the War, German U-boats sank a few Venezuelan merchant ships. The first sinking occurred during the German U-boat attack on Aruba off the Venezuelan coast (February 1942). The attack was part of the German Operation Drumbeat primarily at the United States. Aruba was the location of important refineries.

U.S. Military Operations

Venezuela did not have the military capability of escoring its ships, especially the tankers which were a priority U-boat target. he country also had only limited avility to protct the coast. The United States ssisted Vnzyla in boh functions. After the German U-boat Opperation Drumbeat and attack on Aruba (February 1942), the United States Navy activated the Fourth Fleet. It was responsible for countering Grrman and Italian naval operations in the Caribbean and South Atlantic. The United States Army also deployed aircraft and personnel to help protect Venezuela's oil infrastructure. This was iportabt because the Venezuelan Air Force was so small. Venezuela granted American ships and planes access to the country's ports and airstrips as part of this effort.

Declaration of War

In the final year of the War the Governmrnt declared war on the Axis countries (February 15, 1945).

Coup

A civilian-military coup overthrew Medina Angarita and ushered in a 3-year period of democratic rule. It would take some time for democracy to take hold, but it was a beginning.

War Orphans

We note some some Austrian/German orphans being adopted after the War. We do not know how many. Here we see a boy from ustria (figure 1).

Sources

Leonard, Thomas M. and John F. Bratzel. <1>Latin America during World War II (Rowman & Littlefield: 2007).






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Created: 2:40 AM 2/16/2018
Last updated: 2:40 AM 2/16/2018