Castro & Gomez: Foreign Relations & Venezuelan Politics
Castro and Gómez: Relations with Foreign Companies
Comparing Governments and Foreign Relations
This analysis compares the governments of Cipriano Castro and Juan Vicente Gómez in Venezuela, focusing on their relationships with foreign companies.
During the Castro government (1899-1908), international relations were strained due to substantial debts owed to foreign countries and numerous claims by foreign companies. This situation led to intervention by foreign powers, notably Germany and England, who imposed a blockade on Venezuelan coasts and demanded immediate debt repayment. In contrast, during the Gómez era (1908-1935), these relationships improved significantly. Gómez prioritized fulfilling financial obligations, and by the time of his death, Venezuela’s foreign debts were fully resolved.
Foreign Companies and the Overthrow of Castro
Foreign companies played a significant role in Castro’s downfall. Castro faced fierce political opposition, both domestically and internationally. Key events include:
- The Liberating Revolution (1901-1903): Led by banker Manuel Antonio Matos, this revolution received financial backing from foreign companies.
- The blockade of the Venezuelan coast (December 1902 – February 1903): The navies of Great Britain, Germany, and Italy blockaded the coast due to unresolved debt claims.
These events clearly demonstrate the opposition of foreign companies to Castro’s government.
Foreign Business and the Gómez Dictatorship
Foreign businesses played a crucial role in strengthening Gómez’s dictatorship. Due to the favorable economic relations Gómez maintained with them, these companies readily provided support to maintain and solidify his power. They served as a kind of political and economic shield for the regime.
Gómez’s Policy Against Imperialism
Gómez’s policy towards imperialism was based on appeasement. He implemented very low import taxes, essentially charging almost nothing, and granted exceptionally long and broad concessions. This strategy aimed to secure the support and cooperation of major foreign powers, ensuring his continued rule.
Warlordism in the Castro and Gómez Governments
During Castro’s government: Castro, recognizing that his power could not depend on partnerships with regional warlords (caudillos), implemented strategies to weaken their power:
- He neutralized the political capacity of local leaders by changing political leaders from one area to another.
- He appointed a young general who had accompanied the Tachirenses in the revolution.
To support this, he focused on building a national armed force:
- In 1903, a new military code and a Navy code were introduced.
- The Military Academy of Venezuela was created.
- The army was equipped with modern weaponry.
During Gómez’s administration: Gómez relied on a strong military, superior to the forces of the warlords. He eliminated the warlords as a political force, maintained large estates, and secured the strong support of landowners.
The Last of the Civil Wars and Foreign Capital Influence
The blockade of the Venezuelan coast was a significant event, considered the last of the civil wars. Major foreign powers demanded immediate payment of their claims. When the government refused to acknowledge the claims and suspended debt payments, Germany and England blockaded the coast on December 9, 1902. Italy joined the blockade on December 12, and France, the Netherlands, Belgium, Spain, the United States, and Mexico also presented their claims alongside the aggressor countries.
This event clearly demonstrated the influence of foreign nations and the consequences of their intervention.
Foreign Interests in Preventing Opposition to Gómez
Foreign governments and companies had a vested interest in preventing any civil or military opposition to Gómez. Gómez’s policies, including minimal taxes and generous concessions, greatly benefited them financially. Any attempt to overthrow him would directly impact their interests, making it crucial for them to prevent such events.