frontpagemag.com By Thor L. Halvorssen The Washington Times | January 22, 2003 [An edited version of this article appears in today’s Washington Times]

With every passing day, life for Venezuelans becomes more dangerous. Since his election in 1998, President Hugo Chavez’s has presided over the most dramatic decline in the nation’s fortunes: Analysts predict that in the first quarter of 2003 the economy will contract by 40%; more than one million jobs have been lost; approximately 900,000 people have gone into voluntary exile (most of them middle-class professionals); unemployment is at a staggering 17%; Almost 70% of the country’s industries have gone bankrupt; 70% of Venezuelans live in a state of poverty (up from 60% when Chavez began his rule); and the income of more than 15% of Venezuelans has dropped below the poverty line. As Venezuelan historian Anibal Romero says, "President Chavez’s government, literally speaking, is the ‘government of the poor’."

Chavez’s policies have left the nation in shambles. Stratospheric levels of corruption, collectivist central planning, mismanagement, and incompetence during the greatest oil boom have squandered a historic opportunity to cultivate a stable middle class. But stability is hardly the goal of Lt. Col. Chavez, who uses the nation’s wealth to fund and supply weapons to the FARC and ELN drug trafficking guerrilla terrorists in Colombia and the ETA Basque terrorist organization in Spain. Chavez has cozy relationships with the strongmen in Cuba, Libya, Iran, and Iraq (Chavez has said that Saddam Hussein is his "brother" and "partner"), and earlier this month he was accused by his personal pilot of funneling $900,000 to Osama Bin Laden. Chavez has publicly described the U.S. military response to Bin Laden as "terrorism" claiming that he saw no difference between the invasion of Afghanistan and the September 11 terrorist attacks on the U.S.

Readers of the New York Times, the Washington Post, the Associated Press and viewers of CNN, are fed a dramatically different story. Most Americans are unaware of Chavez’s radicalism and affection for some of the world’s harshest dictators. There is an enormous divide between what the world is hearing about Venezuela and what is really happening there. Reporters have so controlled the flow of information and disfigured the truth that their coverage of Venezuela is a caricature of the "liberal media bias" conservative critics complain about. What we are seeing in media coverage of Venezuela is not liberal bias, but totalitarian bias. The press has shown little concern either for the fate of Venezuela or journalistic objectivity.

A recent example is Christopher Toothaker of the Associated Press. Toothaker has spent a considerable amount of time in Venezuela, he speaks Spanish, and he has access to government and opposition sources. In a January 4 report, he minimized the importance of the upcoming constitutional referendum, stating that the opposition presented "over 150,000 signatures" to election authorities calling for a vote on whether Chavez should resign. This is a dramatic and deliberate understatement. The Venezuelan Constitution, approved by Chavez himself, provides for a referendum if 10% of the electorate petitions in writing. The opposition presented 2 million 57 thousand signatures—some 15% of the voting rolls—a startling error that any fact-checker should catch. The smaller figure appears in dozens of other Associated Press reports, CBS, CNN and even in a story bylined by Ginger Thompson of the New York Times that was carried in the South Florida Sun-Sentinel .

Thompson is no fan of objectivity. On January 3 the opposition organized a march to protest Chavez. Hundreds of thousands of nonviolent demonstrators carried flags, posters and signs calling for a peaceful resolution. The protesters were ambushed by members of Chavez’s armed militia who dispersed the march with a hail of bullets and rocks. The Chavez police blithely watched the armed thugs shoot at the defenseless crowd. I was there. To our incredulity, we then saw the Chavez police supply the criminals with tear gas grenades. In her Times story Thompson characterizes the violence as a "clash" and a "street fight"—moral equivalency at its worst. American readers would never know it was an ambush.

The sympathies of Thompson’s colleague, Juan Forero, are revealed by Larry Birns, director of the Council for Hemispheric Affairs (ww.coha.org). In late December, Birns, a refreshingly sincere D.C. activist who acts as a Chavez cheerleader and apologist, told a Venezuelan government official the names of the four reporters he believed were most amicable to the Chavez government. This Times scribe made the top of his list: "He is committed to the revolution," Birns said of Forero. Reuters and the Associated Press were also praised for their "strong support" of Chavez.

The Washington Post’s reporting is just as cant-laden as the Times’s, and its editorial page is utterly one-sided. Eight days ago, Mark Weisbrot of the Center for Economic and Policy Research penned a column complaining that the Venezuelan and American media are biased against Chavez. He calls the Chavez government, responsible for dozens of political deaths, "one of the least repressive in Latin America." He should travel more.

Spotting errors in Weisbrot’s article on Venezuela, one might assume, is a matter as simple as reporting the truth. Weisbrot states that "no one has been arrested for political activities." This is nonsense. Some of these arrests are so public that Weisbrot cannot credibly claim ignorance. For instance, Carlos Alfonso Martinez, an outspoken political opponent of Chavez and one of the most respected officers in the armed forces, was arbitrarily arrested on December 30 by the secret police. The act caused public furor both because it was a further indication of government repression and also because Martinez was arrested without a warrant and remains under arrest even though a judge ordered his immediate release. How did this fact slip by the editors at the Post?

Weisbrot has the gall to call the Venezuelan media "shamelessly dishonest" and uses a demonstrably false example to prove his point. His assertion that the Venezuelan media is biased is repeated elsewhere in the American media. In light of this, Americans should know President Chavez has systematically persecuted and maligned the media and this has caused all privately-owned newspapers, radio, and television networks to take a position against his ferocious assault on freedom of the press. Chavez has instigated violent verbal and physical attacks against the owners, editors, and employees of the media. Buildings have been bombed, reporters have been injured and killed, and automobiles, cameras, and other media property have been destroyed by armed members of the Chavez militia. The International Broadcasting Association, Interamerican Press Society, and the Interamerican Commission for Human Rights of the Organization of American States have pleaded in vain with Chavez to protect freedom of the press. The homes of prominent journalists have been raided by the authorities and these journalists have been compelled to testify to the secret police. In Venezuela, there is no freedom of the press. Consider that Venezuelan reporters and camera crews refuse to go on the streets of Caracas without bulletproof vests – a "hostile work environment" few Americans can even imagine.

Weisbrot ends his Post column by saying that Chavez is Venezuela’s best hope for democracy and social and economic "betterment." And yet Weisbrot does not support the referendum that would let the voters declare whether Chavez rules with the consent of the governed. Chavez told voters in a television broadcast: "Don’t waste time…. Not even if we suppose that they hold that referendum and get 90% of the votes, I will not leave. Forget it. I will not go." Putting aside Chavez’s miserable track record on the economy, does this really sound like the best hope for democracy?

Meanwhile, many members of the U.S. government, business, and diplomatic communities make their decisions based on the "knowledge" they acquire from the media. Venezuelans are suffering unnecessarily because of the arrogance and favoritism of a handful of journalists. It is wicked. Yet what is worse is that, no matter what happens, the media will never be held accountable.

Thor Halvorssen is a human rights activist. He lives in Philadelphia.

www.washingtonpost.com Thursday, January 23, 2003; Page A18

THE AMERICAS High Court Suspends Chavez Referendum CARACAS, Venezuela -- Venezuela's Supreme Court yesterday suspended a nonbinding referendum planned for February on the rule of President Hugo Chavez, dealing a blow to opposition hopes to inflict a symbolic political defeat on the populist leader.

The decision inflamed tensions between Chavez and his foes in the eighth week of an opposition strike that has slashed oil output in the world's No. 5 oil exporter and pushed the faltering economy deeper into recession. Chavez's government suspended foreign exchange trading in a desperate bid to stem capital flight and a slide in the currency as the government struggled to counter the effects of the 52-day-old protest.

Electoral authorities had set the referendum for Feb. 2 after the opposition collected more than 2 million signatures to request it. It would have asked voters whether Chavez should resign, although the result would not have been legally binding.

Reuters

ASIA 4 Pakistani Officials Expelled From India NEW DELHI -- India ordered the expulsion of four Pakistani Embassy officials, another indication that despite pulling back from war footing, neither of the nuclear-armed rivals is ready for improved relations.

The officials were told to depart within 48 hours, according to a Foreign Ministry spokesman, Navtej Sarna. Sarna implied the four were spying, saying they "were found indulging in activities incompatible with their official status."

A spokesman for the Pakistani Foreign Ministry, Kamran Niaz, called India's move "unfortunate" but would not say whether Pakistan would make a reciprocal move.

The officials asked to leave the Pakistani Embassy were diplomats Mansoor Saeed Sheikh and Mian Muhammad Asif and staff members Muhammad Tasneem Khan and Sher Muhammad.

Associated Press

EUROPE American Briefly Flees Prison in Monaco MONACO -- An American imprisoned in Monaco for the arson death of billionaire banker Edmond Safra escaped from his cell but was recaptured hours later at a French Riviera hotel.

Ted Maher, a former Green Beret who had been Safra's nurse, and an Italian inmate sawed six bars from their cell window late Tuesday or early yesterday. They removed two steel grills before climbing down a 26-foot wall on a sash made of plastic bags.

Maher, 44, and Luigi Ciardecci stuffed their beds to fool guards, who noticed their absence at breakfast, prosecutor Daniel Ferdet said. Police caught Maher at a hotel in the southern French city of Nice, acting on "a clue from a Monaco witness," the prosecutor said without elaborating. Ciardecci was still at large.

Maher began serving a 10-year sentence last year after he admitted setting a fire on Dec. 3, 1999, that killed Safra, 67, the founder and principal stock owner of the Republic National Bank of New York.

The fire also killed one of Safra's other nurses, Vivian Torrente.

Associated Press

www.forbes.com Reuters, 01.23.03, 12:23 AM ET

JAKARTA, Jan 23 (Reuters) - Indonesia's Mines and Energy Minister Purnomo Yusgiantoro called on Thursday for OPEC to increase oil supply to try to bring down soaring world oil prices.

He said Indonesia, Asia's only member of the Organisation of the Petroleum Exporting Countries, wanted prices to return to within OPEC's target band of $22-$28 a barrel as measured by the cartel's basket of crudes.

"The price is above $30 a barrel and it is still high. We appeal to OPEC countries to lift production and to supply more to the market," Purnomo told reporters.

"As long as the price remains above the OPEC range, we will support an increase in supply from OPEC," he added.

On Wednesday, Saudi Arabia's ambassador to the United States said the kingdom, OPEC's biggest producer, was willing to seek an increase in the cartel's supply.

"Our government is ready to do more in the next two or three weeks if we see the price is not stabilising and going down below $28," Prince Bandar Bin Sultan told a meeting of the U.S. Conference of Mayors.

The price of OPEC's basket of seven crude oils fell to $30.90 a barrel on Tuesday from $31.21 on Monday, the OPEC news agency said on Wednesday.

Oil prices have surged on growing fears of war in Iraq, an OPEC member and the eighth biggest exporter in the world, at the same time that the oil industry in Venezuela -- a major supplier to the United States -- has been crippled by a general strike.

Benchmark NYMEX crude hit $35.20 a barrel on Tuesday, its highest price since November 2000.

Purnomo did not say whether Indonesia could increase its supply to the market but mines and energy officials have said the country does not have additional production capacity beyond current output levels.

Indonesia produced 1.05 million bpd of crude oil and 149,000 bpd of condensate in December.

At an emergency meeting in Vienna on January 12, OPEC agreed to increase production by 1.5 million barrels per day (bpd) to 24.5 million bpd, to help quell rising oil prices. The output increase is effective February 1.

Indonesia on Monday succumbed to pressure of nationwide protests and cut price hikes on some domestic oil products.

"We will defend current domestic oil products prices until the world crude oil price is stable," Purnomo said.

www.theage.com.au Thursday 23 January 2003, 16:05PM

Crippled by 52 days of strike, Venezuela braced for more turmoil as foreign currency trading was halted, a February referendum was suspended and supporters of embattled President Hugo Chavez planned a major demonstration.

The government suspended foreign currency trading for five days, but said repayment of public debt would continue. Once full operations resume, exchange rules will be set by the Central Bank and the Finance Ministry.

Traders said the move was motivated by a high demand for cash amid nervousness over the crisis and fears currency controls would be imposed.

The announcement coincided with a preliminary Supreme Court decision to call off a referendum the opposition planned to hold February 2 in a bid to force Chavez from office.

The leftist-populist president already had said he would ignore the outcome of such a poll, but has said he was open to proposals put forward by former US president Jimmy Carter that would pave the way for a recall referendum in August, or a constitutional amendment to shorten his term of office - which ends in 2006.

The National Electoral Commission said the court ruling merely "froze" the February 2 referendum but did not cancel it.

"We are shocked and indignant ... This demonstrates we are under an authoritarian government." said Antonio Ledezma, a spokesman for the opposition, made up of labour and employer's federations as well as largely conservative political parties.

The announcement heightened insecurity on the eve of a major Caracas demonstration by supporters of the beleaguered president, who planned to march through east Caracas, a stronghold of the opposition leading the strike aimed at forcing Chavez from office.

The city was rife with rumours of impending violence, and tension was particularly high at the Plaza Altamira, which has become emblematic of the opposition since insurgent officers set up camp there late last year.

Three people were gunned down at the eastern Caracas square during a December 6 opposition rally. Three more people have since died and dozens more were wounded, many by gunfire, in clashes between Chavez supporters and opposition protesters.

Opposition leaders chose not to stage any protests in Caracas, saying they wanted to avoid further bloodshed, but demonstrations were planned elsewhere in Venezuela.

They also showed determination to continue the strike, which has mainly affected the vital oil sector, slashing production and exports, and forcing motorists to wait in line for hours in the hope of getting a tankful of fuel.

Chavez accused the opposition of engaging "in an irrational effort to cause national chaos."

Meanwhile, top diplomats of the hastily formed "Friends of Venezuela" group - Brazil, Chile, the United States, Mexico, Spain and Portugal - were to meet behind closed doors Friday in Washington to seek a peaceful end to the crisis.

The State Department said Secretary of State Colin Powell would represent the United States at the meeting in the Organisation of American States headquarters.

www.zwire.com ASSOCIATED PRESS January 22, 2003

CELEBRATING: Supporters of President Hugo Chavez holding a copy of the national constitution celebrates the supreme court decision, outside of the National Electoral Council, CNE,in Caracas, Venezuela, Wednesday. (AP Photo) CARACAS, Venezuela (AP) - In a setback for opposition efforts to oust Hugo Chavez, the Supreme Court on Wednesday indefinitely postponed a nationwide referendum that would have asked Venezuelans whether the president should quit.

Coming just 11 days before the scheduled vote, the decision stunned the opposition the opposition that delivered 2 million signatures in November to demand the referendum and backed it up with a strike that has lasted 52 days. It was also to pay for the vote because Chavez's government refused to do so.

Amid fears of an economic collapse, the Central Bank on Wednesday suspended trading in foreign currencies to stop a run on the bolivar currency. The suspension means Venezuelans cannot buy foreign currencies for five business days. The government said it would continue to pay its foreign debts.

Opposition leaders reacted angrily to the court's decision, contending that Chavez's government was acting through the court to cling to power despite international pressure to find an electoral solution to end Venezuela's political crisis.

Government leaders rejected the claim, noting that the opposition has embraced past court decisions against Chavez, including a ruling clearing four high-ranking officers of rebellion charges in a brief April coup.

Justices ruled that no national vote, a referendum or election, can be held until it decides whether elections council member Leonardo Pizani, who helped organize the referendum, is eligible to serve on the panel.

Pizani had resigned from the council in 2000, only to rejoin last November. He insisted he could rejoin because Congress, by law, had failed to formally accept his resignation.

Pro-Chavez lawmakers filed suit arguing that Pizani's two-year absence from the council made his resignation legally binding.

"This goes beyond my appointment, this is about politics," Pizani said after the ruling.

Chavez opponents vowed to step up street protests, a stark contrast to hopes raised Tuesday by Nobel Peace Prize laureate Jimmy Carter, who presented both sides with electoral proposals to end the crisis.

"Today there is a dictatorship in Venezuela," said lawmaker Julio Borges, whose First Justice party led the petition drive in November calling for the referendum.

"The government doesn't care about the people's will," Borges said. "It only cares about staying in power."

Vice President Jose Vicente Rangel described the court decision as crucial. "I hope all sectors of the country will respect and adhere to it," he said.

Chavez was scheduled to address the nation late Wednesday.

The referendum wouldn't be binding, but opponents hoped that a poor showing would increase political pressure on Chavez to quit.

Chavez argued that Venezuela's constitution allows a binding referendum midway through his six-year term, or August. Opponents cited a constitutional clause that allows citizens to petition for referendums on "matters of national importance" at any time.

The strike has slashed oil production in the world's fifth-largest petroleum exporter by more than two-thirds, crippling an industry that provides half of government revenue and 70 percent of export revenue.

The decision to suspend trading in foreign currencies could strengthen the Venezuelan bolivar by limiting the amount of dollars that individuals and banks can buy. But they could also hurt businesses that depend on dollars to pay for imported goods. Venezuela's economy is highly dependent on imports, about 50 percent of food is imported.

Finance Minister Tobias Nobrega said he would announce a new foreign exchange policy next week, leading to speculation that the government would impose exchange controls.

Carter proposed two plans in Caracas on Tuesday.

The first calls for an end to the strike in exchange for a government pledge to amend Venezuela's constitution to shorten presidential and legislative terms of office and allow early elections.

The second plan calls for both sides to prepare for a binding referendum on Chavez's rule in August.

Diplomats from Brazil, Chile, Mexico, Portugal, Spain and the United States were to meet at the Organization of American States in Washington on Friday to discuss Carter's proposals. The six countries, called the "Friends of Venezuela," are trying to strengthen mediation efforts by OAS Secretary General Cesar Gaviria.

Chavez was elected in 1998 and re-elected in 2000 on promises to help the country's poor majority, but he has failed to remedy the nation's economic ills.

Opponents blame Chavez's leftist policies for an estimated 8 percent economic contraction in 2002. Chavez blames it on opposition attempts to destabilize the country.